The Texas Independent Banker - May/June 2017 - 27

In today's environment, there are many circumstances beyond your control: unsettled
economic conditions, interest rate pressure, regulatory and compliance expectations,
competition from familiar and untraditional sources, the costs of technology and
cybersecurity, as well as ever-changing customer service expectations.

Following are four steps that I counsel clients to take to overcome what they
can't control by improving their existing
processes and procedures to achieve excellent customer service levels and better
overall results:

1. Take a thorough look at your
current operations.
Before you can begin making improvements, you need to identify where any efficiency gaps exist within the bank. This will
help you to determine if you are using your
assets effectively, or whether unchecked
expenses and ineffective systems are having a negative impact on overall performance and revenue.
A formal study of your operations,
conducted by a professional consultant,
will add objectivity for optimal outcomes.
For best results, the study should involve
your bank's leadership team, as well as key
employees and line staff, and cover every
facet of your institution. You'll not only gain
a thorough analysis of your strengths and
weaknesses, but a comprehensive review
of the following areas:
* Organizational structure - Does your
organizational chart accurately reflect
how every department works within the
bank's operational framework? Is there
a reporting structure at the department
head level that will allow for necessary
changes? Is your "Span of Control" such
that there is too much concentration

with one individual, potentially impeding progress or suppressing positive
ideas?
* Department workflow - How is the
workload distributed among staff? Is
there too much or too little work for
employees? Are there areas where you
can eliminate work duplication and possibly find cost savings, while improving
efficiencies?
* Reporting procedures - Do all current
operational reports have a purpose?
How are they prepared? Are they being
transferred from one format to another
simply for format? Who receives them
and why? Are they being printed, only
to be placed in a shred box after daily
viewing? How are they stored and
secured? Are some existing reports
unnecessary or could they be replaced
with more effective documents?
* Branch profitability - What is your
return on investment of existing branch
locations? Are they conveniently
located within your service area? Are
traffic numbers consistent? Are there
technologies that could be applied to
improve the efficiency and profitability
of each branch?
As you implement new technology, is it
possible to downsize or close some facilities? Could certain locations be replaced
by an Intelligent ATM machine without the
potential loss of customers? Do you have
branch accounting capabilities that can

help you determine how each branch is
affecting the bottom line?
* Products and services - Are existing
products and services meeting your
customers' needs? Are you planning
ahead to address changing service preferences? Do you have robust processes
and technology resources in place to
support both existing and potential new
products and services?
With a formal operational study, you'll
be able to answer many of the above questions and obtain many other practical
recommendations for your bank. These
include: staffing and salary administration reports and comparisons; incentive
program reviews; income and expense
analyses; operational enhancements for
consolidations and mergers; best practices suggestions and revenue-planning
programs.

2. Strengthen your financial position.
Another step in the overall improvement process is to identify opportunities
for tracking your success and maintaining an advantage over your competitors.
While your securities portfolio generates
net interest income, overall it has very little
impact on non-interest income and noninterest expense.
Examining both sides of your balance
sheet - total assets minus securities - will
give you a more accurate tracking of your
bank's rise and fall in net operating cost
May/June 2017

www.ibat.org

27


http://www.ibat.org

Table of Contents for the Digital Edition of The Texas Independent Banker - May/June 2017

