AIn conversation with Catalyst editor Lesley Griffiths, David Richardson, Regional Managing Director, Lloyds Banking Group, shares his views on leading in tougher times, making an impact, and the values he lives by.

What does being a leader mean to you?

Leadership is about taking individuals and teams to a level that they wouldn’t achieve on their own, or getting them there at a faster pace. It’s about providing stretch and challenge but plenty of support.

Has your leadership style changed as your role has become more senior?

It has made me more thoughtful in terms of the timelines that I work to.  Banking is a people business and I am continually thinking about the people and teams I am going to need to achieve the continued growth we are planning. I am fortunate to work with really committed and talented people and would be selling everyone short if I accept any dilution in standards there.

During your career with Lloyds, how have you seen the values change in your organisation and the sector as a whole?

A clear change relates to the investment in our people. Historically, people investment was focused on long residential training courses. In recent times there has been a huge shift in focus, investment in people is now focused on a day to day basis.  We aim to recruit the right people - whether that’s internal or external - and ensure they are placed into an environment that suits them.

What do you consider the biggest challenges for the banking sector?

There are some specific challenges at the moment just around managing liquidity in what is clearly a more testing economy, but I think we will come through that and I am confident that we will continue to grow the business.
The biggest challenge is undoubtedly developing and recruiting quality people. Our banking relationships are under-pinned by the quality of the relationships we have with our customers.

What skills does a leader need to ride the tougher times?

I think as leader, whether it be through good times or challenging times, you need to have real clarity of purpose in terms of what you’re trying to achieve.  Achieving clarity of purpose ensures everyone galvanizes to the task in hand, this enables you to take both your colleagues and your customers with you. Trust is also essential; you’ve got to trust the people you’re working with.  By trust, I mean trusting their capability, their competency and their ability to deliver - integrity is a given.

You’re a great relationship builder, what’s the secret? 
                               
I read in a book, “People don’t care what you know until they know that you care”.  That resonates with me. Whether you are in professional services, manufacturing, retailing, there are lots of people out there that have your skills and products. Ultimately it’s the people interaction that will make the difference.

What aspect of the job gives you greatest satisfaction?

Undoubtedly it’s the people I work with.  Everyone is ambitious to grow their business, but that growth can only be achieved by getting people buy-in. I like to think that I communicate very openly about what we are trying to achieve – people respond to knowing very clearly what they need to do. Harnessing individual motivations can be immensely powerful. Setting hurdles too low is as big a turn off as setting them too high.  Boredom, coming from a lack of responsibility or job clarity is a real killer in the workplace.

How do you manage ‘slack’ in  leadership-followership tension?

I come back to my previous point.  It is all about recognising people’s individual motivations.  I think everyone wants to feel fulfilled and happy at work and it’s about understanding what is going to drive motivation and engagement.  In my experience, peers spot the underperformers long before the leaders!

What inspires you day-to-day?

I suppose I just see life as for the living – you just never truly end up knowing what you’re going to do, who you’re going to end up meeting. What I do know is that you’ve got a huge responsibility to make it happen for yourself. There’s nobody out there who’s going to plan your day, your week, your month, your life for you.  Everyone has a leadership role – the most important person you get to lead is yourself!

Do you think everyone has a responsibility as a follower?

Undoubtedly yes. Our lives are complex and we engage in all sorts of relationships, social/community groups. The quality of what gets achieved is about interaction with other people and it would be unrealistic (and quite draining!) to expect to be led all of the time. 

What’s the best leadership advice you’ve been given?

Undoubtedly, to treat everyone as the unique person that they are. 

What's your advice to future leaders?

Develop and behave like the leader you aspire to be. Establish clear personal values and see every day as a learning experience.

© Caret, 2009 All Rights Reserved

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