The New Currency of Trust: How Online Reviews Are Reshaping Banking

The New Currency of Trust: How Online Reviews Are Reshaping Banking

In the fast-moving digital sphere, the bedrock of brand trust is witnessing a seismic shift, and the financial sector is no exception. Online reviews, once an ancillary reference point for consumer decisions, are carving out a substantial influence on which bank and credit union customers choose. No longer is a slick ad campaign or a convenient branch location the deciding factor in where consumers place their trust – now, the opinions of strangers carry the weight of wisdom.

Consumer banking has entered a new era where the most valuable currency is not dollars or pounds, but rather, trust. With trust representing an amalgamation of reliability, honesty, and competence, the financial institutions that wield the most trustworthy reputations are those most likely to attract, and importantly, retain customers. This trust is being significantly shaped by the burgeoning might of online reviews, an influence so disruptive that it's imperative for banking executives and leaders to understand, harness, and tailor to its unique demands.

The Importance of the Digital Voice

Before the widespread availability of online reviews, consumers relied on personal recommendations from friends and family, insight from professional financial advisors, and occasionally, their own experiences. The democratization of the internet has introduced a vast spectrum of consumer voices – a public forum that can exalt or vilify a brand with a few keystrokes.

What used to be an occasional Yelp review or local word-of-mouth has transformed into a torrent of digital discourse. Now, every transaction, good or bad, can be shared and found by innumerable potential customers. The power of this collective voice to mold consumer perception and, ultimately, behavior is inescapable.

Transparency Is Non-Negotiable

Customers today are armed with unprecedented amounts of data. They have the tools to scrutinize every facet of banking services and the terms of engagement, and they're not hesitant to wield these tools. Transparency is no longer a value-add but a prerequisite for engaging customers who demand clarity and openness.

Banking institutions must now participate in this open dialogue rather than shy away from it. It's an opportunity to engage with consumers, showcase strengths, and address any weaknesses. There is little doubt that for current and future banking customers, online reviews are a go-to resource for constructing their financial ecosystem.

Consumers as Co-Creators of Brand Image

Banking institutions used to be able to meticulously craft their image. Today, customers are increasingly part of the brand creation process, as their reviews actively shape the public perception of financial service providers. This co-creative dialogue between consumers and institutions is not just a passing trend but a fundamental shift in dynamic power.

The Power of Positive Reinforcement

Positive online reviews serve as digital badges of honor that endorse the quality and trustworthiness of a bank. These virtual pats on the back from satisfied customers resonate with those in the market for a new financial relationship. Banks that can encourage and cultivate a culture where customers feel heard and valued can turn this powerful tool to their advantage.

Red Flags and Remediation

Conversely, negative reviews, particularly those with repeated themes, can signal red flags that prompt potential switchers to reconsider their options. In the event of missteps, how a bank addresses and rectifies issues mentioned in online reviews can be equally, if not more, influential than the initial complaint. It's not just about solving a problem but also demonstrating that the bank is committed to ongoing improvement in service and customer experience.

The Data Behind the Decisions

While the anecdotal potency of online reviews is compelling, the solid numbers backing their effect on banking cannot be ignored. A striking 67% of current online bank users agree or strongly agree that online reviews are helpful in choosing a new bank or credit union. This is a testament to the growing role that digital opinions play in the selection process, surpassing even the advice from personal circles in some cases.

Star Ratings as Signals

Star ratings are the new shorthand for customer satisfaction. For many prospective bank switchers, these online summaries are the first and sometimes only pieces of information they consider. Ratings averaging below four or five stars, particularly with a high volume of reviews, act as a clear deterrent.

Reviewing the Reviewless

A lack of online presence can be equally damning. A bank with no online reviews may elicit a response of suspicion from consumers who have grown accustomed to a rich online tapestry of experiences and insights. In the absence of substantiating data, the vacuum is often filled with negative conjecture, making it challenging for the unreviewed bank to compete in a consumer’s trust calculus.

