Cooperative Clout Matrix.
How much clout do we have?
Member Value Added AxisThe vertical axis is Member Value Added. It looks at performance through the eyes of the member to determine how effectively the management team is deploying entrusted resources, and how member-friendly shares and loans are priced.
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Operating Muscle AxisThe horizontal axis is Operating Muscle. It looks at performance through the eyes of the analyst to determine financial strength. This is important because traditional “return/value” measures fail to address productivity, asset quality, and capital adequacy.
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Cooperative Clout Quadrants
Top Quadrant: Credit unions with greater than peer Member Value Added and Operating Muscle are displayed in the upper-right quadrant. Credit unions in this quadrant have a competitive advantage; they are successfully delivering a value proposition to members while operating from a position of financial strength.
Value Quadrant: Credit unions with greater than peer Member Value Added but lower than peer Operating Muscle are displayed in the upper-left quadrant. Credit unions in this quadrant are delivering a value proposition to members but may lack the financial strength to keep pace with the rate of market growth (thus losing market share) and may find it difficult to invest in operations (technology, people, product, etc.) to maintain market relevance.
Muscle Quadrant: Credit unions with greater than peer Operating Muscle but lower than peer Member Value Added are displayed in the bottom-right quadrant. Credit unions in this quadrant are operating from a position of financial strength but may able to do more to fulfill their cooperative mission of creating value for members.
Constrained Quadrant: Credit unions with lower than peer Member Value Added and Operating Muscle are displayed in the bottom-left quadrant. Credit unions in this quadrant may be here for good reason -- serving a field membership with little growth potential, serving high transaction volume, low balance and/or high credit loss segments, etc. Regardless, the ever increasing costs associated with compensation & benefits, compliance, security, technology and market relevance are real. This quadrant must be focused and resourceful in order to prosper.
Value Quadrant: Credit unions with greater than peer Member Value Added but lower than peer Operating Muscle are displayed in the upper-left quadrant. Credit unions in this quadrant are delivering a value proposition to members but may lack the financial strength to keep pace with the rate of market growth (thus losing market share) and may find it difficult to invest in operations (technology, people, product, etc.) to maintain market relevance.
Muscle Quadrant: Credit unions with greater than peer Operating Muscle but lower than peer Member Value Added are displayed in the bottom-right quadrant. Credit unions in this quadrant are operating from a position of financial strength but may able to do more to fulfill their cooperative mission of creating value for members.
Constrained Quadrant: Credit unions with lower than peer Member Value Added and Operating Muscle are displayed in the bottom-left quadrant. Credit unions in this quadrant may be here for good reason -- serving a field membership with little growth potential, serving high transaction volume, low balance and/or high credit loss segments, etc. Regardless, the ever increasing costs associated with compensation & benefits, compliance, security, technology and market relevance are real. This quadrant must be focused and resourceful in order to prosper.
Cooperative Clout Quadrant Strategies
If your objective is to improve Cooperative Clout, there are some general strategies you can employ based upon which quadrant you currently reside. Use the links below to view each.