Leadership and Management Principles

1. Leadership and ManagementPrinciples Baldrige Performance Excellence Group April 26, 2011 Jeff MacLellan, Vice –Chairman ~ Landmark Bank

2. Background “Everything you do prepares you for what you are ultimately going to accomplish” • Bi-cultural Upbringing • Military School (self discipline, leadership, learning,BC) • SMU – BBA & MBA • Air Force active duty during Viet Nam • Started in banking in 1974 – credit training • Became bank President at age 36 in 1984 • Moved to Columbia in 1987 as Pres &CEO of FNB • Became President of Holding Co in 1995 • Retired in 2009 after 35 years in banking, last 25 as CEO.

3. What is Leadership? • The ability to inspire confidence and support among followers and those whose competence and commitment produce performance

4. Self Knowledge Open to feedback Eager to learn & improve Curious, risk taker Ability to concentrate or focus Learns from adversity Balances tradition and change Open style Works well with systems Serves as model and mentor TEN Characteristics of Leaders

5. Leadership Guiding Directing Teaching Motivating Achieving Goal setting Management Resource coordination Integrating to accomplish goal Controlling Planning Coordinating Leadership VS. Management

6. Results • Good leaders produce results, consistently, year after year, constantly raising their standard. (Results are 450 of the possible 1000 points in Baldrige application.)

7. Deposits(in thousands)

8. Loans

9. AssetsGrowth in Total A

10. Earnings

11. Landmark Bank • Put together competent, professional management group • Provided succession management • Built 25 locations in 3 states • Bank made money every year • Bank remained healthy through all economies • Combined bank of $1.5 billion • Poised for future growth & success

12. Results and Baldrige • Baldrige criteria are a blueprint for success: • Vision. Mission, Purpose, Values • Measure – You manage what you measure • Goals – Clear, achievable, and measureable • Benchmark - Measure against competition • Communication - Your plan and results • Accountability – Hold leaders accountable

13. Non-Results 1.Venture into other industries (stick to your knitting – Tom Peters) 2. People mistakes 3. Worst loan I ever made

14. What Makes a Good Leader? Self – Awareness Emotional Intelligence Self – Regulation Social Skill Motivation Vision Integrity Referred to as All four reflect your Self-Management ability to manage Skills Relationships with Others

15. Self – Awareness (Know Yourself) • Definition: • The ability to recognize and understand your moods, emotions, and drives as well as their effect on others • Hallmarks: • Self confidence • Reliable self-assessment • Self-deprecating sense of humor – ability to laugh at yourself

16. Self – Regulation (Discipline) • Definition: • The ability to control or redirect disruptive impulses and moods • The propensity to suspend judgment – to think before acting • Hallmarks: • Trustworthiness and integrity • Comfort with ambiguity • Openness to change

17. Motivation • Definition: • A passion to work for reasons that go beyond money or status • A propensity to pursue goals with energy and persistence • Hallmarks: • Strong drive to achieve • Optimism, even in the face of failure • Organizational commitment

18. Emotional Intelligence • Definition: • The ability to understand the emotional makeup of other people • Skill of treating people according to their emotional reactions • Hallmarks: • Expertise in building and retaining talent • Cross-cultural sensitivity • Service to employees and customers

19. Social Skill • Definition: • Proficiency in managing relationships and building networks • An ability to find common ground and build rapport • Hallmarks • Effectiveness in leading change • Persuasiveness • Expertise in building and leading teams

20. Vision • Definition: • Unusual competence in discernment or perception; intelligent foresight • The manner in which one sees or conceives of something • Hallmarks: • Creativity • Intellectual Drive

21. Integrity • Definition: • Steadfast adherence to a strict moral or ethical code. • The state of being unimpaired; soundness • Hallmarks • Honesty • Firm beliefs • Strong Character • Do what is “right”

22. Baldrige Criteria • Why am I Intrigued by Baldrige? • Results Oriented (450 out of 1000) • Comprehensive • It transcends industries – city, health care, manufacturing, education. Baldrige criteria work in any industry. • It Works • I wish I had encountered Baldrige 35 years ago

23. Jeff’s Leadership Lessons • Hire the best people you can, train them, trust them and let them flourish. (and always let them know you are there for them) • Hire people with different skill sets, different perspectives, different ideas. (it strengthens decisions) • Keep people challenged, constantly learning; move them around. • Rely on your experience and wisdom – you may see things differently than others. • Be consistent – people should know what to expect. • Have a passion for what you do.

24. Jeff’s Leadership Lessons 7. Balance is key, in most of what you do 8. Be flexible – you never know what the day will bring. 9. When in doubt, do what is right. 10. Be decisive – a mediocre decision is worse than no decision (as long as it is not a fatal one). 11. Know where you are going (if you don’t, why would anyone follow?). 12. Communicate, communicate, communicate. 13. Protect your character.