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Best in the West - 1977 to 1980 - A highly successful program started when Vic Winfrey, head of the World Banking Group was relating a story to me, who had just been appointed head of the newly formed Administration Group which included the traditional back room functions of the bank (Item processing, Account Reconcilement, Lock Box, Funds Transfer, Collections, Broker Services, Foreign Exchange, International Operations, etc.) Vic was at a banking convention and was talking to John McGillicuddy Chairman of Manufacturers Hanover Bank, and they were commenting on why Manufacturers Hanover and UCB did not (at the time) have outstanding back rooms such as Northern Trust in Chicago.

I responded "I don't know." A probable comment for someone who grew up in lending. Vic said we should have the best back room in the West. We made a pack right then and there that we would have the best back room in the west and we would both support it. We discussed our commitment with then Chairman Norm Barker and President George Rothell. They, both having spent most of their banking career on the wholesale side of the bank appreciated and understood the need for the effectiveness of a well run back room

The first thing we did was to develop a logo to identify and brand the program. I believe an identification vehicle is an absolute must in any program. The visual arts department devised a dandy:

Next Vic and I supported by Norm and George held a meeting in the banks auditorium with the World Banking Group officers (National and International Divisions) and the senior officers of the Administration Group to "kick off" the program. While I am sure not everyone believed in the program at that time, they certainly recognized the support of senior management. That support did not wane and as the program produced successes and quality grew, people started believing in both groups.

It is important to know that at the time, UCB was the sixth largest processing bank in the United States, processing an average of 3.5 million checks each day, resulting in a daily float of $1.7 billion (heavy correspondent bank, highly fee oriented).

Other areas of cash management and international activities, were equally active in volume. The next step was to obtain total agreement with all of the units as to their current volumes, error rates, unrecognized items, outstanding investigations, etc. so we had a strong base to start from. Then we set agreed upon goals that seemed reasonable as a first step.

For instance, the proof sections averaged 800 items per hour. The initial goal was to increase to 900 items per hour. The actual result several years later was almost 1300 items per hour. This was typical of the productivity increases obtained during the next several years of the program. But not only did the numbers increase so did the quality. In fact in 1979, the staff was reduced by 20 (through attrition) which again, in itself nothing considering the total staff was 2200. But the activity in all measured areas increased about 30%. Operating costs in dollars in the Group, which included Corporate Facilities, increased only 8%, while the general economy's inflation was 13%.

The goals set were reviewed quarterly and sometimes monthly to stay in touch. The staff realized that the goals were not to be completed and put on the shelf for the rest of the year.

We developed a score card (8 1/2 by 11, double sided), tracking the trends of growth and quality of most of the products and services in the Administration Group and provided each officer in the World Banking Group a copy. This idea was stolen directly from Northern Trust. It was amazing how well the response was from the calling officers, who felt better about dealing with their customers.

To show the staff we appreciated the progress with their goals, we would visit sections, stroll through units with the division and section managers and pass out coffee and doughnuts, or popcorn, ice cream, or ? We would not only do this for the day shifts, but for all shifts. The midnight to 8 am was tough, but rewarding. When was the last time they saw an executive vice president on their shift.

We were into reviewing performance. I went so far as having those officers reporting to me, give me a performance report. They were not always happy with all aspects of my supervision, but I felt good that they respected my commitment that no repercussions would result if they were negative. In fact we worked out many differences.

An Administration Council was formed consisting of the heads of the major sections, both Northern and Southern California, and the council met monthly. Not only did we review the performance of each section, so each member understood the inter workings of the total group, including the personnel officer. We reviewed the quarterly performance of the overall bank, and its progress against the mission statement. We wanted the council to understand the bank, how it performed against peer banks, we discussed asset and liability management, how revenues are generated, leverage and how "the back room" fit into the total bank. This was clearly departure from how management interfaced with the "back room".

Many successes started occurring throughout the group. These successes did not happen because we designed a logo and senior management supported the program. Nor did the goals by themselves create success. It was an honest, dedicated effort to involved the staff and to implement as many real world motivators.

We paid attention to the staff, gave them a mission, talked to them, appreciated them, had common goals, rewarded them, and had fun.

