ABA Banking Journal - February 2008 - (Page 63)

SPECIAL ADVERTISING SECTION ABA Banking Journal’s White Paper for February 2008: Top Management Concerns EXECUTIVE SUMMARY For the full article go to http://www.ababj.com/wpaper08.html The Winning Formula: Get the Right People and the Technology Best Suited to Your Market By Steve Swanston JMFA Executive Vice President, Business Development • www.JMFA.com • 800-809-2307 espite narrowing margins, community banks have done a good job managing steady returns in recent years. It is that success which has attracted the attention of nonbanks in addition to the more traditional competitors. To stay ahead banks must have a plan to deal with labor and technology, areas constituting their two biggest single expenses. This means keeping turnover costs down by finding and retaining the right executives and staff, along with making the right technological investments for your bank. GETTING THE RIGHT PEOPLE Changing Demographics Will Affect your Workforce The next several years will see many changes in the workforce. The U. S. Bureau of Labor Statistics estimates that by 2010 there will be only 158 million skilled employees to fill an expected 168 million positions. This is due to the “Graying of America,” and will contribute to the loss of the highest percentage ever of top ranking executives from the work force. You Will Benefit From a Succession Plan Any business not prepared for the coming competition for the right people for senior positions will be in for a shock. Community banks can gear up by having a leadership succession plan in place identifying individuals that can ensure the institution’s ability to meet future challenges. A bank without a succession plan could find it loses top people to competitors in times of upheaval. Consider the position to be filled when establishing your succession plan. Plans are most typically developed for high ranking executives, but must also be considered for board members, management, and any employee whose position vacancy would have a negative impact on your bank. These plans involve the following steps: • Evaluate your current employees before a position becomes available to determine if someone from within is a promotable candidate. • Hire new people as needed. • Make sure your retention program is working. • Determine organizational and skill set gaps. Training Leads to Confidence, Satisfaction and Success Management committed to its people will provide training to ensure they are up-to-speed in all areas of bank operations, products and services. They will also periodically arrange refresher courses on customer service and marketing opportunities. D When you hire the right people and give them the benefit of top-notch training, they will feel personally invested in the success of your bank. An employee who starts thinking in terms of “what we can do” to improve the company’s bottom line is an employee worth keeping. CHOOSING THE BEST TECHNOLOGY The Right People Need the Right Technology When it comes to technology, there is no “One Size Fits All.” As you are making an assessment of what new technological tools your bank needs, you need to put it in the context of your growth goals. The best way to do this is to have an analysis conducted of the technology you will require to reach these goals over the coming five year period. These are the basic issues to consider when you are looking to supplement your technology: • Ensure that any new technology will fully integrate with your existing systems. • Identify those services and products your customers will benefit from and skip the rest. Increasingly, banks should expect to see vendors capable of providing integrated channel bases. They will be met by a new generation of customers comfortable with this efficient and state-of-the-art banking experience. The Winning Formula A bank is only as good as the employees it keeps, and any steps you take today to get and keep the right people will pay dividends down the road. The right people providing exceptional customer service – all supported by technology chosen with your specific goals in mind – will create the formula you need to grow your core deposits and your bottom line. About the Author Steve Swanston is Executive Vice President for John M. Floyd & Associates (JMFA), a profitability and performance improvement consulting firm serving more than 2,000 financial institutions in 49 states and Central America. As a direct result of its products, services and earning enhancement solutions, JMFA has helped thousands of clients dramatically improve their performance and their bottom line. To learn more about JMFA, please visit www.JMFA.com or call 800-809-2307. Steve can be reached at Steve.Swanston@JMFA.com. ABA BANKING JOURNAL/FEBRUARY 2008 63 http://www.ababj.com//index.php?option=com_content&task=view&id=160&Itemid=132 http://www.JMFA.com http://www.JMFA.com

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ABA Banking Journal - February 2008 Contents On ABABJ.COM: Have You Visited Our Brand-New Website? Editor's Column "That's Edutainment" Snapshot: Tier 1 Ratios Stable so Far 100th Anniversary: Then and Now ABA Resources ABA Chairman's Position Don't Despair Pass the Aspirin Cover Story: Socially Responsible Banking Profitably - Incoming America's Community Bankers Council Chairwoman, Dorothy Bridges Demonstrates the Way A True "Rags-to-Banker" Story Retail Banking: On the Money Hunt Community Bank Management: The Ugly Truth About Board Relations Does Core Really Matter? Security 2.0: Not Just a New Kettle of Phish A Personal Case of Mal-Serendipity DOD Credit Regs Demand Attention Mailbox Banker's Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - February 2008

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