@leewetherington - Sitemason, Inc. · – Overwhelm the board with detailed analysis or specifics...

Selling the Board

Lee Wetherington, AAP Director of Strategic Insight

ProfitStars

Evangelizing Bank Tech (the Rhetorical Art of ROI)

@leewetherington

What do I know about bank boards?

• My Dad was a bank CEO and board chairman.

• My father-in-law is chairman of a CU.

• I’m in front of hundreds of Board Directors every year.

• Susan Taylor asked me to do this. I’m afraid of Susan.

Housekeeping

• I’m not a sales guy. • I’m a presentation guy. • Ask me questions, please. • I know I have big ears. • Thank you for noticing.

If you see how great an idea is, won't everyone else?

Harvard Business Review; HBR Blog Network / Best Practices; “How to Get Your Idea Approved”; by Amy Gallo ; 10:43 AM November 15, 2010

Whether an audience accepts an idea is often less about the idea itself than about how you present it.


First impressions are critical…

and hard to reverse.


The bigger the stakes, the better it is to take the time to get it right.


Agenda

• 5 Ways to Get Board Buy-In

• The Presentation: 10 Tips –Know Yourself & Your Audience

–Examples of Data-Driven Stories

• Do’s & Don’ts

• Questions & Answers

Form Alliances Early • Test the waters in casual conversation first. • Identify questions and objections. • Demonstrates your interest in their opinions. • Helps improve and expand on your idea.

– They may see a positive angle you didn’t.

• The more you understand your board members’ feelings about your proposal, the better you can prepare to get it approved. Harvard Business Review; HBR Blog Network / Best Practices; “How to Get Your Idea Approved”; by Amy Gallo ; 10:43 AM November 15, 2010

Do Your Homework: Over Prepare • How you field questions will impact approval. • Be prepared for idea-killing tactics:

– Motion to table the decision (to death) – Creating confusion by barraging you with

questions or unnecessary detail – Stirring up irrational anxieties or fears – Attacking you personally

• Develop concise, honest responses to each tactic. Builds self-confidence, keeps you calm.


My Sources...

© 2010- ProfitStars. All Rights Reserved.

Homework/Presentation Tools & Resources

Tailor Presentation for Your Board • How does your idea benefit them? • They may stand to gain prestige, cost savings,

or an opportunity to build their legacy around your idea.

• Show them how your idea bolsters their stewardship of the bank, protects them from personal/collective liability, and/or gives them a way to increase shareholder returns.


1. Know yourself 2. Know your audience. 3. Keep it simple.

Know Yourself: Presenter Self Assessment

• Are you high-energy or low? • Are you a data dumper? • Are you a story-teller? • Are you naturally funny? • Are you scared?

–If so, why? What scares you?

You and the Board Chairman?

You want us to do what?!

Know Your Board (Audience)

• Who are they? – Age, education, income, diversity, culture?

• What expectations/baggage do they bring to you and the boardroom?

• What is most important to them? – And how can you help them with what’s

most important? Tell them up front. – What’s in it for them?

Present opportunity costs first, then gains.

Keep It Simple • Focus on one or two main points and avoid

proving how much you know. • Overly detailed presentations…

– distract your board members – make them feel stupid for not following along – cause you to simply run out of time – arms opponents with ability to distract or confuse

others by requesting more details about specifics


Top 10 Presentation Tips

Set expectations upfront.

10.

Manage Expectations

• What we will discuss/provide

• When we will start

• When we will end

27

One thought per slide.

9.

The 30 Pt Rule

8.

Blah, Blah, Blah - Overview • The Blah Blah Blah was established in 2002 to find homes for blah blah blah turndowns. It has since been

expanded to include other working capital solutions such as Equipment Finance, Asset-Based Lines of Credit, Purchase Order/Inventory, and Commercial Real Estate.

• The Blah Blah Blah has relationships with X funding sources ranging from Banks and Commercial Finance companies to Private Equity and Hedge Funds.

• There are X banks that have signed referral agreements in place with us. Only X were active in 2009. We have X non-bank referral sources licensed as well. X Active in 2009.

• We received X leads from a total of X sources in Calendar 2009. Of those X, X were deemed to be Qualified Leads. X of those closed – X%. In calendar 2010 we’ve received X leads, Xhave been Qualified, and X closed – X%. Better partnerships with lenders and economic turnaround have both contributed.

• Average deal represents $X annually. X deals are active. Revenue for FY10 was X.

• Focus in FY10 was on creating more beneficial partnerships with lenders. Focus for FY11 is on creating more exposure and expanding referral network.

The 10/20/30 Rule

• 10 Slides • 20 Minutes • 30 Pt Font

http://blog.guykawasaki.com/2005/12/the_102030_rule.html

No bullets…

…if at all possible.

7.

• Summarize succinctly • Paraphrase pointedly • Denote main idea/word only • Use active verb phrases,

not complete sentences...

If you must bullet…

People read faster than you talk.

Get on with it.

6.

Attention Paid Over Time

SOURCE: http://www.monash.edu.au/lls/llonline/assets/images/speaking-preparing1-1.jpg

And when should you take a break?

How Breaks Improve Attention Span

Higher approvals first thing in the morning and

right after lunch.

Eliminate slide noise.

5.

©2010 Jack Henry & Associates, Inc.® All rights reserved. Strictly private and confidential.