Harnessing the Review Revolution

Understanding the weight that online reviews bear is one step. The next is leveraging this understanding to redefine the customer bank relationship. Here are some strategies for banking institutions to not just survive but thrive in this review-driven banking landscape:

Proactive Review Management

Monitor online reviews diligently and consistently. Develop a system that not only tracks the sentiment but also allows for timely responses to customer feedback. A proactive approach demonstrates a vigilant concern for customer satisfaction and can help mitigate potential reputation damage.

Cultivating a Hub for Positive Engagement

Create a space within the bank's digital ecosystem (perhaps a website section or a social media channel) where positive customer stories and reviews are showcased. This not only provides social proof but also fortifies a bank's online reputation. It can serve as an active invitation for more customers to share their experiences in a positive environment designed to promote the positive aspects of customer-bank interactions.

Engage and Educate

Use online reviews as data points to inform internal operations. If a specific issue arises consistently, there's a clear directive for improvement in that area. Institute resources to educate and empower employees to ensure that every touchpoint with a customer is an opportunity to gather feedback.

Doubling Down on Transparency

Enhance transparency across the board – from financial products and services to fees and operational policies. Clarifying and democratizing financial information can engender a greater sense of trust and reduce customer apprehension.

Conclusion: The Imperative of Adaptation

The era of across-the-board trust in banking institutions is waning. In its place, we're witnessing a more selective and merit-based trust, where consumer bank choice is significantly influenced by the voice and consensus of other customers. Banks that recognize the transformational power of online review ecosystems and adapt accordingly will not only endure but emerge as leaders of the new banking paradigm.

To the community bank leaders and industry stalwarts reading this, take to heart the influence of the consumer's voice and use it to empower your institution. Engage, respond, and improve with the knowledge that online reviews are not just chit-chat on the digital grapevine; they are the new arbiters of consumer trust. The banks that can effectively harness this currency will be the ones that continue to attract new customers and solidify their positions at the vanguard of the financial world.

The question is no longer whether online reviews matter in consumer banking. The time for that debate has passed. The pertinent query is whether you're ready to adapt to a world where the customer's voice reigns supreme, wielding the power to make or break the banking institutions of today.

In a world where digital reputations can be as significant as financial assets, it's up to banks to provide experiences that are not just worthy of trust but also worthy of being lauded – and shared – online. The transformation is underway, and the voice of consumers, often shared via online reviews, is the anthem of this new age of banking. The institutions leading the chorus will be those that not only listen but also act on the wisdom of the crowd. It's not just about being reviewed; it's about being revered – digitally, tangibly, and unreservedly. That’s the promise and the imperative of the new currency of trust in banking.

Identifying Readiness for Advancement in a Banking Career and Preparing for the Next Step

Advancing in a banking career is a significant milestone that requires careful consideration, preparation, and assessment of readiness. Whether aiming for a promotion, a leadership role, or a shift to a different department, individuals in the banking industry need to demonstrate not only competence in their current roles but also potential for growth and adaptation to higher responsibilities. In this blog post, we'll explore how to determine who is ready for the next step in a banking career and what it takes to prepare for that advancement.

Identifying Readiness for Advancement

1. Performance Consistency:

• Indicators: Consistently meeting or exceeding performance targets, demonstrating initiative, and taking on additional responsibilities voluntarily.

2. Continuous Learning:

• Indicators: Actively seeking opportunities for professional development, acquiring new skills, and staying updated on industry trends.

3. Leadership Potential:

• Indicators: Displaying leadership qualities such as effective communication, decision-making, problem-solving, and mentorship within the team.

4. Adaptability and Resilience:

• Indicators: Successfully navigating challenges, embracing change, and demonstrating flexibility in handling diverse tasks and situations.

5. Stakeholder Relationships:

• Indicators: Building and maintaining strong relationships with clients, colleagues, and stakeholders, showcasing trustworthiness and professionalism.

