/by

Actionable Feedback is Critical in Developing Leaders

,

3 minute read – High-performing organizations need high-performing people, and people need feedback to fully develop into high performers.

In our work with financial institutions, we have found that leaders are often unaware of how they are coming across to people and the impact they have on their team.  Even if they are aware of a disconnect between their intentions and people’s reactions, they may be hard-pressed to tell you why.  Addressing these disconnects is crucial for building better leaders, but this can only happen when they are made aware of the things they don’t see, and this requires honest and actionable feedback. 

People consistently tell us that they would rather receive feedback than give it.  Many are not only open to feedback, but they’re starved for it.  Organizations need more people giving feedback in a productive way, but this is an area that can cause great discomfort and actually goes against the culture in some cases.   

Many people have an almost instinctive fear of conflict and are extremely uncomfortable treading where an observation might be viewed as a personal attack.  While it’s true that feedback should be delivered carefully, giving too little feedback deprives the organization of better leaders and greater bench strength. 

As an example, a CIO might be surprised to learn that other leaders feel like the CIO uses a lot of jargon to confuse and stop people from asking questions.  A CFO might be shocked to hear that several board members mentally check out every time the CFO talks because they can’t follow all the ratios that fast.  Neither leader may intend these perceptions and outcomes – they may both be superb strategic thinkers who are experts in their areas.   

With some intentional skill-building and practice in concise, pertinent, and compelling storytelling, they might become great communicators, but they cannot address the issues until they are made aware.   

No one can improve their performance if they are unaware of their weaknesses.  Organizations that strive to be high-performing often prioritize skills development.  One skill that deserves some focus is giving and receiving honest and actionable feedback.  But beyond the skill, practice may be even more important.   

Practice is what makes it possible to help both givers and receivers become more comfortable so the feedback can be used effectively.  As with so many organizational practices, it needs to be modeled from the top to set the tone and demonstrate the desired behaviors.  The bottom line is that high-performing organizations need high-performing people, and people need feedback to fully develop into high performers. 

/by

We Stand With Ukraine – A Letter From Our CEO

,

This week, we want to honor the bravery of the citizens of Ukraine.  It is with great sadness and anger that we witness from afar their world being turned upside down in just a few days.  Different than the pandemic, this tragedy is a choice by people to inflict suffering and death on innocent people.

Our c. myers family has many ties to Ukraine and its people including spouses, parents, grandparents, friends, and teammates.  This deep connection started almost two decades ago when I had the privilege of living in Ukraine while serving in the Peace Corps, where I met my wife, Olya.  Ukraine is a special place, and Ukrainians are special people.  If you have never experienced sitting at a Ukrainian table for a meal, walking the streets of Kyiv, taking in the beauty of the land – I can assure you, it’s memorable.

To hear stories of these people literally fighting for their lives and freedom is, at the same time, heartbreaking and inspiring.  As uncertain as the future is, if there is one thing I’ve learned, it is to never underestimate the heart and determination of Ukrainians.

The people of Ukraine are uniting for their cause – to be free.  We at c. myers stand united and active in their cause.  We would encourage you to look for opportunities to support them – both with your voice and contributions.

Adam Johnson

CEO c. myers corporation

/by

Market Forces Have Raised the Stakes for ODP – Things to Consider

, , ,

4 minute read – Competitive pressure on Overdraft Protection (ODP) has become immense.  What started as an incoming tide in mid-2021, has turned into a tsunami of pressure at the start of 2022 as more financial institutions are creating market pressure by completely revamping their position with respect to these types of fees.

The growing stress on this revenue stream comes on top of more general earnings pressure many are anticipating they will feel this year.

Given this, leadership teams need to move more quickly than they hoped, while also being intentional in their positioning, decision-making, and communication on ODP and Non-Sufficient Funds (NSF).  Below are just a few questions to consider as your teams grapple with this.

  • What is the current purpose of your fees?  For example, are your fees intended to provide a valuable service, change behavior, or a blend of both?  Could you defend your fees if someone from the press called your CEO and started asking tough questions or if you got unfairly hammered on social media?  This kind of pressure is already being seen on ODP in particular.  Keep in mind that the consumer may not really understand the nuances of some of these new programs being announced, so perception matters.
  • What if you built these programs from scratch?  Ask your team to envision how you could structure your programs if you built them from scratch.  Try not to judge why they are using them and note any biases and assumptions being brought into the conversation.  Dig deep into your data to gain a better understanding of the “whys” and “hows” of your customers’ usage.  Many teams are surprised by what they are learning as they delve into their data.  But don’t stop there.  Ask your team to imagine why and how this usage could change as they look to the future.
  • What is the value proposition?  The hyper-focus on ODP and NSF is now a high-stakes game, making it critical to clearly articulate your programs value proposition.  Whether you keep your programs the same or redesign them, it can be valuable to create a mock press release about it.  This process can help the team reach consensus on the true value proposition.  If you and your team are not excited about the value proposition, continue to push because the market forces and related PR don’t appear to be going away anytime soon.
  • What do we need to do now to make up for lost revenue?  If you ultimately decide to redesign your programs and it materially reduces revenue, ask your team to identify and prioritize options and timing for replacing the lost revenue.  Make sure to use your ALM model to run various scenarios under a range of economic outlooks.  Keep key stakeholders in the loop.  Timely communication of new positioning, programs, and potential financial outcomes is a huge key to success.

