Aligning Mission, Culture & Internal Branding Aligning Mission, - PowerPoint PPT Presentation

Aligning Mission, Culture & Internal Branding

Aligning Mission, Culture & Internal Branding 2019 CDBA Peer Forum & Membership Meeting 2

Southern Bancorp Integrated Structure & Strategy Integrated Structure & Strategy SBI – Vision and Strategy • Capital • Southern Communications Bancorp, Inc. • Governance & Metrics Southern SBCP – Financial Southern Bancorp Bancorp Bank Community Development Partners • Loans & Credit Enhancement • Financial Education • SBB – Banking Services Research & Advocacy • Loans • Deposits • Targeted Investment Portfolio 3

Southern Bancorp’s Culture Journey Challenges: Margin vs. Mission SBI SBB SBCP $ g Margin Mission 4

Southern Bancorp’s Culture Journey Challenges: M & A Integration And m nd more…. 5

Southern Bancorp’s Culture Journey Challenges: Consolidation of Non-Profits Seed Capital Fund Arkansas Southern Ventures, Inc. Enterprise Group 6

Southern Bancorp’s Culture Journey Challenges: Capital • $33.8 million in CDCI (debt) • Complex capital structure • Lack of liquidity • Limited growth opportunities 7

2013-2018 Culture Trumps Strategy 8

Culture MUST be a Priority Top Down  Bottom Up  Side to Side Celebrated by All 9

Southern Bancorp’s Culture Journey The Process: Culture Must be a Priority • Professional assistance • Brand research across key stakeholders • Board adopted strategic vision - Simplify. Refocus. Realign. We are Wealth Builders for Everyone . • Internal Branding 10

Culture: Top Down • Board adopted strategic vision • Chief Executive Officer CHIEF CULTURE OFFICER • Lead with Core Values • Recruit • Evaluate • Hire • Reward • Train • Terminate • Promote …based on Core Values 11

Culture: Top Down • Southern Springboard – two day cultural onboarding for all new employees • Southern Institute – year long culturally aligned leadership development program 12

Culture: Bottom Up • Brand Council – 25 Cultural Ambassadors (meets quarterly with CEO) 13

Culture: Side to Side • R.A.I.S.E. Reward Program – Culturally based peer recognition program 14

Culture Must Be Celebrated! • Southern Rendezvous – company wide brand celebration 15

The Results 2013 2019 0.75% 0.83% ROA 4.32% 9.61% CET1 $33.8M Retired CDCI 9 quarters of consecutive, increasing SBCP only common shareholder to Liquidity dividends for all common receive dividend shareholders; share buyback program $742M $1B Loans 90% of staff are employee N/A Employee owners owners __ __ $35M Capital (raised/committed) 9.51M $12.75M (2018) Net Income (SBB) 16

2019 & Beyond Aligning Mission, Culture, Internal & EXTERNAL BRANDING 17

What if…? 18

deposit operations You are not a an accountant. loan officer. bank teller. credit counselor. market president. specialist. You are a wealth builder for everyone . 19

BankSouthern.com SouthernPartners.org southernbancorp @southernbancorp southern company/southern-bancorp 20

How How Does Does Cul Cultu ture Ma Matter tter a at t Sun unri rise? se? Cul ultur ure = = Spe peed d

Car aring ing C Cultur ulture e of of A Achiev hieveme ement nt

TOTAL ASSETS PAST DUE RATIO GROSS REVENUE 1,200,000 GOAL: <1% $70,000,000 1,000,000 $60,000,000 0.70% 800,000 $50,000,000 0.60% 0.50% $40,000,000 600,000 0.40% $30,000,000 400,000 0.30% $20,000,000 0.20% 200,000 $10,000,000 0.10% 0.00% $- - 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2016 2017 2018 RETURN ON AVERAGE ASSETS NET INCOME CLASSIFIED ASSETS TO CAPITAL $16,000,000 2.48 14.00% 2.32 $14,000,000 12.00% $12,000,000 10.00% 1.61 1.57 $10,000,000 8.00% 1.33 1.29 1.24 1.23 $8,000,000 1.07 6.00% 0.67 0.78 0.95 1.04 1.04 1.05 0.97 1.05 $6,000,000 4.00% 0.65 0.64 $4,000,000 2.00% 0.38 0.05 $2,000,000 0.00% -0.26 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $- 2016 2017 2018 2016 2017 2018 Sunrise Banks Peer Banks

Cert ertified ed B B C Corpo rpora ration For the sixth consecutive year, Sunrise Banks was distinguished as one of the top B Corporation as Best for the World for overall social and environmental impact. Certified B Corps balance purpose and profit and together are driving a global movement of using business as a force for good.

201 018 Impa pact R t Repo eport It’s a part of our DNA; we are changemakers

CDBA P EER FORUM CULTURE + ALIGNMENT | JUNE 4, 2019

“Cu lt u re e a t s st ra t e g y fo r b re a k fa st . P u rp o se d rive s it s a p p e t it e .”

CULTURE EATS Culture Culture : “all that invisible stuff that glues organizations together.” --David Caldwell, Santa Clara University

CULTURE EATS “You can have the best plan in the world, an d if th e cu ltu re isn ’t g oin g to le t it h ap p e n , it’s g oin g to d ie on th e vin e .” --Mark Fie ld s, Ford Motor Com p an y U.S. p re sid e n t, late r CEO

CULTURE EATS “You can have a good strategy in place, but if you d on ’t h ave th e cu ltu re an d th e e n ab lin g syste m s [in p lace ]...th e cu ltu re of th e org an ization w ill d e fe at th e strate g y.” -- Rich ard Clark, CEO of Me rck

CULTURE EATS “Culture isn’t just one aspect of the game, it it is the game is the game .” --Lou Ge rstn e r, CEO of IBM, Who Says Elephants Can’t Dance?

W h y cu lt u re t ru m p s st ra t e g y...a n d a ll t h e re st .

W HY CULTURE ● Culture humanizes strategy ● Strate g y can b e cop ie d b u t cu ltu re can n ot ● P e op le are loyal to cu ltu re , n ot to strate g y ● Cu ltu re cre ate s com p e titive d iffe re n tiation ● Strate g y is forg e d in p rivate , cu ltu re in th e op e n ● Cu ltu re is p e rsiste n t; strate g y is ch an g e ab le ● Strate g y is “h e ad w ork;” cu ltu re is “h e art w ork”

“P u rp o se d rive s cu lt u re ’s a p p e t it e .”

P URP OSE Your people crave purpose; they want m e an in g in th e ir live s an d in th e ir w ork.

P URP OSE The most powerful brands, the most p ow e rfu l cu ltu re s, are d rive n b y a crystallin e , com m on ly u n d e rstood p u rp ose .

P URP OSE Culture cannot be dictated or controlled, on ly n u rtu re d an d sh ap e d .

Th e 3 Ha b it s o f Hig h ly Alig n e d Cu lt u re s

CULTURE SKILLS 1. Crystallin e p u rp ose : p u re , vivid , com p e llin g , m e m orab le , re p e atab le .

CULTURE SKILLS 2. Translate purpose into action -orie n te d , con cise , cle ar state m e n ts of core valu e s.

CULTURE SKILLS 3. Reward + recognize for behaviors and p e rform an ce th at d e m on strate th e core valu e s an d d rive m ission im p act.

Cu lt u re q u iz, se lf- a sse ssm e n t a n d t a b le t a lk

t h o m a t h o m a .co m /cd b a