Preparing for the Next Step

1. Self-Assessment:

• Action: Reflect on strengths, areas for improvement, career goals, and readiness for advancement. Seek feedback from mentors or supervisors.

2. Skill Enhancement:

• Action: Identify skills required for the next role and proactively develop them through training, certifications, workshops, or job rotations.

3. Networking:

• Action: Build a professional network within and outside the organization, attend industry events, seek mentorship, and learn from successful peers.

4. Visibility:

• Action: Raise visibility by volunteering for high-impact projects, sharing knowledge, contributing ideas, and showcasing leadership potential.

5. Seek Mentorship:

• Action: Find a mentor or coach who can provide guidance, support, and insights into career progression opportunities and challenges.

6. Promote Your Achievements:

• Action: Document and communicate your achievements, contributions, and value proposition to stakeholders and decision-makers.

Advancing in a banking career requires a combination of self-awareness, skill development, relationship-building, and proactive career management. By assessing readiness indicators, continuously learning, and preparing strategically for the next step, individuals can position themselves for successful career progression within the dynamic and competitive banking industry.

Remember, readiness for advancement is not just about meeting the qualifications on paper but also about demonstrating the potential, commitment, and readiness to excel in higher roles. Embrace challenges, seek opportunities for growth, and pave the way for a rewarding and fulfilling banking career journey.

Development Activities to Build Skills and Competencies in Succession Candidates at a Bank

Succession planning is a crucial aspect of talent management within banks, ensuring a smooth transition of leadership roles and maintaining organizational continuity. Developing a pool of succession candidates with the necessary skills and competencies is essential for the long-term success and sustainability of financial institutions. In this blog post, we will explore a comprehensive list of development activities designed to enhance skill sets and competencies in potential succession candidates within the banking sector.

1. Leadership Development Programs:

• Engage succession candidates in structured leadership development programs focusing on decision-making, communication, strategic thinking, and conflict resolution.

2. Mentorship and Coaching:

• Pair succession candidates with experienced mentors or coaches who can provide guidance, feedback, and support in navigating career advancement opportunities.

3. Cross-Functional Experiences:

• Provide opportunities for succession candidates to work in different departments or roles to gain diverse experiences, understand interdepartmental dynamics, and develop a holistic view of the organization.

4. Project Management Assignments:

• Assign challenging projects that require problem-solving, project management skills, collaboration, and innovation to enhance leadership capabilities and strategic thinking.

5. Training and Workshops:

• Offer specialized training and workshops on topics such as financial regulations, risk management, customer relationship management, and emerging technologies to build technical expertise and industry knowledge.

6. Public Speaking and Presentation Skills:

• Conduct workshops to improve public speaking, presentation skills, and executive presence, essential for effective communication and stakeholder engagement in leadership roles.

7. Networking Opportunities:

• Encourage participation in industry conferences, seminars, networking events, and professional associations to expand networks, exchange knowledge, and stay abreast of industry trends.

8. Case Studies and Simulation Exercises:

• Engage candidates in case study analysis, business simulations, and role-playing exercises to simulate real-world scenarios, critical thinking, and decision-making under pressure.

9. Feedback and Performance Reviews:

• Provide regular feedback, performance reviews, and 360-degree evaluations to identify strengths, areas for improvement, and track progress in skill development.

10. Continuous Learning Culture:

• Foster a culture of continuous learning, curiosity, and self-improvement by encouraging succession candidates to pursue advanced degrees, certifications, and professional development opportunities.

By incorporating these development activities into the succession planning process, banks can cultivate a pipeline of skilled and competent leaders ready to take on critical roles within the organization. Investing in the growth and development of succession candidates not only ensures a robust leadership bench but also strengthens the bank's resilience, adaptability, and competitiveness in a rapidly changing financial landscape.

