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4 Practices of Thriving Leaders

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4 minute read – Thriving leaders embrace the fact that they are in the people business, first and foremost.   

They realize and appreciate that – regardless of the external forces they face, how advanced technology becomes, and whether they are poised for rapid growth or preparing for recession – they still need to prioritize accelerating the talent development in their organizations.  Here are 4 practices of thriving leaders: 

1. They actually have a talent strategy. Think of it as a Strategic People Plan, that gets rigorous intention and attention from the C-Suite.  This is not the same thing as the traditional training programs often seen in organizations.  It takes an intermediate and long-term view of the characteristics and knowledge that will be needed in a role.  This view is creative and reimagines what could be, instead of “Frankensteining” traditional roles and responsibilities.  

2. They require people to think.  For example, they are very selective when they tell a direct report exactly what to do and how to do it.  Rather, they create the habit of having their team members provide options for consideration along with their recommendation.   

Ideally, team members provide three disparate options with their rationale, not simply iterations of one option.  This approach is vital for high-impact decisions.    

The practice of having team members think through various options, and ultimately making a recommendation, helps leaders free up their time to think more strategically.  It also provides a wealth of information with respect to how their team members are thinking, enabling leaders to hone in on opportunities to accelerate growth by closing potential gaps. 

3.  They learn to trust using a common language.  Working diligently to help their team be clearer on decision-making responsibility and authority helps leaders gain trust over time and be more confident in what they can let go.  

This opens up their brain power and energy for them to be able to think at a higher level, so they can identify more opportunities to expand customer value and be more proactive at facing external forces.   

For example, a common language that works well includes identifying levels of decision-making: 

  • Level 1:  A decision that a person makes and does not need to tell their leader about 
  • Level 2:  A decision that a person makes on their own and tells the leader about, along with an explanation as to why the decision was made 
  • Level 3:  A decision that cannot be made without input from the leader 

Knowing the difference between the levels of decisions comes from practicing and learning with each other to understand those decisions.   

The process is not static.   

As more trust is gained, the leader and the direct report will become more confident in the level of decisions that can be made without input from the leader.  Over time, the quantity of Level 3 decisions is dramatically reduced.  

4. They avoid the “too few” syndrome, which stunts growth.  What do we mean too few?  There are many “too fews” that can damage culture, which stunts growth.  Here are just a few: 

  • When something big needs deep and critical thinking, launching, or solving, and the same few names come up to lead the charge, then you have too few. 
  • When you have many individuals that feel comfortable in silos, must always be right, or must be the star of the show, then you have too few people who know how to be part of a productive and cohesive team.  The power of a productive team is almost always exponentially higher than any one individual – even if the individual is a superstar in their specific role. 
  • When you spend most of your day buried in operations and firefighting, then you have too few hours to think and act strategically. 

Even if you implement just one of these practices, you will begin to increase your own stamina and enjoyment, which is much needed as leaders continue to thrive and embrace, head-on, the opportunities and challenges that evolve in what feels like every minute of every day.  

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4 Proven Tips to Create FOMO Around ALCO Meetings

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4 minute read – The following blog post was written by c. myers and originally published by CUES on November 7, 2022.

Asset/Liability Committee meetings are an opportunity to create compelling collaborations that are interesting, relevant, and result in better member value and better asset/liability management – AND you get to check the compliance box.  If you’re not experiencing the first part of that sentence, it might mean you are thinking too much about where things have been rather than where things could potentially be – which is the fun part.

It’s important to understand where things stand, especially in relation to policy limits.  Once that is established, moving away from reporting the numbers and using them as a springboard for anticipating what the future could look like is where it gets interesting.  But it’s not just about making it interesting, it’s about engaging people from different areas, whether they’re “numbers people” or not, so they can contribute in meaningful ways.  The numbers tell a story.  Here are some things to consider as you tell that story:

 

1.       Every financial person started out as a non-financial person:

  • ALCO meetings are an opportunity to include more voices in financial discussions.  Financial discussions and member value are inextricably linked, so bringing non-financial people along in their comprehension of financial concepts and how they connect to the organization enhances the ALCO’s effectiveness.
  • The involvement of people not in the numbers every day can create observations not yet discovered.  Encouraging participants to push their thinking beyond their comfort zone will foster learning and bring new ideas to light.

2.       Re-imagine the meeting:

  • Define the objectives for each meeting.  Go beyond creating an agenda and articulate what the ALCO members should walk away with, such as awareness of a trend, specific decisions, robust conversations around a particular opportunity or risk, or good old- fashioned strategic thinking without the pressure of having to make a decision.
  • Determine how the meeting time will be divided, including how much will be devoted to decision making, education, emerging trends, strategic thinking, etc.