Blah, Blah


Blah, Blah, Blah

©2010 Jack Henry & Associates, Inc.® All rights reserved. Strictly private and confidential.

Secrets of the Trade


The Art of the Presentation

Use strong images.

4.

The Prepaid Problem: Usability

Offer Too Many Choices

Tell a story.

3.

Data Driven Stories

• Beginning, middle, end • Personal observation/story • Privileged knowledge/insight • Violate expectations • Clear take-away/ call to action

Data Driven Tipping Points

2012: Year of the Smartphone

Jave

lin S

trate

gy &

Res

earc

h: “2

011

Mob

ile B

anki

ng, S

mar

tpho

ne a

nd T

able

t For

ecas

t: M

obile

Ban

king

Mov

es M

ains

tream

to M

id-s

ized

, Com

mun

ity B

anks

and

Cre

dit U

nion

s”; D

ecem

ber 2

011

U.S. Consumers’ Adoption of Smartphones and Feature Phones, 2008–2016

Transaction Costs by Channel

Fiserv White Paper: “How to Achieve a Compelling ROI from Mobile Financial Services” ; www.checkfree.com

Mobile Banking ROI

Cost Savings of Mobile Deposits

April 16, 2013

96% of Small Banks: No RDC Losses

SO

UR

CE

: Cel

ent;

THE

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F C

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SU

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R R

DC

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2: T

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OF

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Small & Micro Biz Adoption of RDC

SO

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THE

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Check Use Declines

61% 56 %

51 % 47 %

38 % 34 %

31 % 30 % 26%

23 %

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Fiserv 2011 Consumer Trends Survey

Percent of payments paid by check

Branch Facts

• Self-service reduces branch traffic dramatically

• 23% of banks expect branch contraction over the next five years

– No credit unions expect branch contraction

• Daily per-branch deposits will decline from 250/day to 50/day by 2016. (Celent) SO

UR

CE:

Cel

ent;

“TO

P TR

END

S IN

RET

AIL

BAN

KIN

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013”

B

y B

art N

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eam

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2

2009: Worth Switching to Prepaid?

$(2,100)

$(1,600)

$(1,100)

$(600)

$(100)

$400

$900

$1,400

$1,900

Potential savings to checking account holders from switching to prepaid debit cards

18% would save

Median savings (US$)

Source: Aite Group

82% would be worse off

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3

Overdraft Volumes Remain High

Source: Moebs Services, FDIC, NCUA, OCC, Federal Reserve

$0

$10

$20

$30

$40

2007 2008 2009 2010 2011

Overdraft Revenue (US$ billions)

SO

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3

Monthly Account Fees Up…

Source: Bankrate.com

$ -

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

1998 2000 2002 2004 2006 2008 2010 2012

Average Monthly Service Fees on Checking Accounts

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: Aite

; “Tr

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3

ATM Fees Up… Average ATM Fees on Non-Customers

$ -

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00


1998 2000 2002 2004 2006 2008 2010 2012

SO

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: Aite

; “Tr

ends

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3

…And Interest Rates Are Down

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

2001 2003 2005 2007 2009 2011

0.79%

0.08%


Average Checking Account Yield

SO

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3

The “Debanked”

Mainstream consumers who willingly opt out of the traditional banking system

SOURCE: Aite; “Trends in Retail Banking”; Ron Shevlin; March 2013

“NeoChecking” Accounts

Say what everyone knows but no one has

said yet…or violate assumptions.

2.

Different Experiences/Expectations

Violate Expectations/Assumptions

• Remote deposit is safer than manual check deposit.

• Mobile doesn’t matter…better shopping/spending/saving matters.

• Future of payments is more about data than payments.

Violate Expectations/Assumptions, cont’d

• 1 out of every 3 community bank branches is a zombie branch, doesn’t cost-justify its existence.

• The checking account is dead/dying. • Big Data? No! Bank Data!

Tell them what’s next… …and how it will happen.

1.

Answer questions with confidence.

Is she trying to throw me off?

Does she hate my idea?

Does she not trust my judgment?

I will destroy her!!!

Wait, is she flirting with me?

How’s my breath today?

Answers Questions Like a Statesman • Don’t get distracted by trying to discern the

intention behind questions or comments. • Answer questions simply and straightforwardly

…no matter how aggressive, demeaning, or silly the question may seem.

• For off-topic or potentially derailing questions, reframe or answer the question you wished the person asked instead. – “Yes, usually the issue there is…”


Do’s and Don’ts • Do:

– Meet with important and/or influential board members in advance of needing their formal approval

– Position your idea in terms of the benefits the board and bank stand to gain

– Answer questions concisely and confidently


Do’s and Don’ts • Don't:

– Assume that your board will believe it's a good idea just because you do

– Overwhelm the board with detailed analysis or specifics

– Get defensive or angry when board members challenge your idea


And finally…

If you can’t get traction, get an outsider to say it or pitch it.

Resources

• John Kotter’s Buy-in: Saving Your Good Idea from Getting Shot Down

• Michael Norton and Todd Rogers, "The Artful Dodger: Answering the Wrong Question the Right Way,"

• Ron Shevlin’s Ten Things You Need To Know So You Don't Suck When Giving A Presentation

80

Lee Wetherington, AAP [email protected]

http://discover.profitstars.com/leewetherington

http://twitter.com/leewetherington

http://www.linkedin.com/in/leewetherington

@leewetherington - Sitemason, Inc. · – Overwhelm the board with detailed analysis or specifics...

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