The Art of Strategic Partnerships for Business Success with Brad DeNardo

Welcome everyone to another episode of Mastermind Mastery. This is the podcast for you if you are wanting to create or already running peer groups. It's what we call PACs, Peer Advisory Councils. They might be known as mastermind groups, CEO peer groups, all the same. But this is the podcast if you want to run better PACs. That you want to be better at being a moderator, you want to up your game, learn advanced techniques, hear from myself as well as guests, what works, new concepts, trends, techniques. Also learn content, things you can take back to your meetings, um, different ways to do different things to solve problems that we all have when we're running groups. It will increase your retention, reduce your attrition, get you more members, make you more money. This is the podcast for you. I'm Tina Corner Stolz, the host. I've been doing this since 2005. I built a territory of 10+ groups, sold for a multiple, started Ellis Council Leader Exchange Council in 2012. We are a licensing model. We are the leading educator in the peer advisory council space. We have the podcast. I have a licensing program with certification. I've written 2 books. So today, when you hear this episode, each and every week it's a new podcast where we dive deep into a topic for 15-20 minutes. One week it's me doing a deep dive on all the experience and insights from not only today with our entire licensed partner community or the past, um, what I've learned along the way, but we also have guests that are out there doing groups today that share their insights and new concepts. So let's get started with today's episode. So welcome everyone to another episode of Mastermind Mastery. I'm Tina Corner Stolz, I am your host, and today we have a guest, and this is a different kind of guest. So it's actually the first time we've had a guest like this. So do I have your guys's attention? This is also one of my most favorite guests because I've known this person for I don't know, over 10 years. And when we started to work together, I couldn't have been more thrilled because it was at the beginning of when I started Alex Council. And I'd like to introduce today Brad DiNardo to the show. And Brad is President and CEO of National Bank. Brad is out of Blacksburg, Virginia, which by the way, if you guys have never been there, is a— maybe I shouldn't tell them, Brad, where it is.

Yeah.

So you can keep this great secret.

Just, just where Virginia Tech is. You can tell them that.

That's good. And so, Brad, welcome to the show today. Thank you. Absolutely. And we're going to talk about the concept of strategic partnering. And this concept is near and dear to my heart because I believe it is a critical value-add kind of secret, you know, ammunition for your groups when you're running groups. And I am so happy that Brad has agreed to be on the show today to share some of that with you all as an audience and get you thinking as your key takeaways today as how can strategic partnership fit for you with the type of groups that you're doing. It'll be why and the value and what it— and what does that actually mean. So, Brad, before we get started, anything you want to talk about? Because I just, I think it's kind of important, a little bit about National Bank. What do you guys do? You know, who do you cater to? Because you do a lot of work with business owners.

Yeah, we do. Yeah. Tina, thank you for having me today. It's been a great partnership. We're about a $1.7 billion bank. Headquartered in Blacksburg. We're pretty much totally concentrated in Southwest Virginia. We have 24 offices, soon to be 25. We're building one and we're actually soon to be 28 because we're building one and then we're buying a small bank that will— that purchase will close May 31st. So we'll have 28 offices, plus we have 2 loan production offices. So we're growing a little bit. And we were a $58 million bank when I joined many moons ago, long before Tina was born. And so, and we grew up by catering to small business and that's how we grew. I bet when I first joined the bank, I was out of the office 5 or 6 hours a day just calling on small businesses. And that's how we've grown. We deal a lot with towns and counties. We have a lot of municipal accounts. We have a lot of churches, a lot of schools, but it's mainly small businesses. So that's kind of how we grew up.

Yes, I remember before meeting you, It was a branch and I drive like a couple of blocks, I felt like, and there'd be another branch. And then I drive just a couple more blocks and there's another National Bank branch. I'm like, you guys are like the Starbucks of banks. Like you're just everywhere in the market.

Yeah, we in Blacksburg, I think when you joined, we had 6 offices in Blacksburg. We've reduced that to 5, but Yeah, we, you know, we've got a pretty good share of the market here. So, and in the county.

