Publications & Resources

June/July 2007
Focus: Leadership

Making Exceptional Leadership a Core Competency

By Cass Bettinger

Having served as a strategic advisor to bank ownership groups, boards of directors, and executive teams for more than a quarter-century, it is clear to me that a company’s ability to control its own destiny over time is directly related to the quality of its leadership; not just at the CEO position, but at all levels. Exceptional leadership from top to bottom is the ultimate competitive advantage.

It is equally clear that while banking has an abundance of good managers, exceptional leaders are extremely rare. Contributing directly to this reality is the fact that while many banking organizations give lip service to the importance of leadership, few foster corporate cultures where continuous leadership excellence and development are strategic priorities, despite the fact that in the corporate world a strong direct correlation has been documented by multiple researchers between consistently superior shareholder returns over time and a top-to-bottom commitment to leadership accountability and development as a core value, as well as a core competency.

Based on my experience working with literally hundreds of bank CEO’s and executive teams, I have come to define leadership as …“the demonstrated ability to influence, in a powerful and positive way, the self-esteem, attitudes, behaviors, loyalty, and performance of individuals and teams in the successful realization of worthwhile objectives.” While the required skill sets, personality profiles, experiences, and strategic practices of leaders will vary significantly depending on the level of the leadership position within the corporate hierarchy, this definition is as applicable to an entry-level supervisor as it is to a CEO.

As a strategic planer, I often find that the most critically important and impactful strategy for an organization is to make exceptional leadership, from top to bottom, a core value, core competence, and sustainable competitive advantage. In my experience, for this to happen the organization’s leaders must:

  • Define unambiguously what is required (not just expected) from all leaders in the organization (including themselves) in terms of specific leadership behaviors, in addition to performance results. This definition must go well beyond what is expected or required of managers. Managers are responsible for the effective and efficient completion of projects and tasks. People, however, are not managed (an insulting and dehumanizing concept), they must be led, which requires a substantially different set of skills and behaviors. While exceptional leaders must also be exceptional managers, the essence of leadership relates to the definition of leadership provided above.

  • Identify as specifically as possible the optimal skill sets and behavioral or personality profile, for each leadership position. (The use of a validated tool such as Predictive Index is highly recommended.)

  • Formalize these expectations/requirements (a and b above) in comprehensive and clearly written position descriptions for all leadership positions, and, because these expectations/requirements will vary from one leadership position to another, the job descriptions must not be generic.

  • Make all leaders accountable for their leadership behaviors, as well as their performance. This is greatly facilitated when the performance evaluation instrument for a specific job is directly linked to that job’s position description. It makes no sense whatsoever to spell out a set of accountabilities in the position description and then conduct a performance review using an entirely different set of criteria, especially when they are highly subjective. I also recommend strongly an annual 360 Degree Evaluation for all leaders, but only when combined with formalized Professional Development Planning.

  • Select people for leadership positions not because they are good managers, or are “next in line”, or are “well-connected”… but because they have the specific aptitudes, competencies, skill-sets, and personality profiles that match position requirements (as spelled out in the position description). One of the most common and costly problems in most organizations is that too many people are being placed in positions of leadership for the wrong reasons.

In summary, if I were asked to identify the most powerful characteristic of consistently high-performing companies, not just in banking but in all industries, I would answer unequivocally; “a culture where exceptional leadership at all levels of the company is a core competency; where all leaders are held accountable not just for performance but for their leadership effectiveness, and continuing leadership development.” Such a culture is achievable for any company willing to follow the steps listed above.

Cass Bettinger is president of Cass Bettinger & Associates in Naples , Fla. He is a frequent and popular speaker at WIB conferences. He can be reached at cass@cassbettinger.com.

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