The banking industry is filled with managers who have been promoted into leadership positions due to tenure and technical experience. However, few have had any formal leadership and management training and development. Most of their training has been “on the job.” Seen equally consistently in banking are top sales producers who have been promoted into the role of sales manager also with very little, if any, sales management training. It takes an entirely different set of skills to be a top sales producer as opposed to a top performing sales manager.
For banking executives who are fifty years of age and older, you probably remember those formal, year-long training programs. But for today’s banking executives who are younger than fifty, those types of training programs have been relegated to urban legend. This is a reality today that banks must face.
Growing the leadership and management capabilities of your executives and managers is crucial to growing the franchise value of your bank. Your employees represent one of the few things that truly does differentiate your bank from the competition. Developing them is part of the function of leadership, especially if you intend to have a strong succession plan and leadership bench strength in your bank. Having managers and executives who understand the importance of leadership and possess the skill sets and emotional intelligence is critical to preserving your brand and enhancing the value of your franchise.