When a weak economy brought myriad challenges to the
banking world, SunTrust Banks CEO Bill Rogers focused on driving
William H. Rogers Jr.
President and CEO
SunTrust Banks Inc.
Bill Rogers became CEO of one of the United States largest banks in
June 2011, years into an era when top banks, battered by a weak
economy and facing a lean future, had been aggressively cutting
costsincluding training. Rogersand the man he succeeded as SunTrust
Banks CEO, Executive Chairman Jim Wellshad chosen another approach:
redirecting leadership development and retooling the banks
workforce to drive engagement with a totally new kind of clientone
that might be more likely to seek a banking relationship than
simply take part in a transaction.
We spoke with Rogers at his office in downtown Atlanta, Georgia.
Q| What are your views on the role of talent in sustaining the
health of the financial sector and driving growth at SunTrust?
A| Sustaining the health of an institution begins and ends with
talent and thats nowhere more true than in financial services. One
major difference between financial services compared to other
industries is that for us, every interaction with a client could
result in a financial loss. Every interaction has risk attached to
it; in some cases its significant. Thats why training our talent is
critical to ensuring our success.
Q| The recession is now three years old and banks are finding their
way into a new normal. We havent profiled a financial services CEO
before and were curious to know if in the past three years you have
had any epiphanies or confirmations of the role of talent in the
A|The banking business has never been tougher and its never been
more important to the health and recovery of the U.S. economy. As
you would expect, as the CEO of a bank Im a fundamental believer
that we need to play a part in leading the recovery.
As you also might expect, we are not winning every popularity
contest. What I tell our teammates is Put on your SunTrust pin and
get out there because what we do is really important. Making a
small business loan, sending someone to college for the first time,
putting someone into their own homethats noble and important work
and we should do it with pride.
Were operating in a tight environment where the margin for error is
small, so our people need to know the right things to do to stay
ahead. There are banks that havent made it. Weve not only made it;
we are thriving and growing and well be one of the big players
going forward, and that takes a different talent set. Weve really
got to be at our best.
Q|Given such a big shift in performance needs and expectations, how
has that influenced training goals?
A| Weve put more intensity and seriousness into the accountability
part of our training. As for our skill base, weve spent more and
leaned more into leadership development than in the past. I think
were seeing the benefits of that. Our leaders are gaining a whole
new perspective on what they can do to impact change.
Q| What compelled you to do that?
A| It was the realization that it was going to take a new type of
leader and new thinking to be successful in financial services in
the future. Weve made some fundamental changes to our business
model and we needed to make sure our leaders could adapt.
Q| To drive shareholder goals, a financial organization has to
balance the risk-reward equation. How do you achieve that?
A|Successful bankers have two qualities that are useful in
balancing risk and reward. They are very skeptical but also
extremely optimistic. If you weren't an optimist, you would never
make a loan. So we train on both of those qualities and also on
relationship-building techniques, with an emphasis on listening to
Our number one value is listen first. Another important value that
helps us balance risk and reward is integrity. We have to hire
people who have a high integrity quotient.
Q| Where does innovation fit in? Thinking outside the box has
gotten some financial institutions into trouble. How do you balance
innovation with the need to manage risk?
A| We do that primarily through our leadership training. We take
our top 200 leaders through our advanced leadership program and
another 1,000-plus through our leadership development program. We
use management cases and dialogue to guide innovation, particularly
process innovation. There's also a lot of dialogue around balancing
risk with the desire to expand the client relationship. We want to
do the right thing for the client and the bank.
Q| Some innovation must be required to deal with younger clients
whose expectations are driven by mobile technology. How do you
adapt to customers who only want to bank with a smartphone?
A|The interactions of Millennials with a financial institution are
completely different from those of their parents and so is their
notion of loyalty. We spend a lot of time studying and
understanding consumer behavior. We talk to 1,000 clients a night
through a variety of survey mechanisms.
I've been in this business 32 years and I've never seen consumer
behavior change so quickly. For that reason, client behavior plays
a key role in discussions about service quality and product
Q| Some predictions say that Millennials will make up about 50
percent of the workforce by 2014. How do you think that will affect
training and employee engagement?
A|Millennials are known for their constant desire to learn and take
part in training opportunities. Some won't work for a company that
doesn't invest in their training.
We look at measures of teammate engagement, and we apply a lot of
science and a lot of energy to improving those numbers. The core
components of engagement are I have the tools that I need to
succeed and I know whats expected of me at work. Well, both of
those are right in the sweet spot
Q| How do you know the learning is working?
A| For us its the empirical measurement. I tie it into engagement.
If Im seeing rising engagement scores related to the foundational
elements that I mentioned, it helps determine if learning is really
taking hold and making a difference.
Q| When you're looking at budgets and thinking about investing in
learning at SunTrust, what are some of the business criteria you
A|Because we've measured the impact of engagement, we know that
highly engaged teammates contribute more---often much more---than
less engaged teammates in terms of client loyalty, client
profitability, and enhanced shareholder returns. It's obvious that
training is a key driver of engagement, and we're developing the
math to support that belief.
Our investment in training has continued through arguably the worst
time in banking since the Great Depression. We've increased our
training budget every year over the past several years. And that
wasn't necessarily related to an increase in numbers of teammates.
We are just fundamental believers that, ultimately, training builds
sustainability not only for our workforce but for our clients. It's
Q| That's in contrast to many companies where the reaction is to
cut training first in tough times.
