10 JANUARY / FEBRUARY 2017 worked at larger banks and come to our environment as a community bank. They recognize the generosity and the passion for helping people, and that relationships can’t be measured by the number of accounts you opened this month. “This combination ‒ of a team concept and having a desirable culture ‒ is one of the biggest changes that I’ve seen in our organization in the last 10 years.” Kristin: “Generally there’s an openness for change, and less fear or resistance to change. My father often reminds me that we’ve chosen to work in an industry where, if you don’t like change, then you’ve signed up to work in one of the worst lines of business in the world. It’s encouraging to see our leadership team learn to adapt and embrace change, and to not look at obstacles as threats, but as opportunities.” Cindy: “‘Change’ is no longer a bad word. There was a time that we wanted to be more status quo, but the world’s moving way too rapidly to stay the same. We have to embrace adaptability.” Amber: “Banking is a unique business model for adaptation. It’s a traditional business, but consistently engages in changing technologies. How banks serve our customers and attract newer and younger generations has compelled them to be more open and adaptable in order to be sustainable for the future.” How can the industry overcome potential future barriers to leadership diversity? Kristin: “Engagement is critical. We need to encourage those in leadership to engage others, particularly those they’ve identified as rising stars across their organizations. One of the greatest benefits of the IBA Future Leadership Division [FLD] is the peer networking component, but frankly, it is a challenge to try to convince CEOs or other leaders why participation is important. “We see the FLD as a succession plan for the IBA, and we want to sustain the strength and prominence our state’s banking association has achieved. As such, we want to encourage giving young leaders exposure to conferences, seminars, networking events or government relations efforts ‒ especially those who typically haven’t been involved before.” Cindy: “Once you identify talent, you need to retain it. So that’s key: finding ways to engage individuals. In our organization, we talk a lot about the 10 percent that we give back to local communities through the Affordable Housing Program. It used to be that community involvement was not a driver for employment satisfaction, but today it is. “People who come to our organization love the mission. People don’t necessarily think of banking in terms of being a nexus to the community. I think that’s a very big part of attracting and retaining employees and building that leadership.” Amber: “Another factor in potential future barriers is telling our story. Leadership diversity comes from getting the right people in the right seats within your institution, and having an ear for diversity. “From a public relations perspective, we have a lot of work to do with regard to how the general public views the banking industry. For us to convince young adults to enter banking as a career, we have to increase our messaging and promote banking at a much higher level, so that it’s attractive to a more diverse group of applicants who want to grow through their entire careers with our industry.” Annette: “We can prevent barriers by giving everyone in the bank the chance to take advantage of leadership development and networking opportunities. There’s so much more opportunity today to learn from inspiring leaders. “We work hard to stay in tune with the aspirations of our rising stars. We have an internal system that provides a career path for succession to keep them engaged. In smaller communities we are definitely challenged to attract and retain experienced professionals. We are cultivating our own next generation of bankers from within. The neat part is we have employees who are now in line to take positions held by their grandparents.” Cindy: “The retention challenge is especially true for the younger generation, because they have a desire to do more and learn more. That’s why it’s important for organizations to be more engaged in that process of career development. “We started some mentoring programs a couple years ago, and it really connects the generations. Sometimes the more tenured employee learns just as much from the newer hire as the other way around. Internships are helpful, too, in bringing in young talent. College students might then take some of the courses that relate to banking when they go back and finish their junior or senior year.” Annette: “Another characteristic unique to community banks is unlimited board terms. Most bank boards don’t limit the number of terms a director can hold. Therefore there is a very low turnover rate in director seats, limiting the bank’s ability to increase diversity at the board level. “If you don’t have diversity on your board now, and you don’t have a mandatory retirement age, your board is going to lack diversity. That can drive the leadership in your organization.” Cindy L. Konich is president and chief I\IGYXMZI SJƤGIV SJ XLI Federal Home Loan Bank of Indianapolis. Annette M. Russell, chair of the Indiana Bankers Association, is president and chief executive SJƤGIV SJ 7IGYVMX] Federal Savings Bank, Logansport. COVER STORY
RkJQdWJsaXNoZXIy MTg3NDExNQ==