Which Bank is next?

In 2012 we have had Goldman Sachs with the Greg Smith Affair, RBS and the Steven Hester bonus saga. Now Barclays. I am at a loss of words whilst I am reading about Bob Diamond and the mess that Barclays have got themselves into in rigging market interest rates. The PR of the bank is lacking so much social awareness and totally out of tune with the mood of the general public whose patience is being pushed to the limit. For the CEO to say ‘I will not resign’ and blames a number of staff. Mr Diamond, permit me, you are the CEO. The buck stops where you are.  If he had any honour left of course he has to resign. In my view the entire board needs to resign and let us start the radical shake up in the banking sector that we keep on talking about.

After four years since the financial crisis in 2008 and after all that has happened with the bail out of banks at the tax payers’ expense and the consequential wider public suffering from the on-going current debt crisis; why have we not learnt our lessons? There are so many questions that we should be asking ourselves amongst these large and powerful organisations in the financial services sector. Let me think of some. Are banks there to serve their own needs and that of each of their own individual employees or the needs of their customers? How is their selection process when it comes to their recruitment intake in so far as their employees behave in such a way? Who is accountable when their very own CEO says he is not to blame but a small number of employees?  For a CEO to shift the blame is in itself a reflection of very weak leadership and of a weak organisation.

A re-examination of our very own values and moral conduct when we do business must be looked at and where action needs to be taken. A change in culture and mentality is the only way to re-instil our integrity and honour which are commodities that appear to be now rarer than ever. Of course this is very difficult. I know from my own past experience that where money is involved it is very hard to change. Let us see where we can make a radical shake up and provide some ideas on the practical side. Regulation as we can see does not seem to be working as persons with sub-par conduct in their characters will always find a way to flaunt it not to mention the extra cumbersome costs it fuels. No something more far reaching.

1. A radical review of bankers remuneration policy which ought to reflect more the current economic times and also more aligned to other sectors. This has to start at the top.
2. Ending the type of bonus culture that links employee conduct to short term gain. Moreover looking at eliminating profit sharing or fee earning amongst employee, senior and or partner pay.
3. A radical look at financial products which are linked to positions that encourage such conduct and behaviour.
4. A radical look at positions that allow persons to conduct themselves in such a way.
5. True character assessments in Banking recruitment intake. Annual re-assessments of employee work force to the very top. No room for sub-par behaviour privately and professionally as this is a reflection of the true nature of the person.
6. Or to sincerely follow up on the suggestion of the breakup of the banks and a return to a traditional service provider for the long term needs of their customers. After all the banks are service providers in simply safeguarding the assets of their customers. I am going to go so far as to question the principle of lending and whether banks should be encouraged to lend. Lending is simply fuels debt which puts individuals, organisations and countries at their mercy and into a spiral not to mention the increased duress it causes (as what we are witnessing with the Euro crisis)
7. Criminal prosecution to those who break the rules and are seen in manipulating the market for their own needs.

Why am I writing this? The answer is very simple. A radical shake up means that many jobs are going to go in the short term but that is better than the whole system collapsing in its current form. The system requires filtering. The apples which are rotten in the core need to go. In the long term jobs and growth will benefit. Short termism, and this obsession for profits for personal gain, speculative greed, selling of misguided products in the financial service sector is evil and it has to stop. The ‘quick buck’ mentality is simply foolish and is a reflection of human fear and finally making a gain from someone else’s misfortune is neither contributing nor adding value to anything at all. This entire culture has to stop. It is greed, it is intoxicating, and it is simply wrong. This has been proven over the last lost decade. The public know it and they have had enough. The change has to start from the top. An example has to be set from the top.

All this can bring in negative publicity as with this current Barclays debacle. The consequences and damage can be enormous. All hell can break lose. Confidence, synergy and trust evaporate. Many more jobs will disappear. Many good people will suffer. Many good bankers will suffer and endure a bad name because of the sheer foolishness and lack of integrity of others. Good people who worked very hard with their entire life can suffer simply because we have not changed or bothered to make that change in our culture. Most bright and intelligent people with honest aspirations to do well who feel they are really contributing and providing a service will feel totally let down. 

It really is time for real change before I am sure more banks will follow in jumping on the negative publicity band wagon and entering into an intractable mess.

Letter to The Times 19/03/2012

Dear Sir,
"In our view, we will only be successful if our clients are successful. This fundamental truth lies at the heart of how we conduct ourselves."

This is the statement put out by Goldman Sachs regarding Greg Smith resignation. I feel sorry for Goldman’s; they could be falling over their own sword. They certainly have a problem with their own PR and in my view lack a little social awareness. They appear to underestimate the mood of the general public who do not take themselves as fools. Let me try to illuminate more thinking to some distortion here and try to solve their problem which is clearly endemic and as I understand pretty toxic. Let’s start by taking some of the dressing off this opening statement.

