First Republic Bank – Was Empathy the signal in 2018?
Net income at First Republic Bank looked pretty good for a long time. Empathy mindsets gave up the game starting in 2018. The green line represents empathetic leaders. Hiring empathetic leaders at First Republic has been cyclic until 2018. Then, it went in full decline. Was this a sign?
By the time the game was up most of the empathetic leadership were gone.
What is an empathic leader mindset? An empathic leader or Individualist is a modern leader mindset characterized by a focus on personal values, autonomy, and self-expression. Individuals with an Individualist mindset tend to prioritize their own needs and desires, often taking an independent and creative approach to problem-solving. They value authenticity and uniqueness, and are often willing to challenge conventional wisdom and authority. However, this mindset can also be associated with a tendency towards self-centeredness and a lack of concern for the needs and perspectives of others. High levels measured in the Stealth Dog Labs system include The Pope and Lord Gibbons.
Was is this a sign that First Republic was in trouble? Clearly something is here. You still had sufficient results driven mindsets focused on net profits but something clearly was wrong and dark. In the future I will pay more attention to sharp declines in empathetic mindsets. Well they might not be the easiest people to work with, when they leave it might be your canary in the coal mine.