Factors to Consider in Evaluating a Banking Succession Candidate's Competencies, Skills, and Experience

Succession planning in the banking industry is a strategic imperative to ensure a seamless transition of leadership roles and maintain organizational resilience. Identifying the right succession candidate requires a thorough evaluation of competencies, skills, and experience to determine their readiness to assume higher responsibilities within the organization. In this blog post, we will explore the key factors to consider when assessing a banking succession candidate's qualifications and suitability for a leadership position.

Competencies Evaluation

1. Leadership Skills:

• Evaluate the candidate's ability to inspire, motivate, and lead teams effectively towards achieving strategic objectives.

2. Decision-Making:

• Assess the candidate's decision-making capabilities, problem-solving skills, and judgment in handling complex scenarios.

3. Communication:

• Analyze the candidate's communication skills, including verbal, written, and interpersonal abilities crucial for effective stakeholder engagement.

4. Strategic Thinking:

• Review the candidate's capacity for strategic planning, vision setting, and alignment of actions with long-term organizational goals.

Skills Assessment

1. Technical Expertise:

• Determine the candidate's proficiency in banking operations, regulatory compliance, risk management, financial analysis, and emerging technologies.

2. Customer Focus:

• Evaluate the candidate's customer-centric approach, understanding of market trends, and ability to enhance client relationships and satisfaction.

3. Innovation Aptitude:

• Assess the candidate's creativity, adaptability, and innovation mindset in driving product development, process improvements, and digital transformation.

Experience Review

1. Industry Experience:

• Consider the candidate's tenure in the banking sector, exposure to diverse roles, and hands-on experience in different functional areas.

2. Leadership Experience:

• Review the candidate's track record of leadership roles, accomplishments, team management, and successful project execution.

3. Change Management:

• Evaluate the candidate's experience in leading change initiatives, organizational transformations, and navigating industry disruptions.

Holistic Assessment

1. Cultural Fit:

• Ensure alignment between the candidate's values, leadership style, and the organization's culture, mission, and values.

2. Potential for Growth:

• Identify the candidate's potential for growth, learning agility, and readiness to take on higher responsibilities in a dynamic and evolving banking environment.

3. Feedback and References:

• Seek feedback from colleagues, mentors, and performance reviews to gain insights into the candidate's strengths, areas for development, and leadership potential.

By considering these factors in evaluating a banking succession candidate's competencies, skills, and experience, organizations can make informed decisions in selecting the right talent to drive strategic initiatives, foster innovation, and ensure continuity of leadership in the banking sector.

Reviewing a Bank's Talent Allocation and Investment Needs

In the dynamic and competitive landscape of the banking industry, talent allocation plays a pivotal role in driving organizational success, innovation, and sustainable growth. A strategic review of a bank's talent distribution, skill sets, and resource allocation is essential for identifying strengths, gaps, and opportunities for investment in human capital. In this blog post, we will delve into the significance of reviewing a bank's talent allocation and explore the types of investments needed to nurture a high-performing workforce.

Understanding Talent Allocation

1. Skill Distribution:

• Assessment: Analyzing the distribution of skills across different departments and levels to ensure alignment with strategic objectives and operational needs.

2. Leadership Pipeline:

• Evaluation: Reviewing the leadership pipeline to identify high-potential talents, succession candidates, and areas for leadership development and promotion.

3. Specialized Expertise:

• Identification: Recognizing specialized expertise in areas such as risk management, compliance, technology, customer experience, and financial analysis crucial for operational excellence.

4. Diversity and Inclusion:

• Inclusivity: Evaluating diversity initiatives, equity in talent allocation, and creating an inclusive work environment that fosters innovation and creativity.

Types of Investments Needed

1. Leadership Development Programs:

• Investment: Implementing structured leadership development programs focusing on grooming future leaders, enhancing decision-making capabilities, and fostering innovation.

2. Training and Skill Enhancement:

• Investment: Providing continuous training in emerging technologies, regulatory changes, customer service excellence, and industry best practices to upskill employees.

