Under the leadership of LANB's Quality Council, which has members from every area and level of the company, the performance appraisal system was redesigned to magnify the direct link between job performance and corporate performance. The form used for this system lists corporate goals, departmental objectives, and the annual and long-term goals of the employee, which he or she writes in consultation with a supervisor. Once they complete the annual appraisal process, employees have a complete snapshot of what they must do to perform at a high level and to earn the attendant incentives and rewards, which includes profit sharing and employee stock ownership. Such incentive payouts average over 21 percent of an employee's annual salary. Employee empowerment is vital to accomplishing LANB's goals for performance improvement and double digit growth in annual income.
Management consciously acts to distribute leadership responsibilities throughout the organization.
In fact, over 90 percent of LANB's employees received leadership training in 1999, as compared to 8 percent of bank employees nationally. Employees are expected to create value for customers, and they are given the authority and resources to act proactively and decisively. For example, all workers have the authority to resolve complaints on the spot. Also, high lending limits and flexible underwriting standards enable loan officers to respond innovatively to loan applicants with special circumstances. It credits its client-server information network and relational database system with enabling the speed, dexterity, and analytical insight needed to manage risks and to respond rapidly to changing customer requirements and emerging market opportunities.