The document discusses how changing mindset can improve organizational performance and profitability. It provides examples of how shifting from a limiting mindset to a liberating mindset can positively impact employee behavior, strategy, growth and culture. Specifically, it summarizes the experience of Midland States Bank, where changing the culture narrative from "we're just a small town bank" to "We are Best Bankers, creating dynamic relationships through innovative solutions" led to a 44% growth in culture and 45% increase in profit in the first year. The document advocates using techniques from neuroscience to engage employees, build collective intelligence, and optimize performance by mitigating threats to change.

1. Mindset Matters:
Mindset Matters - Improving Profitability by
Changing Mindset

2. Leverage Point
for Success

3. Individual
Thinking
(Mindset)
Leverage
Point
THIS
DRIVES THIS
Behavior Strategy Growth
CULTURE:
The Story We Tell
Ourselves

4. Individual
Thinking
(Mindset)
Behavior Strategy Growth
CULTURE:
Change the story
change performance
I like the way things are: why shift to “universal bankers?”
No time to sell and serve existing customers
It’s not my job to ask for referrals – I am not in sales
These production goals are
unrealistic, we can’t compete with
these rates.
We can’t be profitable in this
local, economic climate

5. Global consultancy specializing in
the mindset of performance
45 + Years
60 Countries
23 Languages
>10,000 Leadership
Teams

6. “I can tell you there is no organization as effective in transferring
knowledge from psychology to organizational settings, educational settings,
public sector or private sector than The Pacific Institute.”
~ Dr. Gary Latham ~
Past-President, Canadian Psychological Association
Dr. David Matsumoto
Associate Professor,
Department of Psychology,
Director of Intercultural &
Emotional Research Lab, San
Francisco State University
Dr. Albert Bandura
David Starr Jordan
Professor of Social Sciences
in Psychology, Stanford
University
Dr. Amy Young
Faculty of Business
Communications,
Ross School of Business
University of Michigan
Dr. Martin E.P. Seligman
Kogod Term Chair, Professor
of Psychology & Director of
Clinical Testing, University of
Pennsylvania
Academic Advisors
Dr. Gary Latham
Secretary of State Chair,
Faculty of Management,
University of Toronto

7. • Mindset Matters
• Self Reflection
• Culture Matters
• Best Practices
• Change Management & Neuro Science.
What we will cover…IN 50 MINUTES!

8. FINISHED FILES ARE THE
RESULT OF YEARS OF
SCIENTIFIC STUDY
COMBINED WITH THE
EXPERIENCE OF MANY
YEARS OF EXPERTS. .

9. SCOTOMA

10. Individual
Thinking
(Mindset)
Behavior Strategy Growth
CULTURE:
Change the story
change performance
I like the way things are: why shift to “universal bankers?”
No time to sell and serve existing customers
It’s not my job to ask for referrals – I am not in sales
These production goals are
unrealistic, we can’t compete with
these rates.
We can’t be profitable in this
local, economic climate

11. • Create Scotomas
• Suppress or release
drive
• Can cause “Lock-on’s”
• Impact Alignment
Beliefs:

12. • Control aspirations
• Determine the LOCUS of
CONTROL
• Are manifested and
reinforced in our self-talk
Beliefs:
“We won’t let ourselves want that which
we believe we cannot cause.”
~Dr. Albert Bandura

13. •What limiting statements (beliefs) do you currently hear
at your bank (from Leaders or Staff) and what is the
impact?
Reflective Questions:

14. Limiting Statement (Belief):
There is not enough time to both sell and serve
existing customers
• End Result
• No aspirations achieve goal
• Low energy/Motivation
• Blinded to solutions (Scotomas)
• Will not reach out for help or look for alternatives
• Customer Service is compromised
• Growth is stagnated
• Bank loses business to competitors

15. What limiting statements (beliefs) do you hear?

16. Liberating Belief:
We can reach both our sales and
customer services goals, we just need to
do things differently
Result?