Yes. And actually, I'm going to underscore that for our audience because we're going to come back to that about what Brad just said. He has a big share of the market. And so back in 2013, when we first met, I came to you with this concept of strategic partnering. For the CEO groups that were launching and meeting already there in Blacksburg with your moderator, Henry Bass. And the concept was that you would be a partner. And what in the world does that mean? And the concept was, is that the groups would be in your location. So they come to the bank on a monthly basis so that they get right? They feel like, oh, I'm coming to the, to the bank and I'm getting used to being in the bank and I'm seeing someone from your team or you like on a regular basis, etc. And so basically it's kind of like you're sponsoring a group because you get, um, not only good— I lack a better word— PR from these business owners and showing them that you are, you know, supporting them through this concept in the community, and then you also speak to the group as well on a regular basis. So I kind of want to start from the beginning a little bit of what kind of stuck out to you as to why it would be a good idea to partner, you know, as a strategic partner. So back then when we were speaking, kind of what was your thoughts about, I think this is a good idea? Why was that?

Well, you know, it, uh, You know, I didn't go into it with an ulterior motive of trying to get anything out of it. It just seemed like a great concept to be able to get CEOs in a room without their banker in the room and talk about their issues and how to solve issues. And as a as a community bank and community banker, I just thought that was, you know, one of our roles to be able to be a sponsor to that kind of thing. So, you know, I didn't expect to get anything out of it, to tell you the truth. I just thought it was a neat concept. We were able to host the meetings in our training room, which is a big room. Maybe a big double room. And, you know, I just thought it was a very neat concept that would, would help the CEOs talk to other CEOs confidentially.

Yes. And actually, I'm going to ask this question. Had you ever even heard about the peer group concept prior or participated in one from a banking perspective?

You know, banks have quote unquote user groups with certain vendors, especially like our core processor, but nothing, well, no, I take that back. Maybe a little bit before that, we had participated with bank CEOs in kind of a similar concept. But the problem there was, you know, you're talking with competitors and although you could kind of lay some of your laundry out, you couldn't lay all of it out.

Right.

And or didn't want to. So had, you know, a little bit, but not, not to the degree that LX is.

Right. So I kind of commend you because you kind of went into this just believing from what you just said that it just seemed like this is going to be a smart thing to do. And so can you now share with our listeners what has your experience been like partnering with an elder law counsel group there in Blacksburg?

Well, I will tell you, I now go to the meetings once a quarter and make a little presentation about the economy or actually even drill it down and tell them about some things happening with our bank. I told them about the process of going through this merger that we're working on right now. We were involved in a proxy contest last year in 2023. So I told them about all the trials and tribulations of that. But a lot of it is centered around what's happening in the national and the local economies. You know, it's actually fun. You know, I have to prepare because there's a bunch of smart people in there. They're a lot smarter than I am. So they ask good questions. So I have to prepare for it. But it's fun. They, they throw stuff at me that I've taken back to the bank and and used or thought about. And I said, huh, I never thought about that before. Things like that. But it's, it's the interaction is a lot of fun for me now that, you know, that we've gotten, you know, early on I was nervous as heck presenting to all these smart people. But, you know, we've gotten to know each other and they look over my weaknesses and that kind of thing.

But They're always so modest. Yes.

No, it's been, you know, it's been very interactive and hopefully it's given them a little bit better insight into banking. I've learned a lot from them and has helped us some on the, you know, in the community that, you know, hopefully they think better of us 'cause, you know, we might need 'em as customers, as just ask their opinion about stuff and things like that. So it's been real helpful.

So this makes me think of a couple of things based on what you just said that I bet is going through our listeners' minds right now. I wanna go back to first when you talked about sometimes you've taken away some things and gone back to the bank. Is there a particular thing that you have taken back to the bank that you can share with the audience that you're like, hmm, they brought this up and it made me go, I got to take this back and we got to have a chat about it?

You know, I can't think too far back, but I can go back to say first quarter of last year or maybe either— it was either the January meeting or April meeting of last year. In March, you had the, the 3 banks fail basically because of the run on deposits. And we were talking about that and I told them what happened. I had just given a little presentation to our board about what happened, why it happened, how that affected us, what we were going to do about it going forward. And, and The one thing that hit me, one of the small business owners in there mentioned how he had been investing in Treasuries. And, you know, it kind of hit me, you know, I would not have ever thought that he would be the kind that would invest in Treasuries. And but an awful lot, billions and billions of dollars flew out of the banking system into money market funds late in '22, first quarter of '23. And it just kind of really hit me that— and there's a lot of people you wouldn't expect that are moving their money to get better yields. And that really hit me hard. And so took it to heart and used it as an example in talking to our people and don't assume anybody is going to stay with us because they like us. Now, you know, we always like to have very loyal customers. And yes, I truly believe that there's only one bank people should bank with. But, but it taught me that anyone can move their money and how easy it is to move their money. And yeah, that taught me a good lesson.

