Tag Archives: Transformation

Banks Have Arrived At A Gazpacho Moment

A few years ago, I went to a reunion of my Cass Business School MBA class. Immediately on seeing me, one of my former classmates started laughing. I was, of course, puzzled and asked him what was so funny. He apologized for his outburst but confessed that, in the past several years, he had, on several different occasions, taken great pleasure in telling some of his friends a joke about me.

I will share that joke with you. Continue reading

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9 Point Plan For Transforming The Banking Industry

The banking industry needs to be transformed in order to save it from itself. Despite the protestations of governments, regulators, public and the media that change can only come from within (spare us another thousand useless regulations). Here is how it should be done.

Another banking scandal, another inquiry, another band-aid and so we will continue until the next scandal, another inquiry and another band-aid. It is a depressingly familiar sequence of events.

The problem is that while governments, politicians and regulators are beginning to realize that transforming banks is about values and culture they still believe that that transformation can be legislated and/or regulated.

This blog has stated several times that transforming the industry can only be accomplished from within and that it must recognize the human issues and behaviors involved. The plan below consists of a series of assertions, 9 in total, as well as the rationale for these assertions.

The proposed transformation is comprehensive in that it covers every aspect of the human ecosystem within which banks operate; managers, employees, customers, suppliers and the wider community, the environment within which they operate and the behaviors which motivate them.

This is why the transformation is described as a human transformation and the transformed entity is known as The Human Asset Bank. This is what banks must do and preferably sooner rather than later.

The Human Asset Bank

Continue reading

Clearing The Bull on the Financial Crisis – Part III

This is the third in a three-part series of articles on the financial crisis. The links for Part I and Part II can be found here and here respectively.

A New Strategic Business Model – The Human Asset Bank

Our analysis in Part II demonstrates that the financial crisis was from beginning to end about human failings and the values, or lack thereof, which gave rise to those failings. As such, an appropriate remedy must be based on the human ecosystem that surrounds each bank and the industry as a whole.

I call this human ecosystem of banks and the values necessary for them to achieve economic and competitive sustainability The Human Asset Bank. However, the change we seek can only come about if banks, and the industry as a whole, show wholehearted and genuine commitment to making such a change. This is entirely consistent with our opening proposition in Part I – that more legislation, more regulations, more governance and more controls are not what banks need.

Thus, a commitment to change and to The Human Asset Bank would be as follows: Continue reading

Clearing The Bull – The Subprime Crisis Was Not Just About Banks

Western society is now facing economic challenges that, until recently, were almost inconceivable. Budget deficits, austerity measures and overall economic decline, in both relative and absolute terms, all appear to be the order of the day.

As a consequence, the liberal democracy which the west has held aloft like a prized-possession for so long, is also now under threat. Greece and Italy are being run by appointed technocratic governments, the EU suffers from political gridlock and the US political system is in rigor mortis.

Most people will either think or want to believe that all this has been triggered by the banks and the subprime crisis which they brought about. However, this is not entirely true. As a matter of fact that would be putting the cart before the horse.

History tells us a slightly different story—and that is that almost every major banking or financial crisis of the past 40 years has been accompanied by great economic and political issues and events that in many instances have had a global impact. The subprime crisis was no different.

This is just one example of what Clearing The Bull is all about. The book looks beyond the conventional rhetoric and belief systems to not only better understand the nature of financial crises, but also why banks need to do a much better job at managing both their internal and external environment.

Available for pre-order!