17. Liberating Belief
We can reach both our sales and customer services
goals, we just need to do things differently
•Increase aspirations and Motivation
•Innovation, creativity, notice examples of
success in the industry
•Employees believe in and “own” goals
•Letting go of outdated systems and the
development of new approaches
•Increased cross selling
•Increased loan and deposit growth
•Attract and retain high level employees

18. Non-Adaptive
Culture
Adaptive
Culture
682%166%Revenue
901%74%Stock Prices
756%1%Net Income
The Case for Building
Collective Intelligence
Kotter & Heskett: Study of 207 firms over an eleven year period as reported in their book Corporate
Culture and Performance

19. Individual
Thinking
(Mindset)
Behavior Strategy Growth
CULTURE:
The story we tell
ourselves
• Aggressive Growth through Acquisition
• Grow to 1 Billion assets (from 380M)
• Aggressive Organic Loan growth
• We have 125 years
experience
• We are “just a small town
bank”
• We like the status Quo
• We are in a recession
Midland States Bank
?
“We are Best Bankers
creating dynamic
relationships through
innovative solutions.”
Optimize
Thinking

20. Individual
Thinking
(Mindset)
Behavior Strategy Growth
CULTURE:
Change the Story
Change Performance
• Aggressive Growth through Acquisition
• Grow to 1 Billion assets (from 380M)
• Aggressive Organic Loan growth
• We have 125 years
experience
• We are “just a small town
bank”
• We like the status Quo
• We are in a recession
Midland States Bank
?
“We are Best Bankers
creating dynamic
relationships through
innovative solutions.”
Optimize
Thinking

21. Culture and Performance – Midland States Bank
• 44% Growth in Culture and 45% increase in profit in year 1
532
44
%368
Source: The Pacific Institute® client performance growth research
We’re just a small town bank.
We are Best Bankers, creating
dynamic relationship through
innovative solutions.

22. Strategic Growth History – Midland States Bank
($ in Billions)

23. $918
$1,365
$1,222 $1,268
$1,382
$2,151
$2,368 $2,404
$3,333
$624
$1,047
$958 $979
$1,206
$1,798
$1,996
$2,320
$3,184
2009 2010 2011 2012 2013 2014 2015 2016 2Q 2017
Deposits ($mm) Loans ($mm)
Delivering Organic Loan Growth – Midland States Bank
Total Loans and Deposits
23
11.1% average annual
core loan growth (1)
Note:
(1) Average annual core loan growth represents average percentage change in the Company’s core loans from December 31, 2008 to June 30, 2017; core
loans represent non-PCI loans, less non-PCI loans acquired, plus non-PCI loans sold as of the date the loans were acquired or sold, and exclude certain
short-term loans that the Company does not consider to be core loans; acquired non-PCI loans become core loans subsequent to the acquisition date
and will negatively affect core loan growth in future periods as these loans are repaid or prepaid

24. • Good Culture
• Silos
• Lacked efficiencies
• Duplication of efforts
• Locked onto Old ways of
doing New business
development
Implementation Story

25. • Good Culture
• Silos
• Lacked efficiencies
• Duplication of efforts
• Locked onto Old ways of
doing New business
development
Implementation Story
• Assessed Culture
• Learned about Mindset
• Identified and addressed
Legacy thinking (P.P.O.)
• Goal Set based on
PONTENTIAL not on PAST
• Engaged Workforce(P.P.O.)

26. • Currently one year ahead of strategic plan
• Loan growth numbers increased $205 million (12.52%) and
Outcomes -
• Reduced Efficiency Ratio from 72.9% to 68.2% (4.7% improvement)
• Most profitable quarter in history of bank
14.83%
Commercial lending
18.30%
Private Client
25.27%
Commercial Real Estate

27. Engaging employees around growth objectives:
Using Neuroscience to optimize performance
Constructive vs. Restrictive
Motivation
Motivate on a
“Want-to, Choose-to”
Basis
Help them to discover
WHY
THEY Choose to

