Bankers - The Lesson of the Feather, the 2X4, and the Ton of Bricks

I recall attending some training meetings, seminars, and workshops for bankers hosted by banking industry consultants and highly qualified experts that in fact know what they are talking about. Many of these meetings were very high level for CEOs and bank directors which further demonstrates why the greatest enemy of learning is knowing.?

I specifically recall one such meeting in Dallas. I was allowed to attend where the host chastised us for not lowering interest rates as much and as fast as he had been exhorting his client attendees to do so for over a year.

His exhortation included that our inaction made us irresponsible managers and leaders. Our failure to drastically lower our deposit rates was costing us considerably more than necessary due to an unwarranted fear that our deposits would run out the door.

While experiencing this good and proper berating I looked back at my CEO just as he was looking at me.

I immediately sent a text back to our bank with instructions to gather our rate data and be ready to pull the plug on rates when we returned the next morning.

We executed our rate reduction and placed our bank in the middle to the bottom of the rate offerings in our markets and made sure we stayed there.

The result was no deposits left our bank and our interest expense dropped considerably.

I am first in line when it comes to being suspicious of purveyors of pseudoscience cloaked as some incontrovertible fact or unassailable wisdom.

There are however those expert consultants out there that absolutely know what they are talking about and recommending. Pay them. Listen to them. Execute.

The feather, the 2X4, the ton of bricks.

Our expert consultant host had been giving his audience the feather of leadership, gently influencing his listeners to do a certain thing. He had been proposing banks to drastically lower their deposit interest rates. He did so with professional advice and counsel while presuming his listeners would accept his counsel and act accordingly.

That didn’t happen. So, he gave his audience a figurative 2X4 between the eyes. We got it. Others still did not.

Listen to the feather…. or ye shall receive the 2X4 of awakening between the eyes.

Failure to heed the 2X4 of awakening will bring down the ton of bricks down upon you in the form of problems and troubles than is imaginable.

The not listening to the feather mentality is still present. Some will respond to the 2X4. Most will wait for the regulatory ton of bricks and wonder what happened.

Matters not to me what your last great act of defiance is. Just sad for your employees, customers, shareholders, and community.

You can have it your way.

“Know which hill you’re willing to die on, and realize that your choice may at some point require you to retreat from all the surrounding hills.”

~ Steven B. Sample, author, The Contrarian’s Guide to Leadership

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Published April 10, 2023, All Rights Reserved ? 2023