Community bank leaders paralyzed by fear
You’ve probably heard the phrase, “Analysis Paralysis”, which is basically the act of analyzing every single “what if” scenario before making a decision. The end result is corporate paralysis where nothing ever gets implemented. However, there is something else that many community bank leaders hate to admit… They lead in fear of the status quo protectors. When living in this fear, leaders no longer base decisions and actions through the lens of their bank’s strategic plan. Instead of leading, they are now being led by the fear of violating the status quo and suffering the perceived fallout that will follow. Once this is allowed to happen and once your team gets a glimpse, you will lose all credibility with your best employees and customers and you’ll also lose the ability to effectively implement your strategic plan. Over the years, we have found that this fear comes primarily from three different sources.
Fear of The Board
We get it. The board can fire you or at the very least, make your life difficult. On the other hand, an effective board can provide needed accountability and support. Here are a few ways boards create this fear.
- They nitpick everything – You can do 99 things right but they will focus on that one thing that didn’t go exactly right. You then lead in fear of making that one mistake. Once this happens, it’s easier to just keep the status quo.
- They have agents within the bank – It’s common in a community bank where a board member will have a personal connection with some of your employees. This can be from long-term relationships or it can be from an ill-conceived, open-door policy created by the board. When these agents become “untouchable”, fear sets in.
- They get involved in daily operations – They “help” you run the bank. Maybe a board member even has an office in the bank. Situations like this are extreme but can be very damaging and confusing when it comes to chain of command and communication. This can put fear in the leader as well as into all levels of management.
Fear of That Employee
As crazy as it sounds, there are certain employees that are untouchable in the minds of some managers and leaders. This is where a fear of the board may come in or it could be a long-time employee that is perceived to have great influence with other employees and customers. Usually there is a 99% chance that your perceptions are wrong. A few rules of thumb to follow…
Is this employee working within the non-negotiables and is she a net gain or a net drain? These two questions will usually give you the answer to the decision. We’re always amazed when a manager asks us how to deal with a problem employee and that manager has no documentation of the employee’s past issues. Likewise, that manager has no clearly established standards or expectations for her employees. If you want to end the fear of an employee, begin with accountability and document it. If the employee truly can’t be let go, regardless of documented bad behavior, then stick him in the vault with a desk and no phone or somewhere in a back office where no customer will have contact with him. Also, make sure he is isolated from as many employees as possible. It may not be the perfect solution, but it is a way to lead your team around the speed bump of a protected employee.
Fear of That Customer
First off, remember the old saying, “Like attracts Like”. Make sure you and your team are not the cause of a problem customer. If there is a particular customer that continues to be an issue, then as a leader, you may be the ultimate one creating the issue. What we mean is, why are you putting up with it? If a customer is abusive to your employees in any way, then your job as a leader is to fire that customer. If a customer threatens to tell “everyone” if you don’t obey his commands, odds are, people who know this customer know what he is about. His complaints about you might actually help. The most feared customers are often the least profitable. They often negotiate away your profit while consuming your time and your team’s time. Not every customer will fit your culture.
Face your fears
How you lead will affect how your engaged employees will follow. Sweeping your fears under the rug will be noticed. When it comes to the board, the fear is usually focused on just one or two board members. Your fear of employees or customers is usually focused on just a few as well. Make sure you stay true to your corporate culture and follow the strategic plan and never enter a board meeting without having a high level of awareness of where your bank stands as it relates to your strategic plan.
