| Bridging
the Disconnect
 By
Thomas P. Johnson Jr.
Improving front-line execution
requires leadership attention.
Banking borrows the term "front lines"
from the military, where it refers to combat troops who
do the heavy lifting of confronting the enemy and taking
the objective. In banking, front-line employees are those
who interact directly with customers in the branches and
call centers.
While they adopt this terminology from
the military, bankers don't always invest their own "front
lines" with commensurate management attention and resource
investment. BAI's recent The Front-Line Factor research
found a serious disconnect between the sophisticated relationship
strategies pursued by bank management (as reported by
our 500 survey respondents) and the ability of their customer
contact employees to implement those strategies.
In battle, vulnerability on the front
lines puts the entire organization at risk. No commander
is willing to take the chance that front-line troops don't
know what to do or how to use their equipment. The same
thinking should apply to banking, where the quality of
the interaction between employee and customer can make
or break customer relationships. Whether in the military,
banking or any complex enterprise, the only way to lead
an organization from strategy to successful execution
is through consistent commitment to thoughtful recruiting
and continual training.
Debra L. Tanis, BAI's managing director
of product management, notes that senior bank managers
"have a hard time investing in things they can't easily
measure, such as training and employee commitment." As
you will read in this issue, consultant Jeffrey A. Schmidt
argues that banks need to do a better job of measuring
the effects of intangible assets such as "human capital"
and managing those assets to improve the bottom line.
He recommends that line managers work closely with human
resources units to get the most out of their front-line
employees.
How valuable is a function within an
organization? One quick clue is its reporting structure.
At most banks, Training tends to be siloed off and relegated
far down the chain of command. One exception is USAA,
the San Antonio-based financial services company that
was founded by ex-military officers. USAA is distinguished
by its rigorous training of entry-level employees, an
investment continually rewarded with industry-high customer
satisfaction ratings.
Given the overall disappointment in
front-line execution and considering the front line's
importance to overall strategic objectives, senior managers
must not separate themselves from the front lines of their
organizations. BAI's research includes several insights
on remedying specific execution shortfalls, but perhaps
no intervention could be more effective than to restore
the connection between the CEO and those responsible for
the front line.
Mr. Johnson
is publisher of Banking Strategies
and president and chief executive officer of BAI.
Copyright © 2004 by Banking
Strategies, published by BAI.
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