Building a Learning Organization
When Miranda Wilson first started at Chicago-based ShoreBank in 2000, she saw her new job as a way to pay the bills while she went to school. At the time, she was pursuing a degree in public relations at Roosevelt University. Education came first and ShoreBank's willingness to accommodate her schedule was what most attracted her to the organization. Four years later, Wilson has gone from working as a sales assistant to manager of special projects and now envisions a long career with the bank. Wilson, however, didn't have to sacrifice her education to move up within the organization. In fact, learning remains a big part of her life. She recently switched her major to business marketing and frequently takes advantage of the organization's many training initiatives.
Wilson is one of many employees pursuing an education while working at ShoreBank. In fact, learning and development are the cornerstones of the organization's workplace culture. For example, Elgin Little, a team leader in the data center and item processing department, recently completed his bachelor's in accounting at DePaul University using the organization's generous tuition reimbursement program. ShoreBank offers employees up to $4000 a year to pursue an undergraduate degree and courses do not have to be job related. They offer a maximum of $5,500 per year for job-related, graduate-level coursework.
"ShoreBank encourages you to go to school," says Little. "I probably wouldn't have pursued my education if I didn't work here."
ShoreBank is a mission-based organization that specializes in community development and conservation loans in the inner city. President and CEO Anne Arvia says that, like many mission-based operations, the organization did not always focus enough on issues of sustainability.
"We recently passed the $1 billion mark in revenue, so we're in a growth mode and that means we need to start thinking more strategically," she says. "I always tell employees, we've been around for 30 years and we need to make sure we're around for another 30 years."
The bank has made investing in their employees an integral part of this increased focus on sustainability. Five years ago, the company put a human capital strategic plan in place with an increased emphasis on learning and development. Some of the plan's main objectives were to build the workforce's skill base, retain top performers and maintain a high level of employee satisfaction. ShoreBank has been extremely successful on each of these counts. The organization was recently honored locally as a leader in employee development, winning the "WorkforceChicago 2.0" award. They have a 97 percent retention rate for high-performing staff, and they consistently exceed their goal of 80 percent employee satisfaction.
Arvia attributes ShoreBank's success in these areas to creating growth opportunities for employees. The bank has set a goal of filling 51 percent of all higher level positions in-house. The company actively encourages employees to move up, and managers are required to have an annual discussion with employees regarding their career paths. Recently, the organization held a "Career Information Day," where employees could talk to the heads of various departments and learn more about openings in the bank. In addition, ShoreBank put a program in place to identify high-potential staff and encourage their career development.
The organization's approach to employee development is perhaps best embodied by a program called "CEO of Your Career." It provides employees with an annual allowance of $500 to be spent on training to help further their careers. People have used the program to pay for things such as career counseling or to take Spanish classes. "The program's message is: 'You are the ones responsible for your career, but we are going to do everything we can to support you,'" says Arvia.
Vice President of Employee Development Jay Colker explains that creating a learning organization not only makes good business sense, it is an extension of the bank's mission. "Our external mission is to work with communities to build wealth and create opportunities," he says. "Similarly, our internal mission regarding employee development is to provide our people with opportunities to grow and have a better quality of life."
ShoreBank's increased focus on employee development has been matched by an even greater emphasis on accountability and communicating expectations. For example, the company tracks and provides incentives for key activities such as development loans, deposits, conservation loans and customer satisfaction. In the past, employees were unclear about how exactly they earned their bonuses. ShoreBank now utilizes a well-defined performance review system. Seventy percent of the review is based on individual goals set annually with employees' direct supervisors. Twenty percent is based on departmental goals. The final 10 percent of the evaluation is based on bank-wide goals. The company spends a considerable amount of time communicating expectations and how each employee impacts bank-wide goals, using everything from broadcast e-mails and voice mail to bulletin boards to get the message across.
Understanding that communication is a two-way street, the organization offers a number of avenues for employees to provide feedback. ShoreBank uses an annual employee opinion survey. They hold all-employee staff meetings twice a year. Arvia frequently takes a dozen employees out to lunch, giving them an opportunity to discuss workplace issues and the bank's direction with her. They also provide an ethics hotline.
Arvia has big plans for the future. She aims to double the bank's size by 2007 and believes the organization is well poised to achieve this lofty goal. "We now have a common language and strategy," says Arvia, "and people feel a part of it."
Organization: ShoreBank
Web site: www.shorebankcorp.com
Industry: Banking
Location: Chicago, Ill.
Number of employees: 500
Revenue: $1.4 billion
