PrecisionLender Webinar - 7 Habits of High-Performing Relationship Managers

2© 2018 Lender Performance Group LLC | CONFIDENTIAL
Our Webinar Leaders
kmcnamara@precisionlender.com
www.precisionlender.com
(919) 694-4642
nmiller@3rdactsales.com
www.mzbierlyconsulting.com
(484)-433-2378

This publication is protected by copyright. It is licensed for a single user. It is licensed
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Copyright © 2018 MZ BIERLY CONSULTING, INC. and Third Act Sales Consulting, LLC
ALL RIGHTS RESERVED
Notice
3

Relationship Managers Critical to Success

“Our CEO, Kelly King, was recently asked at one
of our senior leadership team meetings what
keeps him up at night. Without hesitation, he
responded that the biggest challenge we face is
attracting, training, and retaining the level of
talent needed for BB&T to achieve superior
performance.”
--Tol Broome, Chair of Risk Management
Association (September 2015 RMA Journal)
Biggest Risks Facing
the Banking
Industry

“In most of our client banks, the top 20%
of commercial lenders produce about
60% of the total commercial portfolio.
But, the really impressive part is that they
not only produce more volume, they also
produce more profitable deals as
measured by risk adjusted ROE.”
Carl Ryden | PrecisionLender

The Average Tenure
of RMs is
Decreasing

Can you recruit
High-Performing
Relationship Managers?

Why “A” Players Join Your Team
 Management team: The No. 1 reason “A-Players” come to work for you is your sales
management team. It’s also the reason they leave.
 Territory potential: Next is sales or territory potential. One question an “A-Player” asks early
in the interview will be, “What’s the territory potential?” The response can be broken down
into two components: territory and compensation design.
 Leadership focus: Third, do leaders focus on customer success or profits, sales, or culture?
When leadership spends more time communicating customer success, these stories become
tools that make it easier to sell.
 Other “A-Players”: Top sellers want to work with other “A-Players.” Those “A-Players”
will attract more of the same.
Source: Mark Miller, Chief Differentiators for Topgraded Sales Talent August 12, 2016 blog post

1. Don’t lose your most profitable clients.
2. Lock down your “undersold” clients.
3. Acquire the prospects that build sustainable revenue (and a
sustainable brand).
How do the best Relationship Managers do that?
The Growth Challenge: It’s Pretty Simple Conceptually
1

Behaviors Activities  Results

Research Into What Makes High-Performers Different

RMs Need to Up Their Game

Top Work Skills in 2020
 Business Acumen. Being able to integrate a business and economic perspective into
customer interactions.
 Adaptive Thinking. Coming up with creative and innovative solutions that are not rule-
based.
 Computational Thinking. Being able to translate vast amounts of data into useful
information.
 Virtual Collaboration. Working effectively and efficiently as a member of a virtual group.
 Transdisciplinary Competency. Knowing how to integrate knowledge and concepts across
disciplines and areas of expertise.
 New Media Literacy. Being able to leverage new media technologies for creating and
delivering persuasive conversations.
Source: HR Review article October 2014 “What will be the top 10 most important work skills in
2020?”

4G Relationship Managers
•Givers
•Gumption
•Grit
•Game

Prospecting in 2018
1
 New Client Acquisition is getting more difficult
 Few bankers are consistently prospecting effectively and creating
memorable calls
 “Cutting through the clutter”; what is the “distinctive” value
proposition?
 COIs are important, but bankers need to distinguish themselves in
other ways
 Business Executives are looking for long-term partners who can provide
“advice”
 Crafting solutions linking personal and company goals several years
out
Greenwich Associates

1. A Focused Market Strategy (allocating their limited time to
the “right” Clients, Prospects and COIs; proactively
managing their time toward the best “lead sources”))
Strategies of High-Performing Bankers

managing their time toward the best “lead sources”)
2. A Transaction Strategy (responding to an opportunity)

Qualify quickly;
communicate effectively;
collaborate well
Pipeline Pull Through

managing their time toward the best “lead sources”)
2. A Transaction Strategy (responding to an opportunity)
3. A Relationship Strategy (“strategically” developing their
relationship with significant clients, prospects and COIs)

