Indiana Association of Financial Professionals

Defining Leadership for

Everyday Living

Harold “Bud” Boughton CoachB@budboughton.com

www.budboughton.com

Agenda

• The Reality of Change…

• Why We Need Creative Thinking

• Why We Need Leadership Now

• Four Basic Principles of Leadership for

Everyday Living

A Changing Society and Marketplace

• 15% of U.S. population (approx. 45 million people) speak 25 different languages

• Almost half of all women employees are head of their own households

• Baby Boomers – hitting 65 at a rate of 8,000 a day

• 40% of total deposits (and rising) are owned by people over 65 years of age

A Changing Society and Marketplace

• The world has gotten smaller

• The ‘buying process’ has changed

• Brand Loyalty is not what it once was

“Today, customers have more choices and are better educated about their alternatives than at any time in our history. More and more, they want what they want when they want it.”

Excerpt from the book Leadership and the Customer Revolution Gary Heil, Tom Parker, and Rick Tate

Changes in Banking

• Bank failures on the rise2010 - 157 banks failed2009 - 140 banks failed2008 - 25 banks failed

• The credit crisis and recession have magnified banks’ risk

exposure

• Heavier compliance and regulatory requirements for all FIs

• Dodd-Frank Wall Street Reform and Consumer Protection Act

Changes In Banking

Dodd-Frank Wall Street Reform and Consumer Protection Act

“2,300 pages of legislation that most likely will result in

23,000 pages of new regulatory requirements that will

be written in the next 3 to 5 years.”BankLawStuff WebinarAugust 4, 2010

Changes In Technology

• Technology is ubiquitous, it matters but it doesn’t really matter(?)

• The Cloud, SaaS, “The Web is Dead.” WIRED Magazine, Sept. 2010

• While bankers used to create products to attract customers, technology in the hands of consumers is now driving banks to change the way they do business.

• Smart phones are driving 90% of application proliferation including the need for mobile banking

In Technology

So when will all the innovation and change end?

In Banking, A Simple Solution

“Banks must first re-engineer themselves. For some banks, the process will involve offering new products and services. For others, it will involve a complete reorientation of traditional ways of doing business. New ways of thinking. New, broader horizons. A stronger focus on serving customer needs.”

“The Reengineering of Community Banks”

by Charles C. Mann Wall Street Investor Services

In Banking, A Simple Solution

“Banks must first re-engineer themselves. For some banks, the process will involve offering new products and services. For others, it will involve a complete reorientation of traditional ways of doing business. New ways of thinking. New, broader horizons. A stronger focus on serving customer needs.”

“The Reengineering of Community Banks”

by Charles C. Mann Wall Street Investor Services

PUBLISHED IN ILLINOIS BANKER – MAY 1995!

In Banking, A Simple Solution

AMONG OTHER INSIGHTFUL COMMENTS…

• “Relationship Marketing is Key”

• “Convert your Customers to Clients”

• “With specially designed systems, the reengineered community bank will be able to build a sophisticated database consisting of individual profiles on each client, and then market its products and services around the anticipated needs of individual clients.”

PUBLISHED IN ILLINOIS BANKER – MAY 1995!

CREATIVE Thinking

“For growth to occur, people must change what they do and how they do it, sometimes very dramatically. And that is the core of the issue.”

“It is uncomfortable and just plain hard for people, let alone organizations, to challenge the normal way of doing things and change.”

Excerpt from the book, There Is No Box by Steve Coats and Tom Heuer

CREATIVE Thinking

We Desperately NEED Creative Thinking

Creative Thinking Requires Courage

CREATIVE Thinking

It takes Courage to ask… “Why….?”“How…?”

It takes Courage to Challenge the Norm

Principles of Leadership

Courage is an Outgrowth of Leadership

4 Basic Principles of Leadership

Dad’s Last Letter – Leadership Principles for the Next Generation

www.dadslastletter.net

Where did they come from?

4 Basic Principles of Leadership

They are…

Timeless,They build on one another,Apply to any leadership role,We control them, each is a

simple choice we make.

4 Basic Principles of Leadership

HONESTYOPTIMISM

PERSEVERANCEEXCELLENCE

4 Basic Principles of Leadership

HONESTYOPTIMISM

PERSEVERANCEEXCELLENCE

4 Basic Principles of Leadership

HOPE

Leadership that Matters

EVERYDAY LeadershipAs Parents,

As Co-workers, As Neighbors, As Responsible Citizens

Leadership that Matters

We ALL Have a Leadership

Role to Play.

Indiana Association of Financial Professionals

Thank You

Harold “Bud” BoughtonIndianapolis Office: 317-885-9431E-mail: CoachB@budboughton.com