Make “Silo” Thinking a Thing of the Past: A/LM Education and Decision Filters
One of the challenges of running a successful credit union, and any business for that matter, is “silo” thinking in which talent is focused solely on individual areas and has lost sight of the bigger picture. Making decisions in isolation can be detrimental to the overall success of an institution. However, effective A/LM education and strategic decision filters can help make “silo” thinking a thing of the past.
Consider that asset/liability management covers the entire scope of the credit union business model—from lending to investing to deposit relationships, fee strategies, operational expenses and efficiencies. In other words: everything that affects the credit union’s bottom line. Understanding the relationship and synergies between each of these areas can help your talent make better, more well-rounded decisions that benefit the entire organization—not just their own “silo.” Providing a fundamental understanding of A/LM concepts can be the key to growing your talent base and, in the end, your organization.
Sharing the credit union’s strategic plan can also help get all management and staff moving together in the right direction. Furthermore, we strongly encourage credit unions to create “decision filters” based on strategic direction. These filters can be used by management (and in some cases, even staff) to help ensure that decisions are strategically aligned with the credit union’s vision—giving decision makers a strategic tool to allow them to consistently look beyond their “silo” under management.
For more on silo risk management, please read our c. notes article, titled Silo Risk Management Needs To Stop.