Up Front CHRISTOPHER L. WILLISTON, CAE
General Counsel’s Corner KAREN M. NEELEY
Services Spotlight JOE KIM KING
The Compliance Guy KELLY GOULART, CRCM CAMS CIA
News
Leadership Conference Preview
Gap Management: An Idea Whose Time Has Gone LESTER MURRAY
IBAT 2017 Regional Meeting Tour CHRISTOPHER L. WILLISTON VI, CAE
In an Uncertain World, Look for the Silver Lining MARK ROE
Farewell from Mae Beth
People
Calendars
New Members
Index of Advertisers
Communities
The Texas Independent Banker - May/June 2017 - cover1
The Texas Independent Banker - May/June 2017 - cover2
The Texas Independent Banker - May/June 2017 - 3
The Texas Independent Banker - May/June 2017 - 4
The Texas Independent Banker - May/June 2017 - 5
The Texas Independent Banker - May/June 2017 - Up Front CHRISTOPHER L. WILLISTON, CAE
The Texas Independent Banker - May/June 2017 - 7
The Texas Independent Banker - May/June 2017 - General Counsel’s Corner KAREN M. NEELEY
The Texas Independent Banker - May/June 2017 - 9
The Texas Independent Banker - May/June 2017 - Services Spotlight JOE KIM KING
The Texas Independent Banker - May/June 2017 - 11
The Texas Independent Banker - May/June 2017 - 12
The Texas Independent Banker - May/June 2017 - The Compliance Guy KELLY GOULART, CRCM CAMS CIA
The Texas Independent Banker - May/June 2017 - 14
The Texas Independent Banker - May/June 2017 - News
The Texas Independent Banker - May/June 2017 - Leadership Conference Preview
The Texas Independent Banker - May/June 2017 - 17
The Texas Independent Banker - May/June 2017 - 18
The Texas Independent Banker - May/June 2017 - Gap Management: An Idea Whose Time Has Gone LESTER MURRAY
The Texas Independent Banker - May/June 2017 - 20
The Texas Independent Banker - May/June 2017 - 21
The Texas Independent Banker - May/June 2017 - IBAT 2017 Regional Meeting Tour CHRISTOPHER L. WILLISTON VI, CAE
The Texas Independent Banker - May/June 2017 - 23
The Texas Independent Banker - May/June 2017 - 24
The Texas Independent Banker - May/June 2017 - 25
The Texas Independent Banker - May/June 2017 - In an Uncertain World, Look for the Silver Lining MARK ROE
The Texas Independent Banker - May/June 2017 - 27
The Texas Independent Banker - May/June 2017 - 28
The Texas Independent Banker - May/June 2017 - Farewell from Mae Beth
The Texas Independent Banker - May/June 2017 - People
The Texas Independent Banker - May/June 2017 - 31
The Texas Independent Banker - May/June 2017 - Calendars
The Texas Independent Banker - May/June 2017 - Index of Advertisers
The Texas Independent Banker - May/June 2017 - Communities
The Texas Independent Banker - May/June 2017 - cover3
The Texas Independent Banker - May/June 2017 - cover4
The Texas Independent Banker - May/June 2017 - 37
The Texas Independent Banker - May/June 2017 - 38
The Texas Independent Banker - May/June 2017 - 39
The Texas Independent Banker - May/June 2017 - 40
The Texas Independent Banker - May/June 2017 - 41
The Texas Independent Banker - May/June 2017 - 42
http://www.nxtbook.com/naylor/IBTS/IBTS0617
http://www.nxtbook.com/naylor/IBTS/IBTS0517
http://www.nxtbook.com/naylor/IBTS/IBTS0417
http://www.nxtbook.com/naylor/IBTS/IBTS0317
http://www.nxtbook.com/naylor/IBTS/IBTS0217
http://www.nxtbook.com/naylor/IBTS/IBTS0117
http://www.nxtbook.com/naylor/IBTS/IBTS0616
http://www.nxtbook.com/naylor/IBTS/IBTS0516
http://www.nxtbook.com/naylor/IBTS/IBTS0416
http://www.nxtbook.com/naylor/IBTS/IBTS0316
http://www.nxtbook.com/naylor/IBTS/IBTS0216
http://www.nxtbook.com/naylor/IBTS/IBTS0116
http://www.nxtbook.com/naylor/IBTS/IBTS0615
http://www.nxtbook.com/naylor/IBTS/IBTS0515
http://www.nxtbook.com/naylor/IBTS/IBTS0415
http://www.nxtbook.com/naylor/IBTS/IBTS0315
http://www.nxtbook.com/naylor/IBTS/IBTS0215
http://www.nxtbook.com/naylor/IBTS/IBTS0115
http://www.nxtbookMEDIA.com