Thursday, October 18, 2007 at 12:12am
Banking on values
Column: Executive Soul
In the early '90s, Bob Glassman, co-founder and co-chairman of Wainwright Bank in Boston, found himself in a challenging situation. The bank had begun to experiment with social justice projects in the late '80s, most notably by forming a partnership with the Pine Street Inn to address homelessness. Glassman, committed to a social justice vision for the bank, realized that the bank's board didn't all share his vision. While a little experiment could be tolerated, an ongoing commitment to social justice was unheard of for a bank. Glassman, concerned about the values vacuum at the center of the banking industry, puzzled over how the bank could stay on the track of "banking on values."
In a banking world known for its focus on the single bottom line of profitability, Wainwright Bank became known for its double bottom line, focusing on both people and profits. In order to focus on the bigger picture in the early '90s, Glassman took small steps, beginning by talking with his business partner. When he said he'd like to pursue the social justice vision for the bank, his partner pledged his full support.
Glassman then worked on developing shared vision. With his partner's full support for the social justice vision of the bank, he turned to board development. When Glassman clarified the direction of the bank, he found that some board members' eyes lit up and others' shut down. Some self-selected off the board, while new members who shared the vision joined the board.
In addition, Glassman sought to develop shared vision among the bank's management. As some managers caught the vision and as new managers joined the bank for its vision, an inner core of board members and managers who shared the vision solidified. Glassman reflected:
"And this inner core would constantly talk, and out of those conversations we had ideas that we would put into place. We felt we had something that was right, and as the public learned about it, one person at a time, they would assimilate who we were and what we were doing. We created an identity for the bank. When that developed, there was a passionate, committed constituency that found its way here. Then that created another cycle of enthusiasm to take it a step further."
In time, the board articulated Wainwright Bank's mission:
"With a sense of inclusion and diversity that extends from the mailroom to the boardroom, Wainwright Bank and Trust Company resolves to be a leading socially responsible bank. The Bank is equally committed to all its stakeholders — employees, customers, communities and shareholders."
The shared vision became the rallying point for recruiting new board members and new employees, and also guided decisions about product development and employee policies.
By focusing on mission and shared vision, Wainwright Bank carved out a unique market share for itself. Now the market leader in non-profit lending and a leader in socially responsible investing, Wainwright Bank is one of the top 700 banks among the 8,000 banks in the United States. Banking on values has proven to be successful financially as well as socially just.
— — —
Margaret Benefiel, Ph.D., author of "Soul at Work: Spiritual Leadership in Organizations," works with leaders in business, healthcare, government and non-profits to help them develop spiritual leadership. Visit her website at www.ExecutiveSoul.com. © Copyright 2007 by Margaret Benefiel.
In a banking world known for its focus on the single bottom line of profitability, Wainwright Bank became known for its double bottom line, focusing on both people and profits. In order to focus on the bigger picture in the early '90s, Glassman took small steps, beginning by talking with his business partner. When he said he'd like to pursue the social justice vision for the bank, his partner pledged his full support.
Glassman then worked on developing shared vision. With his partner's full support for the social justice vision of the bank, he turned to board development. When Glassman clarified the direction of the bank, he found that some board members' eyes lit up and others' shut down. Some self-selected off the board, while new members who shared the vision joined the board.
In addition, Glassman sought to develop shared vision among the bank's management. As some managers caught the vision and as new managers joined the bank for its vision, an inner core of board members and managers who shared the vision solidified. Glassman reflected:
"And this inner core would constantly talk, and out of those conversations we had ideas that we would put into place. We felt we had something that was right, and as the public learned about it, one person at a time, they would assimilate who we were and what we were doing. We created an identity for the bank. When that developed, there was a passionate, committed constituency that found its way here. Then that created another cycle of enthusiasm to take it a step further."
In time, the board articulated Wainwright Bank's mission:
"With a sense of inclusion and diversity that extends from the mailroom to the boardroom, Wainwright Bank and Trust Company resolves to be a leading socially responsible bank. The Bank is equally committed to all its stakeholders — employees, customers, communities and shareholders."
The shared vision became the rallying point for recruiting new board members and new employees, and also guided decisions about product development and employee policies.
By focusing on mission and shared vision, Wainwright Bank carved out a unique market share for itself. Now the market leader in non-profit lending and a leader in socially responsible investing, Wainwright Bank is one of the top 700 banks among the 8,000 banks in the United States. Banking on values has proven to be successful financially as well as socially just.
— — —
Margaret Benefiel, Ph.D., author of "Soul at Work: Spiritual Leadership in Organizations," works with leaders in business, healthcare, government and non-profits to help them develop spiritual leadership. Visit her website at www.ExecutiveSoul.com. © Copyright 2007 by Margaret Benefiel.