We purchased a number of items, that were decorated with the Best in the West logos.. belt buckles, coffee cups, T - shirts (not to be worn in the bank, except on special allocations. In the course of the program the groups imagination created many items, many home made, displaying the logo.

We announced several incentive contests, that pitted, on a friendly basis, units within the same sections and departments increasing volumes and/or quality. The rewards were cash, savings bond and days off

Winners of certain contests had a choice of having lunch with the Group Manager, runners up had to go to lunch with the Group Manager.

A Funny Story: The International Department at the time was managed by a super guy, Ted Harpham, who had many years in international, most with Citi Corp in Brazil and Switzerland. Ted supported the program, but privately told me he did not believe it would work in the International Division. I did not concur and related to Ted that there were a lot more people in the International Division than the Senior Vice Presidents outside his office with the expensive desks and oriental carpets. As is turned out the International Division were the biggest users of the Best in the West materials and incentives. In fact during a visit to the Hong Kong office in 1980, a very sophisticated market place, the officers in the branch asked me to attend a basketball game against a major bank. I did. Guess what ?, the uniforms for our team were UCBest in the West T - shirts As the quality increased in those areas that effected International, my friend Ted became a believer.

A Typical Activity: We encouraged the units to invite the users, both internal: bank units, and external: customers of their services to visit their premises. The proof and pay filing unit in Orange County invited all branch personnel to visit their site. I tried to attended all these functions. I was stunned when I walked into the building which was completely converted into a lush jungle like atmosphere, which included live birds and the entire staff dressed in island attire. A fantastic rapport was quickly built between the branches and this unit. Future phone calls were more pleasant and constructive. I recall soon after the Los Angeles unit held a similar function. They estimated 400 branch personnel would show... 1200 attended. Other than a mad scramble for more snacks and drinks by senior officers, another success that cemented relations between working units.

As the pride grew various units were painting UCBest in the West logos on walls, floor to ceiling. One day it appeared on the side of the helicopter used to transport checks... and the productivity and quality grew.

The philosophy of UCBest in the West became part of the bank's mission statement (see TQB in this book) and the productivity and quality grew.

It was this new pride and success that gave us the credibility, allowing me to build a new operations, data processing and administration complex across the freeway from the bank tower in downtown Los Angeles. The total bank was into the cause, the best back room in the west. The Managing Committee saw the results.

Turnover for the top 75 officers in the Administration Group for eighteen months in 1979 and 1980 was zero. What a good feeling. Oh, we did loss one Assistant Vice President, the holding company moved her husband to the state of Washington and we could not convince her to stay.

Two events were rewards to this super group, who in my opinion truly became the best in the west.

First, we held a two day conference for those top 75 officers at first class hotel. Senior management was in attendance. Internal conferences of this quality just did not happen in the past for the back room units. This was a Thank You from the bottom of our hearts, and the staff knew it

The conference closed with a multi screen slide show of slides taken of the attendees during the conference with the underlying music of Sister Sledge singing "We Are Family." That slide show, by request, was shown many times for those employees within the group that did not attend the conference, sign of success.

Second, within the 14th largest bank in the United States there were plenty of externally visible units to feature in the annual report, the line units - the money makers. But in 1980 the management of the bank choose (with very little lobbying) to dedicate the annual report to the operational sections of the Administration Group.

There are too many individual stories to relate what happened during this period which many of the key officers of the group still refer to as the CAMELOT period.

Even though I consider myself a lender and an administrator, this period was on of the most rewarding periods of my career. One thing that sticks in my mind, these people dealt with enormous volumes that represented significant dollar values, and they had to do it EVERY DAY, there was no tomorrow.

I dedicate this portion of this book to those people, including our permanent IBMers and other close vendors, who were, UCBest in the West.

Why was this program successful. I believe it was successful for the following reasons:

• Strong communications for purpose, goals, feedback
• Recognition
• Appreciation and caring
• Delegation, with responsibility and accountability
• Strong management support
• Interpersonal relationships, team building
• Self esteem

We had fun: The advertisement that never ran

(You will no doubt recognize the Wells Fargo Stagecoach)

United Calfornia Bank's 1980 Annual Report, the 14 largest bank in the country at the time, featured the back room and even mention Best in the West on the cover... cool.