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.