1. Transformational Leadership at Machias Savings Bank: Creating and Fostering a Shared Vision
Lisa A. Phillips
University of Southern Maine, LOS 351, Spring 2014
Introduction
Managers are not necessarily leaders, but in today’s
corporate world managers, whom are typically task driven
individuals, are often expected, with little direction or
capacity, to also be leaders, whom are people driven
individuals. Both leaders and managers have their rightful
places in an organization, but without Transformational
Leaders at all levels within an organization, good,
competent people become disengaged, disheartened, and
often leave the organization feeling undervalued and hurt.
At Machias Savings Bank, transformational leadership is
encouraged, and can be found at many levels of the
organization. However none are the caliber of our bank
President, Larry Barker. The following material will serve
to demonstrate how his transformational leadership efforts
have fostered an environment of positive change, passion
for what we do, and the ability to be who we are for the
betterment of the organization.
Objectives
• Create a shared vision and drive it down throughout the
organization
• Foster an engaged workforce that is goal oriented
• Be an agent for change, and gain cooperation with
passion and enthusiasm
• Forge a high level of commitment for the success of the
organization
• Drive results with passion, positivity, and inspiration
• Live the bank’s commitment to its customers,
“Experienced People, Exceptional Service”
Method
Develop a Mission to Guide the Organization
“We will be exceptional in every relationship, in every
product developed, in every service rendered, and in every
promise made”.
Create a Vision for the Organization
“To provide the most exceptional banking experience in the
State of Maine”.
The vision and mission were created by the management team
of Machias Savings Bank under the direction of Mr. Barker.
In the process, the management team took ownership of what
we created, and we continue to work each day to drive the
message down throughout the organization, as well as outside
of the bank in the communities in which we live.
Create a Strategy to Achieve the Vision
Machias Savings Bank utilizes a strategy map that provides a
visual representation of our organization’s overall strategy. It
is made up of four areas of focus: Customer Perspective,
Delivering Financial Results, Operational Excellence, and
Employee Learning and Growth. The strategy map is a
communication tool that helps employees to understand the
bank’s strategies, and translates them into actions that each
one of them can take each day that will help the organization
succeed.
www.PosterPresentations.com
Outcomes
Impact on the Organization
Employee Engagement Survey Results
Best Places to Work Survey Results
Deposit and loan growth during economic down turns
Social opportunities – interaction at events such as
waterfront concerts, sales rallies, meetings and contests
Acquisition opportunity in 2013 that grew our deposit and
loan portfolios
Education opportunities
Advancement opportunities within the bank
Outcome of our successes
• 212% of our commercial deposit growth goal for 2013
• 175% of our loan growth goal for 2013
• Profit Sharing for each employee based on 2013 net
growth
• Incentive bonuses for exceptional performance
• Career Development for the bank’s highest performers
• Retention of employees – less than 1% employee churn
• Family atmosphere
• Work hard, but encouraged to play hard as well
Mr. Barker and employees enjoying a Toby Keith concert
on the Bangor Waterfront, September 2013
Translate the Vision Into Actionable and Measurable Items
A Balanced Scorecard was created to provide a simple
structure that represents the strategies to be implemented that
will benefit the bank the most. The Balanced Scorecard
identifies and measures key metrics that inform those that
measure, what the impact of our efforts have on the bottom
line.
Acknowledgments
Machias Savings Bank.
Photos by Yury Nabokov, Marketing
Strategy Map by Chris Lyford, Senior Vice President, Operations
Making the Vision a Reality; It’s all Up to Us
Fostering a strong culture, and continually communicating the
vision are both key to the growth and development of our
staff. The following are ways that we communicate the
message, and develop our staff:
• Senior management road shows
• Exceptional Times newsletter
• Monthly Fireside Chats between managers and staff
• Boot Camp for managers
• MSB leadership institute
Realize the Vision
Success of the vision and mission of Machias Savings Bank is
measured in Customer feedback from frequent surveys,
employee engagement surveys, customer retention efforts, and
the like.
RESEARCH POSTER PRESENTATION DESIGN © 2012
Impact
Management Team, Mission and Vision for Machias Savings Bank
Machias Savings Bank’s Senior Management team
“rocking” the crowd at the bank’s annual employee rally,
January 2014