Think it. Say it. Believe it… But Implement It?
For the past 20 years we’ve heard community bankers tell us, “What you’re saying is pretty basic”. What is it that we are telling them? We’re telling them to implement an incentive plan based on cross-sells, not activity. We’re telling them to implement a reason to call program. We’re telling them to implement a deposit acquisition and loan acquisition strategy. We’re telling them to implement remarkable customer service standards. We’re telling them to implement non-negotiables such as requiring employees to come to work in a professional mood or to not gossip. What we’re telling these bankers is certainly basic and nothing new or earth shattering. However, what gets them every single time is that one key word… Implement. Anyone can talk about it or say it, but it’s entirely different to actually implement something. This is where most community banks fall short. Here are just three areas where we hear great talk, see some action, but see very little implementation.
More employee training
There is lot of very good training and resources available to community banks. It could be an outside group doing the training, it could be an online source from you local bankers association or an in-house trainer. Here’s one of the problems. Great training doesn’t necessarily equal measurable results. You can conduct phone training, product training, or sales training, but just because someone attends a training session doesn’t mean anything is changing or will be implemented. First off, if you think you can train a support employee, who has no talent or desire to sell anything, or even how to sell, then Crazy Town is calling. If training and seminars, by themselves, worked we would have community banks full of superstar sales people. Being trained on how to do something the correct way doesn’t mean it will be done correctly. Effective training requires disciplined tracking of results, coaching based on the results, and accountability to the results. In other words, implementation.
Blue sky meetings
We’ve all been in those three-hour blue sky meetings where everyone has the latest and greatest idea that will put the bank in a dominant position in the market. Don’t get us wrong. We love hearing great ideas and discussing them. Many innovations have come from blue sky meetings. However, for most people the great ideas end at the close of the meeting. It seems that everyone likes to recommend a new idea and talk about what should be done, but very few actually want to do the work of implementation. An idea without implementation is nothing more than wasted space in the head of a dreamer. Remember, talk isn’t cheap. A blue sky meeting with no implementation is actually quite expensive in time wasted.
The next silver bullet
Some community bankers have a philosophy they believe in and will keep the bank focused on a path to implement that philosophy. Most, however, seem to be somewhat lost in their core philosophy and will try to find that proverbial silver bullet that will solve all of their profitability issues. We get it, the regulatory environment has put a squeeze on profits and many bankers are on the brink. But wherever you are, don’t fall for the latest and greatest pitch from some sales guy, touting a never seen before, proven to work, mail campaign that will solve the issues. Maybe it’s a new cold-calling strategy that’s guaranteed to turn a meek, bean counter into a well oiled sales machine. And one of the best yet is a fancy CRM system that will tell your employees which customers have what products, when to talk to the customer and how to sell the product every time! Unfortunately, some bank executives actually believe their employees will use the cumbersome system. Don’t be fooled. Any community bank that understands the market will know that the only way they can be profitable and win in the face of the big banks is to implement a philosophy of relationship banking. Almost all claim they have it, but when it comes down to it, very few actually implement it.
How do you implement it?
First, have a clearly written strategic plan that fits your philosophy. A community bank’s philosophy should be centered around remarkable customer service and advocacy. It’s the only way you can compete and win. Once the philosophy is laid out, you can then focus on a few things to get started.
- Setting clear non-negotiables – once established they must be maintained and protected. It’s the foundation of your culture.
- Eliminate the excuses – ensure that employees have what they need to perform their jobs and compete in the market. This doesn’t mean having the highest deposit rate and lowest loan rate.
- Track results based on leading indicators – keep score to know what is working and what is not. Also, compare your score to the competition at least monthly.
- Coach behavior – coach and develop employees based on the tracked results and who they are. You can’t turn an offensive lineman into a quarterback.
- Have courage – place people in the right position. One of the worst things that can be done to an employee and your bank is to keep an employee in a job she has no talent for.
- Reward success – pay cash (salary and/or incentive) and recognize the success publicly and privately. Never pay an order-taker the same as a top producer.
This should give any community bank enough information to get started on the implementation track. If you want to get on the fast track, give us a call. We’re implementers, it’s what we do. Regardless of your approach moving forward, if you don’t go all the way from A to Z with implementation, it’s not worth anything. Taking just a few steps into the process will gain your bank nothing towards implementation and will cost the bank everything in terms of its credibility and its position in your market.
