Bulking up flabby financials.

• Author: Sablosky, Tanja Lian
• Position: Feature

When Cape Savings on the New Jersey seashore was figuratively getting and kicked in its face; it decided to improve its fiscal fitness.

The institution refocused, realigned and reoriented itself with a strong customer relationship management program. Now, the thrift is showing off its spectacular new financial figures.

It sounds like a dream: A bank CEO announcing that year-end deposits had increased by 781 percent--and loan production by 73 percent. After a long stretch of flat growth, Cape Savings in Cape May Court House, N.J., actually reported these astronomical financial improvements in 2001. President and CEO Herbert L. Hornsby made the announcement.

How did the savings bank achieve such positive results? Through the teamwork of Hornsby and Jeff Ropiecki, the vice president of sales and marketing, and the commitment of Cape Savings' employees to a new sales and marketing culture throughout all departments and the 12 branches, according to consultant Diane Gertsner of Alex Sheshunoff Management Inc., Austin, Texas. Gertsner facilitated and guided the transition for Cape Savings. She points out that the "redefined" institution today is more focused on sales and customer relationship management.

Steeped in tradition

Cape Savings, which is 80 years old, is located in a scenic seashore community. The $425 million savings institution is "a local business steeped in tradition and grounded in our community," says Hornsby. Many employees participate in fundraising for local and national charities. Cape Savings is so community oriented, it followed naturally that the bank would want to expand its relationship and create an ongoing dialogue with its customers.

The impetus for a change came in 1999. "The bank was becoming cumbersome to manage, both operationally and culturally," says Hornsby. "Sales was a buzzword, but we didn't want to integrate sales processes without taking a look at the whole picture." Hornsby and Ropiecki discussed implementing a sales management culture. Hornsby attended a peer group forum and came back committed to the concept. He decided to enlist the help of a consultant.

"It all begins at the executive level," says Gertsner. "Management needs to buy into and support the changes that need to be made." And at Cape Savings, there is a very committed CEO, as well as a vice president of sales and marketing who serves as a tireless mentor for the employees and champion of the program, she says.

To begin, Gertsner and several...