Key performance indicators: what are credit unions measuring and why?

Abstract

The purpose of this report is, first, to identify the key performance indicators (KPIs) reported by credit unions and secondly, to gain an understanding of why and how KPIs are chosen. The report examines the various influences on selection of KPIs. These influences include the seven principles of cooperatives, strategic planning, industry benchmarks, regulation and users. It is important to conduct this study since performance in many organizations, including credit unions (CUs) is driven by their KPIs. Furthermore, stakeholders are able to discern from the KPIs reported, the focus of the organization, major initiatives and degree of success in meeting objectives. This study adds to the body of literature on CU reporting since there is a paucity of research focused on an analysis of KPI selection and reporting. This research is based on 19 CUs in Canada. This paper presents the initial findings from the study, which is intended for a practitioner audience. The next phase of the research will include a literature review and an examination of underlying theoretical models to explain the findings.