A|Well, I'm a banker so that might've been my first tendency. When
you look at the line items in a budget, training sticks out. But
having the math that shows that training drives results makes the
investment decision a lot easier. Of course, as with any budget
item, it's a negotiation process.
Q| That negotiation would typically be done by a chief learning
officer. What do you look for in a chief learning officer? What do
you expect your CLO, Mary Slaughter, to deliver?
A|For me the first requirement is they have to really know the
business. That's important because then they understand how to
partner with the business units to help them succeed. If a CLO
starts talking about the training modules she wants to put in
place, that's not a good sign. Mary seeks to understand our
business needs, the business diagnostics, the workforce's needs,
how those needs are changing, the needed client first behavior,
and how to supplement and enhance those things.
I also expect Mary to be an avid learner and to do some learning
outside the company. I want her to assume that someone out there is
doing some things better than we are and that we should find them
and figure out how to apply those concepts here. I want to see her
involved in professional associations to capture more about the
learning field and where its heading. Think of the irony of having
a chief learning officer who had no interest in learning. CLOs
should have a hyper commitment to their own learning.
Q|When you think about the teammates, what keeps you up at night?
A|Of the things that keep me up at night, it's not our teammates.
I'm proud of the teammates I represent. I'm humbled by what they're
trying to do. I worry about a lot of economic and environmental
things, but not about our teammates. I'm not concerned about fixing
individuals, but I am concerned about how I can help someone
succeed by making sure I'm doing everything I need to do to make
I know what every teams engagement scores are, but Im careful not
to say to someone, You know, you need to be more engaged. Instead I
might ask, What can I do, what do we do together, to improve your
I have a little trick that I use when I talk to our advanced
leadership classes. I start by covering the challenges and
opportunities in the financial services industry and the tough
times were facing. Then I ask them, What is the number one thing we
have to change at SunTrust to be successful? I say, Lets take a few
minutes and write down our answers. Ill do the same thing. Ill give
you my thoughts then you give me yours. Those pens are smoking! But
I write just two letters on my piece of paper: ME.
Q|What characteristics do you look for when you're hiring and
A|Im looking for leaders who want to grow as individuals and who
understand that a commitment to personal growth is what makes the
difference. Im a brand-new CEOsince June 1and I need to be in a
learning mode along with everyone else in the company. So
willingness to learn is one of the first things I look for.
We have three guiding principles: Client first, operate as one
team, and focus on profitable growth. So I look for people who have
a passion around serving clients, and for people who are willing to
hold themselves accountable first and then others. And they must be
willing and able to understand what it means to operate on the
team. Another thing I look for in a leader is someone who really
likes what he does and has a passion for the business.
Q| Where do you put your time in developing teammates?
A|I spend a lot of time in the field. For example, we recently
rolled out some new products and delivered a lot of training to
support their introduction. I was getting reports that things were
going extremely well, but I decided to find out for myself. So I
walked into one of our branches to talk to the branch manager and
one of our financial services representatives. They confirmed that
we were on the right track and when I kept asking questions, they
finally said, Bill, stop. Were going to role-play this for you. The
branch manager took the role of a client with a tough issue and the
financial services representative modeled the way she would handle
I could see a high level of comfort as they practiced what they had
learned. I also knew that if this was happening in 1,700 other
branches, the training was really getting through.
We really emphasize practice because we are professionals and
professionals practice. We refer to our clients as clients rather
than customers. Clients are served by professionals who diagnose
their needs. Theres a lot of practice and preparation that goes
along with that. And our teammates get that. Its not just about
going through training.
Q| Theres a litmus test for CEOs. A lot of them say, People are our
most important asset, but dont support practices that are
consistent with that statement. But you clearly believe that theres
a connection between the development of people and the achievement
of strategic goals. What accounts for that?
A| In fairness, its a learned skill and its taken a while. Ive seen
a lot of behavior on both sides of the equation, but the thing that
really put me squarely on the zealot side is the science behind it,
being able to link training, development, engagement, and
performance. Maybe its because at core Im a banker. I like numbers.
Q| You recently supported a major increase in tuition
reimbursement, and the bank provided more than 1 million hours of
teammate development in 2010actions that some might find surprising
during a recession.
A| We just increased tuition reimbursement to the maximum level.
That wasnt an easy discussion in an environment where budgets are
tough. But I had personal reasons for supporting the increase. I
started working at this bank with the thought that I would get some
experience and then go to graduate school. I started applying to
schools, but I realized that I loved my job and it seemed crazy to
leave. Also, I didnt have any money and I was in love and I wanted
to start a family. The bank offered me an opportunity to pursue my
career here, go to school with the help of tuition reimbursement,
and attain my personal goals. I want to give people that same
opportunity to expand and grow without having to leave here.
Q| Twenty years from now what changes would you like to have made
that affect either the financial services industry or SunTrust?
A| What I hope for SunTrust is that the investments were making now
that focus on putting the client first will result in a
differentiated experience with our clients and an expanded
relationship with them. Thats the all-chips-in bet that were
making. This early into the process we dont know if were on the
right track, although the empirical data look good. In 20 years the
interaction with clients will change, but I believe the core
fundamental of being professionals meeting our clients needs will
prove to be a differentiator.
Its also important to believe that what you do really matters. We
reward the shareholders: Dont be confused about that for a minute,
but we do it in a way that matters. We are in a marathon even if it
feels like a succession of 100-yard dashes. Our job is to win the
marathon. You cant do that by making shortcuts or doing it on the
backs of your clients. That will not sustain you in the long run.
Bill Rogers was interviewed by Tony Bingham and Pat Galagan.
Photograph by Gregory Miller