3. Talent Acquisition and Retention:

• Investment: Investing in recruitment strategies, employer branding, talent retention initiatives, and competitive compensation to attract and retain top talent.

4. Technology and Infrastructure:

• Investment: Upgrading technological infrastructure, digital banking platforms, automation tools, and data analytics capabilities to drive operational efficiency and customer-centric solutions.

5. Employee Well-Being and Engagement:

• Investment: Prioritizing employee well-being, mental health initiatives, work-life balance programs, and fostering a culture of recognition and engagement.

6. Succession Planning and Talent Mobility:

• Investment: Developing robust succession plans, talent mobility programs, and career progression pathways to ensure a sustainable talent pipeline and organizational resilience.

A strategic review of a bank's talent allocation provides insights into optimizing resources, nurturing talent, and aligning human capital with business goals. By investing in leadership development, skill enhancement, talent acquisition, technology, employee well-being, and succession planning, banks can cultivate a workforce that is agile, innovative, and capable of navigating the complexities of the banking industry.

Remember, talent is the most valuable asset of any organization, and strategic investments in human capital are paramount to achieving long-term success, competitive advantage, and sustainable growth in the ever-evolving banking landscape.

Cost Analysis of Filling Bank Positions Internally vs. Externally

In the ever-evolving landscape of the banking industry, one critical decision that financial institutions must grapple with is how to fill vacant positions within their organizations. The common dilemma often revolves around whether to promote talent from within (internal recruitment) or hire external candidates to meet staffing needs. This decision is not merely about finding the right candidate but also about the financial implications associated with each recruitment strategy. Let's delve into the cost comparison of filling bank positions internally versus externally.

Internal Recruitment Costs

1. Training and Development:

• Cost: While internal candidates may already possess institutional knowledge and familiarity with processes, ongoing training, and skill development programs can incur costs.

2. Promotion and Compensation:

• Cost: Promoting an internal employee may require a salary adjustment or benefits upgrade, affecting overall compensation costs.

3. Time and Resources:

• Cost: Allocating resources for internal job postings, assessments, and interviews can consume HR and managerial time.

4. Employee Morale:

• Cost: If internal promotions are not handled transparently or fairly, it may impact morale and potentially lead to retention issues.

External Recruitment Costs

1. Recruitment Agencies and Advertising:

• Cost: Engaging recruitment agencies, job boards, and advertising platforms incurs direct monetary expenses.

2. Screening and Interviewing:

• Cost: Conducting extensive screenings, background checks, and interviews can be resource-intensive and time-consuming.

3. Onboarding and Training:

• Cost: New hires may require onboarding and training, adding to initial investment costs.

4. Ramp-Up Time:

• Cost: External hires may have a longer ramp-up time to reach full productivity, impacting operational efficiency.

Cost Comparison and Considerations

1. Direct Financial Costs:

• Analysis: While internal recruitment may involve lower direct costs, external recruitment may have higher upfront expenses due to agency fees and advertising.

2. Indirect Costs:

• Analysis: Factors like productivity loss during transition, cultural alignment, and potential turnover rates need to be considered for a holistic cost analysis.

3. Long-Term Investment vs. Immediate Needs:

• Analysis: Internal recruitment focuses on nurturing talent and long-term growth, while external recruitment may address immediate skills gaps.

In conclusion, the cost analysis of filling bank positions internally versus externally is a multifaceted decision that requires balancing short-term financial considerations with long-term strategic goals. While internal recruitment may appear cost-effective initially, external recruitment could bring fresh perspectives and specialized skills to the organization. Ultimately, a comprehensive assessment of the direct and indirect costs, along with a strategic alignment with organizational objectives, should guide banks in making informed decisions regarding their recruitment strategies.

Remember, investing in the right talent, regardless of the recruitment source, is an investment in the future success and sustainability of the bank.

Add Customers By Getting Credit for What You're Already Doing.

