Catskill Hudson Bank’s Speedy Success

A community bank redefi nes itself, thanks to fi ber.

THE CHALLENGE: Catskill Hudson Bank wanted to transcend its roots as a community bank serving Sullivan County, New York, and grow to be a leading provider to business customers throughout a wide area. Because of its network limitations, however, operations at one branch or another were coming to a halt every few days due to connectivity issues or overloads. Meanwhile, customer expectations for service were only increasing. “Today, they don’t necessarily want to come to a brick-and-mortar bank,” says Kevin McLaren, executive vice president. “They want things like the ability to make deposits by taking a picture of a check with a phone.” Catskill Hudson CEO Ted Tomita knew the bank needed far better connectivity, reliability, and functionality in order to grow.

THE SOLUTION: Tomita’s vision was to redesign the bank’s piecemeal system under one network and one brand. Today, the solution provided by Time Warner Cable Business Class (TWCBC) includes an Ethernet Local Area Network (ELAN) connecting more than a dozen bank branches, with circuits ranging from 10 to 50 Mbps. Two of these locations also have 50 Mbps Dedicated Internet Access (DIA) that provides symmetrical and dedicated fi ber-based Internet access. Affordable, scalable Primary Rate Interface (PRI) provides IP-enabled voice services. Despite the volume of calls and data fl owing across the ELAN, Catskill Hudson enjoys an exceedingly high level of security. In fact, the overall quality of the network has earned the bank fl awless ratings in audits and reviews.

With this new [system] design, we can put a branch anywhere. –Ted Tomita

CEO TED TOMITA

THE RESULT: With fi ber, Catskill Hudson now enjoys a competitive advantage in bringing products to market faster. The infrastructure is so robust that the bank was able to roll out a massive new customer service feature in under 30 days. And the network is more reliable than it ever was, even with 30 times more data fl owing between branches. The network’s scalability also supports rapid growth, allowing the bank to add branches far outside its original footprint. Its furthest branches are now located three-and-ahalf hours apart. Moreover, Catskill Hudson can turn any customer location into a virtual branch by providing the business with a scanner and software. “With this new design,” says Tomita, “we can put a branch anywhere.”

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GETTING HONEST FEEDBACK FROM YOUR EMPLOYEES Don’t be the leader who’s out of the loop.

BY CLAIRE LEW

Have you ever been the last to know something in the company you run?

Perhaps it was when you found out that a project was unexpectedly going south. Or that a major client was unhappy about something. Or maybe it was when you were caught off guard when a key employee decided to leave the company.

You used to be in the loop about

6 Fall 2015 things like this. But as your company has grown to 40, 50, 60 employees, and counting, it’s hard to know your people as well as you used to.

If you don’t know what’s going on with people who work for you—how satisfied they are, whether they’re thinking about leaving—it’s tough to lead your company well. For one thing, you won’t hear about small problems until they’re big ones. For another, there’s a steep price to be paid—in dollars and morale—for employee turnover. Getting honest employee feedback as your company grows is a common challenge, but it’s far from insurmountable. Further, you don’t need a large human resources budget or elaborate programs to do so. Technology—surveys, software—can help, but by far your most effective tool will be good old conversation with your direct reports and with others in the company.

You can take these four simple actions to elicit meaningful feedback:

GO FIRST Employees are keenly aware of the power differential between you and them. They don’t want to upset or annoy you. That’s why you can’t necessarily assume that employees will come to you when they have an idea, question, suggestion, or concern.

So, you want to initiate the conversation. This means being vulnerable in approaching employees, and actively seeking their feedback. Try this: Ask for advice. One CEO I worked with, the head of a 200-person company, sensed that one of her senior employees tended to withhold his opinions. When she said, “Hey, I’d love to get your thoughts on how we could’ve handled that last board meeting,” she got a wealth of information.

ASK SPECIFIC QUESTIONS TO GET SPECIFIC ANSWERS This seems intuitive, but often when bosses ask for feedback, they ask broad, general questions, such as “How’s it going?” When you ask a question about a specifi c time frame, event, or project, you get more meaningful and actionable feedback.

Try this: Ask, “What’s one thing we could have done better in the past week?” Or, at your next senior leadership team meeting, ask everyone, “Is there anything you think we’re behind the curve on?” A CEO of a 40-person software company told me that when he asked his team this question, the feedback resulted in the company’s doubling down on its online security efforts.

RECOGNIZE THE MESSENGER Human nature is to respond well to positive reinforcement. So when an employee in your company makes a suggestion, be sure to recognize that person publicly. Over time, employees will get the message that the boss values their opinion, and the feedback will start to fl ow. Try this: Praise suggestions, even when you cannot implement them. In addition to reinforcing feedback, you can create a teachable moment that helps employees understand the bigger picture. One CEO did this at an all-staff meeting, essentially saying, “Hey, I really appreciate this person bringing up this idea. Here’s why we’re not implementing it, but I do think it’s great that he suggested it, and I welcome hearing more suggestions like that from any of you.”

KNOCK OUT A SMALL WIN Here’s the biggest thing you can do as a boss to encourage employees to speak up: Take action. Forward the idea to the appropriate department and ask for their reaction, put it on the next management agenda, or respond with an e-mail sharing your thoughts.

If there’s an idea that has merit that you’ve been meaning to get around to, either delegate it or take care of it yourself. You will create positive momentum for communication and see the effects almost immediately. Try this: Act on solid employee feedback right away. For instance, a CEO of an 80-person company told

The cost of replacing an employee is between 10 and 30 percent of the employee’s annual salary. 10 30 %

SOURCE: CENTER FOR AMERICAN PROGRESS INSTITUTE

me that he learned employees felt meetings could be a lot shorter and still be productive. In response, he set the weekly staff meetings to last for 30 minutes instead of an hour. Even though it was a relatively small change, he sensed a signifi cant boost in company morale.

