Mountain Bank at Present, Mountain

Mountain Bank

At present, Mountain Bank, a small bank located in the northwest, offers four major business templates: retail banking, consumer lending, real estate and mortgage banking, and corporate banking. Due to their focus, the bank enjoys a strong retail presence at a fifty percent penetration rate for their market. These clients may be very loyal, but the return for this segment is underperforming. Therefore, it is in the best interests of the bank to begin to accentuate into the lending and business banking segments. Mountain Bank could accomplish this if they make a paradigm shift with their consumer efforts and move into other banking templates. They could, for instance, remember that consumers are often business owners who also need housing, real estate and mortgage advice. To do this, the following set of strategies are recommended:

Because of the low penetration in the lending and corporate markets, it is likely that many consumers are unaware that Mountain Bank offers these services. A strong and multi-leveled communications plan is necessary.

2. However, in order to offer the additional services, Mountain Bank must ensure that it has the appropriate personnel and resources with which to compete within these market segments. This requires:

a. Liaison with HR to hire appropriate personnel.

b. Secure additional funding to offer high-profit, but high amount loans.

c. Leverage strengths by combining what is best with consumer banking and offering that to businesses.

3. Strategic business package must be able to match minimum standards of expectations within market, and then go beyond. Businesses must have a reason to transfer business to Mountain Bank, and likely the predominant reason for that would be a reduction in paperwork, a personalized banker, personalized investment services, and expertise within the market.

4. Consider offering regular business luncheons in which the bank hosts guest speakers on topics germane to small and medium sized businesses.

5. Offer consulting services designed to help businesses grow; assist in preparation of strategic business planning so that with funding (from Mountain Bank) (Djellal, 2008).

The perplexing issue with Bank Tellers is that while they are the single most visible part of the banking face, their salaries are relatively low for the responsibilities engendered. By its nature, it is an entry level position, which means turnover is high, and once expertise is achieved, promotion or transfer is typical. However, because tellers are so critical to the success of the bank, it is important to ensure that they are personable, competent, and act as marketing and sales consultants for clients -- helping them find the right person and solution for their needs.

Strategies to align HR hiring of tellers with overall strategy would include:

1. Using the Meyers-Briggs or other psychological predictor to ensure appropriate personality types are hired.

2. Consider increasing the wage of tellers once trained. Justify this with additional responsibilities outside of the normal teller job description during part of their day. For instance, Teller A works 9am-12pm as a teller, then 1pm-5pm as a small business consultant; Teller B. is a consultant with a portfolio 9am-12pm, then teller 1pm-5pm.

3. Reposition the teller position so it is not considered low-level, but mid-level.

4. Assign personal banking responsibilities to tellers so that if not acting as business consultants, they have portfolios to manage (e.g. overdrafts, loan payments, consolidations, other needs, etc.).

From a purely Human resource focus, Mountain Bank is faced with some decisions on who they want representing their organization, and what perception they wish from the community. For instance, what type of personality would be most effective at Mountain Bank?

Internal Cost Strategy -- The Loyal Soldier -- Hiring of the appropriate personality type that is stable, committed to the organization, and allows employees to have broader roles with numerous levels of authority based on their experience. This type of HR strategy tends to work best when employees are hired and then an investment is made in them (whether training, education, etc.) to keep turnover to a minimum, keep the employee content, and allow them to grow within the organization.

External Cost -- The Bargain Laborer -- This strategy emphasizes the biggest return for the lowest investment. Long-term or strategic needs are left unmet; the laborer is hired simply to perform a function. The functions are often seasonal, rudimentary, require little education, and often utilize disenfranchised or non-native speaking workers (e.g. day labor, hotel maid service, etc.). These employees do not receive benefits, and work only out of desperation for jobs. In some economies and locations, these workers are little more than serfs.

Internal Different ion -- The Committed Expert -- This is a long-term, strategic orientation that emphasizes hiring the right individuals, paying them well, doing what is necessary to retain their services, but ensuring that they have the skills to attend to short-term ROI goals as well as long-term strategies. These individuals are hired based on their fit within the company culture, and the prediction that they will become experts in particular areas within the company, but will stay with the company over the long-term. The employee is happy because their jobs are constantly enhanced, and yet they feel part of a larger organization.

External Differentiation -- The Free Agent - This strategy could be considered strategic in the sense of a shorter term, project oriented or competitive push template. Hiring is done based on immediate performance, with skills and acumen being the strongest reasons for candidate selection. These individuals are not considered part of the team long-term, but brought in to fix a situation, train a department, or act as change agents within the organization. They are paid well, but not given long-term benefits, and judged solely on their ability to perform and bring quick and profitable results to the organization (Stewart and Brown, 2008).

Clearly, Mountain Bank wishes to expand and develop more of its products and services to increase its market share in higher ROI markets. Research shows that the single most important part of the consumer banking experience, however, is the teller. Mountain Bank realizes that consumers are also people who work in businesses, own businesses, and often have need of a mortgage or real estate loan. Therefore, the type of individual needed is the Committed Expert -- one who will help revitalize the teller position, bring additional commitment and expertise to that position, and use it as a springboard for more advanced account and portfolio management skills.