A Road Map for Managing Your Market and Developing Relationships

High Appeal Industries Limited Appeal Industries
 Manufacturers  Real Estate Investment
 Wholesalers  Low-End Retail
 Distributors  Restaurants
 Architect, Engineering and Business Service Firms  Mini-Warehouses/Carwashes
 Law Practices  Landscaping
 Accounting Firms  Service or Gas Stations
 Insurance Brokers or Firms  Used Car Dealerships
 Large General Contractors
 Medical, Dental and Health Practices
 Ag-Related Businesses
Stay Focused on the “Right” Businesses
Defining the “Industries” you want to Focus on (Sample)

Reacting to Opportunities Developing New Opportunities
Stage 1 Stage 2 Stage 3 Stage 4
Relationship Stance:
Waiting for and responding to
opportunities
Actively seeking and developing
transactions
Consistently focused on developing qualified
relationships
Actively building market share, wallet
share and developing relationships
Process Element Descriptor:
1.Lead generation is reactive;
Focuses on “Former Clients”
2.Referrals from a few long-time
clients or “well-worn” referral
sources
3.Sees role as getting deals done;
transactional focus
4.Focuses on building relationship
“wherever I can”
5.Focuses on primary Product
Category; Value proposition is
price/structure, fast turn around
6.Seldom uses Senior Team
Members
1.Generating leads from any and all
businesses
2.Building and maintaining referral
sources for “leads”
3.Sees role as “sole executor” in
key relationships
4.Focuses at VP Finance and
Controller level
5.Focuses on “financial issues”
(focused on product acumen)
6.Uses Bank’s Senior Management
defensively to close business
1.Uses a focused and proactive
opportunity generation process
2.Uses “testimonial referrals” to meet
“targeted” prospects
3.Sees role as primary strategist for key
relationships
4.Builds strategic relationships throughout
the “E-Suite”
5.Effectively uses Business Partners to
strategize and develop key relationships
6.Effectively uses Bank’s Senior
Management to build “vertical” client
relationships
1.Actively working the best clients,
prospects, COIs
2.Actively uses network to
systematically access relationships
3.Accepts role as thought leader;
Conversations focus on Industry
Sector changes, business issues,
best practices and benchmarking
4.Accurately identifies the “Value
Drivers” of each E-Suite member
5.Delivers exactly the value that each
E-Suite member is “Looking For”
6.Stays focused on the “Owner” using
Bank’s Senior Management
Tactical Characteristics:
1.Lead generation is irregular;
Infrequent calling
2.Little planning or structure to sales
calls or relationship management
3.Focuses time on “whatever is put
in front of me”
4.Focuses on product strategy
before “sales strategy”
5.Seldom looks for or sees
additional opportunities
1.Meets target level of calls
2.Little focus or preparation, plans “in
the car on the way over”
3.Sees every opportunity as “worth
pursuing”
4.Selling 1 product category at a time,
leads with “comfort” product
5.Identification of opportunities limited
to 1-year time frame
6.Inconsistent results and
“cycling” pipeline
1.High level of call activity and focused on
targeted businesses
2.Consistently “prepared” for calls
3.Carefully qualifies opportunities for “fit”
and “quality”
4.A focus on depth of relationship, focusing
on “what’s changing”
5.Consistently identifies opportunities (1-
Year, 3-Year and 5-Year)
6.Consistently generates results across
all product categories
1.Always aware of new opportunities
2.Always thinking one year ahead
3.An articulated plan for consistently
developing new opportunities
4.Builds long-term, value-driver-based
relationships
5.Highly effective at adjusting lead
sources and building a brand
6.Always seeking new “niche”
opportunities
Progression of Relationship Development Skills
Characterized by Product Acumen
and Strategizing Transactions

