Fearful Leaders

Today, National Public Radio (NPR) interviewed Jean Ann Fox, Director of Financial Services at the Consumer Federation of America, about the impact of recent bank failures, mergers and buyouts. The story suggested that with the consolidation of some of the larger banks, consumers have an opportunity now to “reshop the market and see if you can get a better deal at lower cost at a smaller bank.”

There is no doubt that the turmoil in the world’s economic markets and high profile bank failures will contribute to customer churn, especially in some markets. But are small community banks prepared to take full advantage of that churn, or are they approaching the ocean of opportunity with a teaspoon? Many community bankers haven’t taken the time to understand their market; or ensure that their brand is relevant to that market...so they don't know how to reach out to their potential customer in meaningful ways. In fact, in this very moment fearful leaders are busy cutting marketing budgets and putting off strategic growth decisions. They could benefit from advice offered today in Seth Godin's blog:

"Growth is frightening for a lot of people. It brings change and the opportunity for public failure. So if the astrological signs aren't right or the water is too cold or we've got a twinge in our elbow, we find an excuse. We decide to do it later, or not at all.

What a shame. What a waste.

Inc. magazine reports that a huge percentage of companies in this year's Inc. 500 were founded within months of 9/11. Talk about uncertain times.

But uncertain times, frozen liquidity, political change and poor astrological forecasts (not to mention chicken entrails) all lead to less competition, more available talent and a do-or-die attitude that causes real change to happen.

If I wasn't already running my own business, today is the day I'd start one."