CMS Case Study

Senior management should provide all lenders (at least monthly) specific examples of the types of deals across the bank’s footprints that are presented and declined due to excessive risk. As a learning opportunity, a forum should be provided for open discussion on declined deals as well as quality deals won. Lenders should be polled for their suggestions on a) annual incentive goals and b) what tools they are lacking to achieve them. These suggestions should be utilized when establishing formal goals and to implement necessary training to encourage consistent lending practices. Finally, loss can be avoided by attention to detail. Employees should follow policy and procedures, produce correct and complete documents, and be alert to potential fraud and scams.

D.

Communicate Well

1.

Executive Management Spend More Time in the Field

It is critical that executive management stay in contact with not only direct reports but with the operations staff and employees in outlying branches. To that end, executive management should have a standing weekly meeting (via phone or in person) with the City Presidents and other supervisors. Further, executive management should devise a rotating schedule of physically visiting each branch a certain number of times per quarter to interact with staff. These visits and interactions do much to boost employee morale.

2.

Training Program to Include Interdepartmental Exposure

As part of a formal training program, there should be structured exposure for each new employee to areas of the bank besides such employee’s home department. For instance, new operations employees should conduct a branch tour and spend time embedded in a branch(es) as part of the onboarding process. Human resources should work with each department head in developing a structured rotation of exposure for each new employee. Interacting with employees not seen on a daily basis will help foster collegiality.

3.

Replace “Kindler/Gentler” Mentality with Constructive Criticism/Course

Correction

If an employee begins not performing to the expectations of their position, supervisors shall immediately meet with such employee. At this meeting, the supervisor should discuss the positive characteristics of the employee and where he/she is meeting expectations and then discuss the issues and areas that need improvement. The meeting should conclude with concrete and documented expectations for improvement that are positively reinforced. At this meeting, a follow up meeting should be scheduled to evaluate the employee’s progress.

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