Posted by Phil Keithahn on Thu, May 20, 2010 @ 08:42 AM
Be very wary of policies, predictions, and pronouncements from Washington DC that offer what usually turns into the "99% Solution for the 1% Problem."
What does this mean?
In my banking experience, less than 1% of the people abuse or misuse a product or an opportunity. But when that abuse gets publicized, public pressure results in costly Washington DC solutions for the abuses of less than 1% of Americans...paid for by taxing the earnings of 99% of our taxpayers. As my dad often said, "Don't abuse the privilege of being stupid, or the privilege will be taken away."
Unfortunately, we live in a world where politicians pass legislation, lobbyists and attorneys develop new laws, bureaucrats send out regulations, and directives, that never eliminate risk...let alone the abuser. They simply make life more complicated and make business more expensive for the average, ordinary tax-paying citizen to pay for the unethical, unintelligent, or unforgivable abuses of less than 1% of our citizens. By the time the "simple law" in Washington, DC reaches Main Street America, it has morphed into thousands of pages of forms, checklists, procedures, and other documents that suck the time, energy, and talent, not to mention money from our nation's hardworking citizens, farmers, and small business owners...and community banks!
Let's hold the right people accountable. This nation cannot afford and should not continue developing 99% solutions for the 1% problems...or worse yet....the solution that is looking for a problem. We can never eliminate fear, mistakes, let alone risk. But we can use better discipline to reduce our reliance on policy, procedure, regulations, and rules that limit our freedoms and tax our lives.
One final thought for you to remember. In spite of an economy that has hurt our customers, our communities, and our bank, we are all survivors. ProGrowth Bank will continue donating money and time to local charities, we will continue providing you with great service, and we will continue listening to you and working with you to move forward. Have a great summer!
Posted by Phil Keithahn on Wed, May 19, 2010 @ 07:41 AM
HEADLINE: Minnesota Bridges are Structurally Unsound...but none have collapsed!!
On August 1, 2007, I was in England celebrating the 100th Anniversary of Scouting with over 50,000 Scouts from more than 180 nations. On that same morning, the 35W bridge collapsed in Minneapolis/St. Paul. Within 30 minutes, we received word in England about this disaster, and about the heroic efforts of people who worked together in times of catastrophe to recover. What a miracle of faith in action!
But what has happened since then? The government has had its experts and investigators analyze the bridge collapse, develop theories, assign blame, and begin rating all bridges in the state as to whether they are safe...or "unsafe and unsound."
And guess what? In spite of all these "expert ratings" for bridges that are "structurally unsound", not a single bridge has collapsed. ZERO. NONE. NADA. In fact, during my lifetime (52 years!), I can't remember another bridge in Minnesota, let alone the rest of the USA, that has collapsed. There may be aging bridges that have problems, need to be updated, or need to be renovated, but NOT A SINGLE BRIDGE HAS COLLAPSED.
Part of moving forward with confidence as our nation recovers from the recession is to realize that life is full of risks. Life is full of mistakes. Learning, progress, and success only occur after we make mistakes. When you hear or read expert opinions after the fact talk about negative things that make you feel afraid, remember that they rarely predicted the problem before it occurred. In fact, when they did predict, their predictions were more often faulty than correct. So focus on the positive, pay attention to the things that you control, and accept personal accountability for your actions.
Posted by Phil Keithahn on Tue, May 18, 2010 @ 03:23 PM
Our family recently visited Northfield, which promotes itself as the "Home of Colleges, Cows, and Contentment." You could probably make a similar statement about most communities in South Central Minnesota. It's a wonderful image of happiness, which is a feeling that many people would like to move towards, as the economy recovers from recession.
The current recession is the 22nd official downturn in our nation's economy since 1900. Although the average recession since 1900 has lasted 14 months, the recession that started in December 2007 has now lasted 21 months, second only to the "Great Depression" as the longest economic downturn.
What does this deep recession mean for you, for me, for our communities, and for our nation?
First, we need to work together, help and support each other, and remain trustworthy, loyal, and honest with each other.
