ON LEADERSHIP

Facing New Realities in the Financial Services Industry

By Joe Sullivan

A chilly, damp Sunday morning in October found me with about 40,000 other men and women participating in the 26.2 mile Chicago Marathon.  This was my fifth marathon so I knew what to train for and I knew what to expect; but I also knew that each race was different and offered new opportunities and challenges. 

As you might imagine, there are countless thoughts filling your mind during a run of that length – my pace, the next water stop, the cramp in my leg, my personal best.  But along this year’s course my thoughts were interrupted by a spectator at various points along the course who was yelling “Just get it done!  You’ve committed, just get it done!”  And while his message had clear meaning for so many of us that were running; his unsolicited encouragement also prompted me to think about the topic of leadership.

“Why leadership?” you ask.  It is really rather simple.  Leadership is the capacity to create a compelling vision and translate it into action.  And within the financial services industry, top management teams may talk a lot about growth, profitability and competition – but they often fail to flex their leadership muscles and translate the talk into meaningful action.  They need someone on the sidelines reminding them to “Just get it done!”

The concept of dynamic leadership is not new.  In fact, the role of leadership in business is indisputable – but leadership is not a topic most financial institutions fully understand or adequately address.  We have been talking with many of our clients about leadership for quite some time now; and slowly the industry is beginning to face some harsh realities.  The rules of the game have changed.  Long gone are the days of order takers; fat margins; control of the payment system; competitors that are asleep at the wheel; and one person filling the role of leader.  The new paradigm demands that successful institutions employ a culture of leadership.

Market Insights’ Leadership Discovery Program was created to shift the industry’s thinking about this topic.  I have been observing financial institutions, large and small – urban and rural, for nearly 20 years and my greatest frustration has been watching organizations struggle due to inaction attributable to the lack of a vital leadership culture.

So, what do I mean by “leadership culture”?  First let me say that a leadership culture is one where every individual behaves as a leader and works with others as leaders, regardless of job title or position.  Culture drives performance.  And successful financial institutions are those where each person is encouraged to be responsible, accountable, creative, and self-directed in the pursuit of the organization’s strategic goals.

Leaders, of course, are defined by many different characteristics and traits; however, I believe that there are five qualities that must be exercised and encouraged for an organization to transform itself.  These qualities are: Vision, Passion, Communication, Connection and Support. 

There is so much I could say about those five qualities, but, rather than discuss them in this article, I would rather offer you three basic points about leadership that occurred to me as I reflected on “Just get it done!”:

1. Confront the Leadership Deficit.

There is a leadership deficit in the financial services industry in this country. This is not necessarily about the lack of leaders in terms of headcount; but more about a deficit of thinkers with the perspective needed to drive a culture of leadership.   Without focus on developing leadership thought and action, today’s financial institutions will not come close to achieving the sustainable, long term growth and innovation necessary to survive.  Some say that leaders are born, not created.  I disagree.  Leaders may exist in every area of your organization, and you simply need to help these people tap into their own innate leadership characteristics.  Everyone can demonstrate those five key leadership traits.

2.  Stop Playing it Safe.

Too many organizations choose to play it safe.  They “cut deals with themselves” by saying things like “we can’t afford to hire that dynamic lender – he/she wants too much money and earnings would suffer”.  Or, they hire a marketing director who won’t make an impact or challenge the status quo.  Eleanor Roosevelt once said: “Do one thing each day that scares you.”  That one thing might be admitting that you don’t know how to communicate your vision; or openly disclosing a goal you set, and not knowing if you will be able to achieve it.  What moves you outside of your comfort zone may be what it takes to transform your institution.  What scares you? – apply this to your decision making process, and stop playing it safe.

3.  Don’t Worry About Being Cutting Edge – Just Do Something!

Leadership doesn’t always mean being “cutting edge” – it simply involves committing to a vision and taking the action required to “get it done”.  It is just like running a marathon – you begin with your first step.  Life, and business, is about making declarations. The first step in moving an idea to reality is making the declaration, and making it out loud.  Make your declarations out loud to your colleagues, your community, your family and/or your friends – let them know what you intend to do, when you will do it and ask for support to help make it reality.  It really is simple.

Ready to begin?

Market Insights’ Leadership Discovery Program provides a structure and process for consciously thinking about and integrating the five traits of leadership in participants’ daily lives.  It gives individuals a chance to assess their own leadership characteristics and focus a little attention on “building leadership muscle”.  We are all busy and can get bogged down with the routine of our day-to-day activities.  Like life in general, our work life can be so full of daily routines and must-do tasks that we have little time to focus on what amounts to personal growth.  But what is an organization but a group of individuals – and collectively those individuals make up the source of an organization’s sustained competitive advantage. 

There is a window of opportunity for leaders to emerge and to change the face of financial services for the better.  Across the country within this industry, there are presidents, tellers, board members and employees at every level of the organization who have begun the race to redefining leadership.  They recognize that achieving success is much more like a marathon than a sprint…their markets are changing, the demographics are shifting and the traditional ways of doing business aren’t working and that a new approach is warranted.   They are stepping into leadership.  They are answering the call to “just get it done”.  Are you ready to join them?