You know, so what's interesting is not only in these conversations you're having in a confidential environment, how confidential and comfortable not only do the members feel about saying things to you over time, right? To share that insight, but also you. I mean, that's phenomenal about some of the conversations that you're sharing with them that they're not going to get anywhere else. So. Right.

And yeah, I mean, during that period, I gave them the same talk that I gave to our board. Same one. I mean, I used the same notes. I just took the notes in. So, I mean, they heard the same thing. So, you know, I want them to hear stuff that they probably wouldn't hear on the street. So, yeah.

Which is huge value, huge value, which then brings me to you have also clients in the room and prospects in the room. And kind of for our listeners is for you all thinking that here's a strategic partner that is giving really amazing insights both into the existing, existing bank that he represents, CEO and president of, but also just in general and comfortable when a client is in the room as well as even a prospect. And, you know, how has that been for you? Just kind of nondescript and you don't give it a second thought that you're comfortable, you see the value in it, that it's part of building a relationship. I mean, kind of what are your thoughts about the fact that here you are talking both to clients and possibly non-clients, which are actually prospects in the group?

Well, I will tell you, I think of it every time I'm in there. I mean, I know who the customers are and I know who the customers aren't. But, you know, I've always tried to separate in the sense that I've never directly solicited anybody in there, you know, in the meeting or outside of the meeting for banking services. I just think that's not the point of the council. So I've never done that, but I think it has helped our presence and our reputation. So I don't think I've turned anybody off and made them not like us. And so I think that's actually helped our reputation a little bit in the community.

I will underscore that, that it definitely— I mean, you all have a stellar reputation to begin with. And that it just continues to underscore it because so many business owners do not have the opportunity to have access to the CEO and the president of the bank, whether it's their own bank or just any in general, and actually feel comfortable with that. So much how you said you're kind of nervous in the beginning, you know, well, I'll tell you, they're nervous that you're even in the room. As well. So believe it or not, uh, because banking makes them nervous, and, and it makes them nervous for all kinds of reasons. They don't know what they don't know. They don't know what happens on behind the scenes. They think you're the Wizard of Oz, and that, you know, what happens with a loan when I ask for a loan, and what happens, right, with, uh, just generally how they're— how they get evaluated for lines of credit and things like that. So it's, it's mutual, and by being there on a regular basis, you're developing a relationship of trust and confidence that helps promote that in such a positive way. Yep. So as we come, I know, towards the end already so quickly, is there anything that you would love to share to the audience that we haven't talked about, either some of the other benefits that you've seen from being a partner, or before I ask you the other question of any any advice that you would give to any of our listeners who are approaching maybe a commercial bank, what they should take into consideration when talking to the president and the CEO. But before I do that, is there anything else to share about your experience in being a strategic partner with Henry's Group?

Yeah, probably not any more than what I've already said. I mean, the one thing that has been nice is We and I already had a relationship with Henry Bass, the moderator. So, you know, that certainly made it a lot more comfortable. And that, you know, so I knew if Henry didn't like something, he'd tell me. And if he liked something, he'd tell me. So, and we, you know, we really don't have much dialogue between the meetings, but You know, if he wanted something in particular, he'd send me an email and maybe I should talk about this or talk about that. And sometimes I like it, sometimes I don't like it, and I do whatever I want to do. But, but Henry understands that and gets that. And so that's been really helpful. Yes.

Yeah. Because he's kind of going to know what a little bit sometimes what the his members want to hear about.

Exactly. He hears that part that I don't hear. So yeah.

Yeah. And then of course there's also an aspect of what they should hear on top of it all. But so what would your insights be to someone like Henry, you know, approaching another, you know, a CEO in their area that's in commercial banking that could help them do so in a more successful way if that's who they're looking for to try to partner with?

Well, I think the big thing is, and that'll go back to what I said the first time with your first question, is just think about the benefit to the community, because that's, to me, is the main, main reason we're doing it. And I think that's why any banker ought to be doing it. Anything else Any other benefits you get from it's just kind of gravy. Just look at what— how you're helping the community.