Second, we need to work hard to set a positive example for our family, friends, neighbors, and communities in how we are going to respond, recover, and refocus our efforts on the truly important things in life.
Third, we need to recognize that everyone is hurting. Everyone. How can we feel good in the midst of 10% unemployment, a 20-40% decline in housing prices, a new health care bill that is particularly expensive for small business owners, record-setting federal deficits that will eventually lead to higher inflation and more taxes, not to mention more rules and regulations that Washington DC is dictating to the entire country?
We are all hurting...BUT...we will all move forward together. We will feel better...and eventually we will all feel good!
Finally, it means that we have to BELIEVE in ourselves and each other...that we WILL survive and eventually thrive as we recover. ProGrowth Bank and the citizens in the communities we serve have survived 22 recessions in the last 110 years. Every generation has faced severe challenges, and has recovered. In the words of General George S. Patton, one of our country's greatest generals, "Failure is not an option." In Gaylord, Nicollet, Mankato, and North Mankato, I believe that our citizens have more faith in ourselves than we do in Washington DC's so-called "solutions." Let's focus on building up our communities rather than tearing down each other.
Posted by Phil Keithahn on Tue, Aug 25, 2009 @ 07:23 PM
One of my favorite authors is Louis L'Amour. Having grown up in the 1960s and 1970s with Westerns, Rin-Tin-Tin, Lassie, John Wayne, and Clint Eastwood, it's probably not surprising that I have read most of L'Amour's novels.
Refreshingly direct in his writing style, L'Amour's books have words of wisdom sprinkled throughout his engaging stories that remain relevant to this day. For example, consider the following quote:
"Knowledge is like money: to be of value it must circulate, and in circulating it can increase in quantity and, hopefully, in value."
In today's economy, people remain worried about money. However, to move forward, I believe we should also focus on acquiring and sharing knowledge, for today's challenging financial environment provides a once-in-a-lifetime learning opportunity.
The Federal government is trying to stimulate with economy with a broad array of fiscal and monetary initiatives. Some may work. Some won't. And for every suggested initiative, advocates and opponents alike are providing their "expert" opinions on where money should be spent...or invested.
Whatever the ultimate financial cost of the recession...and the subsequent recovery costs, we will only move forward to a robust economy once the money begins circulating again. And that will only happen once people move beyond a mindset of fear and pessimism, to an attitude of optimism and hope.
For almost 235 years, this nation's success resulted from entrepreneurs, independent thinkers, and risk-takers who searched not just for money, but for freedom, for choice, for independence, and yes, for knowledge.
Whether it was the challenge of exploring America to find a way to the west coast, or the competition to be the first nation to send a man to the moon, the American spirit was one of exploration and an unquenching thirst for knowledge to make the world a better place.
So take some time to sit down. Reflect. Observe those people around you. Ask questions. Assess your successes and defeats. What worked well...and why? What did not turn out as you expected...and why? Instead of second-guessing your past actions, focus on what little things you can do differently in the future to do things a bit better.
Almost a decade ago, a mentor shared this advice with me. "Rod Carew only hit .332, but he made it to the Hall of Fame in baseball. If Carew could make it to the Hall by only getting 1 hit in 3 times at bat, why are you so tough on yourself for your mistakes? Be tough in evaluating your past decisions, but be fair...no one gets a hit in every at bat. But you never get a hit if the bat stays on your shoulder."
My friend was right. The search for knowledge is the search for a way to do things better, faster, more effectively in the future. That's the passion that fueled America's dreamers for over two centuries...who were also doers. Doers who made mistakes, suffered losses, and had to recover from their errors...continually learning and getting better in the process.
So focus on circulating both money AND knowledge as you strive to recover during these tough economic times. Spend/invest your money wisely. But also seek and share knowledge with others. It is in these shared learning experiences that will help you prepare to take advantage of the future opportunities that the world's largest economy will provide to you.
Monty's Message: A healthy circulation of knowledge will lower your blood pressure, increase your self-worth, and improve your prospects for building a solid financial future.
Posted by Phil Keithahn on Thu, Aug 20, 2009 @ 11:31 AM
Do you remember what it felt like when you were a kid...eagerly waiting to get somewhere?