Reacting to Opportunities Developing New Opportunities
Stage 1 Stage 2 Stage 3 Stage 4
Waiting for and responding to
opportunities
Actively seeking and developing
transactions
Consistently focused on developing qualified
relationships
Actively building market share, wallet
share and developing relationships
1.Lead generation is reactive;
Focuses on “Former Clients”
2.Referrals from a few long-time
clients or “well-worn” referral
sources
3.Sees role as getting deals done;
transactional focus
4.Focuses on building relationship
“wherever I can”
5.Focuses on primary Product
Category; Value proposition is
price/structure, fast turn around
6.Seldom uses Senior Team
Members
1.Generating leads from any and all
businesses
2.Building and maintaining referral
sources for “leads”
3.Sees role as “sole executor” in
key relationships
4.Focuses at VP Finance and
Controller level
5.Focuses on “financial issues”
(focused on product acumen)
6.Uses Bank’s Senior Management
defensively to close business
1.Uses a focused and proactive
opportunity generation process
2.Uses “testimonial referrals” to meet
“targeted” prospects
3.Sees role as primary strategist for key
relationships
4.Builds strategic relationships throughout
the “E-Suite”
5.Effectively uses Business Partners to
strategize and develop key relationships
6.Effectively uses Bank’s Senior
Management to build “vertical” client
relationships
1.Actively working the best clients,
prospects, COIs
2.Actively uses network to
systematically access relationships
3.Accepts role as thought leader;
Conversations focus on Industry
Sector changes, business issues,
best practices and benchmarking
4.Accurately identifies the “Value
Drivers” of each E-Suite member
5.Delivers exactly the value that each
E-Suite member is “Looking For”
6.Stays focused on the “Owner” using
Bank’s Senior Management
1.Lead generation is irregular;
Infrequent calling
2.Little planning or structure to sales
calls or relationship management
3.Focuses time on “whatever is put
in front of me”
4.Focuses on product strategy
before “sales strategy”
5.Seldom looks for or sees
additional opportunities
1.Meets target level of calls
2.Little focus or preparation, plans “in
the car on the way over”
3.Sees every opportunity as “worth
pursuing”
4.Selling 1 product category at a time,
leads with “comfort” product
5.Identification of opportunities limited
to 1-year time frame
6.Inconsistent results and
“cycling” pipeline
1.High level of call activity and focused on
targeted businesses
2.Consistently “prepared” for calls
3.Carefully qualifies opportunities for “fit”
and “quality”
4.A focus on depth of relationship, focusing
on “what’s changing”
5.Consistently identifies opportunities (1-
Year, 3-Year and 5-Year)
6.Consistently generates results across
all product categories
1.Always aware of new opportunities
2.Always thinking one year ahead
3.An articulated plan for consistently
developing new opportunities
4.Builds long-term, value-driver-based
relationships
5.Highly effective at adjusting lead
sources and building a brand
6.Always seeking new “niche”
opportunities
Progression of Relationship Development Skills
Characterized by Business Acumen
and Strategizing Relationships

Not all Business Owners want the same level of relationship with a Banker.
Not all Bankers can respond to each level of relationship.
Relationship “Value Drivers” Vary from Business Owner to Business Owner

The Relationship “Value Drivers” of Business Owners Vary
Business Acumen
Product Acumen (and the RFP)
Two Categories of “Value Added”

1. Wait for what walks in the door.
2. Put (anything other than customers) first.
3. Don’t worry about preparing for calls.
4. Strategize alone.
5. Think about what you need to sell first, not what your customers and prospects need.
You’ve got goals to make.
6. Don’t make time for professional development.
7. Keep reminding yourself that knowing how to do something (like prospecting, say) is
the same thing as doing it.
* With apologies to Stephen Covey
The 7 Habits of Unproductive RMs*

Top 1% vs. Bottom 5%--Objective Management Group

Biggest Gaps between Top 1% and Bottom 5%
• Are comfortable discussing money
• Take responsibility for their results and don't make excuses or
rationalize
• Thoroughly qualify their opportunities
• Are able to sell value instead of price
• Are effective hunting for new business

The 7 Habits of High-Performing
Relationship Managers

1. They bring something
relevant to every
customer meeting.

•Ideas that would help them improve their sales
•New products that might benefit them
•Information about what other similar companies are doing
•Ways to save money on banking services
What would business owners like to talk about?

