Many credit unions are starting to see returns on their data and analytics initiatives while improving the decision-making process across the organization. But despite some standout success stories, I still witness far too many failing data initiatives. Begging the question…why do so many data analytics initiatives fail?
Consider these roadblocks to success, and how your credit union can avoid them!
1. Too big of an initial scope.
Very large goals have a downside. They can set us up for failure if we set too lofty of an initial scope to achieve, or if we don’t break the focus down and work towards each goal systematically. Start with a clear idea of exactly what you want to do with the data from a business perspective that will drive value and growth. Some common initial use cases include: attract new members, improve member onboarding, improve member engagement, reduce member attrition, core deposit growth, risk analytics and process improvement.
Analytics initiatives can quickly grow out of control since discovering value from data prompts wanting more data. Pick an initial goal and scale your efforts and focus around a refined list of clear objectives.
2. Heavy reliance on the software solution:
Industry data warehouse products and other off-the shelf solutions shouldn’t be viewed as the silver bullet that will magically solve all data issues.
For successful initiatives, data analytics needs to become a business-driven, not an IT-driven, journey. In many credit unions, the teams reviewing the technology and its capabilities may not be the same team using and deploying the technology. This leads to implementation, training, and process challenges later in the deployment process.
Technology is not the solution to business problems. Process, ownership, accountability and a defined strategy are the solution. Decisions around your analytics initiative should revolve around business goals and objectives rather than a technology or software solution.
3. Lack of internal talent:
Credit Union leaders know that if you want strategic execution, you need the right people and teams. To avoid this fixable problem, create a roadmap that gradually builds the skills, talent, and responsibilities that the credit union will need now and in the future. But before staffing up, you need to take a step back and look at what you want to do with your data, and then assign key roles and responsibilities for data collection, management, and analytics.
As the credit union grows and looks to remain competitive, there’s an obvious need to hire the right data talent who are skilled in analytics, who can interpret data, and make recommendations that offer tangible business value. In a previous article I broke down the responsibilities of data talent and key roles including: Chief Data Officer, Data Scientist, Data Analyst, ETL Developer more. Create a team that strikes the perfect balance between business and technology with the right blend of strategic thought and a tactical mindset.
4. Absence of executive support.
While data analytics has gone mainstream, the C-suite and senior leadership needs to drive the cultural changes that will empower utilization of analytics. Successful analytics initiatives require a shift in how the executive management embraces data. There are many steps you can take to foster a sustainable data-driven culture– one credit union employees will adopt and self-reinforce along the way. Becoming data-driven means that leadership should place data at the heart of the credit union.
Executive management should consistently foster the idea that the insights and opportunities born from the data can improve everything from operations and marketing to risk exposure and member loyalty. What gets measured gets done, and this can only be reinforced from the top down.
If your credit union has hit some obstacles along your analytics journey, it’s best to partner with experts who can develop a strategy and a roadmap. The Knowlton Group specializes in helping credit unions navigate through the analytics journey.
Let’s transform your organization into a data-driven credit union. If you are ready to become data-driven, send us an email or give us a call at 860-593-7842.