3.       Get to the point:

  • There is no need to read every number.  Dashboards can help quickly cover the overall current state so you can move on to meaningful conversations about trends, events, and situations that need attention.
  • Use business intelligence to add depth to discussions.  For example, if deposits are slowing, are there decreases in high-balance accounts, low-balance accounts, or slower member growth?
  • Focus on what the future may hold.  For instance, as payments behaviors continue to shift due to technologies and high inflation, what trends is your membership showing and what could happen if it continues?
  • Include relevant what-ifs to beef up the discussions.  Changes in payments and deposit behaviors, interest rate changes, and recessions can often be anticipated months before they show up in the numbers.
  • Plan for the critical discussions that must be had.  Encourage people to get out of their own lanes and participate.  The ALCO’s decisions span the organization, and every member should be connecting those decisions to their impact in other parts of the business.

4.       Bring in multiple perspectives for balance:

  • The ALCO’s purpose – bringing value to the membership consistently over time – needs to be top-of-mind.
  • Consider both opportunities and risks when making decisions.  Decisions to control risk or capitalize on opportunities rarely exist without trade-offs.
  • Alignment with strategy is key.  Connect the ALCO’s discussions and decisions to strategy.

ALCO isn’t just about the numbers themselves.  The numbers are a reflection of everything the institution has been working toward.  Loan balances, for example, are the culmination of the efforts of a vast array of employees, from Marketing to IT, and beyond.  If the numbers are a boiled-down version of all of the employees’ efforts, combined with the environment, ALCO’s job is to take those numbers and layer on future possibilities in order to make insightful, informed decisions so the institution can thrive.  When you think of it that way, who would want to miss out?

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Road Trip to Sustainable Leadership

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3 minute read – When the going gets tough, the tough get going, but the tough might also be getting tired.  Knowing that the world isn’t slowing down any time soon, it is essential that you are taking actions to ensure that you can sustain your leadership team and your financial institution through the next set of challenges on the continuous road to success.

Like any good road trip, the path to sustainable leadership requires strategic planning, a well-matched group of people, and snacks, of course.  There are a few key elements to keep in mind in order to map out the optimal path.  Consider the following questions as you evaluate how well your leadership team has been setting themselves up for sustainable success:

  • You are the Chief Mood Officers, setting the tone of the ride for your organization. Are you excited for the challenges ahead?  Or are you dreading the potential potholes along the way?  How each of you shows up helps determine how well you are able to overcome unexpected roadblocks.  Consider what ground rules you have established to hold each other accountable.  Inevitably, the perpetual motion wears on everyone in the car – do you have a plan for rectifying a foul mood?
  • You have your hands on the wheel, aiming towards your destination.   Are you clear on where you want to go?  How do you prioritize where your attention lands?  Are you allowing yourselves to get distracted by the billboards along the way?  Or caught up in the bickering in the backseat?  Being able to prioritize the high impact items will lead you towards your destination.
  • Even the most talented drivers need a breather from behind the wheel.  Knowing the strengths and weaknesses of each person on your road trip can facilitate the best journey;  That also means knowing when you need to share responsibilities.  How are you delegating to those around you?  Be wary of dangerous signals such as, “It’s easier if I do it myself” or “I’ll just figure it out.”  Make sure you have built a leadership team that trusts each other behind the wheel.  Similarly, don’t be afraid to listen to each other.  Strive to cultivate a team who can give fresh insight and is willing to call out a wrong turn.
  • Consider the pressure points in your institution.  Who seems to be depended upon the most?  While it can be tempting to ask IT for a six-lane expressway in this digital world, explore what a two-lane highway might allow you to do with less dependency on IT.  Bigger is not always better if you are strained for resources.  Consider how you can fine-tune or modify elements of the financial institution you have already developed;  You don’t have to buy a brand-new car because the gas tank is empty.
  • Lastly, make sure you celebrate successes.  Remember, you are the Chief Mood Officers, and a road trip should be fun.  Allowing moments to celebrate what has gone well and soaking in the sights along the way, will help you sustain yourselves for the long haul.

There is no one path to success since the future is full of unknowns, but an exhausted driver is not a sustainable driver.  Taking steps to ensure you’re set up for longevity not only means being ready to go the distance, but the ride might be more enjoyable, too.

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Bringing Younger Customers Into Your Organization

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4 minute read – The following blog post was written by c. myers and originally published by CUES on September 19, 2022.