Excellent. Love that. Because that's an alignment of values, because that is actually why most moderators like Henry are even running groups to begin with. So it's always about giving back and helping. And, you know, the community grows and as a result because as those business owners grow and are healthier by being in a group, they become a more profitable client, but they are more profitable to put back into the community through their employees, etc. So it's right, always full circle.

Yeah. And you can see the benefit that the members are getting from the council in that at least in the two groups that we sponsor, there's not much turnover. So and they're there and, you know, one group's a Monday morning group. So, you know, you get up Monday morning and this is what you do until 12:30 or whatever. But they're there. And that to me shows the the benefits they're getting from it, that it's very beneficial to them.

Right. And their commitment.

Yeah.

Yeah. Well said, Brad. Thank you. Great insights and takeaways for our listeners today. Just not only the strategic partner concept, but you can hear from Brad about, you know, really in the heart, like what is a right fit. And so when you're talking to a potential strategic partner, you should be listening for what Brad just said, because that's what's going to make it a long-term relationship. Partnership and true win-win partnership. And Brad, if anybody wants to reach out to you, especially if they might want to become a client of the bank or just to talk to you in general, how can they reach you?

Well, I'll give you both a phone number and an email address. Phone number, this is a direct phone number, 540-951- 6213, and then email is bdenardo, and that's d-e-n-a-r-d-o, @nbbank.com.

So everyone, when was the last time somebody like this gave you their direct number? All right, that tells you, all right, what How Brad thinks about doing business. So there we go. So Brad, you know, thank you so much. Always great to see you. Appreciate your time and sharing your insights with our audience. And so for all of you out there, yep. Um, until next time, we will see you next week on next week's episode of Mastermind Mastery and go make it happen. Hello listeners. And this is a quick promo because we have our national conference Live Exchange 2024 coming up in October in St. Petersburg, Florida. One day you can attend for a mere $500 and interact with your peers, others that are running groups, network with them, find out best practices, all those challenges that you're having, get insights that can help you personally in addition to hearing a phenomenal list of speakers. I will open up that day with some insights in regards to moderating, and it will turn it over to Vern Harnish, who, if you do not know him, you know, he's the one who founded Entrepreneur Organization. He understands peer groups extremely well, and he runs Scaling Up. You will take away phenomenal information that will help you run your groups, not only to scale your own practice, but to help your business owners in those groups with the content Vern is going to share. You will also hear on two other subjects, one about the importance of preparing your members for exiting the business, whatever that transition may be, and how do you do that? You will also hear about making change. How do you manage change? How do you facilitate change? which is required in today's environment. Again, content you're going to be able to take back to your groups and use yourself. And last, we're going to end it with Horse Soldier and 12 Strong. So if you don't know that story, that is the 12 soldiers that went into Afghanistan on horseback prior to us invading Afghanistan. You will hear their story about leadership and how they have transitioned that into a phenomenally successful bourbon brand called Horse Soldier. And you will hear how they have scaled that business. And we will end the conference with bourbon tasting. Again, a very packed day. I encourage all of you, if you are serious about your own personal development, I will see you and I will love to meet you personally October 18th in St. Petersburg, Florida. Go to our website and you can get all the details, see the details of the agenda, and register. Thank you everyone for listening to another episode of Mastermind Mastery. And to get access to today's episodes, not only the show notes but any tools and resources, encourage you to— not only will you find them in the episode show notes, but also you can go to the website www.lxcounsel.com, so lx counsel dot com, and you will find a plethora of articles and content and tools and resources and worksheets and things like that that can be helpful to you in creating and running successful packs. I want to leave you with one thing that we end and teach to do in every single meeting, and that is the very last thing is to ask, what is your takeaway from today's episode? I encourage you to give that thought. Take advantage of the time you just invested in listening to the episode, and what can you do to move one step closer to the vision that you have and the goals that you're trying to achieve with your groups. So again, take a step back. What's your key takeaways? What can you actually act on? And I leave this with one note, and those of you that have read my book, Your Seat at the Table, you know that I ended the book with a story about my mentor. He always, when he met people, had a pebble in his pocket that he passed to them when there was knowledge shared. And so I ask you today to think about that pebble concept. And to pass what you learned today on to someone else, which could be your members, or take it internally to yourself and act on it. So now go do something with those takeaways.