The following article is a contribution by Will Marré, Founder and CEO of the REALeadership Alliance.  Will was RFG’s highest rated speaker at last year’s CEO Forum in Sonoma, California. Since so many of our Forum attendees found his presentation on Corporate Social Responsibility to be informative, refreshing and inspiring, we asked Will to contribute a post or two to The Raddon Report.  Of course, the views and opinions offered in this post are entirely those of the author and are not necessarily shared by Raddon Financial Group (however, we do think you will find them interesting and thought-provoking). 

The single greatest cause of leadership failure is isolation.  At least that’s my conclusion after spending three decades as a personal leadership advisor to scores of CEOs and senior executives.  Isolation is like an odorless, invisible, poisonous gas that slowly causes a lethal blindness to facts and evidence that are contrary to the plans, policies and strategy that leaders are responsible for.  The causes of isolation are simple to understand.  Most leaders spend most of their time with people who are economically dependent on them or with peers who share the same view of the world.  Over time it gets harder and harder to see what’s upsetting or uncomfortable.  In fact, that’s my primary job, to hold up a magnifying mirror or challenge leaders to quit talking to each other around the conference table and take a good long look out the window at the real world.  In times of crisis, it’s strong medicine.  Medicine that often doesn’t taste so good but is absolutely necessary to get well.

Of course I would be understating it to say financial institutions worldwide are in serious crisis.  In Great Britain there is increasing talk of nationalizing the British banks.  Nationalizing!  That kind of talk is unthinkable in the U.S., but the political will for massive, intrusive regulation is growing rapidly.  The reason is simple.  Too many people — from consumers to business owners — are angry and upset with leaders of large financial institutions who appear unwilling to step up to their Corporate Social Responsibilities to provide reasonable access to capital and transparency with the use of taxpayer money.  Yes, I know.  The industry has had good reasons for the policies that drove these outcomes, but the organizations that survive this current crisis and emerge stronger and positioned to grow are the organizations that become known as advocates for their customers, offering safety and soundness, as well as services that support the financial capacity of their customers. 

A recent McKinsey and Company survey revealed that more than 80 percent of today’s consumers expect business leaders to actively contribute to the common good of society.  The idea that business success and providing fair-paying jobs is enough to have a license to operate is dead.  Today’s consumers and employees expect more, lots more.  The tired notion that Corporate Social Responsibility consists of contributing to local charities, or that volunteering at a homeless shelter will put a shine on your reputation, is long passed.  Increasingly, society is demanding that our core business strategy is designed to directly benefit humanity.  They want the way we make money to directly benefit all stakeholders.  In the banking industry, micro-credit is held up as an example of this new kind of business model.

Crisis always presents an opportunity to rethink strategy, policies and growth opportunities.  It’s helpful to remember that nearly all industry leaders become successful by being different from the herd.  Just look at Southwest Airlines, Apple or Toyota.  (Toyota is working on a car that actually cleans the air!)

Consumer research is quite clear on what people want from their financial institution.  First, consumers want relational banking versus transaction banking.  They want to feel they have an advocate in their quest for financial autonomy.  This kind of advocacy is personal.  The current trend to maximize fees may have deeply wounded the brand trust of some banks and credit unions.  Those who have the courage to change their revenue dependence from punitive sources will undoubtedly gain a market advantage.  Remember, the financially healthy large airline, Southwest, doesn’t charge a luggage fee, change fees or other surcharges.

Consumers also want their banks and credit unions to invest in their communities.  They want to know their deposits are helping the local businessperson create new jobs.  Most of all they want a trusted advocate.  Recent research reveals that our greatest fear is financial bondage.  Over 50 percent of Americans who make more than $100,000 a year now say they can imagine themselves in poverty.  This is an indication of our collective gut-wrenching worry.  All of us are looking, searching for institutions we can personally trust to be advocates for ourselves, our community and our country.  Those leaders that step up to this call are the leaders of the future.

About Will Marré
Will Marré is an Emmy Award-winning writer, speaker and coach. He is the co-founder and former president of the Covey Leadership Center (The 7 Habits of Highly Effective People).  He is currently the CEO of the REALeadership Alliance, where he helps leaders implement new socially-strategic business and branding models, and Consulting Director of UC San Diego Extension’s Responsible Enterprise Forum. Marre co-founded the Seacology Foundation dedicated to saving the fragile environments and cultures of islanders especially in the South Pacific.

For more information on Will Marré, please visit http://www.willmarre.com/, or visit http://www.thoughtrocket.com/ to view his weekly blog.  You can also email him at wmarre@thoughtrocket.com; phone ThoughtRocket at 866-876-6596; mailing address: P.O. Box 235180, Encinitas, CA 92023.

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