There are four common themes in Strategic Planning that often come up during the strategic planning discussions. Community banks strive to take care of customers as well as their employees. Most of the time, community banks are successful at delivering that special customer service to their customers. However, they are not always successful at achieving a great culture or environment for their employees. Therefore, they constantly search for ways to improve the “employee experience.” Banks conduct employee surveys with questions to hopefully reveal the reasons why some employees are not happy.

The results of these employee surveys typically show four common themes: Communication, Training, Accountability, and Culture. When we facilitate strategic planning sessions with clients, at least one or two of these topics come up in conversations. Sometimes all four themes rise to the top issues that need further discussion. And some topics are such big issues that they become one of the strategic objectives in the strategic plan! One wonders why this is happening and why so often.

The Four Common Themes in Strategic Planning

Let’s address each theme and pose questions that may help community banks identify the root causes and resolve these issues.

Communication

Employees may feel that leadership doesn’t communicate well or not at all. Communication must start from the top leadership, and it should include communicating that not everything can be shared. There are topics that leadership cannot or should not share with the entire staff until it’s appropriate. Examples are the potential of acquiring another institution or selling the bank. Other topics that need discretion as well are closing or opening a new branch. However, typically these are not topics employees complain about.

General complaints about communication:

• They want to know where the bank is going and what is the general direction everyone should be rowing together toward. They say, “lack of direction.”
• Lack of communication between employees and their direct managers.
• Not being informed about new products and services offered or organizational changes.

Questions to ask employees to further identify the root of the communication issue:

• What exactly would you like more communication on? Employees can now pinpoint the type of information they’re looking for where they feel out of the loop.
• How often do you meet with your direct manager? When managers don’t hold regular meetings with their employees almost always results in lack of or poor communication.
• Provide an example of lack of communication where the information not shared impacted your job directly. Employees complaining of lack of communication should be able to describe why they need to know specific information.

Training

During strategic planning sessions, the leadership shares that employees complain they don’t receive enough training. But leadership tells us that they do provide plenty of opportunities for employees to get training. The problem is that they don’t follow the instructions or procedures and continue to make mistakes. So, who is right? The answer must be somewhere in the middle. Institutions provide the training, but the procedures may not be clear or easy to follow. Some employees try to do things on their own without following the procedures and then make mistakes. And yet there may be other employees who, after repeated training, simply don’t get it. They’re in the wrong job.

General complaints about training:

• There are not enough training opportunities nor budget.
• The training is not clear and there are no written procedures.
• Training time was not sufficient and there was not enough time to practice.
• The function or task is only performed a few times per year and therefore, it doesn’t stick.

Questions to ask employees to further identify the root of the training issue:

• What specific task or function do you need training or additional training on? Let them tell you exactly what they need.
• How many times have you been trained on this task? Sometimes employees say they haven’t had enough training and because it’s not documented anywhere, you can’t hold them accountable. Therefore, document all training done at all levels.
• Based on your current job, do you feel you need a specific certification? Certain jobs such as Compliance or BSA Officer should have their certifications which will provide the additional training needed. Plus, examiners see these certifications as an extra positive for the bank.

Accountability

It’s difficult to hold employees accountable without the appropriate processes in place and when leaders don’t hold themselves accountable. This is an area where leaders must definitely lead by example. Not having processes to document conversations, training provided, and the fear of having crucial conversations results in lack of accountability.

General complaints about accountability:

• There is no accountability from the top to the bottom of the organization.
• Leadership does not confront the employees who are not doing their jobs and therefore, there is no accountability.
• Employees who have been here a long time can get away with anything and don’t want to learn new processes.

Questions to ask employees to further identify the root of the accountability issue:

• Can you provide examples of where you have seen lack of accountability in the organization? This question will help identify if there is a systemic issue or only certain areas display a lack of accountability.
• If you are in a leadership position, how are you holding your employees accountable? Asking managers what they are doing in their individual areas helps them focus on how they can solve the problem.
• In what ways can you improve in holding yourself accountable? Accountability starts with yourself.

Culture

Change is difficult for employees of any company to go through. And when change is not communicated appropriately employee morale suffers. Often, employee survey results show that the company has a culture of “no accountability,” or “poor culture.” It’s imperative for a bank, especially after a merger or acquisition is completed, to ensure the new “mixed culture” succeeds. One key factor is constant communication. But even when an institution is not merging, acquiring another, or being acquired, the culture can be negative. A negative culture is the result of the other three themes: lack of communication, lack of accountability, and poor or ineffective training.

General complaints about culture:

• Overall “negative culture,” or “poor culture.”
• Culture of low morale across the organization.
• There is no cohesiveness at the top leadership level and therefore, there is no cohesiveness amongst the staff.
• The company operates in silos and there is lack of teamwork.

Questions to ask employees to further identify the root of the culture issue:

• What does a “negative culture” mean to you? It is interesting to hear people’s different interpretation of what a negative culture in the workplace is.
• In what areas of the organization do you feel there is “low morale”? Asking this question may help determine if the low morale is systemic or only in certain departments.
• How do you propose the institution can break some of the silos? This question can bring new ideas on how the teams can work together better across the organization.

