"How Healthy Are We, Really?"

In our work with credit union leaders, this is the most fundamental question. The response is almost always a 400-page board pack filled with data points, but no clear answer.

We are drowning in financial ratios and historical charts, yet we cannot answer the one question that matters most. This is the central failure of the traditional "Static Scorecard." It's a compliance document, not a strategic tool, and it fails in four critical ways:

1. The "Rear-View Mirror" Trap: The board pack is 100% historical. It tells you what happened last quarter, trapping the board in the role of historian and only allowing you to see a crisis after you've already hit it.
2. The "Context Vacuum": Data without context is noise. A 1.0% ROA is a meaningless number in a vacuum. The static report fails to answer the most basic strategic question: "Compared to what?".
3. "Data Overload" Paralysis: When presented with 30 disconnected ratios, the human brain cannot see the holistic picture of health. Meetings get bogged down in the weeds of one or two metrics, leading to analysis paralysis.
4. The "False Sense of Security": A strong capital ratio can mask underlying weaknesses in earnings or asset quality. The static model fails to show how these components interact, giving leaders a dangerously incomplete view of their risk profile.

Our Solution: The Living Scorecard

We replace this fragmented, historical, and context-free model with the Living Scorecard—a proactive system designed to synthesize dozens of metrics into one clear, contextual signal.

The engine behind this transformation is our proprietary CU HealthScore.

Its purpose is singular: to synthesize the 17 most critical metrics of institutional performance into one clear, contextual, and defensible score from 1 to 10.

A Holistic, 5-Pillar Framework

The HealthScore is not a single metric; it's a multi-dimensional model. It prevents the "false sense of security" by balancing 17 key components across the five critical areas of the institution:

• Capital Adequacy
• Earnings
• Asset Quality
• Liquidity & Funding
• Member Engagement & Growth

A strong capital ratio can no longer hide a failing earnings engine. The HealthScore forces a holistic view, identifying weakness before it creates a systemic crisis.

Instant, Defensible Context

The 1-10 score is not an arbitrary grade. It is a percentile ranking against more than 20 years of industry-wide data.

• A score of 5 represents the 50th percentile, or the historical industry median.
• A score of 10 signifies performance in the top 10%.

This simple scale immediately and unarguably answers the question, "Compared to what?". The debate over whether a 0.90% ROA is "good" or "bad" is over.

A Validated Early-Warning System

This isn't just our opinion; it's proven, predictive science. A formal, independent analysis of the model against 20 years of data and all credit union failures confirmed:

• "Excellent" Predictive Power: The model's ability to distinguish between at-risk and healthy institutions achieved an Area Under the Curve (AUC) of 0.88.
• A Tangible Risk Metric: For each one-point increase in a credit union's HealthScore, the odds of it failing are reduced by approximately 65%.

From "What" to "Why"... And "What's Next?"

Our performance consulting doesn't end with a score; that's where it begins. The CU HealthScore is the most powerful diagnostic in the industry, but it's the integration of that diagnostic into your strategy that creates real value.

Our expert-led analysis bridges the gap from data to decision-making.

1. Diagnosis: Establish Your Baseline

First, we use the CU HealthScore to provide a single, holistic, and validated measure of your institutional health. We move you from "data fog" to diagnostic clarity, ending the debates over which numbers to trust.

2. Triage: Identify Your True Priorities

We deconstruct the 1-10 score to pinpoint your exact vulnerabilities and strengths. We identify which of your "Health Metrics" (like capital, earnings, or liquidity) are stable and which are at-risk and require immediate strategic attention.

3. Integration: The Diagnostic-to-Strategy Bridge

We use our findings to directly inform your strategic plan (OKRs). If your health is at-risk, your strategy must focus on "fixing the engine." If your health is strong, your strategy has the green light to be bold.

We ensure your foundational "Health Metrics" are protected, giving you the confidence to pursue your aspirational "Performance Metrics."

Your Diagnostic Command Center

The Living Scorecard is powered by the CU 360 Platform, which allows you and your board to:

1. Analyze Your Trajectory: Instantly plot your HealthScore over time, benchmarked against your true, asset-based Peer Group and the entire industry.
2. Conduct Root-Cause Analysis: Deconstruct the 1-10 holistic score into its 17 Component Scores. This allows you to pinpoint the exact driver of your performance, moving from a vague "We need to improve" to a surgical, "Our problem is a declining Net Interest Margin and a spike in 90-day delinquency."

What You Will Achieve

Partnering with Glatt Consulting for your performance analysis will deliver:

• An Objective, Holistic Measure of your credit union's true health.
• A Reliable Early-Warning System to identify negative trends before they become a crisis.
• True, Like-for-Like Context by benchmarking against your asset-based peers.
• Surgical, Root-Cause Diagnostics that pinpoint the exact drivers of your performance.
• More Productive, Strategic Board Conversations focused on insight, not just data.
• The Clarity and Confidence to make faster, data-driven decisions.

If this topic resonates with your credit union's challenges, schedule a private consultation to discuss how our strategic frameworks can help.