I do.
As we get older and deal with change, difficulty, fear, and trauma, we can all benefit from remembering how we approached life as children. That is especially true today, when the words "recession", "depression", "layoffs", "bankruptcy", "bailout", and similar negative words are 7x24 on TV, radio, and the internet.
In addition to this negativity, we also hear experts who divide and polarize people...focusing on differences as "bad", on "right vs. wrong", and on "my way or the highway."
Do you often feel that too many people believe it is ok to criticize those people who are actively involved with getting things done? And these same critics, don't offer solutions to problems...or if they do, it is a one-dimensional solution that excludes people or is a temporary fix.
It seems to me that we could all benefit from the feelings and thoughts we experienced as children. I grew up in Benson, Minnesota, which is about a 2 hour drive to Gaylord, Minnesota, where my grandparents lived and where I now live.
As a child, we would make several trips to Gaylord for family gatherings....Thanksgiving, New Year's Eve, summer raspberry picking, etc. The car would be loaded by 8am with my parents and 4 kids for the trip.
"When will we get there?" was the most frequent question...until we were about 15 miles from Gaylord. Then all 4 kids would crane their necks...looking from the backseat out the front and side windows. Why? Because we were trying to be the first person to "see Gaylord." In reality, we were competing to be the winner of the contest to "see the Gaylord watertower."
To us, the Gaylord watertower was the symbol of Gaylord. When we were less than 7 miles from Gaylord, one of us would shout "I see Gaylord! I see Gaylord!" The watertower was barely visible above the tree line and the corn fields. But to a 10-year old, Gaylord WAS the watertower, and it symbolized the beginning of a family reunion or other similar event of excitement and fun.
As Dad often said, "This, to me, is a parable of life."
In today's world, too many people look down. We look down or tear down others who are different. We look down with sadness at what we have lost...whether it is lower housing prices, stock prices, retirement account values, etc. We look out to someone who we can blame, who we think should be penalized for our misfortune. We look around for those people who are trying to hurt us or steal from us. We are afraid to trust, and we are afraid to look up with hope and expectation.
Attitude is more than a feeling, it's an action. I believe that the economy will only improve, and we will only feel better, once we apply the lessons learned as children. Look up. Look forward. See the watertower. Go to the watertower. Finish the car trip and leap from the car with anticipation and joy of the experience that is to come.
As a child, I could have assumed the negative, downward-looking attitude that we were "leaving Benson." Instead, our family changed our vision, so that we were "going to Gaylord." That's how our family learned to approach life. I hope it works for you.
Monty's Message: When things in life look down, look up and look forward to where you want to go. Then GO!
Posted by Phil Keithahn on Wed, Aug 12, 2009 @ 08:50 PM
Do you have a family member or friend who has a comeback line that works in almost every situation?
If so, you will appreciate my late grandfather's words of wisdom.
"The trouble with you is that you have Champagne Tastes and a Beerbarrel Pocketbook."
Those words hit my ears continually from my teenage years through my late twenties. My grandfather was born in 1900, lived through both World Wars and the so-called "great" Depression. He supported his family and was frugal with his money, yet he was very generous to those in need.
If we are to learn anything from the past twenty years, and especially the last five year, it is that as a Nation, Americans acquired champagne tastes that were funded by a beerbarrel pocketbook.
We convinced ourselves that we were smarter than the markets, we became greedy, we lived beyond our means, and we relied on the greater fool theory. We enjoyed the taste of rising home prices, low inflation, record low interest rates, cheap and available loans, and stock markets and world markets that seem destined to rise forever.
And then the cork popped, the champagne exploded out of the bottle, and we are left with the morning after smell and taste of a party gone bad. The hangover that is globally being felt by people of all ages, income levels, and occupations requires more than two aspirin. It requires "change."
Not "change" from others, but change from within. We must learn to do without. We must become happier with what we do and how it is done, then with how much it costs or how great it looks, let alone how big it is.
And the "it" is the way in which we live life. As a small-town banker, citizen, community builder, people developer, and volunteer mentor, the most successful people I have observed start small. Here is what they do to achieve lifetime happiness:
- They start and end each day with a positive attitude and a capacity to turn each setback into an opportunity for learning and growth.
