THE IMPORTANCE OF MENTOR LEADERSHIP

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One of the biggest challenges we face in the financial services industry (and just about all other industries!) is the need to develop talent. In risk management and other areas of banking, the need for intellectual capital continues to increase even as it grows more difficult to find, develop and retain well-qualified teammates for critical positions.

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There are many things that will help address the talent gap in our industry, including better recruiting, targeted training programs, improved continuing-education programs and career path development. But there is one low-cost step we can take every day. We can all be mentor leaders.

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The Merriman-Webster Dictionary defines a mentor leader as “someone who teaches or gives help and advice to a less experienced and often younger person.” And while mentorship sounds simple, it often is neglected. Some would even call it a lost art in the business world. As banks focus on heightened regulatory expectations, increasing compliance requirements, and other forms of scrutiny while attempting to grow revenue and hold down costs, many can’t seem to find the time to develop the leaders of tomorrow. Yes, mentorship takes time, but the rewards are well worth the investment. And failure to embrace the importance of mentorship might just threaten the very survival of your institution.

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In his book The Mentor Leader, Hall of Fame Indianapolis Colts coach Tony Dungy provides an excellent road map for mentorship. Dungy credits much of his success to his experience as a protégé. “I have been mentored by many,” said the Super Bowl XLI champion coach. “They have all added value to my life…the difference is made moment by moment by leaders who care for others.”

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Did you catch the two key words? Dungy said that his mentoring occurred in “moments” by leaders who “care.” These are two valuable assets we all should share in common even with a Super Bowl winning coach: time and concern for others, particularly as they relate to the development of tomorrow’s leaders. Dungy also says that mentor leadership can be learned, and it must be practiced. He goes on to explain that a mentor leader must be intentional, direct and positive.

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So, the first step in becoming a mentor leader is to be intentional. You must be aware of the impact you have on potential proteges and then focus on their development. This can be done with formal mentor programs or by encouraging more informal mentor-protégé relationships in your organization. At my former company, we had a very successful formal mentoring program. It was sponsored by our human resources department, which sought out willing mentors and assigned them teammates who had demonstrated the capability to be future leaders. But we also strongly encouraged informal mentorship, which had at least as big an impact on leadership development as the formal program.

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To be direct, mentorship must target certain potential leaders, and it must occur in one-on-one engagements. Many leaders mistakenly think they are mentoring simply by default, that mentorship occurs organically in the day-to-day leadership process. But effective mentorship only occurs as direct relationships are instigated and nurtured.

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The mentor leader should also be positive. Dungy points out that a good mentor focuses on the strengths of the proteges, helping them further cultivate these attributes. Three-time Super Bowl winning Hall of Fame coach Bill Walsh (San Francisco 49ers) said it well: “Don’t tell me what a player can’t do. Show me what he can do, and we’ll utilize his strengths.”

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There are three key benefits to mentor leadership. First, focused mentoring will improve teammate engagement. Studies show that employees place a very high value on leadership development. And more engaged associates work harder and are more productive. Second, mentoring improves employee retention. When your teammates see you and your organization investing time and resources in their leadership development, they are more likely to stay put. Third, mentoring will help ensure smoother leadership succession in your firm.

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Before concluding, I would like to offer advice to potential proteges. Don’t wait for a leader to come to you to offer mentorship. Seek it out! Early in my career, I sought out several key mentors at different stages of my leadership development (including our eventual Chief Risk Officer). Not only did I gain wisdom and insight from these experiences, I also am convinced that these mentor relationships increased my exposure within the organization and, thus, opportunities for career advancement. And once I became a leader, not only did I participate in our formal mentor program, but I always made time for younger teammates who sought out informal mentor-protégé engagement. If you are proactively intentional, you should find the leaders in your organization similarly receptive.

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In the Old Testament Book of Proverbs, we are told that “as iron sharpens iron, so one person sharpens another.” As noted above from personal experience, those of us who have worked in financial services for a “few” years can likely think of at least one mentor who helped sharpen us. If we all will make the effort to pay it forward today, we will help address the talent gap in our industry by sharpening the leaders of tomorrow!

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This article was adapted from a Leadership Column I wrote while serving as Chair of the Risk Management Association that appeared in the March 2016 issues of The RMA Journal