Getting Your Bankers to be Warriors Instead of Soldiers
In every organization, soldiers, are those who dutifully and faithfully carry out orders and implement strategic initiatives. We see this in the armed forces, the corporate world, and in governmental bodies, the backbone of any institution lies in these diligent contributors. Banks are no different.
It's important to note that the aim here is not to undermine the role of soldiers or diminish their importance and value, but that an organization is on the path to greatness when it can cultivate warriors out of its soldiers. Warriors are individuals who contribute not only to their personal achievements but can demonstrate leadership, fueling the growth of their colleagues, and help drive the organization's success.
One of the distinguishing characteristics between a soldier and a warrior is their self-perception. A soldier views their role as a job or career, whereas a warrior embodies their role as one of their life missions—evident through their actions. This passionate, focused, and determined behavior is what drives greatness within individuals and, collectively, within organizations.
How does an organization turn its soldiers into warriors? Embrace entrepreneurship. A warrior is an entrepreneurial soldier who lives, eats, and breathes their professional role much like entrepreneurs who seamlessly integrate their personal and professional persona.
Historically, banking has been a bureaucratic institution, often overlooking the merits of entrepreneurship and could be described as having “entrepreneur-phobia”. Recently there has been a positive shift in how banks and bankers nurture and reward the entrepreneurial spirit. In my view, some of the most successful and highly respected bankers would owe their success to their entrepreneurial vision and actions. Included in this exclusive club would be such industry notables as Philadelphia’s Jimmy Lynch, Chicago’s John McKinnon, and Boston’s Joe Campanelli.
How can an organization transform a bureaucratic soldier into an entrepreneurial warrior? Unfortunately, this transformation is not feasible unless there is a spark of entrepreneurship in the individual that already exists within their psyche and soul. If such a spark exists, it can be nurtured to flourish.
Here are some suggestions for nurturing the warriors of your organization:
1. Encourage risk-taking.
This is a tough one. Banking centers on assessing, avoiding, and lessening risk, making risk-taking seem contradictory for bankers. The crux lies in differentiating credit risk and the risk associated with innovation and change. Encouraging innovative changes does not mean disregarding underwriting guidelines- these are separate arenas. Recognizing and rewarding innovation ensures its integration within the organization.
2. Compensation.
Speaking of recognition and reward, nothing creates and develops entrepreneurship faster than a compensation plan that truly rewards performance. Key to this process is the Core Performance Module which includes:
Establishing goals that are measurable and realistically achievable goals.
Measuring performance against those goals.
Rewarding performance in a meaningful and prompt. For context, I’d recommend a minimum of 30% of base pay (more for sales roles), dispensed no less than quarterly.
Some may argue that not all bank roles fit this approach, but I believe most can. Performance metrics can be adapted to the individual, department, or company objectives as feasible.
3. Empowerment
Giving your employees power can create instant entrepreneurship. Bureaucratic behavior often stems from treating staff as incapable of decisions which dampens morale and frustrates customers.
Many banks empower frontline staff to waive fees and credit accounts within wise and discretionary limits. This type of trust in people fosters employee confidence, bolstering their performance and generating positive customer experiences, ultimately culminating in client-lasting satisfaction.
4. Inclusion.
Encouraging discussions on operational matters and issues, particularly with staff in lower positions, creates a sense of value and engagement. Often, these employees have deeper insights into the problems and challenges your organization faces and can be in a better position to suggest a solution than anyone else.
Recognizing and rewarding proactive suggestions for operational enhancements, akin to the "Suggestion Box" concept, fuels entrepreneurial thinking.
While these principles apply broadly, they hold the greatest potential for creating warriors amongst those who engage with customers, particularly in sales and relationship management. Banks have always been slow to embrace change, evident in the prolonged lack of adoption of operational innovations like remote deposit capture, despite its many advantages.
Adapting the organizational culture might be the real challenge in such a change-resistant environment as a bank, but the rarity of successful transformations offers a competitive edge. Your future, just like a soldier's own destiny to a warrior, lies in your organizational hands.
