There are certain actions that are within your control as leaders and managers of community banks that will allow you to substantially add to your net income in 2011. Over the next few days we will be sharing a few of the processes that if implemented will bring you both short as well as long term success. All of these tips will cost very little and will only require discipline from management and leadership,
No cost actions:
- Terminate all “moody” employees. Moody means often in a bad mood. This may be noticed by internal or external customers. Regardless, having a professional attitude at work is non-negotiable and should be dealt with swiftly. Also, evaluate if you need to replace this employee after termination. Often, “moody” employees are a net loss to the team and simply removing them with increase efficiency.
- Hold weekly net DDA meetings. Each Tuesday morning between 8 and 10am you should publicly display net DDA figures on a monthly and annual basis. Each branch, commercial lender and business development officer should be tracked weekly. The meeting should last no longer than 15 minutes and can be held via video or conference call. The latest results should be sent to all attendees by 5pm on Monday. Make sure you allow the person or branch with the most growth to “tell their story,” Net DDA growth is a lending indicator of relationship building. As a general rule, any established branch that isn’t growing at least 5% in net checking per year is not being properly managed. Any business development or commercial lender that cannot deliver a minimum of 50 net DDA’s per year is not building relationships or networking. So far this year, we have many well managed branches growing 15% and more. Effective business and commercial officers are bringing in well over 100 new DDA’s.
Tomorrow we will discuss low cost actions that will increase your ROA.
