A few outstanding CEOs have recently retired from their positions after an illustrious career. They took their respective banks to new heights, contributed hugely to the economic success of their communities, shareholders, and employees, and got there using their path and strengths. There is so much to learn from their body of work. Below are the insights shared by two such CEOs at their retirement dinners. These are real-life lessons, a gift from these stellar executives. I hope you will use them to your advantage.
Jim Reuter, the CEO of First Banks CO until last month, shared his main accomplishments and lessons learned during his seven years as CEO, the crowning achievement of a 37-year career there.
1. Record earnings in 2021: $309M—all the result of teamwork underwriting 13,0000 PPP loans—more than any other bank in the state, all while navigating the pandemic. This is the ultimate example of teamwork. AB: Shareholders matter and should be rewarded for trusting their hard-earned capital with you.
2. Efforts to modernize our board of directors, flatten the org chart, and create new leadership opportunities – We now have a board that looks like our community and real discussions at the board meetings. These changes also created new opportunities for many people in this room. This is the best senior leadership team I have had the pleasure of being a part of at FirstBank. AB: People work longer these days, which creates bottlenecks for younger talent to progress appropriately. Making room for fresh eyes and perspective is critical to authentic leadership. It might be painful sometimes, but it is essential for effective succession, development, and retention of your best and brightest.
3. There is a new process for selecting presidents and members of the senior leadership team: more transparency and fairness, and in the end, you know why you were picked or not picked. It doesn’t mean you necessarily agree with the decision, but it is no longer a mystery, and the opportunities are open to all. AB: What is the path to promotion is shrouded in mystery in most organizations. Demystify it, make it transparent, such that those who want the brass ring know exactly what they need to do to get there.
4. Leadership training and coaching, which has created a growth mindset, increased self-awareness, teamwork, and open conversations. Its made us so much better at working as a team and building the next leaders of the company. AB: There is no substitute for candor, especially when delivered sensitively.
5. The diversity of our team at all levels has improved and is best in industry – not by accident we are succeeding on most measures and getting an outstanding in CRA and a strong in fair lending. AB: Diversity of thought, background and humanity makes us all better. One-think is dangerous!
6. Last but now least, navigating numerous crises over the past 4 years – the pandemic, the murder of George Floyd and the insurrection creating new leadership challenges I had not experienced in 34 years, a talent war where at one time we were short staffed 300 people while handling record loan and deposit growth, and last but not least the Fed raising rates faster than any time in history – this team bonded together, had each other’s back and we have been successful in every one of these situations. AB: Crisis management is a critical managerial skill. Crises are inevitable. How they impact your organization is largely (although not entirely) under your control.
Jim continues: “I reflected on the past 37 years and want to leave you with 4 things that are important as a leader. I tried to get to 3 as things happen in 3s, but I really think these 4 are important. As many of you know, I am a big believer in continuous growth as your past successes often make you complacent. Hopefully these help you in your journey of continuous growth.
Number 1 – Be Real – as a leader be real and be human – people follow other people – not architected personas – not people that are trying to be what others want them to be…you are not perfect…and the people that follow you don’t want you to be perfect. Why is this important? It is the foundation of trust. If you are not authentic, they know it, and will not tell you the truth. You want the truth, even when you don’t want to hear it. It will make you better. AB: Authenticity is an important leadership trait. Embrace it. It’s far easier to be who you are than anyone else!
Number 2 – Diversity Matters. We were awake before the word “woke” came along. It is important to look like the community you serve in order to effectively serve it. You want diversity of thought. You don’t want mini-me’s. Success does not have to look like you. A one year Officer is as valuable as a 30 year officer. Make sure all voices are heard as a leader. AB: Listen to everyone. Even when they are impractical or outright wrong, sometimes their thought process or a nugget within their thinking will open new doors for you.
