I was in Ypsilanti, Mich., for the annual computer communications conference of First Chicago NBD Bank. I was to give the opening address and had worked in advance with Gerald A. Johnson, second vice president in correspondent banking, to set up my part in the program.
Over coffee we discussed how sad it is that correspondent banking doesn't get the attention it used to get from major banks. We agreed that this service is the glue between large and small banks, and that it helps both to survive and thrive.
"I never realized how much I would have to learn about so many aspects of bank operations to handle the calls from correspondents that are part of this job," Gerry lamented.
Well, he must have done his homework. Just as he was to introduce me to the audience, senior vice president Richard E. Gardner said, "I have a special announcement to make: We have received a communication from headquarters informing us that Gerry Johnson has just been promoted to full vice president."
Look at all the good the bank did with that one announcement.
First, it stunned Gerry - and made the promotion even more significant to him than if he'd just been called into Mr. Gardner's office.
Second, it showed the correspondent bankers in attendance that First Chicago NBD is a very human bank, taking pride in employees' achievements.
Third, it showed the correspondent bankers that they are considered part of the family, and that the bank wanted them to share Gerry's happiness.
It was truly a win-win situation.
Banks often miss such opportunities to get the most good will and enthusiasm out of promotions.
Sometimes promotions just get routine announcements. And all too often there's not even that, so the promoted must take the embarrassing step of tooting their own horns to let people know.
And sometimes the way you get a promotion can turn it into poke in the eye. I know; it happened to me.
I used to be the economic consultant to a major brokerage house. It had been several years since my last raise, so I went to see the managing director.
When I told him I wanted a raise, his immediate response was "impossible." I left his office.
Ten minutes later he called me in and asked specifically how much I felt I should have. "No way," he growled, "we can't afford it."
Ten minutes further on, he called me in again and said, "Paul, you got it."
What happened here? The CEO gave me my raise, but he also gave me the feeling that I really didn't deserve it, and that the firm was not happy with having to give it to me.
The real issue, of course, was that even in granting my request, my boss had to show his power over me. As they say, "If you want a friend on Wall Street, buy a dog."
Everyone wants recognition.
If a staff member completes a banking school or a part of his or her nonbank education - publicize it.
If someone does a special job - publicize it.
Even if it is just a birthday, anniversary, or birth announcement, the bank's internal communications medium should make the most of it - with a picture, if possible.
And if the achievement could possibly be newsworthy, send a press release to the local papers and radio stations. This does double the good - it publicizes the staff member's achievement and also shows the public what valuable and newsworthy things the bank is doing.
Finally, contests for "teller of the month" and the like do wonders for morale. Sometimes just the recognition is appreciated more than the extra pay.
Mr. Nadler, an American Banker contributing editor, is professor of finance at Rutgers University Graduate School of Management.