1. Give them your time
2. But never take their time
3. Never BS an entrepreneur
4. Meet your business customers on their turf
5. Try to help the entrepreneur’s business
6. Have big picture meetings
Source: Bobby Martin is the author of The Hockey Stick Principles, a book on how good ideas
become successful firms. He is also president and co-founder of Vertical IQ, a leading provider
of sales research insight for banks.
Advice from a Successful Entrepreneur

2. They focus on their
customer’s strategy not
on bank products.

Assessing Account Officer Performance Gaps
3

Younger Business Owners Less Satisfied

Trust= Credibility + Reliability + Intimacy
Self-Orientation
Source: The Trust Equation: A Primer
The Trust Equation

1. Keys to success
affect current and
future decisions
3. Industry trends, business
changes in the next 3 years
2. Industry trends affecting
the business today
4. Current and future
changes force changes in
current and future business
operations
5. Current and future
changes in business
operations force
changes in current and
future financial
operations 6. Changing financial
operations create changes
in the financial needs and
then an evaluation of the
solutions currently in place
“Thinking Like the Business Owner”

Business Maturity. . .
Working in the Business Owner’s World
$1,100,000 Dental Practice

Changing Business Issues drive a change
in Financial Needs. . . align with What is Changing
4
1
$1,100,000 Dental Practice
[1.] Understand the Business Issues, the Opportunities, and the
Challenges that are changing the Business Operations now or
in the next 3 years.
[2.] Understand the Financial Management Processes that are
changing now or may change in the next 3 years.
[3.] Bring “Unsolicited Ideas” to the table; Ideas to Optimize
Financial Management Processes that are changing now or the next
3 years!

3. They position the
bank’s capabilities
before there’s an
explicit need.

Exhibit A: Talking about Changes in Ownership

Exhibit B: Business Owners think a lot about Personal Finance
FIVE ATTRIBUTES OF TODAY’S BUSINESS OWNERS
2015 U.S. TRUST INSIGHTS ON WEALTH AND WORTH®

Linking the Changes to Products

4. They leverage Senior
Management.

Reasons Why Sales People Fail

Inability to Penetrate
New Accounts

1. Not having a “Vetted” Prospect List. . . “Build a list of the Businesses you want to
do business with.”
2. Not using their network. . . “Using client referrals and testimonials to get
appointments.”
3. Not having a defined strategy. . . “Building relationships based on Value Added.”
4. Planning one meeting at a time. . . “Always plan 2 calls at a time, gin up the
interest in the next meeting before you leave their office.”
5. Not preparing “cognitively”. . . “Being prepared is a huge differentiator and adds
value.”
6. Using the wrong question set. . . “Use questions that add value.”
7. Selling to the first need. . . “It takes multiple needs to build enough momentum to
overcome inertia.”
7 Mistakes Bankers Make in Prospecting
5

There are Multiple Ways to Get in the Door
53

Studies in the banking industry show that Business Owners are more than willing to
help you. . .
• 66% of Business Owners are willing to provide referrals to Bankers.
But to get the referral you will have to ask; and most Bankers don’t ask.
• Only 22% of small-to-medium-size Business Owners have been asked for a referral in the past 24
months.
• Only 37% of Middle Market Decision Makers have been asked for a referral in the past 24
months.
Is a Consistent Flow of Referrals a Possibility?
5

5. They conduct regular
relationship reviews of
their top clients with
their product partners.

Competencies Most Commonly Competencies Most
Played Across All Organizations Separating Top Performers
(Source RAIN Group)

The Strategic Challenge is a People Problem

Relationship Plans
5
A Relationship Plan lets multiple eyes, multiple brains uncover opportunities, build a
strategy and plan the next steps

6. Top bankers take a
longer term view of
building relationships.

Prospecting Model #1: Consistent, Persistent Effort
6
Consistent, Persistent Effort
1. Be the top-of-mind alternative.
2. Be there at the bottom of the
curve.
3. Marketing Touches combined with
Face-to-Face Meetings.
This is where
you start!
This is where
you’re headed!

Prospecting Model #2: The Compelling Message
6
This is where
you start!
This is where
you’re headed!
The Compelling Message
1. Be the RM that all other RMs are
compared to
2. Move the Business Owner into an
intangible comparison of You and
the other RM
3. Requires high level of Business
Acumen and demonstrating
Business Acumen again and again
in Face-to-Face Meetings

Who is most likely to switch?

Planning to Change?

1. You have made at least 6 attempts over the previous 18 months (the prospect has had
time to cycle through the satisfaction curve)
2. You have tried multiple techniques to obtain another appointment without success
(Remember, third party referrals result in the highest conversion rate!)
3. The prospect asks you to not solicit their business
4. The prospect “borrows” your ideas and gives them to the incumbent bank multiple times
5. You and your Sales Manager agree it’s time to move on.
When to Say Enough is Enough!