Of course, all these points sound good in theory—but in practice, they are hard to put into action day-to-day. As a CEO myself, I know fi rsthand the diffi culty of prioritizing getting feedback from employees. It’s easy to reason that you don’t have time, or that it’s somebody else’s job.

But each time I catch myself thinking that way, I simply remember the cost of turnover and employee disengagement. And I remind myself that I don’t want to be the last to know.

Claire Lew is the CEO of Know Your Company, a software tool that helps business owners with 25 to 75 employees overcome company growing pains.

The Internet of Things: What Every CEO Must Know

Why you should believe the buzz— and how to get your company on board

BY CARL KRUPITZER

Does it sometimes seem that everyone in business is talking about the commercial possibilities of the Internet of Things (IoT), in which devices communicate wirelessly with the Internet and with each other? That’s not far from the truth. In fact, last year Gartner, Inc., placed the IoT at the peak of its “Hype Cycle for Emerging Technologies” report.

As with many technology trends, much of the hype is being driven in consumer markets by IoT innovations, such as a “smart” thermostat that regulates your home’s temperature based on occupancy and usage, or a connected car that alerts you to your teenager’s driving habits and location.

Clearly, though, the potential of the IoT extends well beyond consumer products. In the industrial arena, devices in engineering, R&D, and manufacturing have been collecting data and “talking” to each other for years. Increasingly, the IoT’s impact is being felt in a broad range of industries and fields, including health care, government, education, logistics, retail, hospitality, and many more. But what does all this potential mean for a mid-market company? How can the IoT help your business grow—especially if you don’t have millions to spend on a custom solution?

Breaking into the IoT Technology trends accelerate fast, and the IoT phenomenon is arguably evolving the most rapidly of all. So when considering how your company can best benefi t from the IoT, make a business case for projects in which you’ll see a benefi t quickly—in 12 to 18 months, not three years down the road.

Next, realize that it’s possible to use off-the-shelf solutions for the IoT, particularly when they are offered by a cloud-based platform that allows for easy scaling. Salesforce or Amazon Web Services offer such platforms, which can be integrated with your own equipment and devices, either independently or with the assistance of a capable consulting team.

Know, too, that even custom implementations on a small scale are within your grasp. Wireless technologies, such as Bluetooth LE and LoRa from Semtech, are now commonplace and affordable, enabling even small businesses to prototype and optimize proof-of-concept IoT integrations before investing in company-wide deployment.

Before you commit signifi cant resources, do research on how connected devices are currently infl uencing, or have the potential to infl uence, your industry. Trade shows are great sources of information. Identify the areas that are the greatest sources of pain for your company and inhibiting its ability to grow. Consider engaging a consulting fi rm for a day or two to offer a workshop about the IoT to help you build a vision and a roadmap.

Carl Krupitzer is the CEO of ThingLogix, a consulting fi rm specializing in the business and technology of the IoT.

$655.8 BILLION $1.7 TRILLION The IoT Is Growing Fast

2014 2020

SOURCES: INTERNATIONAL DATA CORPORATION, MCKINSEY GLOBAL INSTITUTE

11 % THE IoT COULD ACCOUNT FOR UP TO OF THE WORLD’S ECONOMY BY 2025

Avenues for Growth There are numerous ways companies can use IoT data and insights to re-engineer or enable existing business processes. For instance, companies should consider IoT as an opportunity to improve in the following areas. Asset utilization. IoT sensor data can track the status and location of company inventory and equipment at any time, ensuring that all assets are fully utilized. For instance, if you run a fl eet of delivery trucks, using connected car technology can help you track exactly where each vehicle is, so that you can plan out delivery routes in proximity to their current location. Employee productivity. IoT-linked equipment can track employee output and work patterns, allowing management to schedule diffi cult tasks and meetings for the most energetic times of day. Internet-connected and geographically tagged equipment and devices are easily located, saving time spent searching for them. Internet-enabled devices can give advance notice of technical problems and often be repaired remotely, eliminating the need for employees to be idle while waiting for the repair person to arrive.

Supply chain logistics. By incorporating IoT technology into your operating process, you can automatically replenish inventory or source materials that are running low. Connecting delivery personnel with nearby supplies and people via the IoT can optimize delivery return trips. IoT devices enable automated and real-time tracking, reducing losses due to human error. Customer experience. With IoT technology, manufacturers can remain constantly aware of how their customers are engaging with their products, even after the products have left the factory. Companies can now proactively identify product malfunctions or maintenance needs, often remotely diagnosing and correcting the problem without the need for customers to schedule services. IoT can also be used to more clearly understand customers’ habits, and make changes— whether in products, marketing, or sales—to accommodate them. Innovation. Finally, IoT technology can be used to drive innovation in product development. Manufacturers can connect their own products with other devices and software so that they can share data and “talk” to each other, making it easier to develop collaborative partnerships with complementary businesses. Consider the example of SmartThings, an app that turns a smartphone into a remote control for other manufacturers’ IoT-enabled refrigerators, stereo systems, dimmers, and more. If your company wants to improve its innovation and data-collection processes, streamline its operations, and automate manual and labor-intensive processes, making the move to the Internet of Things is the key. It’s not nearly as expensive or complex as you might think, and you’ll begin to realize the benefi ts almost immediately.