AFFINITY PLUS (A): 1. Evaluate Affinity’s MOE framework. In your view, is this system likely to be effective in delivering value to customers? If so, how? If not, why?
Member, Organization, Employee MOE is a decision making filter used by A.P. in handling members’ loans when they get into financial trouble. This new approach has moved the strategy of the Credit Union from collecting payments (until 2002, performance was measured according to financials) to building relationships based on trust with the members. The stakeholders team at Affinity Plus has pushed the concept of members-first deeply throughout the organization, empowering employees to put member-owners’ interests ahead of either the organization’s interests or their own interests: what is best for customer is best for all.
The system is very effective in delivering value to customers. CU is embarking on creating solutions for its members who are delinquent and financially troubled, instead of focusing on collecting payments by calling early or even sometimes aggressively. From the standpoint of CU, those members are solely in ill-health financially at the time of borrowing and their situation will recuperate in due course once they find a solution to help its member. At the end, customer will benefit from settling his delinquency by the help of his trusted CU. 2. In your view, is MOE likely to be effective in creating value for Affinity Plus? If so, what are the specific ways in which you expect MOE to lead value creation in the organization?
An organization that puts the customer at the center of its attention is very likely to create value for itself. At A.P., the member/customer approach will in turn will bring them increased market share and membership rates (120,000 members end 2003). People started to close accounts at competitor branches and moved to A.P. after Affinity’s