Credit unions don’t have a data problem. But, they may have a meaning problem.
We measure everything—ROA, efficiency ratio, net worth, loan growth, deposit growth, membership growth. Dashboards are full. Board packets are thick. Yet many executives still struggle to answer one simple question:
Are we increasing member value?
That question sits at the uncomfortable intersection between customer value metrics and member value metrics. And while they sound similar, confusing the two is one of the most common strategic blind spots I see across the industry.
Customer Value vs. Member Value: Not the Same Thing
Customer value metrics are transactional and comparative. They answer questions like:
- How profitable is this relationship?
- How many products do they use?
- How long do they stay?
- How expensive are they to serve?
These metrics matter. They keep the lights on. They help you price risk, manage capacity, and allocate resources.
Member value metrics, however, are relational and directional. They answer different questions:
- Are members better off because of us?
- Are we solving more meaningful problems over time?
- Are we earning a larger role in their financial lives; not through pressure, but through trust?
Credit unions often assume these two move together. Sometimes they do. Often, they don’t.
A member can be “profitable” and poorly served.
A member can be deeply loyal and temporarily unprofitable.
The art—and the strategy—is knowing the difference.
A Kaizen Lens: Small Improvements, Relentless Focus
This is where kaizen quietly earns its place in executive strategy.
Kaizen isn’t about massive transformation announcements or five-year moonshots. It’s about disciplined, continuous improvement, especially in how value is created, measured, and experienced.
Applied to value metrics, kaizen asks:
- Are our metrics improving the right behaviors?
- Are frontline teams empowered to influence what we measure?
- Are small gains in member clarity, confidence, and capability compounding over time?
Too many credit unions chase “big” metrics—membership growth, loan growth—without paying attention to the small, leading indicators that drive them:
- Checking account primacy
- Digital engagement depth
- Advice acceptance rates
- Time-to-resolution for member issues
- Product migration aligned with life stages
Kaizen shifts the focus from growth at all costs to better value, delivered consistently.
Hansei: The Discipline That Needs Attention
If kaizen is improvement, hansei is reflection; and it’s the part to work on.
Hansei requires honest self-assessment:
- Which metrics are we proud of, but shouldn’t be?
- Where are we hitting targets while missing the point?
- Which members are we unintentionally training to be transactional?
This isn’t about self-criticism. It’s about strategic humility.
One CEO recently told me, “We’ve hit our growth targets for three years straight, and I’m not sure we’re any more relevant.”
That’s hansei talking. And it’s powerful.
A 10XCU™ Example: Measuring Value Without Gaming the System
In the 10XCU™ Balanced Scorecard, we deliberately separate performance metrics from value metrics.
Here’s a simplified example I’ve implemented with multiple high-performing credit unions:
Instead of relying solely on products-per-member, we track:
- Primary Relationship Penetration (members using the credit union as their financial hub)
- Advice Velocity (how often members accept guidance that improves their financial position)
- Household Progress Index (movement across savings, credit, protection, and digital engagement over time)
These metrics don’t just reward growth; they reward progress.
One $400MM credit union discovered something surprising: Members with fewer products but higher advice engagement delivered stronger long-term value than high-product, low-engagement members. That insight reshaped branch conversations, digital prompts, and incentive design without adding complexity or cost.
The Executive Challenge
If your metrics only tell you how big you are, you may be flying blind.
If your metrics help you understand:
- Who you’re helping most
- Where value is compounding
- Where relevance is eroding
Now, you’re leading.
Customer value metrics keep you competitive. Member value metrics keep you distinct. The next era of credit union leadership belongs to executives who can hold both—who embrace kaizen in execution, hansei in reflection, and courage in redefining what success actually means. And that’s where the real advantage and difference begins.
Jeff Rendel, Certified Speaking Professional and Principal of Rising Above Enterprises, is a leading strategic advisor to credit unions, working closely with CEOs and Boards to drive sustainable growth, relevance, and long-term member value. As the founder of the 10XCU™ Systems, Jeff helps high-performing credit unions move beyond traditional metrics to focus on the strategies, behaviors, and decisions that create real advantage. He is a nationally recognized speaker, consultant, and trusted thought partner across the industry. Learn more: jeffrendel.com; jeff@jeffrendel.com; 951.310.7275.