Leadership and Management Principles Baldrige Performance Excellence Group April 26, 2011 Jeff MacLellan, Vice –Chairman ~ Landmark Bank Background “Everything you do prepares you for what you are ultimately going to accomplish” Bi-cultural Upbringing Military School (self discipline, leadership, learning,BC) SMU – BBA & MBA Air Force active duty during Viet Nam Started in banking in 1974 – credit training Became bank President at age 36 in 1984 Moved to Columbia in 1987 as Pres &CEO of FNB Became President of Holding Co in 1995 Retired in 2009 after 35 years in banking, last 25 as CEO. What is Leadership? The ability to inspire confidence and support among followers and those whose competence and commitment produce performance TEN Characteristics of Leaders Self Knowledge Open to feedback Eager to learn & improve Curious, risk taker Ability to concentrate or focus Learns from adversity Balances tradition and change Open style Works well with systems Serves as model and mentor Leadership VS. Management Leadership Guiding Directing Teaching Motivating Achieving Goal setting Management Resource coordination Integrating to accomplish goal Controlling Planning Coordinating Results Good leaders produce results, consistently, year after year, constantly raising their standard. (Results are 450 of the possible 1000 points in Baldrige application.) Deposits(in thousands) $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Loans $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 AssetsGrowth in Total A $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 1990 1995 2000 2005 2010 Earnings $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Landmark Bank Put together competent, professional management group Provided succession management Built 25 locations in 3 states Bank made money every year Bank remained healthy through all economies Combined bank of $1.5 billion Poised for future growth & success Results and Baldrige Baldrige criteria are a blueprint for success: Vision. Mission, Purpose, Values Measure – You manage what you measure Goals – Clear, achievable, and measureable Benchmark - Measure against competition Communication - Your plan and results Accountability – Hold leaders accountable Non-Results 1.Venture into other industries (stick to your knitting – Tom Peters) 2. People mistakes 3. Worst loan I ever made What Makes a Good Leader? Self – Awareness Self – Regulation Motivation Emotional Intelligence Social Skill Vision Integrity Referred to as Self-Management Skills All four reflect your ability to manage Relationships with Others Self – Awareness (Know Yourself) Definition: The ability to recognize and understand your moods, emotions, and drives as well as their effect on others Hallmarks: Self confidence Reliable self-assessment Self-deprecating sense of humor – ability to laugh at yourself Self – Regulation (Discipline) Definition: The ability to control or redirect disruptive impulses and moods The propensity to suspend judgment – to think before acting Hallmarks: Trustworthiness and integrity Comfort with ambiguity Openness to change Motivation Definition: A passion to work for reasons that go beyond money or status A propensity to pursue goals with energy and persistence Hallmarks: Strong drive to achieve Optimism, even in the face of failure Organizational commitment Emotional Intelligence Definition: The ability to understand the emotional makeup of other people Skill of treating people according to their emotional reactions Hallmarks: Expertise in building and retaining talent Cross-cultural sensitivity Service to employees and customers Social Skill Definition: Proficiency in managing relationships and building networks An ability to find common ground and build rapport Hallmarks Effectiveness in leading change Persuasiveness Expertise in building and leading teams Vision Definition: Unusual competence in discernment or perception; intelligent foresight The manner in which one sees or conceives of something Hallmarks: Creativity Intellectual Drive Integrity Definition: Steadfast adherence to a strict moral or ethical code. The state of being unimpaired; soundness Hallmarks Honesty Firm beliefs Strong Character Do what is “right” Baldrige Criteria Why am I Intrigued by Baldrige? Results Oriented (450 out of 1000) Comprehensive It transcends industries – city, health care, manufacturing, education. Baldrige criteria work in any industry. It Works I wish I had encountered Baldrige 35 years ago Jeff’s Leadership Lessons 1. Hire the best people you can, train them, trust them and let them flourish. (and always let them know you are there for them) 2. Hire people with different skill sets, different perspectives, different ideas. (it strengthens decisions) 3. Keep people challenged, constantly learning; move them around. 4. Rely on your experience and wisdom – you may see things differently than others. 5. Be consistent – people should know what to expect. 6. Have a passion for what you do. Jeff’s Leadership Lessons 7. 8. 9. 10. Balance is key, in most of what you do Be flexible – you never know what the day will bring. When in doubt, do what is right. Be decisive – a mediocre decision is worse than no decision (as long as it is not a fatal one). 11. Know where you are going (if you don’t, why would anyone follow?). 12. Communicate, communicate, communicate. 13. Protect your character.