A balanced scorecard a decade in the making

One of Pennsylvania’s largest credit unions ties organizational performance to financial incentive while keeping members’ needs top of mind.

It was 10 years ago when Merck Sharp & Dohme FCU ($802.0M, Chalfont, PA) contracted a strategic planner to facilitate its annual planning session. The planner helped the board and executives at the Keystone State cooperative identify an operational strategy for the years ahead; starting with its key objectives and mission to better serve members, the credit union then set more narrowly focused goals.

Rather than leaving those goals in a file to be revisited only during quarterly board meetings, the credit union built out a balanced scorecard which allows its senior leaders and the entire organization to track its progress toward those goals.

“The scorecard is the way we measure if we’re obtaining our goals,” says Dana DeFilippis, Merck Sharp & Dohme’s CEO.

The scorecard tracks a number of metrics important to the credit union’s organizational focus: membership growth, net income, ROA, asset growth, owned-assets ratio, capital ratio, bill payer penetration, home banking penetration, products per household, member survey response rate, and mystery shop levels.


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