Effective Meetings with Management - October 2023

Effective Meetings with Management School

October 16-20, 2023 Minneapolis, MN

@ www.csbs.org ♦ @csbsnews

CONFERENCE OF STATE BANK SUPERVISORS 1300 I Street NW / Suite 700 / Washington, DC 20005 / (202) 296-2840

Effective Meetings with Management Minneapolis, MN October 16-20, 2023

Embassy Suites by Hilton - Minneapolis Downtown Meeting Room: Turquoise Room

Monday, October 16, 2023 7:30 am – 8:30 am

Registration Outside Plymouth Ballroom

Introduction

8:30 am – 8:45 am

Icebreaker

8:45 am – 9:30 am 9:30 am – 9:45 am 9:45 am – 11:45 am

Break

Communication Skills

11:45 am – 1:00 pm

Lunch on your own

Managing Effective Meetings

1:00 pm – 2:30 pm

2:30 pm – 2:45 pm 2:45 pm – 3:15 pm 3:15 pm – 4:30 pm

Break

Managing Effective Meetings (continued)

Pop-Up Presentations

4:30 pm

Adjourn

Networking Reception Outside Plymouth Ballroom

5:30 pm – 7:30 pm

Tuesday, October 17, 2023 8:30 am – 9:00 am

Icebreaker

Delivering Difficult Messages

9:00 am – 10:15 am 10:15 am – 10:30 am 10:30 am – 11:45 am 11:45 am – 1:00 pm 1:00 pm – 2:30 pm

Break

Negotiations

Lunch on your own

Conflict Management

2:30 pm – 2:45 pm

Break

Pop-Up Presentations

2:45 pm – 4:30 pm

4:30 pm

Adjourn

Wednesday, October 18, 2023 8:30 am – 9:00 am

Icebreaker

Fact Finding

9:00 am – 9:45 am

9:45 am – 10:00 am 10:00 am – 10:45 am

Break

Escape Room Activity

Industry Feedback

10:45 am – 11:15 am

Prepare for Individual Meetings

11:15 am - 11:45 am

11:45 am – 1:00 pm 1:00 pm – 2:30 pm

Lunch on your own

Individual Meeting with Instructor (20 minutes per person)/ Prepare for Presentation (remainder of the day)

2:30 pm – 2:45 pm

Break

Individual Meeting with Instructor (20 minutes per person)/ Prepare for Presentation (remainder of the day)

2:45 pm – 4:30 pm

4:30 pm

Adjourn

Thursday, October 19, 2023 8:30 am – 9:00 am

Prepare for Board/ Management Meetings

Board/Management Meetings

9:00 am – 11:30 am

11:30 am – 1:00 pm

Lunch on your own

Board/Managment Meetings

1:00 pm – 2:30 pm

2:30 pm – 3:00 pm 3:00 pm – 4:00 pm

Break

Marshmallow Challenge

4:30 pm

Adjourn

Friday, October 20, 2023 8:30 am – 9:00 am

Board/Management Meeting Review

Family Feud and Wrap-up

9:00 am – 11:00 am

11:00 am

Adjourn

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Communication Skills

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Go to www.kahoot.it

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Go to www.kahoot.it

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VIRTUAL MEETINGS –2020 and Beyond?

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Minimize Distractions

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Technology • Test all technology before the meeting. • Raise your webcam to eye-level. • Use a good microphone • Position conference window near camera. • Use a laptop, not a phone.

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Etiquette

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Communication is Key • Verbal / non-verbal • Aware of body language • Eye Contact • Posture • Personal Appearance • Volume • Inflection • Articulation • Direct w/ middle person • Virtual Communication Issues and Etiquette

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Managing Effective Meetings

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Exercise

Effective Meetings vs. Ineffective Meetings

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Exercise

Ineffective Meeting Exercise

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Exercise

Ineffective Meeting Exercise

Why was the meeting ineffective?

How could you have made it more effective?

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Types of Meetings During an Examination

Pre ‐ Scope / Intro

First Day Meeting

Fact ‐ Finding

Update Meeting

Internal Debrief

Exit Meeting

Board Meeting

Wrap ‐ up

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Exam Discussions Overview

Questions and Conclusions in Exam Process Questions Conclusions

100%

0%

Pre ‐ exam Meeting

Exit Meeting

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Utilizing an Agenda

Question: what percentage of the exam meetings you’ve attended (all types) have involved a written agenda?

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Utilizing an Agenda “Meetings without an agenda are like restaurants without a menu.”

