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Where Do We Go From Here? Culture in Banking 2016, Next Steps and What is Coming.TODAY’S ROUGH AND TUMBLE WORLD OF BANKING!
The IssuesReduced Branch Traffic◦ Branch Traffic down by 75%◦ Currently only less than 10% of our customers◦ In 3 – 5 it will be years less than 5%
Increased Regulatory Burden◦ More regulations in the last 7 years than the previous 20 years combined.
Struggling Economy
Ever increasing competition for the same clients
Downward pressure on earnings
The IssuesMergers and Acquisitions
Decreasing Employee Loyalty◦ 2011 Careerbuilder.com study – 76% looking for or would readily accept another
job.◦ 20% of employees are disengaged.◦ 52% fully engaged
“Under 35” motivated differently
“If we are to be better in the future we must disturb the present.”CATHERINE BOOTH – FOUNDER OF THE SALVATION ARMY
Why focus on culture?Gallup conducted a comparative study in 2014, concluding that companies with highly engaged teams outperformed their peers in the following areas:o147% higher earnings per shareo41% fewer quality defectso48% fewer safety incidentso65% less turnover (low-turnover organizations)o37% less absenteeism
What is “Culture”?In total to include:◦Attitudes◦ Customs◦Distinguishes one group of people from another.
How we define it:◦Mission◦Vision◦Values◦Deeds
Future Trends TECHNOLOGY
Branch Automation◦ Fewer tellers◦ More fluid functionality◦ Consumer - Internet based banker
interactions◦ Paperless loans etc…◦ Continued expansion of mobile banking◦ Much smaller more comfortable
branches
CUSTOMERS
Relationships◦ One bank > 31%◦ Three or more banks < 32%◦ Multiple relationships on the rise
Under 35 shop online before they buy◦ Willing to walk away based on 1st
impression
Social Media◦ Twitter◦ Facebook◦ Instagram
OpportunitiesRedefine positions and roles in branches – upgrade, consolidate, reposition◦ Teller◦ CSR◦ Lenders◦ Managers
Redefine Support Team Role◦ Ease of access◦ Increased automation◦ Increase support while reducing risk
OpportunitiesBig Banks are abandoning markets and customer segments◦ Consumer Lending◦ Small Business◦ Rural Markets
Reduced costs of automation for bank and customer products
Creative reward opportunities
Expand markets at reduced cost
Where do we start?Building your culture is not a “program”.Time for a reality Check. Understand who you are? ◦ Get feedback from customers◦ What do you do well?◦ What can you do to get even better?◦ Who are our customers?◦ Niche?
◦ Get feedback from team?◦ Anonymous employee surveys on management◦ Self assessment of management
Get a handle on who you are:◦ Define your culture◦ Mission◦ Vision◦ Values◦ Deed
◦ Culture is a non‐negotiable◦ Have an offsite with all of the management team◦ Feed them well◦ Have fun!
◦ Have a series of team meetings to begin the imbedding process.
◦ Define specifically what is unacceptable.◦ Stick to it!
Next StepsREDEFINE SUCCESS
Be careful what you recognize you will get it.◦ Leadership vs Management◦ How vs No◦ Accuracy vs Errors◦ Proactive vs Reactive◦ Positive vs Negative◦ Production vs Regulation◦ Constructive vs Criticize
DEFINE A LEADERSHIP PROCESS
Identify 5 Key Actions of Leadership◦ Train them◦ Coach them◦ Positive accountability◦ Inspect what you expect◦ Non‐negotiable
Define in word and deed◦ Plan to act◦ Act as planned
Next Steps ‐ ContinuedDEFINE INTERNAL SERVICE STANDARDS
What
When
How
How often
How quickly
Switch gears to proactive
Become problem solvers
DEFINE EXTERNAL PROACTIVE OUT REACH
Clients◦ Current◦ New◦ Prospective
Community◦ Civic Stewardship
◦ Time◦ Talent◦ Money
Next Steps ADDRESS PAY SCALE
Louisiana Living Wage Statistics: (Range based variances in market.)
Adult: $10.03 – $11.04 per hour
Adult w/2 children: $22.68 – $24.68 per hour
2 Adults w/2 children: $22.18 – $24.06 per hour
AND FUNCTIONAL ROLES
Start combining jobs◦ Tellers/CSR’s/Loan Processors◦ Increase pay rate and save money – 2 for 1◦ Loan Support Multifunctional Roles◦ Deposit Support Multi‐functional roles
Address Hiring Practices
Must Do’sMEASURE IT
Identify Milestones◦ Measure them publically◦ Celebrate achievement
Identify Company KPI’s◦ Identify how each position contributes◦ Wrap a reward system around KPI’s◦ Identify individual KPI’s◦ Public Praise
Be careful what you track you will get it.
MONITOR IT
Inspect what you expect◦ Senior management must get back in the trenches.
◦ Attend department/branch meetings◦ Get out on calls◦ Ask – Show me questions
Be a coach◦ Teach◦ Set up a mentor system for up and comers
"Progress is impossible without change, and those who cannot change their minds cannot change anything."GEORGE BERNARD SHAW
More Must Do’sCREATE A REWARD SYSTEM
Formal Rewards◦ Incent productivity above goal◦ Financial reward for high performance◦ Time◦ Performance based bonuses
Informal Rewards◦ Handwritten notes◦ Gift cards for dinner◦ Tchotchkes◦ Feed the team
HIRE WISELY
Think out of the box◦ Look for entrepreneurs
Get managers actively involved◦ Recruiting new team members◦ Behavior based interviews
Identify willingness and ability
Final Must Do’s BE WILLING TO
Terminate destructive employees◦ Bullies◦ Vulgarity◦ Stand Still’s◦ Disrespectful
Have tough conversations with non‐performers
Change things up◦ If it is not working it needs to change
Build Bridges
BE WILLING TO
Spend money on◦ Training◦ Pay◦ Bonuses◦ Technology◦ Uniforms (If it fits your culture.)◦ Fun
Change your management structure◦ Times are changing – flat is better◦ Everybody is a producer
Get a handle on the negativity surrounding “Compliance” (How vs No)◦ Newbies don’t know “The good ole days.”
Most of all – HAVE FUN!FORMAL FUN!
Organized Activities◦ Team building◦ Special Dress‐up days
◦ Sports◦ Holidays
◦ Contests◦ Production based◦ Team Based◦ Customer Service Based◦ WOW Walls
INFORMAL FUN!
Feed me Fridays◦ Customers◦ Employees
Surprise visits by executive management◦ Mission Money◦ Give a gift just because◦ Anniversary visits and gifts
Good News Friday
Welcome Mondays