Community banks know that customer satisfaction is the key to success. You strive to provide exceptional service and products that meet the needs of your customers. But did you know just how much your service matters?

“25% of respondents would switch to a bank that provides helpful, personalized budgeting tools. I don’t know a community bank who isn’t doing this every day. Why not get credit for it?”

— Bill Zeinert

As the banking industry becomes increasingly competitive, it is important for community banks to understand the unique needs of their customers in order to differentiate themselves from larger institutions. To help community banks better understand the needs and preferences of their customers, we have created a primary research project that will measure the unique needs of community banks.

This research project is designed to provide community banks with valuable insights into the needs and preferences of their customers, allowing them to tailor their products and services to meet those needs and remain competitive in the marketplace. By understanding the specific needs of their customers, community banks can build stronger relationships with their customers and maintain a loyal customer base.

As an example, according to the first quarter survey, 25% of respondents indicated that they would switch their primary checking account to an institution that provides helpful, personalized budgeting tools. This is a significant finding and one that should not be ignored.

So, what can community banks do to meet this growing demand for personalized budgeting tools? Here are a few ideas:

1. Offer digital budgeting tools

In today's digital age, customers expect to have access to online and mobile banking services. Offering budgeting tools that are easily accessible through these channels can help you attract and retain customers. These tools could include budgeting apps that allow customers to track their spending and set financial goals.

1. Provide financial education

Many customers may not know how to manage their finances effectively. Providing financial education through workshops, webinars, or online resources can help customers learn how to budget and save money. This will not only benefit customers but also strengthen their trust in your bank.

1. Personalize communication

Personalized communication is key to building strong relationships with customers. Use customer data to understand their financial needs and preferences, and offer tailored recommendations and advice. This can help customers feel more connected to your bank and more likely to use your personalized budgeting tools.

1. Develop partnerships

Developing partnerships with financial technology companies can also help you offer personalized budgeting tools to your customers. Such partnerships can provide access to state-of-the-art budgeting tools that can be integrated into your existing online and mobile banking platforms.

In conclusion, the demand for personalized budgeting tools continues to grow, and community banks that are able to provide such tools will be in a better position to attract and retain customers. By offering digital budgeting tools, providing financial education, personalizing communication, and developing partnerships with fintech companies, community banks can meet this growing demand and continue to thrive in the competitive banking industry.

Is Your Organization Ready for Emotional Intelligence Training?

Emotional Intelligence (EQ) training is a tool that has boosted countless businesses around the world. Fortune 500 companies like 3M, Toyota, Merrill Lynch, Walmart and Apple are just a few of the many organizations who saw increased profits, better leadership skills, and stronger relationships formed as a result of EQ training.

The great thing about EQ training is that it works on one person just as well as it does on a group of 1,000 people. No matter the size of your organization, you can find success for your future.

Employee performance, conflict resolution, stress management and strategy improvements are all benefits that come from EQ training. At Neck Up, we help companies realize these benefits by recognizing and respecting emotional cues as data to inform the overall decision making process. We have access to real-life case studies, data and white papers that prove the value of EQ training over and over again.

If you’d like to get a small taste of EQ concepts, try taking an assessment for yourself to quantify and measure your current capabilities. This will show you where your strengths are and where you can improve. Once you know where you’re at, you can grow your career and help boost your organization in a truly meaningful way.

For more information or to find an assessment tool, contact us today. We can’t wait to meet you and we are excited to help you take the next step as a leader!

Neck Up Leadership brings together three nationally recognized leadership curriculums into one single source to help you get further faster on your leadership journey. Learn more at neckupleaders.com.

Creativity

Have you ever heard someone say, “I’m just not a creative person”? Perhaps you’ve even said it yourself. While the statement is common, we’ve come to find that people often mistake creativity and artistry and using the wrong word can cause us to sell ourselves short.

Creativity is defined as the use of imagination or original ideas. Artistry is defined as a creative skill or ability. We admit, the words are similar, but they are not perfect synonyms.

