Big city dwellers, accustomed to multiple locks and their accompanying keys or combinations, know that access sometimes takes more than a single key.

Opening the door to an effective competitive intelligence system is much the same.

It takes three keys:

The door knob lock, which represents collecting competitive information;

A second to unlock the interior slide lock, representing sharing that data; and

A third for the dead bolt--using competitive intelligence to your benefit.

When you have all three keys and the locks are in good yorking order, you're in. If you're missing one key, the other two are useless. It's the same with gathering and trying to use competitive information; it's of little value unless you share it within your bank. If the "dead bolt" is rusty, you're out of luck, too. Gathering and sharing competitive information won't pay off until you use it effectively.

As you evaluate your bank's compecitive intelligence system, this lock-and-key analogy may help you develop just the right combination for your bank and market.

THE DOOR KNOB LOCK: COLLECTING COMPETITIVE INFORMATION

Before you focus on what information you'll gather about your competitors and from where, consider who in your bank will be involved in the process. Obviously, the sales and business development staff will be, and sales managers will play important roles in gathering that information. But don't leave all the work to them.

Others can be valuable eyes and ears in acquiring data for your bank's competitive intelligence: members of the board of directors, officers, new account personnel, tellers, customer service representatives and, of course, your marketing department. While calling officers take the formal lead in gathering competitive information, every bank employee is in some position to learn or hear about competitors.

What kind of information do you want to collect? Where can you find the information that will enhance your competitive intelligence? Some sources, you should try are:

* Current competitors; * Public records; * Media: publications, broadcasts and contacts; * Community organizations; * Referrals; * Prospects; * Other local sources; and * Your most-valued customers.

INFORMATION DIRECTLY FROM CURRENT COMPETITORS

Don't be shy about watching what your competitors are doing, and not just other banks, but mortgage companies, credit unions, stock brokers, financial planning companies, credit card companies, retailers offering credit cardsl and even che telephone companies that now offer credit cards.

As you identify today's competitors, keep in mind you also want to know what tomorrow's competitors are up to, too. Think ahead a few years to who your future competitors are likely to be.

Monitor your competitors' promotions, community activities, new product announcements, communication styles and image. Stroll through their lobbies from time to time--your eyes and ears are incredible sensory devices! If you've hired an employee who worked for a competitor, spend some time debriefing.

PUBLIC RECORDS

While public records are usually the first (and sometimes the only) source checked by many bankers, they're not necessarily all that valuable. That's because mortgages that others have already made are business you've missed. Your competitive intelligence is best sharpened by information gained before sales are closed.

Don't overlook these public records, however. You may identify various trends; for example, a developer that seems to be expanding its presence.

MEDIA: HEADLINES AND BETWEEN THE LINES

Publications, broadcasts and media contacts yield a wealth of competitive information. Read, watch and listen to your community's main news sources.

Make a point of meeting business reporters and develop lines of communication with them. They are eager for news sources and contacts they can call for explanations of financial matters. Developing this relationship assures you'll be called when stories are put together, too. And often casual conversations can tip you off to something you might not learn elsewhere.

Besides the publications pertaining to the banking industry, read other trade periodicals, such as those for direct marketers, telemarketers and insurance companies. You'd he amazed how many success stories and case histories are profiled in these publications, and how much competitive information you can gain from those articles!

KEEP YOUR EYES AND EARS OPEN IN THE COMMUNITY

Maximize your community involvement!

"But," you're likely to say, "we're already well-involved in our community. We have bankers on all the boards in town, at the chamber functions and every other business event in town."

That may be true. Bankers are exceptionally committed to creating a presence in the community and getting involved. But are your bankers using those opportunities to the bank's best advantage?

How many times do you see a cluster of four of your employees sharing a single table at a local group's breakfast meeting, for example? now imagine how much more effective your competitive information gathering would be if only one of them sat at each of the four tables? Small talk with colleagues is nice, but not when here's an ideal opportunity for boosting your competitive intelligence. Again, eyes and ears are incredible information collectors! Encourage your bankers to use them.

Another tip: teach your bankers the fine art of open-ended questioning. Think back to the last time you were interviewed by a good reporter. Did you get to answer "yes" or "no" to any questions? Not likely. Encourage your bankers to get others to talk by asking questions that encourage the responder to describe, speculate, explain an ansmrer. Or simply say, "What do you think about...?"

REFERRALS ARE GOOD INFORMATION SOURCES

Another great source of information about your competition are the same people ou seek out when you're looking for a targeted referral. Ask them what other banks are doing. Ask them what other banks they've referred people to. Ask them why.

Your referral contacts might include real estate brokers, accountants, layers, business executives, chamber members and other professionals.

PROSPECTS KNOW PLENTY ABOUT YOUR COMPETITION

People shopping around for bank services are a wealth of current information about your competitors! Ask vour prospects what they've found and what others are offering. Ask them what their perceptions are.

CUSTOMER ADVISORY COUNCILS AND OTHER LOCAL SOURCES

While you're asking your customer advisory councils for input on your services and products, find out what they know about your competitors and their services and products. Depending on your community, there may be a number of other local sources that could prove to be valuable spots for competitive information.

