The best performing banks over the long run are invariably those companies which understand the value of people and the culture those employees can create. Because they value culture, these banks generally attract the best, most loyal people. While they also become desired acquirers for other banks looking to sell out, they’re not forced to do deals to grow. Such companies are able to attract and motivate the people necessary to grow organically.

Over time, the long hard work of developing the right culture translates into results for shareholders which strongly beat the rest of the industry. I’ve see it again and again. Synovus revels in being one of Fortune’s Best Places to Work. It makes sense that they do, because it’s that culture which has created their strong financial performance and a stock which has consistently outperformed the industry over the years.

You see the same recipe for success simmering in banks like Alabama National, United Community Banks, Cascade Bancorp, Boston Private, and Capital Corp. of the West. Because they spend time on the people issues, these banks are magnets for good people. Because such companies can attract good people, they generate organic growth.

Organic growth, growth independent of acquisitions, generates tremendous shareholder wealth in banking.

It’s true for any other industry, too.

Doug remarks:

Culture is your organization's DNA--the blueprint for everything you do. To be better at innovating -- your culture must expect and foster innovation. To improve customer satisfaction - your culture must expect and foster great service. Great leaders realize this. They know that "culture" isn't a single item on a task list. And it can't be delegated to a committee. It's all encompassing. It's the real work--and legacy--of leaders.

It’s the legacy of winners.