“Bank failures are caused by depositors who don’t deposit enough money to cover losses due to mismanagement.”
Most financial institutions are in at least the third or fourth phase of developing a sales and service culture. Phases one and two program development (sometimes more than one) entailed building leadership, program design, product review, creation of training programs, and initial roll-out. Subsequent phases included final roll-out, front-line training, front-line re-training, program adjustments, review and adjustments of plan rules, maturing of reporting, and other actions that serve to mature and focus programs.
Then, for everyone lucky enough to have gone through mergers, management overhauls, restructuring, and other major corporate changes, it might all have happened again. Double the fun.
However we look at efforts to date, as we enter 2013, it’s fair to say that many in our Gonzo community have moved the sales/service culture past talk and into action. As part of that journey, bankers have talked and thought a lot about the elements of a successful sales/service culture. However, as we look at 2013 planning and budgeting in the next six to 12 weeks, it may be time to consider one aspect of the culture that may not be as far along as one might think – compensation.To be fair, compensation plans evolve and grow as all of the other phases are put into place. They’re not started by handing out lots of loot. Bankers have to see how they will adjust goals/plan focus. They have to learn what works and doesn’t with recurring or one-time bonus plans. And, especially at the “C” level, it will be important see the results before committing to budget increases in times where reducing costs is a parallel but equally impactful company initiative.
That said, managers have told their employees, “Show us the behavior.” Fair enough, but they get to say, “Show me the money”, si?
The Gonzo team has literally spent hundreds of days with bank employees who are tasked with execution of the organization’s sales/service culture. These folks are committed to the culture shift. They recognize that the bank cannot succeed without it. In many cases, they also need to see the compensation/payment side of the program get tighter and more in line with the expectations set.
So, as senior managers look at compensation plans for sales/service employees, here are six things the Cornerstone team thinks could help, based on practices we have seen with clients.
There is an old saying that I’ll clean up for a high-class publication like GonzoBanker: “Money talks and Baloney walks.” It may be time to conduct a review of those important incentive dollars and make sure there is adequate focus on employee impact, reward of high performers, attention to profitable customers, and getting ready for the world of multi-channel sales and delivery.
Let’s get our money to talk.
This according to the findings of The Cornerstone Report: Benchmarks & Best Practices for Mid-Size Banks, for which Cornerstone Advisors surveyed 62 banks on their staffing and process benchmarks, technology utilization and deployment practices. (The 25th and 75th percentile numbers are 54 and 162, respectively.)
Cornerstone Advisors can help your institution benchmark its performance in over 250 key metrics across 17 bank areas.
Our goal is to help your institution increase productivity and revenue and decrease expenses. It’s that simple.
Contact us to learn more.