Turning Regulations into PLAIN ENGLISH!

Creating a Positive

Compliance Culture November 13, 2019

800.847.1653 www.bankerscompliance.com

Banker’s Compliance Consulting has over 25 years of Turning Regulations into PLAIN ENGLISH!

Let our nationally recognized experts pave your way to clarity with our useful tools and easy-to-understand summaries written in plain English. At Banker's Compliance Consulting, we passionately serve you, so you can get back to doing what you do best: serving your customers.

Banker’s Compliance Consulting provides a tool box of webinars both Live and On-Demand. You may schedule compliance reviews or request tailored training for your personnel. Check out our website for free resources and downloads such as our free blog and ever-popular free downloads to help guide you. Come to our LIVE EVENTS and get to know the experts.

David A. Dickinson David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.

He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the Center for Financial Training, the American Bankers Association National Compliance Schools and is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.

David and his wife Karen have 3 adult children and 2 grandsons (none of whom live at home!) and 3 cats (of which Dave is allergic … the cats, not the children!). They live on a lake in Nebraska and when possible, he can be found fishing or making sawdust in his shop. David plays the guitar & piano and enjoys singing with Karen. They occasionally lead worship at their church.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. The information contained within this manual pertains to federal regulations. Banker's Compliance Consulting makes every attempt to understand applicable state laws as well; however, this information may not be represented in this manual. If you are aware of state laws that conflict with information presented in this manual, please contact Banker's Compliance Consulting. This publication contains the author’s opinion on the subject. All rights reserved. This manual may not be reproduced in whole or in part in any form whatsoever without permission from the publisher. The publisher hereby specifically disclaims any personal liability for loss or risk incurred as a consequence of the advice or information presented in this book.

Copyright © 1997 – 2019All rights reserved. Printed in the United States of America

Banker’s Compliance Consulting PO Box 87

Central City, Nebraska 68826 consultants@bankerscompliance.com

800-847-1653

Building A Healthy Compliance Culture

I. Organizational Health

A. What is it?

“Culture represents that set of beliefs which govern behavior” Alan Weiss

B. Why is it important?

Smart + Healthy = Success

II. How to Get Healthy Refer to “Organizational Health” model (attached) http://tablegroup.com/advantagemodel/org>health/orghealth_model.pdf

A. Build a Cohesive Leadership Team

Refer to “5 dysfunctions model” (attached) http://tablegroup.com/books/dysfunctions/the_five_dysfunctions.pdf

The Dysfunctions Dysfunction #1: Absence of Trust

Dysfunction #2: Fear of Conflict

Dysfunction #3: Lack of Commitment

Dysfunction #4: Avoidance of Accountability

Dysfunction #5: Inattention to Results

B. Create Clarity

1. Why do we exist?

2. How do we behave?

3. What do we do?

4. How will we succeed?

5. What is most important right now?

6. Who must do what?

C. Over Communicate Clarity

D. Reinforce Clarity

III. So Why Does It Really Matter?

A. Regulatory Health:

“How the Compliance Officer leads as an agent of change and what you do in the process of helping your bank to process new regulatory requirements is crucial. Your decision to foster strong organizational health and alliance with others will drive the success of your regulatory change management program. Without those elements, you’re fighting a losing battle against defiance and dysfunction that will ultimately lead to regulatory violations.”

B. Job Fulfillment:

C. Your Organization Gets “Smarter”

IV. Challenges / Road Blocks

Be Intentional about improving your organization’s culture!

The Advantage: Organizational Health Model

1. Build a

Cohesive Leadership

Team

2. Create Clarity

ORGANIZATIONAL HEALTH

4. Reinforce

Clarity

3. Over-

Communicate Clarity

Discipline 1: Build a Cohesive Leadership Team Cohesive teams build trust, eliminate politics, and increase efficiency by…

■ Knowing one another’s unique strengths and weaknesses

■ Openly engaging in constructive ideological conflict

■ Holding one another accountable for behaviors and actions

■ Committing to group decisions

Discipline 2: Create Clarity Healthy organizations minimize the potential for confusion by clarifying…

■ Why do we exist?

■ How do we behave?

■ What do we do?

■ How will we succeed?

■ What is most important, right now?

■ Who must do what?

Discipline 3: Over-Communicate Clarity Healthy organizations align their employees around organizational clarity by communicating key messages through…

■ Repetition: Don’t be afraid to repeat the same message, again and again

■ Simplicity: The more complicated the message, the more potential for confusion and inconsistency

■ Multiple mediums: People react to information in many ways; use a variety of mediums

■ Cascading messages: Leaders communicate key messages to direct reports; the cycle repeats itself until the message is heard by all

Discipline 4: Reinforce Clarity Organizations sustain their health by ensuring consistency in…

■ Hiring

■ Managing performance

■ Rewards and recognition

■ Employee dismissal

©The Table Group, Inc. All rights reserved.

the table group a p a t r ic k l e nc i o n i c o m p a n y

Simple wisdom for organizations.

th e ta b le g ro u pa pa t r i c k l e n c i on i c om pa n y

Simple wisdom for organizations.

The Advantage: Teamwork Model

#1: Building TrustTeam members who trust one another are comfortable being open, even exposed, to one another about their failures, weaknesses, and fears.

#2: Mastering ConflictWhen trust is present, teams are able to engage in unfiltered ideological debate around ideas, issues and decisions that must be made.

#3: Achieving CommitmentThe ability to engage in conflict and provide input enables team members to buy-in or commit to decisions.

#4: Embracing AccountabilityAfter commitment is established, team members must be willing to hold one another accountable and remind each other when actions are counterproductive to the team.

#5: Focusing on ResultsCollective team results must supersede any departmental or personal objectives or pursuits.

Trust

Conflict

Commitment

Accountability

Results Focusing on...

Embracing...

Achieving...

Mastering...

Building...

This model originated from Lencioni’s national best-seller, The Five Dysfunctions of a Team. ©The Table Group, Inc. All rights reserved.