Standard National Bank Georgia Banking School 2019 Case Presentation John Hairston - Hancock Whitney Bank john.hairston@hancockwhitney.com
Purpose of the Case * Define Vision * Propose the power of each Vision component * Apply Focus to Core Ideology * Propose how emerging leaders apply Core Ideology to their areas of responsibility * Make you more successful, more valuable, more compensated, more happy
Components of Vision Core Ideology (Culture) Envisioned Future
What is Culture? Why does our organization exist? * What is our Purpose? * What is our Mission? What does our organization believe in? * What are our Values? * What core beliefs do we test all our strategies and tactics by?
What is Envisioned Future? What are the Big, Hairy, Audacious Goals (BHAGs) we intend to reach in the very long term – 10-30 years? What is the Vivid Description of our organization when we reach achieve our BHAGS??
People, not process, are the exhibitors of Culture Question: What’s more important? 1. Interpersonal Skills 2. Analytical, Technical Skills 3. Values and Beliefs of the People
“Get the Right People in the Right Seats on the Bus” Loyalty (Ride for the brand) Commitment to Team (Ride for one another) Candor (Truth without wasted effort / time) Humility (Everyone is wrong every day) Dedication (Pride and diligence in the product) Honesty (Truth, full disclosure, no spin)
“What are our strategic objectives?” Financial Associate Customer Business Process
“What are our strategic objectives?” Financial Grow it to keep or dress it up to sell? If independence is important, what earnings level is required to do so? How much do we pay shareholders, reserve for extra capital, or reinvest in growth? If growth, where does the new capital come from?
“What are our strategic objectives?” Associate (Employees) Are associates a competitive differentiator or simply labor? If a differentiator, how do we lever our associates’ intellectual and experience capital? If labor, how do we build necessary education resources to quickly build competence? How much are we willing to invest back in associates versus offices, technology, M&A, etc.? You agreed People were important….how much has been invested in YOU?
“What are our strategic objectives?” Customer What customer segments do you want (and not want)? What do the target customers want? How do you know? What customers do you have versus customers you want? What do desirable customers think about you (and your competitors? Are you differentiating between markets when it comes to customers?
“What are our strategic objectives?” Business Process What is the value proposition deployed to attract/retain the target customers? Convenience, price, value, etc.? Do we have gaps? What products/services must we provide given those gaps? Where do we get those customers? Current markets, new markets, virtual markets? How do we keep the customers we want?
“How do we measure execution?” And importantly……… How do you measure all these objectives to identify progress or lack thereof? A STRATEGIC OBJECTIVE MUST BE MEASURABLE!
Summary Core Ideology, or Culture defines why we exist, and what we believe. Envisioned Future paints a vivid image of where we are headed. People are the backbone of every business. Strategy is no accident; it is the culmination of measurable objectives. Financial Associate Customer Business Process Execution is the relentless pursuit, measurement and tuning of the strategic objectives.
Your assignment for today Break into your working groups Discuss as a team what Dee will tell the Board Develop your five minute summarized report to the Board of Directors (each team member has 60 seconds, for a total of five minutes) If you have more than five members, it’s OK to go over a minute or two Remember – this is an independent board, not a room of bankers Get their attention early and keep it – how to do? Get comfortable and practice what each team member will say OK to leave the room, but don’t go far – last team done will be the first team to deliver – and the board could be surly Refer to the instructions in your case package for guidance
When we reconvene Tomorrow, your group is Dee You will have five or six minutes to make your comments The Standard National Bank Board of Directors will be here, live, and are most anxious to hear your report – they will ask challenging questions The board will discuss your plan for a reasonable period and the Chairman may or may not call for a vote on Dee’s plan
Don’t Treat the Symptoms, Cure the Illness.
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