Leading the Way Inspired by Efficiency

Most successful organizations would agree that strong leadership skills are critical for everyone in the banking industry, from managers to the C-suite. Leaders must have the ability to inspire and guide others while making sound decisions that affect the future trajectory of the institution. At the same time, efficiency is the backbone of any successful operation, and efficiency’s influence on leadership is profound. How are leadership and efficiency intertwined? According to PRI partner Mikelle Brady, while efficiency can help achieve a bottom-line impact, there are other important reasons to strive for it related to leadership. 

What makes efficient leaders different? 

In the Harvard Business Review article 6 Common Leadership Styles – and How to Decide Which to Use When, Rebecca Knight outlines the styles first identified by Daniel Goleman and points out that the most effective leaders are ones who understand how to adapt and use which style fits different situations. 

• Coercive leadership style, entailing demanding immediate compliance.
• Authoritative leadership style, which is about mobilizing people toward a vision.
• Pacesetting leadership style, which involves expecting excellence and self-direction.
• Affiliative leadership style, which centers around building emotional bonds.
• Democratic leadership style, which involves creating consensus.
• Coaching leadership style, which focuses on developing people for the future. 

“While efficiency isn’t a leadership style, it is a key factor that can greatly enhance leadership effectiveness,” Brady said. “By fostering a culture of efficiency, leaders can build trust, make better decisions, manage time more effectively and drive innovation within their teams.” 

• Efficient leaders are often seen as more competent and reliable.

When a leader can streamline processes and make the most of available resources, it inspires confidence within the team. This, in turn, fosters a more motivated and productive work environment. 

• Efficient leaders make better decisions.

Leaders who prioritize efficiency are often skilled at identifying the most critical tasks and allocating resources appropriately. This ensures that projects move forward smoothly and that team members are not overwhelmed by unnecessary tasks.  

• Efficient leaders are better time managers.

By effectively managing their own time and helping their team do the same, leaders can ensure that deadlines are met, and goals are achieved without unnecessary stress or burnout.  

• Efficient leaders pave the way for more innovation.

When leaders focus on optimizing processes and eliminating waste, it often opens opportunities for creative solutions and new ways of doing things. This not only benefits the organization but also encourages a culture of continuous improvement and adaptability.

Efficiency is an element of a bank’s effectiveness. 

The Forbes article Efficiency is Just One Part of An Effective Leader’s Toolkit defines efficiency as performing in the best possible way with minimal waste of time, effort and resources. Efficiency is an element of effectiveness.

“If efficiency is performing in the best possible way with minimal waste of time, effort and resources, effectiveness is accomplishing a purpose and producing the intended result. Being effective is about doing the right things while being efficient is about doing things right. Effectiveness is focusing on long-term impact, while efficiency is focusing on short-term goals.” – Forbes  

What are the benefits of efficiency in leadership?

Brady said that efficiency in banking organizations should be considered as more than how it relates to specific tasks or functions. Efficiency should be about the whole organization, how it functions and how it serves its customers. The benefits of efficiency in leadership include:

• Enhanced customer experience.

Brady says enhancing the customer experience is the key driver in everything that bankers do. Efficiency in this context can mean removing roadblocks and points of friction along the customer journey so that the customer experience with the organization is greatly improved.  

• Cost savings and resource optimization.

Efficiency in leadership here means cross training employees to prevent bottlenecks as well as ensuring that all employees are being used to their maximum capacity. 

• Improved employee satisfaction and engagement.

Bringing efficiency into leadership can mean listening to employees and using their feedback to improve processes that reduce frustrations and increase productivity. “When team members feel fully utilized and that they’re doing their jobs efficiently and dropping tasks that are repetitive or don’t make sense, then they’re more satisfied with their work and more likely to stay at their job,” Brady said. 

What are the strategies for implementing efficient leadership?

No matter what the leadership style or styles, efficiency can play an important part in how the leader functions in the organization. Keeping efficiency in mind at all the points along the way will improve the leader and the organization. Some steps that efficient leaders commonly take include:

• Setting clear goals and priorities. Communicate these widely to ensure organizational buy-in. 
• Streamlining processes and workflows. Make them as efficient as possible. 
• Leveraging the existing technology. Use its full capacity and implement automation wherever possible. 
• Promoting a culture of continuous improvement. Reporting successes and refining processes along the way. 

Not only does efficiency improve an institution’s bottom line but positively impacts other important areas of the organization. Efficient leaders are different, and they are often far more effective within their team. No matter the preferred leadership style, efficiency in leadership brings clear benefits: Enhanced customer experience, cost savings, smart resource allocation, improved employee engagement and satisfaction – big rewards for minimal investment. 

Resources 

Efficiency is Just One Part of An Effective Leader’s Toolkit – Forbes

Wasting Time: 8 Opportunities for Improving Operational Efficiency  – PRI

Methods to Create Effective Customer Journeys for Your Bank  – PRI

6 Common Leadership Styles – and How to Decide Which to Use When – Harvard Business Review

PRI specializes in identifying profitability improvement areas for financial institutions through revenue growth, cost control, streamlining processes, and effective use of technology. Contact us to learn more about our personalized approach to propel growth and improve profitability.