Maybe it's the booster club for the local university sports teams, an organization that draws top business leaders or even the committee that puts on the summer Main Street activities. The places and activities drawing your sources for competitive information are where vou want to be--with your eyes and ears open.

BEST INFO SOURCE: YOUR MOST-VALUED CUSTOMERS

Your most-valued customers, of course, are absolutely your best source of information. You don't need to talk to all your customers, but to those customers youpe identified as your most-valued, those those business you intend to work to keep.

You might be startled by the thought of asking your most-valued customers about your competition. "Wouldn't this put ideas in their heads?" Nonsense. If you've built a good relationship, your customers aren't going to give that up because you "put ideas in their heads." They might, however, leave because the competition put the ideas there and cultivated them while you ignored the need to build and sustain a relationship with them.

Your most-valued customers are likely regularly approached by your competition, so they can often provide important competitive information. Ask them questions such as: What financial institutions have called on you? Why were you interested in the appointment? What did the competitor say that appealed to you? What products or services were offered?

ASK HOW THEY'RE COMPETING, TOO

In gathering information, you also want to know how these other institutions are competing: is it in price, quality, service, availability or utility?

As customers take the center spot in today's business world of total quality management, more than ever before it's essential to know how your customers are being approached, lured and kept by competitors.

The answers your most-valued customers give you will also tell you what they currently value, keeping you on top of their needs and wants and keeping your strategic planning focused.

Listen during planned sales calls. Listen at the tellers' windows. Listen during telephone inquiries about rates, balances or banking hours. Listen as new accounts are opened or existing accounts closed. Find out:

* Why did they choose your bank? * What do they think of other banks and financial institutions who are your competitors? * What dissatisfied them at their last bank? * What will be important to keep them satisfied?

THE SLIDE LOCK: SHARING COMPETITIVE INFORMATION

This expanded source list should set you well on your way to gathering abundant competitive information. Gathering it, remember, is just one key in a three-lock door.

Information is useless unless it's shared with those who could benefit from knowing it. This is where sales managers olay especially important roles. They serve as the debriefers who draw out and gather up all the information that your bankers will learn at chamber meetings, on sales calls and at the teller window.

Your marketing department is likely a good choice as the ultimate point for gathering all this information, assimilating and disseminating it. Pulling together sales call reports, board members' comments about what they've been hearing and a teller's exchange with a most-valued customer may add up to a significant bit of competitive information.

You may be able to spot a pending release of a new product and tip off your product development people before your competitor can get the edge on you. Have several agricultural banking customers mentioned repeated visits from a competitor, signalling a potential threat to your agricultural banking niche? Are other institutions moving in with innovative pension plans or payroll services?

Let the right people in your bank know what your competitive information adds up to. Share information both from senior management and from the front line. Make competitive information gathering and sharing an agenda item at every sales meeting.

Your information gatherers won't be making judgments about what they read, see, hear and learn. They'll simply be passing the information on. As information from various sources comes together, someone in marketing, or whatever department you designate as the collector/analyzer, may suddenly say, "Aha! I know what they're up to!"

In that moment, competitive information becomes competitive intelligence. As the information is assessed, you may discover that the waves were all created by one energetic banker out to make a name or a spot, but not necessarily with the backing of the full force of the competing bank' in terms of strategic planning, focus or goals. You may spot a task force or loose coalition of branch managers at one of the banks out to win a sales contest. Or you may discover a major bank thrust in time for you to get the jump on them.

THE DEAD BOLT: USING COMPETITIVE INTELLIGENCE

One last lock to go, and you'll enter the door to competitive intelligence! The final key is using competitive intelligence.

If you master data collection and eveone in the bank finds out every bit of information you gather but you never act on this information, you're still locked out.

How can you effectively use competitive information?

You might generate specific action. Knowing what your competition has on the ont burner may be the signal for you to initiate a program or product you've been developing.

Competitive information is invaluable in guiding product development. One caution, though: don't rush in with "me, too" products when you hear your competition is releasing something new: Nor should you keep "oldies but goodies" around just because another bank recently added that product to its offerings.

Ask yourself if your most-valued customers want or need that product. Make sure the product fits with your strategy before you say, "me, too" or "stay a little bit longer." Rather than copying what another is doing, your competitive intelligence may help you put the perfect spin on an adaptation that your competition missed.

Competitive information is also critical information in helping you determine and sharpen your market focus and long-range strategies. What niches are left unserved? What can you do to assure loyalty from your most-valued customers? Sometimes knowing is all you'll have to do, because your post-information-gathering assessment confirmed you're on the right track. Other times, the information will spark new ideas.

But before you can make informed decisions, you must unlock the door to competitive intelligence. First key, collect information. Second key, share what you hear, see and learn. Third key, use it. And you're in.

Janet. Myers is president of Dearborn Business GrouP, West Lafayette, Ind.: (317) 583-2422. The management consulting firm specializes in working with bank executives on issues related to productivity, performance and profitability. Myers is also a frequent speaker, instructor and the author of Productive Bankers, Profitable Banks: The Grand Slam of Banking.