Independent Banker - June 2021 - 24

PORTFOLIO INNOVATION STATION
ones, The Lean Startup method is an
excellent foundation.
A culture of innovation
By Charles Potts, ICBA
I
nnovation is a high priority for
many community bank leaders, so
it's critical that we have a foundational
defi nition of innovation. Innovation is
often viewed as combining two things
that exist in a new way to create new
outcomes. Most of us know it when
we see it, but we need to recognize
that it isn't always about technology.
Innovation can be a cultural behavior
that leaders can cultivate across
their organizations.
It starts with asking why. Why
should we invest in innovation?
It is the job of every good leader
to shine the light on the " why " in
relation to the bank's vision and value
proposition, making sure it is defi ned
and communicated throughout
the organization.
Once a clear direction has been
established, it's time to consider the
how. We can start by taking a page
from successful startups, most of
which had a structured and formal
approach to product development
and implementation that included
prescribed practices and processes.
In The Lean Startup, Eric Ries
details a three-step feedback loop
to get new products and services to
market quickly: build, measure and
learn. " The fundamental activity of a
startup is to turn ideas into products,
measure how customers respond and
learn whether to pivot or persevere, "
he writes. The same could apply to
community banks.
As an industry, we need to respond
faster to dynamic changes. One
way to do this is to lean on others'
expertise. This includes taking ideas
and iterating more quickly, refi ning
what we're doing and making
course corrections when necessary.
If a community bank is thinking
about new products and services or
improving the effi ciency of existing
When we're talking about building
an innovative culture, it's worth
pointing out that the generation
coming into the industry is open to
new approaches and technologies,
sometimes more than their
predecessors. The challenge for
community bank leaders is to blend
the digital native with the digital
migrant around a shared vision,
direction and outcomes.
We must also acknowledge that
not everyone in our organizations
has creative skills often found in
innovators. Leaders must clearly
defi ne roles and responsibilities
across the community bank and
build cross-functional, crossorganizational
skills. With defi ned
structures and processes in place, we
eliminate uncertainty.
If you're ready to take the next step
in building an innovative culture,
look to ICBA. Our member relations
offi cers have access to expertise and
resources to help you and your team
grow. ICBA's Community Banker
University is another opportunity to
expand your network.
We live in a rapidly evolving
industry. Innovation must be deeply
embedded in the culture of all
community banks. It should be as
instinctive and natural as opening
a new account. By asking the right
questions and implementing a
process to develop, analyze and
refi ne your approach, you can build
a culture of innovation that produces
measurable results. 
Charles Potts (charles.potts@icba.
org) is ICBA senior vice president
and chief innovation off icer
24 Q ICBA Independent Banker Q June 2021
Independent Banker - June 2021

Table of Contents for the Digital Edition of Independent Banker - June 2021
