By Donald P. Crivellone ©, former Executive Vice President
Success can come your way without a formal mission statement. At United California Bank (UCB), the 14th largest bank in the United States, 1975 was not a good year as compared to the performance of other major banks. Its earnings dropped from $34 million to $27 million, when most other banks were increasing earnings. Other financial ratios did not reflect a high performance either. Several years before, in the early 1970s, UCB suffered an embarrassing situation when a Swiss subsidiary, which it was not the major shareholder, suffered an $80 million loss when it tried to capture the cocoa futures of the world. UCB burdened the entire $80 million gross loss even though it was not legally obligated to do so. But, to make a long story short, at the end of 1975 UCB was not regarded on its present performance as an outstanding bank.
With a new president, Joe Pinola, who brought me with him from Bank of America and a management team that was determined to return the bank to its former status in the industry, 1976 through 1978 was a rebuilding period. A common goal gave direction and eventually in a short time frame, success. The bank at the end of that period returned to becoming one of the most successful banks in the United States over $5 billion, based on financial ratios.
However, at a nine member managing committee retreat in the summer of 1979 I said to the chairman of the bank, Norman Barker - I know we have been successful in our turnaround, but I have 2200 employees in the Administration Group and I do not know where we want to go or be as the 14th largest bank. Do we want to become the largest bank, the most profitable, retail, wholesale .. what? He responded that it was a lousy question and he was not prepared to answer it. And did not!
That was on a Saturday. On Monday I was sitting opposite of the chairman at lunch. He related that while I had asked a tough question, it was one that we were going to resolve. Through a rather long conversion several things came out. We wanted to be profitable, but we did not have to be number one. The asset allocation was balanced rather reasonably. But the main thread throughout the lunch was a desire to be respected, to have a quality bank.
I was impressed at the direction he was talking about. We decided that Bob Williams, a long time veteran and general council; John King, head of the World Banking Group and myself would draft a mission statement to submit to the chairman. We dwelt on the chairman's constant use of the word quality. After wearing out the Rogets Thesaurus looking for a word that expressed quality, the three "whiz kids" finally realized that there was nothing wrong with quality and why wouldn't we simply want to be the quality bank. Bob Williams I think blurted out, yeah, TQB. And that stuck.
In the course of five or six more meetings, we then proceeded to quantify the following well thought out document, which we believed in and would support.
Please note it includes some philosophical ideas as well as some hard goals as to earnings and growth. We did not mention shareholders as we were owned 100% by Western Bancorp (Now First Interstate Bancorp). Our visual arts department came through with another super logo to support and brand the mission statement of our Bank.
Our primary purpose is to provide quality banking services on a sound and profitable basis, for an ever-increasing number of customers. Our objectives to accomplish this purpose are:
Quality Service To Our Customers And Prospects
To fulfill the complete banking needs of our customers on a quality basis, consistent with sound banking practice. To demonstrate leadership in the development and improvement of quality banking services.
Quality Staff
To build an organization of quality personnel, with equitable compensation and benefits, in an environment that encourages maximum development of staff members.
Quality Assets
To be a well managed, progressive quality banking institution, while maintaining a quality loan and investment portfolio. To maintain the basic asset allocation of our bank.
Quality Backroom
To aggressively pursue the present course set by the theme "Best in the West."
Quality Earnings
To earn at least the average of our two best California competitors.
Quality Growth
To pursue a sound program of expansion, and plan for continuing growth and progress to match the asset growth of our two best California competitors.
Quality Planning
To develop to the highest possible level our ability to plan for the future.
Quality Involvement In Our Community
To support and work for the best interests of the communities in which we live and work.
Quality Bank
To earn the full confidence and respect of our customers, staff, competitors and the community.
THE CHAIRMAN LOVED IT. Now how do we implement it. I suggested that we kick if off with a dinner on the banks 60th floor dining room with the managing committee and our spouses I had Tiffany's put our logo on the face of 9 Baume & Mercier watches with our names and the date of the dinner engraved on the back. We started and stayed with quality. For the spouses we ordered Elsa Perretti necklaces with the logo engraved on the back. We were determined to have the spouses buy in as they represented the bank in many ways and at many functions. We also gave each attendee a copy of the mission statement and reviewed its contents. The day after the dinner it was amazing how many people noticed the watches and wanted to know what this was all about and how could they obtain a watch. We told them have patience, we would announce the program soon and the watches were one of a kind. After several weeks we held a luncheon for the Senior Vice Presidents and above where we announced and reviewed the program. Each officer was given a copy of the mission statement, a crystal TQB paperweight (one of a kind), a TQB tie and a TQB lapel pin all from Tiffanys. After this lunch the remaining staff wanted to be part of the program, but we did not expand the TQB lapel pins or give anymore copies of the mission statement for another two weeks. However during that two week period managing committee members had a supply of TQB pins and gave them to staff that did something unique. The staff hung around managing committee members hoping to be the recipient of a TQB pin. When we finally issued the TQB pins and ties and explained the program the "buy in" was as great as you could expect in any organization. WE HAD DRAMATICALLY INTRODUCED THE MISSION STATEMENT. From that time on senior management referred to the TQB statement when we announced new products, new training programs, community events, new facilities, new equipment and new personnel programs. We kept our staff informed about our progress as to earnings and asset growth compared to our California competitors. The mission statement was not put on the shelf to gather dust, we wore our lapel pins daily and were true to TQB. What started out as a mission statement became an internal motivational vehicle. TQB suddenly stated appearing on organization charts, slide presentations, flip chart presentations, business plans, goals, coffee cups, awards, T-shirts and became the title to a book written about the bank, entitled: Their Bank, Our Bank, The Quality Bank. The entire bank had a mission, felt good about what we wanted to be and how the bank would grow, who got the resources, and that we cared about our staff, our customers and the community. We were a team. During that period of the bank's history we were "winners" (a management conference theme) with a mission. The sweet smell of success was everywhere. During that period, I believe the most rewarding thing was we really did earn the full respect of our customers, staff, community and the competitors of our Bank.