Talking Points: Robert Peters Washington state president, Bank of America

| FROM THE PRINT EDITION |
 
 

Bob Peters took over the Washington operations of Bank of America in 2009, just as the bank faced a subprime mortgage crisis tied to its acquisition of troubled Countrywide Financial. Now, Peters is leading a drive to get the bank, which built its dominant local presence through the acquisition of Seafirst Bank in 1983, to take better care of its customers.

EARLY LIFE: I was born and raised near Oakland, California. I grew up admiring Jacques Cousteau and came to the University of Washington in 1979 with a plan to study marine biology. I was on a swimming scholarship and made the Olympic development team that year. I also looked at the University of California, Santa Barbara, but when I saw people carrying surfboards on campus, I thought that was too much of a risk. There would be too many distractions.

FAMILY: My great-grandfather emigrated from Denmark and worked for Bank of America for 35 years starting in 1908. He passed away at 90. As a child, my job when I visited him in Fresno was to go into his closet in the morning, grab his wooden leg, put a sock on the stump, put him on the wheelchair and wheel him out to a card table where he would play pinochle with friends. They were all former customers whom he had worked with through the Great Depression.

CAREER: I realized that marine biology was going to be a hard lifestyle from a family perspective, so I got my undergraduate degree in international studies. In 1985, I joined Seafirst Bank in the mailroom. A year later, I moved into the commercial banking business. Starting at the bottom of the company, I learned the importance of having respect for everyone at the company.

CHALLENGES: When I became president in 2009, those were difficult years for the whole community. I remember that my great-grandfather used to say: “You can’t help everyone, but you help as many people as you possibly can.” The impact [of the recession] on our consumer business was significant, as people lost their jobs and weren’t able to pay their mortgages. Bank of America is doing a lot to help. We’ve modified over 2,400 loans here in Washington.  

LEADERSHIP: In difficult times, people want to have confidence in the organization they are working for. That means clarity and vision, a commitment to do the right thing and to live by values people will be proud of. You also need the conviction to push forward.

ECONOMY: When I look at the business community today, I see corporations that have very strong balance sheets that have the capacity to invest and withstand a recession, but don’t act because they lack the confidence that demand will be there. There is a concern about where tax rates will be and what the spending in Washington, D.C., will be. If there was certainty, there would be movement regardless of what the certainty was.

MARKET SHARE: We have more than a 21 percent share of deposits in Washington state. Our next largest competitor [Wells Fargo Bank] is 11 percent. We are being aggressive on loans today. The first three quarters of 2012, we were at $215 million in new loan origination to small businesses, up about 33 percent from the previous year. We’ve hired about 30 small-business bankers this year and now have a total of 43 in the state working with customers with half a million to five million dollars in revenue. That’s where job creation is going to be greatest and most critical to the economy. We believe there is a good opportunity there, given the pullback there has been from other providers in that segment over the last several years.

GROWTH AREAS: There are three industry clusters that will drive most of the growth in Washington: aerospace, technology and health care. Some of our biggest companies are there, including Boeing and Microsoft and all their suppliers.  

THE BANK’S COMPETITIVE ADVANTAGE:
We can help individuals whether they work on a factory floor or run the company and whether their needs are local or global.  We have people in 40 countries who offer all the support you need to operate abroad. We can help milk processing companies hedge their exposure to milk prices. We help hedge natural gas. We can help mitigate interest rate exposure. With respect to consumers, we are committed to offering clarity. We want to make sure that the average person understands what
he or she is getting from us as a financial
services company.  

TECHNOLOGY: We recently moved our [computer] system to our national platform. That allows customers in Washington state to have access to all of the bank’s products and services. We want to make sure our clients can do their banking when and where and how they want.  You can deposit a check or transfer money all from your mobile device. You don’t need to go to a banking center.

EDUCATION: Impacting young people is one of the best investments you can make in life. So I’ve tried to limit my outside endeavors to what we can do to help education. Early in my career, I had a formal mentor who helped me and later, I had many informal mentors. At the Seattle Chamber [he is co-chair of the chamber’s education task force], we want to mobilize our 2,200 company members and their 700,000 employees to be mentors to middle school and high school kids. We want them to be role models—to take kids to the tunnel project and show them why geometry might be relevant for a job they might get. We can help the students create a vision for themselves and a passion for what jobs there might be in the future and why it’s important for them to stay in school.

IMPROVING SEATTLE SCHOOLS: Whether you are a for-profit business, the public sector or the school system, you have to hold people accountable and responsible for improvement. But there are a lot of inputs. It is not easy to determine if a teacher, a principal or a school is necessarily failing. You have to have competent people who understand their roles and responsibilities. And they have to be held accountable.

Executive Q+A: Cougar Goals

Executive Q+A: Cougar Goals

The dean of WSU’s Carson College of Business is intent on creating new undergraduate opportunities.
| FROM THE PRINT EDITION |
 
 
 
Larry W. “Chip” Hunter, a scholar of human resource management and industrial relations, became dean of Washington State University’s Carson College of Business in March 2015. He aims to make Carson College the premier place in the Northwest for an undergraduate business education.
 
