Commissioner's Corner
By: Clancy Norris, Bank Commissioner
Dear Kansas Bankers;
After listening to a great speaker at a banking seminar several months ago and hearing his inspiring thoughts on leadership, I knew I wanted to share some of my thoughts on leadership in this newsletter. In addition, I thought about a few other topics that start with the letter L - words which encompass the many areas of my job and my responsibilities: Legislature, Law, Lobbyist, Logical, Loans, Luck, Life, Lemonade and Love. But, due to time and space restrictions, I will only address three "L" words-Leadership, Legislature and Life.
LEADERSHIP
What is leadership? One definition that I have heard is this: "making something happen through other people that would not have happened if they were left to themselves." In the words of General Norman Swartzkopf, "I can't define leadership, but I'll know it when I see it." Leadership is about winning! Successful organizations have leaders at all levels. Producing leaders at all levels separates winners from losers. Leading, learning and teaching are part of every job.
What should a leader do? We expect them to move an organization from where it is to where it needs to be. How do leaders do that? They see reality; they see things others don't, and they aren't afraid to confront reality. Leadership is about being efficient. As a leader, you have the right to ask your employees for commitment, communications, cooperation and contribution. These elements are a very vital part of the success of the entire organization.
Leaders accept and encourage change. Change is always difficult and, many times, unwelcome. Resistance to change is to be expected - consider these quotes: "I think there is a world market for about five computers," Thomas J. Watson (1943) and "There is no reason for any individual to have a computer in their home," Ken Olsen, (1977). But change is inevitable and, with effective leadership, employees can learn to accept and embrace the necessary changes. You must identify and confront resistance to change; encourage your staff to be part of the solution, not part of the problem. Change is an art and resistance is a science.
Leaders care about people and promote a positive attitude. A happy and positive person is more productive, has less stress, and has more friends and supporters. A portrait of a leader is someone who can bring out the best in others. Leaders do not fly solo; a leader operates from shared values and must have dedicated followers. Remember, everyone responds to positive strokes!
LEGISLATURE
During this legislative session, we have had the opportunity to make friends with quite a few legislators who have been very understanding and ready to help us protect our consumers in Kansas. One particularly urgent issue deals with car title lending. We are seeking to curtail a company that has established a strong presence in Kansas in a very short period of time and is loaning money to consumers with poor credit histories and a clear vehicle title. The company takes the title (and a set of car keys), loans the consumer up to 50% of the wholesale price of the car, and charges a rate of 360%. At that rate, a $1,000 loan for one year will cost the consumer a total of $4,600.00. We do not believe that this practice benefits anyone except the lender. This company operates in the eleven states which do not have a rate cap. Unfortunately, our bill was tabled in the House of Representatives Committee on Financial Institutions until February 16, 2006. It is anticipated that a legislative interim study this summer will further review the issue of title lending and interest rates. We will certainly continue in our attempts to inform the legislators about the rate cap issue during an interim study and throughout the next legislative session.
LIFE
We should never lose sight that we live in a democracy and have many rights and privileges. But, those rights and privileges come with responsibility. Our goal at the OSBC is to ensure that the consumers of Kansas are protected from unethical lending practices and are assured of a safe, sound banking system. We are committed to giving our assistance to our bankers and our consumers. Please remember to be thankful for your family, your friends, your community, our great State of Kansas and our country. And, never forget the service men and women who are fighting for our freedom.