7. They win “mind-
share” first by sharing
insights and expertise.

“A salesperson has to be really smart about a lot of things
that they've never been smart about. Not just the buyer's
journey but the buyer's world, what's happening in their
organization, their issues and challenges, what's on their
plate? Their priorities, they have to be really cognizant of
how things changing in the economy and in their business
or even industry are impacting their customer. They have
to be able to tailor their messaging and their
conversation. They need to tailor it all so it fits and so it
ties in exactly with what people are talking about. It really
takes a lot of work.”
--Jill Konrath, How to Sell to a Complex Buyer, January
2017 Blog Post
The New
Salesperson

Although many are planning to retire or
sell their businesses, 63% of successful
business owners are without an exit
strategy. Most surprising is that the
older generations, closest to retirement,
are the least prepared — 7 in 10 Baby
Boomer and Mature business owners
are without an exit plan.
US Trust 2016
Wealth Survey

7 Habits of High-Performing RMs
1. They bring something relevant—ideas, industry information, partners—
to every client or prospect meeting. That means that they prepare
before they get in the car.
2. They focus their discussion on their customer’s strategy, not on bank
products. Initial conversations revolve around the company’s short-,
medium- and long-term strategic goals.
3. They position the bank’s capabilities before there’s an explicit need.
And they don’t operate under the illusion that their business customers
know everything that the bank can do.

7 Habits of High-Performing RMs (continued)
4. They leverage Senior Management. The best RMs are never afraid to
ask for help.
5. They conduct regular relationship reviews of their top clients with
their product partners.
6. Top bankers take a longer term view of building relationships. They
think about where they want to be with a prospect 2 or 3 years down
the road and plan accordingly.
7. They win “mind-share” first by sharing insights and expertise.

Questions?

Build the Activity Levels
against the Right
Customer, Prospects,
COIs
Maintain the Focus on
the Right Prospects and
Right Value Propositions
Small Group and
Individual Coaching
Accountability
for Using Sales Process
Articulate the Right Sales
and Sales Management
Process
Sales and
Sales Management Process
Process, Accountability and Coaching
Not one of these
can build the Right
Process.
It takes all three!

Tools to help you retain and develop RMs
Initiating a conversation with the right
prospects at the right time.
Engaging that prospect in a constructive
conversation focused on their needs and
finding the solution that works for both the
customer and the bank.
Documenting the outcome of this
conversation and quickly and efficiently
underwriting that the underlying
assumptions are all true.
Understanding the current nature of the
credit portfolio to define/refine what “the
right prospects” and what “works for the
bank” means going forward.
Pricing & Profitability Management
Opportunity Pricing Relationship Awareness
Credit Underwriting
Origination Workflow Management
Documentation
Customer Relationship Management
Task Management Pipeline Management
The “brain” of the bank.
This goal: better decisions and better execution.
Portfolio Management
Capital Management Liquidity Management
Sales Qualified Leads/Opportunities
Credit Qualified Opportunities
Closed Opportunities

What does the Relationship Manager need?
73
• A sales and negotiation tool that gives
them constant and immediate options
on how they can improve a deal.
• A sales & negotiation tool.
• Focus on what is most important to
the borrower.
• Tools that help them win better deals,
build stronger relationships and build
a better brand for the commercial
bank.

Personal Accountability
“Each of us has a responsibility to produce results. We owe this to ourselves, to the
company that employs us, and to our clients. We cannot fulfill this responsibility
without managing ourselves.”
--Anthony Iannarino, “Seizing Your Sales Destiny”

• 2 Special Offers for Precision
Lender Webinar Attendees: (1)
eBook Q&A on Prospecting (2) 30
Minute Coaching Call to discuss
your organization’s plans to develop
high-performing RMs
• Email me on
nmiller@3rdactsales.com or call me
on 484-433-2378 if you have
questions about any of the topics
we discussed today. If you want
copies of relationship plan template
or the templates referenced send
me an email

Thank you for joining us!
kmcnamara@precisionlender.com
www.precisionlender.com
(919) 694-4642
nmiller@3rdactsales.com
www.mzbierlyconsulting.com
(484)-433-2378

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