These four common themes in Strategic Planning are all interrelated. One could say that it all starts with communication, but it could also begin with a lack of accountability. Lack of communication or accountability results in a poor culture. Additionally, lack of or inefficient training combined with no accountability results in poor culture. Improving communication, enhancing training, and holding everyone accountable results in a positive culture. Your institution will be positioned for success now and in the future.

In this blog we share 6 sure ways to lose your Treasury Management Officer (TMO). Community banks and credit unions nationwide are seeking experienced TMOs to help them increase business core deposits and fee income. But even knowing that Treasury Management Officers are in high demand, institutions continue to fail at keeping them. Why? Because they keep repeating the same mistakes. At the fundamental level, the leadership still does not recognize the value that treasury management services bring to their institution.

The challenges that TMOs experience are real, and they need the leadership’s attention. And we need to address these 6 six sure ways to lose your Treasury Management Officer.

Lack of support from leadership.

A successful TMO recently shared with me that the number one reason she was successful was because of the bank president’s support. Without his unconditional support to provide the tools, systems, support, and budget there would be no TM department. Unfortunately, we hear the opposite of this story more often than the success one.

Treasury Management is not a “one-person show.” It’s a team effort. And without the “tone at the top” and leadership’s support, nothing happens. To attract and retain top Treasury Management talent, you must provide the support needed to sell and support the services. Otherwise, your TMO will burn out and simply leave your institution. There are plenty of opportunities for them right now.

Lack of resources.

In addition to the “moral” support that comes from the top, TMOs need physical support too. Creating awareness about Treasury Management’s value is great, but without providing additional staff to help them, it won’t work. They need a separate person to implement the TM services and provide ongoing support and maintenance for TM customers. Otherwise, they will be at their desks doing just that and the sales pipe will dry out.

TMOs must go out of the bank and meet with business customers alongside the business bankers (lenders). The TMO’s role is a sales role (at the Officer level), not a support role. Leadership cannot and should not expect the same person to do the two separate jobs. It is unsustainable! Additionally, they need help opening the business checking accounts for the TM customers. This function typically takes place at the branches by having at least one person knowledgeable about TM business accounts. However, some institutions are opting to bring the account opening function to the TM department for efficiency and consistency.

Insufficient Training for TMOs.

Everyone needs training. If you’re promoting from within, the TMO needs specific training on how to sell TM services and how they work. They also need training on your processes, systems, policies, and risks that TM services bring. Additionally, they will need to be introduced to the institution’s business customers who may need TM solutions.

Similarly, if you bring in an experienced TMO from another institution, they need training on how “you do things your way.” They need to learn who to call for the various issues. And also work with the business bankers to be introduced to their business customers. Lastly, they need to get familiar with your business bankers’ portfolios to look for opportunities. As we mentioned above, TM is a team effort.

Salaries may be below market rates.

TMOs are part of the sales team for your institution and as such they should be paid accordingly. Often TMOs get compensated similarly to the operations or retail staff which is not at market rate. As most institutions experienced in recent years, the depository side is just as important as the loan side. In other words, liabilities are just as important as the assets of the institution’s balance sheet.

Without a strong core deposit base with low cost of funds, the Net Interest Margin deteriorates, which impacts Net Income. Therefore, ensure your HR department conducts market research on the TMO role and pay the TMO at market rate. Otherwise, you will lose your TMO.

Business bankers are not incentivized to sell TM services.

Another challenge institutions face is the lack of incentive plans for business bankers that include deposits and TM fee income. True salespeople sell what they’re incented to sell. If deposits and TM fee income are not included in their plan, nothing happens. They will focus on bringing in loans, which is what they have always done! And the cost of funds continues to increase.

Formulating a simple incentive plan that includes both loan and deposit growth goals as well as fee income produces results. Additionally, business bankers and TMOs learn to work as a team that focuses on bringing the customers’ entire banking relationship. And the added benefit is that your business customer feels your institution meets all their financial needs in one place. This is one of the main goals financial institutions have these days.

The institution may not offer the TM services that business customers expect.

Lastly, just as important, you must offer a robust suite of TM services to meet your customers’ depository needs. Experienced CFOs, Treasurers, and Financial Managers of corporations understand the TM services and capabilities they need. Therefore, it is critical that your institution offers the most common TM services on the market. And if you service more sophisticated markets, you also need to compete with the TM services that national institutions offer. Otherwise, these businesses will simply not choose to bank with your institution, no matter “how nice” you are.

Along with the suite of TM services come the Account Analysis System and the Online Banking Platform you choose to use. Integration amongst all these platforms and with the core system is imperative for a smooth process and optimal service.

It’s our hope that this blog opens your eyes to the 6 sure ways to lose your Treasury Management Officer. If your institution doesn’t address these challenges, it is not a matter of if you will lose your TMO, but of when. But be encouraged! Most institutions we encounter these days are interested in doing the right thing regarding TM. Leaders are looking to increase awareness, support their TMOs, and provide resources to ensure their TM department is successful. In the end, it’s all about serving your business customers both with their lending and depository needs.