This issue, especially in conjunction with other pressures, may feel overwhelming at times.  Keep in mind that on the other side of problems are opportunities.  The point at which you address a problem is directly related to the number of viable options you have to solve it.

 

/by

c. myers live – 3 Ways CEOs Can Create More Time to Think

,

With the growing complexity of the financial industry and the world around it, CEOs are looking for more time in their day to think strategically. In this c. myers live, we will discuss 3 ways CEOs can create more time to think and make decisions.

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

Dan Myers

Dan MyersSince joining c. myers, Dan has worked with scores of credit unions helping them to develop quick and efficient processes, as well as organize and manage portfolios of projects to maintain relevancy, keep costs down, and create more rewarding member and employee experiences. Credit unions that have benefited from Dan’s expertise have ranged from $90 million to over $5 billion in assets.

Learn more about Dan

Other ways to listen to c. myers live:

listen on spotify listen on apple podcasts

/by

Think Deeper About Cryptocurrency

, , ,

6 minute read – “70% of American adults would consider buying (or buying more) cryptocurrency if they could store it in their primary bank account.” – research from The Ascent, May 2021 

Has cryptocurrency grown beyond its reputation as a vehicle for financing nefarious activities?  The 70% statistic implies broad consumer acceptance and a willingness to tie their cryptocurrency to a financial institution.  At the same time, a number of community and regional banks and credit unions have already announced their intention to be in the crypto space, as have well-known vendors. 

Cryptocurrency deserves extra thought because it’s different and it’s evolving fast.  We see it in the headlines every day.  The thinking exercise included in this blog is a good way to get started because it can help stakeholders to directionally determine whether these are areas they’re even interested in from a strategic standpoint and, if they are, identify possible next steps.   

When thinking about cryptocurrency, it’s easy to get sidetracked by potential technical hurdles, regulatory roadblocks, and the belief that this may be a fad.  Set those aside for the moment.  Start by imagining meaningful ways to serve your customers that fit the institution’s business model.  The technical capabilities are being developed and many regulatory questions are already under review.  Consider this excerpt from a November 2021 joint statement from a group of federal regulatory agencies: 

Throughout 2022, the agencies plan to provide greater clarity on whether certain activities related to crypto-assets conducted by banking organizations are legally permissible, and expectations for safety and soundness, consumer protection, and compliance with existing laws and regulations related to: 

  • Crypto-asset safekeeping and traditional custody services. 
  • Ancillary custody services. 
  • Facilitation of customer purchases and sales of crypto-assets. 
  • Loans collateralized by crypto-assets. 
  • Issuance and distribution of stablecoins. 
  • Activities involving the holding of crypto-assets on balance sheet. 

The following thinking exercise is not intended to result in a decision on strategic positioning with respect to crypto.  It is intended to foster deeper thinking. Note that the “what could go wrong” questions are last.  This is done by design to encourage more open thinking prior to considering the risks.   

The scenario:  70% of consumers are interested in using cryptocurrency through their financial institution.  This group is not avoiding government oversight and trusts their institution to ensure their cryptocurrency activities are safe and legitimate. 

Consider some of these reasons consumers are drawn to cryptocurrency.  Start by picking one or coming up with one of your own.  Then think through it by asking the questions that follow: 

  • Investing almost effortlessly for potentially big returns 
  • Gaining experience with and satisfying curiosity about cryptocurrency 
  • Buying cryptocurrency as an inflation hedge 
  • Buying merchandise and services with cryptocurrency 
  • Getting a fast, easy loan with no credit check using cryptocurrency as collateral  
  • Earning interest on cryptocurrency through a savings account 
  • Earning interest by lending to others who borrow against their own cryptocurrency 
  • Avoiding fees for check cashing, prepaid debit cards, and other services commonly used by unbanked and underbanked people 
  • Sending fast, low-fee remittances to relatives in foreign countries while also avoiding volatile local currencies (although cryptocurrencies that are not tied to the dollar have their own volatility) 

You may wish to do some focused research on a few of the reasons listed above, if they are unfamiliar.  For example, if you’re considering earning interest on cryptocurrency through a savings account, you might do some narrow research to understand how crypto savings accounts work.  You could put a time limit on the research to help keep it focused.   

Then ask strategic questions.  Use your imagination and have a working agreement with your team that the thinking is not limited to what is possible today. 

  • What products and services could we offer to help these consumers? 
  • What value proposition could we offer through these products and services? 
    • Think about why someone would come to you for this product or service instead of someone else
  • Are these consumers in our target market?
    • One thing that could provide some insight is combing your data to see how many of your customers are currently investing in cryptocurrency
  • What are some of the opportunities for our institution? 
  • How do these new products or services help our institution live its mission, vision, and deliver on its value proposition? 
  • What would need to happen before we would implement? 
  • What makes us nervous and what could go wrong?  
  • How could we mitigate the risks? 
  • What other strategic opportunities could we pursue if we don’t make crypto a strategic initiative?

Again, the above outlines just a few questions to get started.  Since the cryptocurrency arena is evolving incredibly rapidly, it is important to take time to think strategically about the role your institution wants to play, if any.  The best way to learn about something so complex is to just get started and take one bite at a time.   

Devoting thought to cryptocurrency sooner rather than later is beneficial because it can take some time and effort to bring everyone up to speed and, more importantly, it seems it is rapidly moving into the mainstream.