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Utilizing an Agenda

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Utilizing an Agenda

Preparation Direction

Focus

Setting the Tone

Support

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Utilizing an Agenda

•Use bullet points

• Include every point you want to make

• Focus on key topics

• Provide too much detail

•Add detail verbally

• Lack structure

•Review multiple times

Do

•Bury the message in numbers

Don’t

• Prioritize items

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Utilizing an Agenda

“Too much detail is apt, like any other form of extravagance, to become slightly vulgar.” –Willa Cather

Ratio

Period Ended 03/31/2011

Period Ended 12/31/2010

Period Ended 12/31/2009

Net Non ‐ Core Funding Dependence Net Loans and Leases/Total Assets

10.36%* 76.70%

14.61%* 75.57%

24.97% 80.30%

• Liquidity and funds management practices are satisfactory, in spite of credit risk issues. The bank has access to sufficient sources of funds to meet present and anticipated liquidity needs. • Liquidity levels have improved since the prior examination. • On balance sheet • Liquid assets = $195 million, or 9.2% at March 31, 20XX (8.5% at LX) • Totals have improved during 2 nd quarter to $312 million, or 14.8% as of June 30, 20XX • Represents an increase of over 500 bps. • External borrowing sources • The bank continues to be rated “7” by FHLB, primarily due to credit risk issues. The bank remains on “listing” status and FHLB funding requires 142% collateral coverage. • FHLB borrowing capacity at March 31, 20XX = $264 million • FHLB borrowing capacity at June 30, 20XX = $272 million • In additional secured borrowing line with FRB = $27 million and unsecured line with Comerica = $6.5 million • Total on-hand liquidity / total liabilities as of March 31, 2011 = 25% (21% LX). Improved further to 29% as of June 30, 2011. • The bank’s Net Noncore Funding Dependence ratio is moderate at 10.4% (using the > $250,000 deposit insurance limit) as of March 31, 20XX. The UBPR Peer Group ratio is 11.6%. • The bank’s deposit base remains stable. Step-up time deposits have interest rates well-above market, but are limited to approximately $137 Million. • Management has been able to develop and access new funding sources, e.g. QwickRate and Comerica. Additionally, management regularly sells securities and loans without incurring loss. • Regulatory restrictions on holdings of brokered deposits and interest rate caps remain in-place. • Management has addressed contingency funding plan and other risk management weaknesses.

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4 C’s for Presenting

Calm Confident

Clear

Concise

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4 C’s for Presenting

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Ideas for a strong presentation

Train and rehearse to hone your skills Know your audience Dress, look, and act the part

Be courteous Be interesting

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Ideas for a strong presentation Engage your audience Don’t read, remember Set the tone early –and maintain it Stay objective Support your conclusions

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Ideas for a strong presentation Build your case along the way Use simple text / graphics Time your remarks to stay on track Summarize key conclusions and next steps Remember the 4 C’s

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Remember…

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Takeaways? Questions?

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Negotiations

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Negotiations is a method by which people settle differences.

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The 6 Stages of Negotiations

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The 6 Stages of Negotiations

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The 6 Stages of Negotiations

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The 6 Stages of Negotiations

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The 6 Stages of Negotiations

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The 6 Stages of Negotiations

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The 6 Stages of Negotiations

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Group Exercise

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Conflict Management

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What does conflict mean to you?

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AVOIDANCE

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ACCOMMODATION

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COMPETITION

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COMPROMISE

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COLLABORATION

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Red and Black Game

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• If both Team A and Team B choose red, both teams lose 5 points. • If Team A chooses red and Team B chooses black, Team A gains 10 points, and Team B loses 10 points. • If Team A chooses black and Team B chooses red, Team B gains 10 points, and team A loses 10 points. • If both Team A and Team B choose black, both teams gain 3 points.

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Scoreboard 1

Team

Round 1

Round 2

Round 3

Round 4

Round 5

Round 6

Total

Team A

Score

Team B

Score

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Scoreboard 2

Team

Round 1

Round 2

Round 3

Round 4

Round 5

Round 6

Total

Team A

Score

Team B

Score

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Key Take-Aways

• Acknowledge • Know your audience • Communicate • Clarify • Commit to resolve conflict using various method

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Delivering Difficult Messages

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In the chat: Do you have to deliver difficult messages?

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Goals

• Class Experiences

• Bad Examples of Bad News

• Difficult Messages: Dos and Don'ts

• Difficult Messages: Meeting the Challenge

• Difficult Messages: Persuasive Principles

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Please go to www.menti.com.

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Delivering Difficult Messages

Who might you need to communicate with during the examination process?

Bank employees

Mid-level Managers

Loan Officers

Executives

Directors

Examiners from Other Agencies

Chief Examiners / Deputy Level

Other Examiners

Supervisory Examiners

Case Managers

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Delivering Difficult Messages

What messages may be difficult to deliver during the examination process?

Need to extend onsite exam

Findings

Loan Downgrade Downgraded Ratings

Supervisory Action

Difference in approach between agencies

Not Ready for an Exit Meeting

Need more time to write the report

Feedback to other examiners

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Delivering Difficult Messages

How do you feel when you have to deliver a difficult message?