- They work hard, focusing on what they accomplish (results) instead of what they did (tasks).
- They finish what they start. They remain active and engaged in life, even as they age, even as they deal with trauma, even as they struggle with challenges and setbacks.
- They laugh and smile a lot...especially at their own mistakes.
- They are not satisfied with the status quo, which means that they are always looking for 1% improvement per day.
- They build a support group of family, friends, neighbors, and co-workers who not only keep them grounded in humility, but are their to help them when life gets tough.
- They care. They take pride in doing the right things...AND in doing things right. As a result, they will often be more self-critical than criticising of others.
- They help. Even when they are busy, they find time to invest in other people...seeing these contributions of time and talent as a break from their own workday.
- They bounce. Having built a fearless capacity to fail, they fall down often, but are confident that they can recover...respond to pressure, solve a problem, fix a mistake, correct an error.
- Finally, they live a life of being worthy of trust. These people have taken it upon themselves to change from the inside, rather than asking the world to change for them. They are not optimists, pessimists, or realists, they are "accountablists". They hold themselves accountable, with a tough and fair love that is more exacting on their actions and behaviors than it is on those people whose lives are influenced by their actions.
If you don't believe me, please follow this link: http://www.news.harvard.edu/gazette/2001/06.07/01-happywell.html
All of us are in the middle of a transition period where "change" seems to be the word of the day. I hope you will learn from my customers and friends who started to change their actions and words before they tried to change the world.
Monty's Message: Satisfaction from the journey can be as rewarding as the destination.
Posted by Phil Keithahn on Wed, Aug 12, 2009 @ 01:00 PM
Have you ever tried to learn something new...and become a bit frustrated with the learning experience? If so, this blog is right for you.
I am embarking on a journey to learn and share experiences with people, so that we can avoid repeating past mistakes in the future. In this way, we can have more fun making entirely new mistakes.
Academic researchers and B-School professors will characterize the learning from experience as a "Learning Curve" or an "Experience Curve". You can read a bit of the basics about each of these curves by going to Wikipedia, and clicking on
http://en.wikipedia.org/wiki/Learning_curve
for information about Learning Curves and clicking on
http://en.wikipedia.org/wiki/Experience_curve
for related information about Experience Curves.
I take a more basic approach, remembering a lesson from my father. Dad was a minister who was well-educated, yet gave sermons so that someone with a 6th-8th grade education could understand the theology of his sermon. He would lead into his sermon by giving a Children's Sermon. Designed for youth, but also heard by adults, Dad would tell a story from his childhood, then conclude with the memorable phrase, "This, to me, is a parable of life." Here is one such story/parable.
Dad grew up in India during the 1930s and 1940s. One of his first memories was that he would only eat one food at a time. Preferring to save the best food for last, so he could leave the meal with a great taste in his mouth, he always chose to "eat the worst first."
A good idea, yes? Not always.
One evening, his family was visiting another Indian family and he quickly ate the worst thing first. However, the unexpected happened. The hostess and cook saw how quickly Dad ate this part of his meal and immediately heaped a huge spoon of the same food on his plate, saying, "Oh, you must really like this."
Needless to say, Dad had the worst thing first...and second... He rapidly moved through the "experience/learning curve", knowing that he had to stop eating one food at a time, so he could also enjoy the things he liked eating.
This, to me, is a parable that applies to decisions we make today in our personal, professional, and business lives. All too often, we tend to do things we like...saving the worst for last. The end result is that some things that we do not like to do are actually necessary and vital to our success...but they remain incomplete.
We should choose to do those things first, or at least second, so that what needs to be completed...gets completed.
We may not like or enjoy doing some things...like paying bills, avoiding too many sweets, spending money foolishly, giving in to impulse buying, living from paycheck to paycheck. We may think we can avoid the pain, but we are only delaying and intensifying the harsh reality of doing the right things.
The experience of learning new behaviors can be painful; it will take time; and it assuredly will be frustrating. But the benefit is that by "eating the worst first", we can end our day, our career, and our life, saving the best for last.
