Carly Jacobsen has been hired as the new CEO of Argosy Bank. Argosy Bank is based in Detroit, MI and is heavily oriented towards consumer lending (as opposed to commercial lending to businesses, financing real estate, etc.) Argosy has a long history of providing basic banking services to people of all socioeconomic backgrounds all across Detroit, with their biggest revenue generator being consumer mortgages. Argosy emphasizes being a part of their Detroit neighborhoods and convenience - they have more branches than any other bank in Detroit. Most Argosy branches are very small - 2-3 tellers, a lending officer, and a branch manager are the staff working at any point in time at each branch. One of the common values that connects all Argosy Bank employees is a strong desire to serve individual consumers in Detroit, and the branches and company have a strong customer-oriented focus.

In the last five years. Argosy's revenues and profits have dropped significantly. The numerous branches result in higher than average Argosy Bank's operational costs, and young consumers seem to value having a branch nearby less as online banking becomes more popular. The rising number of young people graduating from college in Michigan with large amounts of college debt (Michigan public higher ed is among the most expensive in the US) means that many recent college grads are unable to purchase a home because they are saddled with debt, so the number of mortgages made by Argosy has precipitously declined and is likely to remain low.

Carly Jacobsen initially seems to be an unusual choice to lead Argosy. She has no prior banking experience. She has recently served for five years as a marketing executive at Facebook. Some of the executives who were passed over for the CEO position were perplexed by this decision, but the President of Argosy Bank's Board of Directors said it best when she said "Ms. Jacobsen was selected because is also committed to serving all of the consumers of Detroit. She has a strong history of leading the employees within Facebook to achieve their values. She is absolutely the right person at the right time."

• PART 1:Ms. Jacobsen will likely be called upon to address all five leadership challenges; however, which one of the five leadership challenges is she being hired to address FIRST, and why? Be clear in your answer - don't say "it's this challenge and that challenge" - there's one clear answer of a leadership challenge she should start with.  
 
• PART 2:Once Ms. Jacobsen has addressed the leadership challenge listed above (or at least started the process of addressing it), there is a second leadership challenge that she will need to meet next in order to make Argosy Bank more competitive. In her interview with the Argosy Board of Trustees, Carly Jacobsen said,
  • "Argosy Bank has always been a proud member of Detroit neighborhoods. But increasingly, there are larger percentages of young people that are "unbanked" - they have no bank at all. They take their paycheck to a check cashing store and pay a fee just to obtain the money they worked hard to earn, then either pay cash for everything or use a credit card that is paid with a money order (another cost).That's not right.
  • "We need to use a combination of social media, street marketing, and some federal resources to get every person over 18 years of age in Detroit to have a bank account. We also need to embrace short term loans - an area currently dominated by unscrupulous payday lenders.
  • "Banking is the next civil right - the majority of the unbanked in Detroit who fall prey to these lenders are people of color. Argosy can become an engine of economic change in Detroit - we'll get these people into our bank accounts, support them with small loans when they need it, educate them on how to manage their finances, issue micro loans for people who want to start small businesses, and get the state and federal governments to fund most of these costs. By doing this, we will revolutionize banking in Detroit - we will grow our own customer base and build our neighborhoods one customer at a time. As a trusted community resource, Argosy is the only bank that can do it."

Which ONE of the five leadership challenges from Kouzes and Posner that best describes what Ms. Jacobsen is addressing in her remarks given to the board?