BANKING ON TOMORROW

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BANKING ON TOMORROW

• A case study of implementing KM in a small
  community bank

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Meet the bank circa 1994

• the sixtieth anniversary year with asset size
  115,027,885.
• Over-capitalized with a high efficiency ratio and
  problems in the loan portfolio.
• Rapidly intensifying competition from other local
  community banks, regional banks, national banks
  and others.

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CFBank did not have a knowledge management
program, we had a
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A Traditional Bank
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People
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Our employees are our profit lever

• The source of our competitive advantage, how we
  differentiate ourselves in the market
• We rely on
• what they know,
• how they apply, share, and grow what they know

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What New Core Competencies Have to Be Developed?

• How will they be
• recognized,
• rewarded,
• collected,
• sustained?

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NEEDED new ways of doing things

• IF you do what youve always done, you get what
  youve always got.

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What is the cost of lost opportunities?
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A SALES ORGANIZATION
SHAREHOLDERS
CUSTOMERS
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What are the current trends?
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Performance -- how is it compared to goals
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TECHNOLOGY
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Customer Information
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AND AT THE END OF THE DAY.

• What did we actually accomplish?

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If this was a KM program, what would we address?

• People
• Processes
• technology

Acknowledging tacit knowledge supporting
connectivity
Encouraging relationship management VS
transactions
Making Operations a source of competitive
advantage
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I was unable to transfer the responsibility for
the following incomplete projects

• Relationship management -- Credit Admin is only
  interested in officer lending relationships and
  Branch Admin does not want to get into the
  politics.
• Use of ITI as a customer relationship management
  tool, including Profit Calc, SIC codes,
  miscellaneous codes, other accounts, and training
  of the sales forces, the Board reporting module,
  etc.

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• Branch monthly goal reporting and bank quarterly
  goal reporting
• The analysis of new and closed accounts by class
  code was not completed
• Information on loan questions for the call center
  was incomplete
• The impetus for an user group locally appeared to
  have died with my departure

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On September 7th, the announcement came

• Commercial Farmers Bank had been acquired by
  FMBN a local regional bank

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IN RETROSPECTnot quite a post mortem

• We moved too slowly to implement change
• Lack of commitment too much lip service and
  compliance, not enough personal ownership
• Officers did not feel accountable for tacit
  knowledge

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Carol H Tucker VP Loan Administration Maryland
Permanent Bank Trust CO Beladona_at_erols.com Ctuck
er_at_mdpbk.com