Monty's Message: The best worst...is the first worst.
Posted by Phil Keithahn on Wed, Aug 12, 2009 @ 11:00 AM
How many times have you had a conversation with someone and you felt or thought that the discussion was all about them?
In this, my second blog post, I hope that you will bear with me as I share some information "about me."
Phil "Monty" Keithahn (pronounced Ki-ton instead of Monty Kython) is the primary shareholder, Chairman, & CEO for ProGrowth Bank. However, what he really wanted to do when he was growing up was to be an Olympic wrestling champion (like Dan Gable) and play professional football for the Minnesota Vikings (like Alan Page).
Even though he was "too small and too slow" for professional football, the dream lived on until Phil suffered a life-changing knee injury midway through his senior season at Carleton College. At that point, his "higher board scores" and comeback approach to life enabled him to gain acceptance to hbs.edu. Phil also benefited from the HBS "geographically diverse acceptance strategy", since he was actively involved in a broad range of activities in a private, rural Minnesota liberal arts college.
Upon graduating from HBS, Phil returned to Minnesota where he worked for Norwest Bank and Norwest Corporate Finance for 7 years. Tiring of life in the big city, the politics of a big company, having recently married, and ready to run his own show, Phil and his wife, Sue, returned to his mother's hometown of Gaylord, Minnesota to pursue a career devoted to coaching, counseling, and mentoring people, spearheading community development efforts, and yes, running ProGrowth Bank with his wife, brother, and friends.
When he's not at work or supporting his family's activities, Phil can usually be found working with Boy Scouts, leading the STRIVE program for Rotary, serving as Treasurer for the Gaylord United Church of Christ, lifting weights, reading, travelling, wrestling (painfully!) with his son, Brit, or enjoying his daughter's (Lauren) sing choir, band, and dance concerts.
Phil has travelled around the world and is especially fond of India, where his father grew up during his grandfather's 50+ years as a missionary. Phil is proud of his heritage as a "Minnesota MuttTM", resulting from his ancestry of ¼ Swede, ¼ German, ¼ English, 1/8 Scotch-Irish, and 1/8 French-Canadian. Phil's parents were both ministers and his four grandparents had careers ranging from banking and education to medicine and ministry/mission, Phil has used the guidance received from these "heroes at home" to craft a community-based banking organization that values becoming worthy of the trust that our customers place in us each day.
So that's my one (and only?!) blog post "about me." While future blog posts might include stories from my life, they will be presented with the goal of helping people. For it is....
ALL ABOUT YOU!
Posted by Phil Keithahn on Wed, Aug 12, 2009 @ 10:43 AM
Trust. We hear and read that word frequently these days. For many people, the word is almost said with a degree of cynicism, if not disdain. Between Ponzi schemes, white collar crimes, and embezzlement, the word TRUST has almost evolved to the point where we believe that no one can be trusted.
What if we turned the sentence around?
Instead of asking, "Can I trust you?", reverse the sentence. Turn it inside out.
Ask, "Can I be trusted?", or more appropriately, "What actions must I take to demonstrate to you that I am worthy of the trust you place in me?"
I am an Eagle Scout. A Scout is Trustworthy. That's the first of the 12 Scout Laws.
I am a community banker. My entire career has been built upon integrity, which means I continually protect the confidentiality and privacy of my customer's personal and financial data.
And yet, each morning when I arise and tell myself that "This is the beginning of a new day", I also am reminded that everyone, ME included, is but one step away from making a decision or taking an action that is not founded upon TRUST.
It is this ever present awareness of my personal vulnerability to greed and temptation that keeps me ever-vigilant against the false illusion that I can break my vow of trust without anyone finding out.
Just as Scouting teaches young men and women to "be prepared" and to "do a good turn daily", so should we go back to the days of our youth, when parents, teachers, coaches, friends, and mentors held us accountable for our actions.
In a day and age when TRUST seems to have disappeared from the world, maybe we can only begin to trust others again...AFTER we take action to show that we are worthy of trust that we ask others to place in us.
Monty's Message: To rephrase the words of Forrest Gump, "Trust is...as Trust does."