EARLY YEARS: I was born in Kansas, lived in Minnesota during grade school and moved west to Moscow, Idaho, when I was 12. My father was an administrator at the University of Idaho. My mother opened a children’s clothing store. My first paying job was washing dishes at Allino’s Hoagie Shop in Moscow. The place has been remodeled and is now called Gambino’s and is owned by Nancy Swanger, the director of our School for Hospitality Business Management! 
 
WHY BUSINESS: I was curious about workplace conditions and how money creates opportunity. As a professor, I began to wonder if we could get students thinking about how they, as managers and leaders, can create opportunities for others.
 
EDUCATION: I got my master’s at Oxford University, where I worked for legendary professors of economics, politics and philosophy. I also learned to play cricket. While working on my doctorate at MIT, advisers encouraged me to get out from behind my desk and understand the world, focusing on questions that matter. 
 
U.S. BUSINESS EDUCATION: We are very good at training students in technical business skills, and by encouraging them to take courses in liberal arts and sciences, we help them develop critical thinking and communication skills. At research universities, professors also do research and inspire rigorous ways of thinking about problems. That said, we don’t always do the best job of training students to translate their technical skills and abstract thinking into defining and solving real problems. We also don’t do a good job of teaching them to confront their mistakes and learn from failure. 
 
CARSON COLLEGE: Employers want students who have all the required technical skills in things like finance and accounting and who are analytical, but they also want students who can communicate, collaborate, take initiative and be entrepreneurial. There isn’t enough time to teach all that separately, so one idea is to infuse a lot of that thinking into existing courses. Accounting students, for example, might use online “adaptive learning” technology to learn technical skills, but then work in groups in class explaining the concepts to each other and working on issues they don’t understand. That encourages collaboration. We have a task force looking at these kinds of approaches and how to diffuse it into the faculty. 
 
WORKFORCE READINESS: We need students with strong entry-level skills, but we also need to shape their ability to learn. One approach is to work closely with employers to structure great internship opportunities, and encourage students to engage in global experiences, networking events and business-plan competitions. The best predictor of getting a job is having an internship. All studentst should have an internship as part of their education. 
 
PULLMAN: Having our main campus in Pullman can make it difficult to bring in experts and attract a diverse group of students. But we are creating diverse campuses across the state. Our Tri-Cities campus has a deep expertise in wine business management, our Everett campus works with experts in senior living management, and in Vancouver, our students do hands-on consulting with a local business in their senior year. We’d love to work with alumni to raise a fund to invest in innovative ways of teaching business.  
 
ONLINE EDUCATION: We are learning more and more about how to work in the online environment. I’d like to use more “adaptive learning” technologies to guide students through their more technically oriented courses, identify areas they have trouble with, and have facilitators and instructors there to help students get through challenging bits. 
 
DEVELOPING LEADERSHIP: There’s interesting recent work that shows introverts and extroverts are equally likely to be effective leaders. Self-awareness is a common theme among successful leaders. How do you play to your strengths? How do you compensate for your weaknesses? And how do you discover what those strengths and weaknesses are? Many leaders are really good listeners who know how to strike the balance between listening and acquiring information and not waiting too long to make a decision.
 
FIVE-YEAR GOALS: We want to make our online programs the best in the Northwest for the price. We also want to provide a lot more business education to non-business students, including courses in financial literacy so they know what to ask if they’re buying insurance or taking out a loan. When I was [associate dean] at the University of Wisconsin-Madison, we offered a one-week immersion course in entrepreneurship for scientists.
 
TEN-YEAR GOALS: To be among the top 25 public undergraduate business programs in the country — the first place students choose for an undergraduate business education in the Northwest. We also want to become the place that the business and policy community goes to for critical thinking about the Northwest. 
 

TAKE 5
Get to Know Chip Hunter

  1. DIVERSIONS: “I’m a trivia nut and went on Jeopardy! in the ’90s. I lost.”
  2. BOOK SHELF: “David Allen’s Getting Things Done is a great guide to personal productivity and effectiveness at work. Between the World and Me [by Ta-Nehisi Coates] is a deeply moving book about the reality of black experience in America. I just started reading Doris Kearns Goodwin’s Team of Rivals.” 
  3. FAVORITE DRIVE: “From Seattle to Pullman, with its changing geography, over the Cascades, into the high desert, and then finally into the Palouse.” 
  4. ADMIRED LEADER: “I am in awe of Lincoln — an amazing combination of steel spine and flexibility in approaching problems, of deep unwavering principles combined with pragmatism.” 
  5. DREAM VACATION: “A golf trip to St. Andrews, Scotland, with a group of my buddies.”

EXECUTIVE Q+A RESPONSES HAVE BEEN EDITED AND CONDENSED.