Executive Summary: Banks continue to be encumbered by disaffected employees who are alienated from their employer and their customers.

At the end of a long meeting, I recently commented to one member of the client team that the bank was hard to push to action, despite a strong objective analysis that would point to immediate change. With some humor intended, I said, “Come on, it’s your bank. Why can’t you get them [senior management] to do something?”

With barely a moment’s hesitation, this very well-experienced and long-tenured banker replied, “It’s not my bank.” In short, the banker viewed himself as just another employee, one who did not feel empowered to act, even though he is an intelligent, thoughtful, and caring manager. The comment communicated a sense of alienation, frustration and, on some level, despair that we find often exists at banks. Many bankers operate as if they are at a distance from the company that pays them and at which they spend many, many hours of their lives. This attitude hurts them and hurts their banks.

Considering Alienation
Why does this sense of alienation exist? In large part, we trace it to the view of many bankers that they cannot impact events, that their views about company policies and customer relationship management will simply fall on deaf ears. Remarkably, this is a perspective that seems to be most pervasive in experienced bankers, whether line or support staff, even up to and including management committees.

I remember a recent meeting in which one of the people in the room was bemoaning the “them” that kept things from happening. I looked around the room at the President and CFO, among other senior executives of the company and commented somewhat bluntly: “You are them.” While the irony was appreciated, it did not pick up the pace of change.

Another example: one banker said he was waiting to be told what to do related to a relatively small tactical step that he was fully capable of accomplishing himself. It never occurred to him that he should be proactive because the culture at that bank was such that consensus had to be achieved no matter the insignificance of the action. If one took action and the action was subsequently viewed negatively and the action was taken without consensus… you were a dead duck. Therefore, nothing occurred without a tortuous decision process related to CYA. Never mind the bottom line; never mind the customer; internal survival dictated consensus. But, consensus uber alles results in a disaffected and paralyzed employee.

Combating Alienation
We do not want to leave the impression that all bankers suffer from existential despair. Fortunately, several other clients provide examples of an engaged and committed employee base. In one instance, the employees view themselves as partners, driven both by company leadership and a compensation system that incents for after-expense net income. Both the culture and compensation demand employee involvement. They will do what is required to make sure sustainable profits occur and that their clients are well served. The bank’s success directly links with their own.

For a fact, I know that if another of our clients was to hear the “It’s not my bank” story from one of his employees, that employee would be gone quickly. In multiple meetings we have seen him grill employees on whether they have pushed their thinking, demonstrated their commitment to do the best job, and proactively taken action steps, rather than waiting for permission. He has even pushed them to push their colleagues to ensure that his entire employee base is engaged and exceeding expectations. Unfortunately, that approach is way too rare in our industry.

Fixing Alienation
It is particularly dispiriting to see younger employees express the “It’s not my company” view. How do you turn people and companies away from alienation? Typically, widespread alienation has been created by the actions of senior leadership. Perhaps this alienation has been handed down from generation to generation like the sins of the father to the son. But, someone(s) in senior management has to exert extraordinary leadership to kill the old culture and make a real change.

The one bit of good news related to this is that crisis creates change, and the crisis that the banking industry is currently experiencing can serve as the impetus for throwing off organizational chains and rethinking approaches. The sense of self-satisfaction that permeates many executive floors has largely been eroded by earnings, consumer and business anger, regulatory concerns, etc.

Banks in which employees proclaim “It’s not my bank” can still be successful, at least in the short term. However, the energy we see at some of our clients and other industry leaders will ultimately contribute to a level of performance that banks with alienated employees can never achieve. It is up to senior management and the Board to hold a mirror up to itself and determine whether it encourages commitment or aloofness from its employees and executives.