making the move from service to sales: the impact on community banks

Making the Move from Service to Sales….

The Cornerstone Group, Inc. | email: [email protected] 1

Human Resources

Finding tellers capable of selling…

Finding branch managers who can develop and

retain people…

Finding executives that can lead this critical

transition…


“Community Bankers Expect Hiring Challenges”

Why?

A large contingent of community bankers (57%) indicate problems hiring officers and nearly 43% said hiring staff could be problematic*

57% is the highest number the Fed has found since implementing the survey in 2001*

The Cornerstone Group, Inc. | email: [email protected]

3

“Hiring good Tellers is getting harder” “Getting Tellers to adopt a sales culture is difficult” “Finding Branch Managers that are more people

focused is tough” “Our Commercial Bankers are not comfortable being

out in the market”


26%

46%

53%

46%

0%

10%

20%

30%

40%

50%

60%

Hiring/retaining tellers

Hiring/promoting BM

Tellers/sales & service

BM Coaching Developing

Very to Extremely Challenging


60%

26%

42%

55%

0%

10%

20%

30%

40%

50%

60%

70%

Talent Pool Limited

Benefits Not Competitive

Good Interviewers Sales/Service Demands

Challenge to Constant Challenge The Cornerstone Group, Inc. | email: [email protected] 7

46%

39% 39%

33%

26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Tellers Not Comfortable

Selling

Tenured Tellers Not Hired to Sell

Cross-sell w/No Training

Product Training/No Sales

Training

Sales Training/No BM Follow-

Through

Most Challenging


Percentage Hired From

100% 60% 40-65% < 40% 0%

Promote From Within

6% 26% 26% 13% 20%

Hired From another Bank

20% 6% 33% 26%6%

Hired From another Industry

6% 0% 0% 20% 66%


30%

70%

0% 0%

Hiring Branch Managers

Continue to promote from within

Hire from banks with a stronger sales culture

Hire from outside of Banking


“We are now seeking to hire some tellers with the behavioral characteristics of a branch manager so that we

can train and promote”

“We are currently developing high performers internally so they will have the skills necessary to assume a

branch management role.”


13%

66%

20%

0%

10%

20%

30%

40%

50%

60%

70%

No Leadership Training Limited Training Comphrehensive Training

“We have hired the services of St. Meyers and Hubbard to provide sales and leadership training. This is a three year program that will begin in

January 2010.”

What are you doing to attract top talent!


PI Worldwide

A partner to business leaders since 1955

Publisher of Predictive Index®

Nearly 8,000 client companies

Over 400 Banking Clients

The Cornerstone Group

Member firm since 1997

Regional consulting firm focused on: ▪ Organizational development

▪ Sales development

Strong Focus on Banking


http://www.gsb.com/

http://www.mcsbnh.com/index.php

PI Worldwide Studies

Behavior

• How behavior impacts performance in various jobs

Banking Studies

• Have studied over 100,000 people in various positions to determine “ideal” behaviors for each job

Positions Include

• Tellers

• Branch Managers

• Commercial Bankers

• COO and CTO

• Mortgage Originators

• Financial Advisors

• Training and Human Resources


One good decision at a time…The Cornerstone Group, Inc. | email: [email protected] 15

PI Helps answer questions like:

What motivates them to action?

For what kinds of work are they best suited?

What meets their needs, and therefore unleashes their greatest energy and best efforts?

How do they reach their judgments around people and things? What is their basis for judgment?


The PI Survey

Defines a person’s behaviors in various situations

The JOB PRO

Defines the critical demands of each job


LOW Relative to Norm NORM

AVERAGE

Relative to Norm HIGH

D O M I N A N C EA

Unassuming, Unselfish Dominant, Assertive

B EXTROVERSION

Reserved, Introspective Extroverted, Sociable

C P A T I E N C E

Driving, Intense Patient, Relaxed

D F O R M A L I T Y

Informal, Independent Formal, Conforming


In 10 minutes tell us everything you can about Your assigned factorwhen: It is the highest drive

▪ Behaviors

▪ Needs

▪ Things they will be good at

▪ Things they might struggle with

It’s the lowest drive▪ Behaviors

▪ Needs

▪ Things they will be good at

▪ Things they might struggle with


Behavior Impacts All of These Things

How we make decisions

How we communicate

Our response to pressure

Do we follow rules & process Adaptability

to risk & change

Our level of self confidence

How we compete


Sigma ScaleFactors

Norm

Patte

rn

sM Fa

cto

r

Response Level E Factor


Quick toconnect topeople

Informal

Casual withrules

BC

BD

CD

CB

DB

DC

Careful withrules

Formal

Takes time to connect to people

AnalyticalTechnical

Pro-active

Risk

AB

AC

AD

BA

CA

DA

Risk Avoidance

Reactive

People


Case Study: Let’s Talk About TellersHow have their behavioral needs changed?


The transactional part of the job

Attention to detail and process

The need for exact transactions

Do it right the first time

Able to handle repetition

Lower A

Higher D


The personal connectivity part of the job

More outgoing and persuasive—adding the social element (but not pushy)

Open in communication

Team-oriented

Able to deal with more variety and change (technology, etc.)

Smoother succession to Asst. Branch Management position

Lower BHigher C


SOME BANKS WENT FROM HERE…. Tellers that cannot properly process transactions

Tellers who don’t follow the rules

Teller that round up at the end of the day

Unhappy customers

Massive turnover

TO HERE….YIKES!


Understand the strengths needed for tellers have changed

▪ But the change in who you hire need not be too dramatic

▪ Always be recruiting… even when there are no openings

Look at other industries outside of banking:

▪ Retail

▪ Call Centers

▪ Customer Service

Never settle when you hire! There are no neutral hires!


Case Study: Branch ManagersHow have their behavioral needs changed?


Branch Manager Today More persuasive and outgoing

More people focused

More risk taking and broader range of decision making

More strategically (Business) focused

More comfortable responding to pressure and change

Branch Manager Late 90’s More analytical and

technically oriented

More operationally focused

More hands-on with details and transactions

More cautious and conservative


TELLER

OLDER BRANCH MANAGER MODEL

NEWER BRANCH MANAGER MODEL


Bigger gap between high and low performers Wider behavioral gaps between Tellers and

Branch Managers (complicating succession planning)

You’ll need to take a wider view to:

Hire and develop top Branch Managers


It’s About Moving Forward…With Better Information


The Cornerstone Group Inc.Laura Caton

[email protected]

508-778-1300


http://www.thecornerstonegroupinc.com/

mailto:[email protected]

making the move from service to sales: the impact on community banks

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