Targeting younger customers is so common that you could say it’s ubiquitous, but the reasons why are often fuzzy.  Gaining traction with this group in a way that benefits both younger people and the institution requires more than good marketing and growth in the desired age group.  It requires well-articulated reasons for why they are being targeted, along with a clear definition of success.  Knowing what the institution hopes to accomplish makes it more measurable and provides guidance for how to home in on success.

A common reason for targeting younger customers is because the customer base is aging, and younger people are needed to fill the pipeline for the future.  Simply bringing in a lot of new younger customers clearly won’t help the institution if they’re mostly inactive, so dig deeper with some questions to help define success:

  • How young are we targeting?
  • What business do we expect from this group?
  • When do we expect this group to start being active or profitable?

What does the data say?

Are those young folks really filling the pipeline?  Use your data to answer relevant questions that challenge underlying assumptions.  For people who became customers at your targeted ages 5 or 10 years ago:

  • What percentage are still customers?
  • What percentage are active customers?
  • What products and services are the active customers using?

Even if the data doesn’t show the trends you want, it doesn’t necessarily mean abandoning the idea of targeting younger people.  It could change how you strive to keep them engaged until they need other products and services.  Industry data shows that the highest lending balances are held by people in their 40s.  Looking back at when those customers started with you and what their paths have been can also be enlightening.  The same can be done for those who hold deposits, mortgages, or other products and services you desire.

3 Key Questions

If you feel like there’s room for improvement in engaging younger people, consider these key questions:

Do you have a good understanding of what their lives are like?  The financial lives of younger people carry certain challenges associated with their age.  Common challenges include credit scores that are lower on average, more student debt than previous generations, and starter salaries.  Many fear they will never be able to own a home.

Here are a few data points to illustrate:

Do you want to target the typical young person or are you actually looking for a younger person with the credit profile of an older person?

Some say that young people aren’t loyal, but many haven’t been given a reason to be loyal.  Helping people accomplish their goals, especially when others won’t, is a golden opportunity.  All of this should be connected to your appetite for risk.

Do your products and services meet their needs, and do they resonate?

View your products and services through the lens of their lives.  Asking questions to learn from  younger people can be helpful and it doesn’t have to be a big project.

Consider what changes you could make.  How can you clearly illuminate a path for home ownership or getting debt under control?  Even the names of products and services make a difference.  How well does the purpose or label of share drafts resonate?  How long will it be before no one knows what a checking account is?  As an example, non-traditional competitor PayPal doesn’t talk about a “payment account.”  They lead with, “Shop. Send. Manage.”

Do they know you’re meeting their needs?

Step back and inventory how you are silently supporting their way of life, even if they don’t know it.  If you have first-time car and home buying programs, pay available before payday, buy now pay later, credit building, and other programs that hit the mark, make sure they know about it.

Bringing value to the lives of younger people is the foundation for filling the pipeline for the future.  Having a clear understanding of your definition of success and monitoring to see how you are delivering value over time can help gauge progress and guide you forward.

Adding younger customers and helping them develop good financial habits can be a great way to set the customers and the financial institution up for longer-term success.  If good relationships with the younger customers are developed over time, their use of the institution’s services over time is likely to increase.  There is a greater chance that they will have both higher incomes and a greater need for a broad array of financial services.

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c. myers live – Liquidity Pressures: 3 Questions to Discuss with Your Team

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As many institutions are having an increasing amount of discussion about liquidity, it is important to ask 3 questions:  Do we have a solvency or survival issue?  Is the liquidity pressure you’re facing because of major loan demand?  Are our KPIs unintentionally causing liquidity pressures?  In this c. myers live we dig deeper into the importance of these questions, and the effect that the answers may have on your institution. 

About the Hosts:

Sally Myers

sally myers headshotSally is a founder of c. myers corporation and one of five owners. Driven by a deep commitment to helping financial industry leaders and regulators for more than two decades, her guidance has shaped c. myers’ focus on helping clients create opportunities and approach problem solving from a scalable perspective. She has also been a strategic force behind the development of c. myers’ financial models.

Learn more about Sally

Rob Johnson

Rob, one of five c. myers owners, has a reputation for deep, original thinking on asset/liability management and every conceivable modeling methodology, as well as analysis of investments, liquidity, aggregate risk, concentration risk, and other related topics. While Rob is a familiar face to the managements and boards of many of the largest financial institutions, he has helped organizations of all sizes tackle some of their toughest challenges, such as rebuilding capital and navigating safely and soundly with the smallest of margins. He has become quite familiar to many leaders in the regulatory world, both as an educator and a thought leader.

Learn more about Rob

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