The habits and personality of our Nation’s newest Presidential CEO got us thinking about what traits are needed to be an effective leader. Bank CEOs, for instance, cover the gamut of personality traits. Since we spend a fair amount of time seeking out and learning from the industry’s top CEOs, we began also to wonder what traits, if any, lead some CEOs to success? How does humor, risk taking, salesmanship and other traits play a role?
Tag: Bank Management
Today is like a capitalist holiday. Not only did we get Warren Buffet’s seminal shareholder letter over the weekend, but given that it is Leap Day, we get an extra day of production that is not in most bank’s budget (if it is, that is some expert-level budgeting). To celebrate, we will save you extra time by breaking down the 7 main takeaways from Berkshire Hathaway annual letter written by the CEO of capitalism itself, Warren Buffet, that will add value to your bank.
You have probably experienced this at your bank - You hold a shareholder meeting and of your 1,000 shareholders, only twenty people showed up and ten were directors, two were past employees and five were there for the free lunch. Your chairwoman shrugs at the turnout and then jokes that at least you don’t have any activist in the crowd. You all have a quick meeting, a good lunch and then get back to work. However, on the way back you just feel like there is something more. The reality is – you are missing something.
Banking is competitive. Luckily, community banks have a number of competitive advantages over national banks. However, if you ask the average banker, it doesn’t feel that way, particularly when it comes to loan pricing and community banks are forced to compete against 10-year, 3.90% fixed rate loans. Then again, many community bankers state that they cannot compete against the national banks because of higher cost of funding.
If you are looking to build a great team at your bank, you can start by following other great organizations. No matter if it is the Jordan-era Chicago Bulls, The Wooden-era UCLA Bruins, a SEAL team, the Skunkworks or millions of other successful teams through history, they all followed a similar pattern, and it is not exactly what we were taught at our high school level effort.