Every bank executive engages in crucial conversations in the daily course of business. Finding a successful approach to these high-stakes, emotional interactions is essential for bank leaders. The Society of Bank Executives was fortunate to have Jelena McWilliams join their recent Annual Summit to share her perspective and advice about high-stakes, emotional conversations in her role as former chairman of the FDIC.

When Jelena was appointed chairman of the FDIC, she quickly won the respect of the banking industry due in large part to her refreshing, open and well-informed communication and leadership style. During her presentation to the Society, she summarized her philosophy regarding leadership, and I think her points are worth revisiting here.

Be Honest

“The easiest thing you can do is to be honest.” She emphasized that truth is the foundation for success when it comes to both leadership and difficult conversations. Providing the truth and getting to the truth is central to any organization’s success.

Be Authentic

“No matter how hard it is to be me, it would be so much harder to be someone else.” Indeed, this is probably Chairman McWilliams’ trademark, which has endeared her the most to her observers. You can’t expect the truth from those you lead unless you are willing to give them the truth, and that starts with who you are. It’s simply too exhausting to try to be something you aren’t, and a lack of authenticity will always undermine critical relationships. Authenticity requires humility, self-confidence and candor.

Be Timely

When delivering a tough message, never put it off — timely feedback is essential. Be succinct and respectful with the goal of helping the receiver of the message — whether that is helping improve performance or finding a different line of work.

Be Accessible

Chairman McWilliams shared that she would often bypass the executive dining room and grab lunch in the main cafeteria, and she also took the employee shuttle to work. She related several wonderful experiences with rank-and-file employees who initially didn’t realize she was the chairman. Her accessibility was regularly rewarded with candid, internal perspectives on the agency.

She used these examples to emphasize the need to create a safe environment and regular opportunities for employees to share the truth. It is impossible to lead if you don’t have access to the truth.

I was struck by the number of times she related stories where she would bring members of her team into a room to explain that “outside that door, I’m the chairman. In here, we are just teammates on the same team.”

Evaluate Leadership Honestly

She also focused on honestly evaluating people in leadership positions. “Many people in leadership positions are really good at the substance of their job — the hard skills — but the good leadership principles often don’t catch up as they advance through their careers.” She observed that these people don’t always provide honest feedback: “They tend to tell me what they think I want to hear because their job depends on me.”

Don’t Micromanage

Finally, she pointed out that continual communication focused on micromanaging is never a winning strategy. When you find yourself regularly micromanaging an employee, it is your fault for putting/keeping the wrong person in the position.

It was a captivating presentation, thoroughly enjoyed by all. We learned that giving the truth and getting the truth is the key to crucial conversations and leadership success.

If you aren’t taking advantage of the Society of Bank Executives, now is the time to sign up for next year’s session on “Leading Change,” starting in February.