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Bad News, Bad Delivery

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Bad News, Bad Delivery

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Bad News, Bad Delivery

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Bad News, Bad Delivery

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Bad News, Bad Delivery

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Activity

Delivering a difficult message

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“Bad news isn’t fine wine. It doesn’t improve with age.” – Colin Powell

• Joke around. • Be vague. • Beat around the bush. • Soften the blow too much. • Give advice if not asked. • Use slang or informal talk.

• Prepare yourself. • Be direct. • Have support. • Give others a chance to speak. • Treat them with empathy. • Be professional.

Do

Don’t

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Overcoming Fears of Delivering Difficult Messages

Practice your comments

Visualize and rehearse

Allow others to help - and at times rely on them

Gain familiarity with audience / setting

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Overcoming Fears of Delivering Difficult Messages

Take deep breaths

Realize most of your nervousness does not show

Communicate more, not less

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Principles of Persuasion

Authority

Scarcity

Reciprocity

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Principles of Persuasion

Liking

Commitment & Consistency

Social Proof

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Activity

Group Presentation

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GROUP ONE: AUDIENCE

Bank has minimal earnings and any negative findings that might impact earnings will directly impact capital, which will require capital infusion. As the BOD and management, you do not want to have any negative findings from the exam.

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GROUP TWO: AUDIENCE

You are the Chairman/President of the bank. Your son is the BSA officer, who has been to (2) BSA training and has back up support. He has been the BSA officer for the past 5 years.

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GROUP THREE: AUDIENCE

As BOD/management, your bank’s earnings levels have been performing satisfactorily; however, your bank performs slightly better than peer. So, you think that Earnings rating should be upgraded.

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GROUP FOUR: AUDIENCE

As BOD/management, the bank recently acquired another institution. Due to lack of information, due diligence on the acquiring institutions was not performed. However, you recently found out that there was a $1.5MM defalcation from someone from the acquiring bank’s customer accounts. As management, you do not want it to impact the management component rating.

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GROUP FIVE: AUDIENCE

As BOD/management, you were notified that examiners are extending their stay at your bank to (5) weeks. Examiners have stayed beyond the timeframe you would like for them to be there. As management, you do not want any downgrades.

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Takeaways?

Questions?

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Fact-Finding Interviews

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Have you ever held a fact-finding meeting?

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Keys For Fact-Finding

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Get to the source

• Stay objective • Don’t get overwhelmed • Persist • Don’t assume • Listen • Have a plan

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Get to the Source

Source

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Stay objective

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Don’t get overwhelmed

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Persist

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Don’t assume

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Listen

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Have a plan

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Bank Examiner Escape Room

During your first ever examination at a De Novo Bank, you and your team have been locked in the vault by a jealous former examiner employee. The vault is virtually air-tight, but there is one way out.

You must obtain clues to aid in your escape (once you believe you have solved a clue, let your instructor know to determine if you can move forward).

You will need to enter the Exit Code, but you cannot input the code until all clues have been obtained. In addition, the code locks out forever after two failed attempt.

Focus on your surroundings, work together as a team, remember the importance of digging into clues and asking follow-up questions. Good luck!

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Thank you for the comments !

What are you really thinking ?

INDUSTRY FEEDBACK

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Conversational Meetings &

Trust & Respect for the Audience

Notes of Collaboration

Different Presenter

Some “small talk” before meeting

Clear Action Plan

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New Examiners

Informative and Structured with Input

Presenting Facts with Support

Follow up after Yes/No

Same Documents

Preparation & Clarity

– Extra Copies

Courtesy – Not Accusatory

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Repeated Request

Evasive Reasoning and Lack of Clarity

Complex/Confusing Questions

No Clear Direction on Requests

Short Zoom Meeting / Multi-Tasking During Zoom Meeting

Assumptions

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Arguing & Interrupting

Presumption of Non-Compliance

Not listening or Taking Notes

No Eye Contact

Meeting Just to Meet Without Reason

Playing on Phone

Rigid Q&A Format

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Repeating questions

Forget to unmute

Tardy/Not punctual

Distraction during zoom

“Best practice” without discussing

Attire

Disrespect abilities

No substantive comments

Confrontational seating arrangement

Unprepared

Reading Agenda

Engagement/ Phone

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Board/Management Meeting Presentations

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Board/Management Meeting Presentations:

• Prepare a 20-minute Board/Management Meeting Presentation. • Remove all confidential/ identifying information • Try to challenge yourself! Focus on findings that are hard to deliver. • Send your agenda to your instructor prior to your presentation. • Everyone will also observe the other presentations and act as members of Management or the Board. • Be prepared for questions or challenges just like in a real-life situation.

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Schedule:

Prior to School

Wednesday, October 18

Thursday, October 19

After School

• Come prepared with a previous board or management meeting presentation or one that you plan to conduct.

• 20-minute one-on one meeting with your instructor to discuss your presentation • Independent time to prepare for presentation

• Board/Management Meetings • Presentation and observe • Send agenda to Instructor prior to presentation

• You will receive a feedback form from your instructor.

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