Based on its definition, imagination and original ideas are the keys to creativity. Everyone has an imagination, and everyone can come up with original ideas. We often sell ourselves short in the creativity department because we compare our imagination to the many brilliant minds of famous inventors and leaders who have affected the course of history. Very few of us would compare ourselves to the amazingly creative mind of the late Steve Jobs, but that doesn’t mean we don’t have the capability to imagine a new and better solution for the task at hand—it just takes a little practice.

Artistry, meanwhile, is based on skill and ability. Some folks are incredible painters and sculptors. Many of us have a hard time drawing a stick figure of ourselves. While we can improve our artistic abilities with practice, artistry has more to do with natural skill or ability.

So, when we say we’re “not creative”, we are probably misusing the word. We are all creative—but it might be more fitting to say we’re “not artistic”.

At Neck Up, we believe that everyone is a creative person. We are not all creative in the same ways, but each of us has an imagination that is unlike any other. Tapping into that imaginative ability can be a little tricky at first, but it can be accessed easily with a little bit of practice.

Tom Monahan’s book “The Do-It-Yourself Lobotomy” is a fantastic resource that can help you unlock your imagination. The steps in this book will make it simpler for you to transition into a creative thinking process, and Monahan’s style of writing will empower you to make his concepts work for you immediately.

We also enjoy drawing on our real-world experiences and the continual challenges we face to remain meaningfully creative for our clients on a daily basis. If you’d like to hear some ideas or share your success story, please reach out to us. We’d love to hear from you!

Neck Up Leadership brings together three nationally recognized leadership curriculums into one single source to help you get further faster on your leadership journey. Learn more at neckupleaders.com.

Think you're good at multi-tasking? Think again.

We’ve been trained for many years to believe that multi-tasking is a valuable acquired skill. In some circles, the concept has been raised nearly to the level of something sacred. Those who seem to be able to channel this mystical power are admired to a fault.

Our desire to do more faster has driven us to extremes in the world of mechanical and automated processes. It’s only natural that we look to better ourselves as operators, but new research tells us that we’ve fooled ourselves with the entire concept of multi-tasking.

Multi-tasking was first thought to be a great key to exponentially improved efficiency, but that’s not the case. The human brain is designed for sequential processing. This means that we are meant to complete tasks and then switch to the next one. Multi-tasking pushes the idea that parallel processing—or trying to do several open projects at the same time—leads to improved efficiency. Unfortunately, this just isn’t true. Try solving two math problems simultaneously—your brain won’t be able to do it. We are adept at switching back and forth very quickly, but only after a degree of completion is reached within each individual task.

Bestselling author Dave Crenshaw has some amazing insight on the topic.

“Switchtasking is attempting to do multiple attention-requiring tasks at the same time,” explains Crenshaw. “Each switch in attention incurs switching cost, which includes a loss of time, decrease in performance, and an increase in stress levels. When most people say they are ‘multitasking,’ they are most often referring to switchtasking.

“Background tasking is performing a task while something mindless or mundane occurs in the background,” continues Crenshaw. “Examples include: delegating tasks to employees while you work on more valuable activities, putting a machine to work on a large job while you answer email, and exercising while you listen to music. Background tasking can improve productivity overall.

“Multitasking is neither a good thing nor a bad thing…it simply does not exist,” concludes Crenshaw. “The question is, are you background tasking, which may improve productivity, or are you switchtasking, which always harms productivity.”

At the end of the day, juggling tasks not only harms productivity, it can also harm relationships. Increased errors and missed details can cause a divide between you and your team. Productivity drops but we press on, foolishly thinking that we’re performing at our best when we’re isolating ourselves and hurting the ones we rely on most. In Crenshaw’s words, “Multitasking is worse than a lie.”

Neck Up Leadership brings together three nationally recognized leadership curriculums into one single source to help you get further faster on your leadership journey. Learn more at neckupleaders.com.