Financial Education

Building bench strength

By Joe Freeman, Chief Operating Officer for Pioneer Services

When it comes to management principles and philosophies, there are thousands of articles, books, and seminars that claim to have the answers. There are, however, no silver bullets that can turn a struggling company into a successful one, and no one theory of management that can turn ineffective leaders into role models. Each industry is different and each company's culture unique.

It takes a more holistic approach, one that starts with the hiring process, continues through education and empowerment, and focuses on effective recognition and retention. This approach is also not a cure-all but, when used in conjunction with other methods and ideas, can lead to a more comprehensive and effective management philosophy, and develop an atmosphere of innovation and engagement. And in this current climate of economic and business instability, it is more important than ever to retain quality associates through effective management techniques.

Drafting talent
Like any sports team, a business needs more than just a superstar or two to be successful—it needs "bench strength." This depth of talent can assist a company weather hard times, allow for seamless transitions when people leave the company, and create empowered and motivated associates who know they are vital to the company's success.

Taking raw talent and molding it into an effective associate does take time and, sometimes, money. But the dividends can be huge since it's not an "expense"—it's an investment in the future of your organization.

For example, many organizations use intern programs to accomplish "busy work" or tasks that have been put off for too long. A successful intern program should be built to teach the business and give those in the program a chance to take on a project with a focus on using a multi-disciplined team approach to solve problems.

I've seen this approach be incredibly effective, and watched several former interns join the company after graduation and become full-time associates. In five short years, one even went from being an intern to the senior executive of an educational company.

The reason for these successes is in the execution of a program that empowers interns, allows them to manage a project from beginning to end, and includes an immersion into the company culture. There is also an emphasis placed on teamwork, since most successes in business come not from individuals, but teams dedicated to meeting a common goal. It's much the same way winning sports teams handle talent: they draft quality players and teach them how to execute the game plan, in some cases at a variety of positions. In the end, the team adds a quality teammate, thus improving its chances for success.

Outside of cultivating talent through an intern program, managers can also develop it with associates who are already part of the team. This can be done through continuing education, increased responsibility, and taking people out of their "comfort zones" so they experience new ideas, processes and perspectives. Mix in recognition for a job well done, and the talent cultivated becomes a talent that is loyal to the organization and has a positive attitude.

This allows you to create "at large" leaders—associates who may not technically be managers, but who have the respect of their fellow teammates. Every company has them, but it seems as though few utilize them effectively. The key is get their input and buy-in early in the process (whether it be a product launch, company merger, etc.) since they often have the attention of others who are "in the trenches" rather than in a corner office.

Whether you draft the talent early on through an intern program, or add knowledgeable veterans through the regular hiring process, the important thing to remember is that, just like a sports team, your company is only as good as its weakest player. Leaders also have a responsibility to develop talent at all level of the organization—from executive leadership to the freshest rookie—or encourage them to be successful somewhere else.

Empowering talent
Once you cultivate your bench talent and strength, the next step is to allow them the freedom to affect change. This is done most effectively through empowering associates to do more than just what their job title entails.

This can, however, present some risk since you are encouraging associates to go beyond the scope of their duties, which can lead to some mistakes. While mistakes are a fact a life, how a manager handles those mistakes makes all the difference.

Failures and mistakes should be an opportunity for learning, not an excuse for punishment. This is because if you are too harsh when an empowered associate makes a mistake, then you wind up scaring others into a shell, afraid to take a chance that could pay off for them and the company. After all, if you empower associates to take action, it's difficult to turn around and punish them for acting on that empowerment.

In these cases, an attitude of "It's okay to make mistakes … as long as they're unique" is a good way to handle it. In short, a positive attitude that focuses on "Fail Fast and Learn" is absolutely essential to creating a culture of innovation and empowerment.

Retaining talent
It's a fact: people just don't stay with companies as long as they used to, and employee retention is something nearly every company struggles with at some point. Many times, associates don't leave a company—they leave a manger, or because they are no longer energized and passionate about their work. Because of these factors, an effective and empowering management philosophy or culture can help you retain key members of your teams.

There are a few key concepts to this philosophy toward retention:

Continually challenge—A bored associate, or one who feels that she is never given enough responsibility, can become disgruntled and apathetic. Providing challenges that are tough but achievable can keep an associate engaged and help her feel part of the team. For more tenured and senior associates, it's important to take them out of their comfort zones every so often to keep them challenged and engaged.

Communication is a two way street—While effectively sharing the direction of the company, as well as various policies and procedures, is an important role of management, there must also be a way for associates to share their thoughts with management. This is important since associates who feel as though their concerns are heard are often more informed about and engaged in the business. This can be done through an online tool, regular lunches with members of the management team, an open-door policy, or in daily interactions between management and associates. Even having management simply walk around the office talking to others each day is effective; it makes management visible and helps associates become more comfortable talking with them.

Associates control the culture—The attitude of a management team can set the tone for a company, and is a top-down model. But culture is a bottom-up model since associates at all levels of a company are the ones who create that culture. This is why it's vital for management to promote and exhibit the types of behaviors they want their associates to emulate; simply putting it in a vision or mission statement won't do the trick since those are only as good as the number of people who buy into them. It's up to management to exhibit the principles of the vision and mission.

Career development—Each associate should not only know his or her role in the organization, but where his or her career is headed. Career development plans should outline an associate's potential for growth, yet still be flexible enough to adapt to new business realities, how the associate has handled challenges, and even new job openings that meet the associate's skills and ambition. Associates must believe that the company not only drafts talent, but also provides growth opportunities. They must also have confidence that if growth opportunities do arise, the company is committed to putting the best people in those roles. And consistent communication throughout this process can let the associate know how he or she is doing, and how he or she is on (or even off) track.

As noted earlier, none of these tactics and ideas is a magic potion that can cure whatever ails a business. But they can be used to treat some symptoms, and can assist in leading your team to success. As leaders, we need to continually learn and keep these basic concepts in our daily tool kits as the foundation for future success. As former Honeywell International CEO Larry Bossidy wrote in his book, Execution: The disciple of getting things done: "Leaders get the behaviors they exhibit and tolerate."

About Joe Freeman
Joe Freeman is Chief Operating Officer for Pioneer Services, the Military Banking Division of MidCountry Bank. He is responsible for all lending and retail operations, strategic planning, and manages a diverse group of more than 200 associates spread across various geographic locations.

Freeman has more than 15 years of experience in accounting, operations, consulting, and marketing. He is a successful entrepreneur, a former manager in a Big Five accounting firm, and an expert in managing operational processes, improving efficiencies, and developing strong executional teams.

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