STRATEGIC LEADERSHIP ISSUES · 03/08/2018 · 10 Organizational Development. 6 Saber Advisory...

STRATEGIC LEADERSHIP ISSUES

“Organizational Development and Intersession Project”

Terry Ann Saber Principal

Saber Advisory Group, LLC Dassel, MN

[email protected] 612-202-6313

August 3, 2018

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Saber Advisory GroupSaber Advisory Group

Saber Advisory Group, LLC for the Graduate School of Banking 2018


Strategic Leadership Issues

Organizational Development and

SLI Intersession Project

Graduate School of Banking 2018




What it is…and

What it is not

No single definition!Tying it all together!

Organizational Development

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A Definition

The practice of changing people and organizations

for positive growthSource: Society of Human Resource Management (SHRM)

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Other Definitions• A deliberately planned effort to

increase an organization’s relevance and viability

• Future readiness to meet change• Framework for a change process

designed to lead to desirable positive impact to all stakeholders and the environment

Source: Wikipedia

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A planned intervention aimed at improving

individuals and organizational health

and effectiveness

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Organizational development work aims

to be a catalyst that helps the organization get from

where it is today to its desired state

Source: American Society for Training and Development 6


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. . . is a management field that focuses on helping organizations to develop

their full potentialSource: University of Massachusetts

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. . . is a long-term effort led and supported by top management,

to improve an organization’s visioning, empowerment,

learning, and problem-solving processes, through an ongoing, collaborative management of

organizational culture.Source: Organizational Development (French & Bell, 1999)

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Strategic Planning

Culture

Talent Management and Succession

Leading Change

So what are your “To Do’s”…and how can OD help?

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OD: Tying it all Together




• Must be proactively managed (Whose role?) Can bring excitement, fear, concern, questions, challenges,

opportunities and eventual “misfits”

• What are or what will be the needed roles? Non-incumbent specific

• Talent Management and Succession Who has potential and capacity? Where will the Peter Principle be in play? . . . and when?

• Employee and leadership development are critical

• Never underestimate the role of culture

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Refers to design of an organization that identifies the Organization’s hierarchal reporting and authority relationships• Outlines the work the organization

does• Outlines how jobs are designed

Source: Society of Human Resource Website, Organizational Development

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The Organizational Structure

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• Current organizational structure• How does it assist or hinder the

achievement of strategic goals and objectives?

• Future organizational structure • Issues to ponder• Key areas of “fit”

• What are the potential challenges with a transition to an evolving structure?

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Thought and Highlights




• To align strategically, have 3• Current Structure• Future Structure: 2-3 Years out• Future Structure: 5-7 Years out

• What roles will you need going forward? And how many of them?

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Organizational Structure

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• Functional

• Divisional

• Geographic

• Matrix

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Typical Structures




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1. Span of Control:

5 – 7 Direct Reports

Best Practice Benchmarks

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2. Align Functional Business Lines• Business Banking/Commercial• Retail/Consumer• Fee-Based

○ Wealth Management ○ Mortgage Banking○ Insurance


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3. Separate Risk Taking from Risk Oversight• Separation of Credit oversight (CCO)

from Commercial Banking line (500MM)

• Risk Officer (Chief Risk Officer)o To the Boardo Audit, Compliance, Loan Review,

ERM


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4. Customer Relationship Accountability• What language is spoken?• Bankers versus “Lenders”• Loans, deposits, fees• “Connections” between

Commercial/Retail


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5. Delivery Channels (Line versus staff)

• Customer Contact Center (Formerly Call Center)

• Virtual Bank/Digital Delivery

• Mobile

• Branch (Brick & Mortar)

• In-store branches


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6. Holistic Marketing• Product Development

• CRM Tool(s)

• Branding

• Competitive advantage

Key: Goes beyond advertising and PR!


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7. HR leadership• CEO Direct Report• Culture Management/

Development• Robust, proactive

management of the “People Portfolio”


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8. Cash Management/ Treasury• Sales (frontline) vs.

Back Room Support


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9. Chief Banking Officer

• All line Sales functions• May also include Marketing


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PonderingsYour Organizational

Structure:How aligned is it with Best

Practices?

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Ponderings

Is your Bank functionally organized or

geographically organized?• Pros/Cons

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PonderingsAre the functional

lines holistic?Loans, deposits, fees =

total relationship

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Ponderings

Does geography matter in the current world?

• Mobility• 24/7

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PonderingsDoes the organization

carry any historic terminology/practices?• Bookkeeping• Cashier• Lenders• Tellers • CSR’s/UB’s reporting to Ops

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PonderingsWhere is Mortgage

Banking?

• Stand-alone?• Reporting to Retail?

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PonderingsWhere is Ag Banking?

• Stand-alone?• Reporting to Commercial?• Commercial and Ag

combined?

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PonderingsIs there a separate

Chief Credit Officer function?

• Depends on size!

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Ponderings

Where does Marketing report?

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Ponderings

What is the span of control?

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Ponderings

Are branches/locations managed consistently…

or uniquely by market?

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Ponderings

Has the Infrastructure kept pace with growth?

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PonderingsHow does the current structure help/hinder

teamwork and communication?

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PonderingsIs there clear

communication relative to decision-making

responsibility across the organization?

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PonderingsDoes the structure

help/hinder productivity measures?

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Discussion1. What works well with your

structure?2. What could be enhanced?3. Is the structure dynamic?4. How has it changed in the past 10 years?5. The past 5 years?

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• Your Current Role at the Bank• Your desired longer term role• Your leadership development

Plan

What role could you potentially play in FiSim that would provide the greatest learning experience? Get you out of your comfort zone?

Prep for FiSim

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• Team Mixer next week

• Roles historically have been:• CEO• Chief Credit Officer• Chief Commercial Officer• Treasury Officer• Chief Deposit Officer• COO (only for 6 person teams)

Prep for FiSim

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SummaryWhat are the two things you would do to enhance

your structure?Key: Preparation for Intersession/

relevant application back at the Bank

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Intersession Project

See Online Documents

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Terry A. SaberPrincipal, Saber Advisory Group LLC

[email protected](612) 202-6313

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Questions?

STRATEGIC LEADERSHIP ISSUES · 03/08/2018 · 10 Organizational Development. 6 Saber Advisory...

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