Number 3 – Use A Wide Lense – Business is a learning competition. This is what separates innovative future minded leaders from the rest – be well read (NYT, WSJ, DBJ, Monocle, world and local), network every chance you get, be curious, gather on the ground intel from people that are like you and not like you, if your sources resonate with you all the time then you need to find new sources of intel. Wilson Mizner (screenwriter) said, “If you steal from one author, it’s plagiarism, and if you steal from many, it’s research.” Albert Einstein said “the secret to creativity is knowing how to hide your sources,” The world around you will tell you where things are going if you listen. Why does a Wide Lense matter? This is how you see around corners, anticipate, and stay ahead of others. AB: Expand your sources of data, anecdotal information, gossip, whatever. A self-reinforcing loop of datapoints is not just uninformative; it is counter-productive.
Number 4 – Pay Attention In Meetings. This one sounds funny but matters. I still don’t always get this one right, especially when one is attending their 300th plus Audit Committee meeting. Pay attention in meetings whether you are at the center of the discussion or not. Easy not to do with iPads, phones, laptops and an endless box of emails. Paying attention offers a free opportunity to watch and learn. Who asks good questions and how do they ask them? How do other good leaders answer the questions? Free intel as you build your experience and fact patterns for success. Putting all of this aside, there is also a good chance later in the meeting you will be at the center of the discussion and you will have missed something that would help you in the moment. Who is on the war path today, will my answer support or contradict something said earlier in the meeting, do I have an opportunity to help a teammate. How does this show up from my experience? I have been told by some I do a good job of reading the room. That is not true. I pay attention during the meeting. You don’t read a room, you pay attention and allow the room to be read.“ AB: If you get nothing out of this article, focus on this last point. We spend so much time in meetings and get poor returns on that investment. Make it productive for you by listening, steering the discussion toward productive outcomes, and reading the room for future leaders, insights and destractors.
So in summary – be real, diversity matters, use a wide lens, and pay attention in meetings and it will make a difference on your leadership journey.
And from Chuck Sulerzyski, the recently retired CEO of Peoples Marietta OH who grew the bank and its team and transformed it from a lo0cal bank to a broader powerhouse:
- One gets out of a career what they put into it. We all have the occasional lucky break or the unfair setback, but for the most part where we go is determined by what we produce.
- You got to dig to excel. There is a lot of constant change and leaning in banking. One will only continue to push themselves if they love the business.
- We make a huge difference in people’s lives and our communities. We help people live their dreams. We provide the road maps for financial success. We provide businesses with capital that allows buildings to be built and employment to grow.
- Most customers are good people trying to make the best of their financial situation. Yes there is the occasional ass, but most customers want good service at a fair price. They are grateful for advice and understanding. Love them!
- Most employees are good people trying to make the best of life. Yes there is the occasional ass but most want to be treated with respect and make a positive contribution. Love them!
- Careers are marathons not springs. Take care of yourself, sleep more, exercise more, eat better, don’t smoke or do drugs, drink in moderation if you must.
- Daily little habits turn into the seeds of success. Read daily, Know what is happening in your community, state, country and world.
- Be kind to all. Everyone is fighting their own set of troubles. We can’t tell what each other is going through. The more love and kindness we give, the better we feel, and the more we receive.
- Learn from both the good and the bad. Some leaders are jerks. They provide a great example of what not to do. Some leaders help us grow and feel good about ourselves and work. Be grateful for their gift and study how you can add their magic to your bag of tricks.
- Laugh! Laugh a lot! Find pleasure in life’s little things. And most importantly learn to laugh at yourself. We are all just trying to do the best that we can and mess up often.
- Be a good team mate. Be the one who adds the poisitive energy. Recognize the goodness in your colleagues. Strive to improve and add more energy to your team than you take.
- Learn how to get paid more. Yes we all want a biggerpaychecvk. But we can get paid more by getting joy out of what we do. Whether you’re adding excellence to a complicated task (I think credit, systems, finance etc.) or making a customer’s day, learn how to take daily “psychic” compensation out of your work. For me, my biggest paycheck comes from watching people grow. From the teller who becomes a branch manager; from the lawyer who becomes CEO.
Both sets of advice resonate with me. What struck me is the widely different advice from two very different yet very successful executives! The path to success is highly individual, and should be consistent with who you are.