Open Communication

As excited as the associates are to see Scottrade grow so quickly, the one downside for many people is that the distance between branches and the size of the home office makes it difficult for everyone to connect on a personal level as they did when the company was smaller.

Rodger, Founder and CEO of Scottrade, doesn't want to lose the sense of family that has always characterized Scottrade. Several times a year he visits associates in the branches and talks with them one-on-one.

Jack Howell, Senior Branch Manager in Aventura, Fla., found Rodger's visit particularly gratifying.

"When Rodger visits, he usually asks open-ended questions, such as 'How are things going?' and 'Any particular concerns?'" Jack said. So Jack jumped in, saying the computer systems seemed to be running slowly.

"Rodger mentioned that he had received the same feedback from other managers in the area and stated he would look into it upon his return to St. Louis," Jack said.

"Shortly after, we all got an e-mail from networking informing us that Rodger had asked them to look into our problem and they were upgrading our T1 lines to "Full" T1 capacity levels. Once the upgrade was complete, which took about a week, the difference in speed was dramatic.

"This has always been my experience with Rodger. He has a sincere interest in the operations of the branches and when he finds an issue and says he'll 'look into it,' that means he will see it through."

Focus Group discussions can include topics ranging from popular customer requests to minor, time-saving suggestions. Andrew Gardner, a Branch Manager in Encino, Calif., was a Focus Group leader could easily list a dozen ideas that Scottrade adopted in 2008 or has under consideration in 2009. Some are relatively simple, but effective, like a "What's Working" Web page where branches share ideas on what has helped them grow their business. Others are more ambitious.

For instance, Andrew was involved in an effort to allow investors to transfer money online from their personal accounts into a Scottrade account. Previously, the company required new customers to mail or bring in a check. In some cases, that meant accounts never got funded or would remain dormant for weeks or months. Now the transaction can be done from a customer's home and trades can then be made immediately.

The Focus Group Web site on The Insider displays lists of all proposed ideas and tracks their status. On the Focus Group home page, an Ideas Completed Recently section lists all of the suggestions that the Focus Group brought from a branch all the way up to top management — ideas that are now a reality at Scottrade.

Any Scottrade associate who has an idea to contribute can first look on the Focus Group Web site to learn if someone else has already submitted that idea, and if so, see its status.

Keith Parmley, Branch Manager in Southlake, Texas, remembers being hesitant the first time he participated in the Branch Manager Focus Group held quarterly in St. Louis.

"I had always been terrified speaking in front of people," Keith said. "Now here you are with more than a dozen other branch managers and you are putting your neck out there."

The Focus Group is a committee of 15 managers who represent the branch point of view to Scottrade management. Each of Scottrade's geographic regions elects one branch manager to represent them as a Focus Group member. Because the members are elected by the branches themselves, and not hand-picked by home office management, branch associates know the Focus Group is genuinely advocating for their needs.

Each quarter, the Focus Group meets at the home office in St. Louis for a two-day session to bring questions, issues and ideas to the table, discussing them with the home office managers in an open forum.

"Everybody here at headquarters makes themselves available when the Focus Group comes," said Jane Wulf, Chief Administrative Officer.

When Keith got up to speak at his first meeting, he found a welcoming environment. "Within 15 minutes," he laughed. "I was the loudest person in the room. During my three years on the Focus Group, they couldn't shut me up."