28. Using Neuroscience to predict success of
performance outcomes and Change Initiatives
• Don’t Activate your employees
amygdalae!
• Amygdale:
• Responsible for emotions,
survival instincts, and memory
• Sudden change triggers a
threat response
http://study.com/academy/lesson/the-amygdala-definition-role-function.html

29. “…impairs analytic thinking, creative
insight, and problem solving; in other
words, just when people most need
their sophisticated mental
capabilities, the brain’s internal
resources are taken away from
them.”**
**https://www.strategy-business.com/article/09306?gko=5df7f
Our response to sudden
Change

30. SCARF: The 5 Domains of Experience: Triggers to threat and reward
activity in the brain
• Status:
• Cognition
• Certainty:
• Ability to accept and embrace change
• Autonomy:
• Ownership and Accountability, Innovation
• Relatedness:
• Collaboration, Team work
• Fairness:
• Safety, Security and Trust Content based on SCARF® 2012 Updating the social neuroscience of
collaborating with others. Dr. David Rock and Dr. Christine Cox, 2012
NeuroLeadership Journal issue 4

31. Using SCARF to Mitigate Change: Be proactive and build
“Collective Intelligence”
Status:
• Communicate changes ahead of time
• Explain the Why
• Celebrate employees value
Certainty:
• Detailed information about the future
• Company goals and performance
measurements
• Clarity about authority structures
• Team and trust
S
C
A
R
F

32. S
C
A
R
F
Using SCARF to Mitigate Change: Be proactive and build
“Collective Intelligence”
Autonomy:
• Involve people in decision making
• Co-contributors vs. victims
• “Their efforts make a difference”

33. Using SCARF to Mitigate Change: Be proactive and build
“Collective Intelligence”
S
C
A
R
F
Relatedness:
• Be Authentic and open
• Team Build
• Focus on shared goals
Fairness:
• Consistency, Transparency
and Over Communicate

34. MINDSETTING
Awareness
AcceptanceAction
Achievement
Our Transformational Process
MINDSET
All Content Copyright © The Pacific Institute®

35. Employee
Performance
Employee
Mindset
Culture
Leadership
Parents
Teachers
Community
Education
Reflection
Goal Setting
Assimilation
Mindsetting
Experience
Factors Driving Employee Performance
Talent
Skills
Knowledge
Competency
Leadership
Philosophy
Leadership
Mindset
All Content Copyright © The Pacific Institute®

36. Individual
Thinking
(Mindset)
THIS DRIVES THIS
Behavior Strategy Growth
Optimize your culture and
Build
Collective Intelligence

37. RESOURCES AND ONGOING APPLICATION
Chris Scaffidi- Director of Market Development -Phone: 978-500-0016
• Complimentary Sr. Leadership Webinar- Cscaffidi@thepacificinstitute.com
Recorded Webinars
• Midland States Bank- Leveraging culture for organic growth and growth through acquisitions.
Link to Recorded Webinar: Midland States Bank (http://ezwp.tv/V8Vcvb5O)
• BankPlus- Building Ownership and Co-Accountability Around Your Banks Strategic Growth
Objectives
Link to Recorded Webinar BankPlus (http://ezwp.tv/V5Ymy6vF)
Articles
• Managing with the Brain in Mind…By David Rock
https://www.strategybusiness.com/article/09306?gko=5df7f
• Fintech’s Culture Challenge…by Scott Bales
https://odemanagement.com/news/fintech-s-culture-challenge
Book Recomendation
The Excellence Dividend: Meeting the Tech Tide with Work That Wows and Jobs That Last" by Tom Peters.
http://a.co/7VkMxyx

38. Extra Slides

39. The Performance Index Continuum™ has been designed to easily communicate the transformation of an organization, group, leader
or individual. Utilizing an index score out of 1000 to summarize the actual data collected creates a single number for comparison
purposes. In this case study the culture has improved 171% over a four-year period, from below average (319 Index) to above
average (864 Index).
Culture and Performance – Mission Bank

40. Outcomes – Mission Bank