As they are an investment bank, we can use the word money.  ‘We only depend on rich clients; that’s how we make our money.’ Let me go further and throw the word success into it with a bit of emotion. ‘We only depend on very rich clients, this is how we make a lot of money this is what we need, we are good at it and we want more. This is the fundamental truth at the heart of how we conduct ourselves.’ I think you see what I am getting at. Greed we have already learnt in a culture is intoxicating and I have heard it is getting worse. It is linked to my theory in business where we stop asking ourselves the ‘why’s’ and the ‘how’s’ but just do. The only ‘how’ we are familiar with; is how can we make more? Some of us are getting cleverer at it than ever before. I have seen this culture before amongst my former colleagues certainly in myself as a former Managing Partner of a leading Executive Search Firm which too mind you was ‘fee earning.’

The crisis of 2008 has now been four years, of which the lessons should be learned in our mentality, personal behaviour and conduct. Humility seems to be a rare commodity. By now I was hoping for a bit of common sense that we would see statements along these lines; ‘This crisis has taught us that we have learnt our lessons and we are deeply sorry of the past debts we have contributed to our governments and the effect it is still having on our wider society. After some soul searching we have had a fundamental shift in our own values, we now understand that with an organisation that is client focused we have had to change and attain a deeper sense of our own selves in each and all of our fee earning employees & partners. We have learnt finally to understand and serve better the needs of our clients which are the key to our future strength.’ This is the fundamental truth which lies at the heart of how we now conduct ourselves.

Do you see the shift?  It could take a while; change in mentality requires a change of heart which is a challenge particularly when money is involved. It would perhaps require change in the way they conduct business. One idea is dismantling the concept of ‘fee earning’ and introducing normal salaries at partner level. In general I believe the mood of the public is looking for a change and moreover demands it. Pride & stubbornness in persons who have the combination of wealth and intelligence are not easy to deal with. They don’t like to be told what to do. Particularly in a time when they were once used to it as per in our last growth period, they will do anything to maintain it. I have recognised this in myself and took me a while to understand. The pursuit of profit can be a good camouflage to our own weakness. The danger is we can view wealth as an innate right or as something delusional that somehow we are masters of ourselves when invariably we are the very masters of disguise. 

‘We must become the change we seek in the world’ Gandhi.

Yours sincerely,

A muppet

How do I get the perfect job?

It is a challenge to know ones unique talents and discover our hidden ones too. Everyone is born with them. As we develop ourselves in our careers and our private lives we begin to understand more fully what they are. We are then confronted with choices and decisions. Some of us lose sight of our talents if we make the wrong choices and decisions that we may (or may not) later regret. Others may be sleep walking into the abyss perhaps falling by the wayside. Some of us grow wiser as we make the effort to redeem ourselves, change then learn to rediscover them, as we realise it is all part of life’s experience. Some of us may even begin to understand who we are and why we are here. And others… are still searching.

In my last article I had put some important questions across on how to kick start looking for a new position and ideas on how to get an interview. For example ‘With my talent what contribution can I make where there is a need (and get paid for it?)’  But how does one get the perfect job? The reason for this question is that so often nowadays so many people, bright people; gifted people are in the wrong job or apply for any job, simply because a job is a job. Or how often have we heard ‘This is the job I want because the money is good’ or this is exactly the job for me because it matches my skill set.’ Take note skills are not talents. Talents are your natural gifts and strengths. Skills are the knowledge, expertise and know how you have acquired and developed throughout your career. It is often the case that the two are confused with each other. Yet it takes great skill to develop your talents. Without discovering them or tapping into them we run the real risk of being unhappy and dissatisfied in our job.

I spoke to a senior investment banker recently from the lending side. He was highly educated, intelligent and experienced of around 40 years of age.  Due to the on-going crisis and the continual banking problems, he described how the banks have been forced to take on so much extra costs such as: new regulation & controls, more audit and compliance. This has fuelled so much unnecessary bureaucracy. Deals are getting smaller, and therefore very cumbersome. He felt his talents were more and more compressed until they were simply quashed.

I noticed at the same time he felt trapped, financially too, and was unable to unleash himself. This soft voice crying out from within perhaps seeking a higher purpose yet feeling imprisoned whereby having no peace of mind. The older bankers from the baby boom generation seemed indifferent or aloof as they move closer to their retirement. With more than one secretary these persons were quite content, looking forward to their pension and playing more golf, seemingly undeterred by the banking mess they and their generation have left behind.

 

He described that he was not the only who felt this way and that it is a common phenomenon amongst the culture of bankers nowadays. It seems such a waste of talent in our world that great people with MBA’s from Erasmus, Solvay or London Business School, with so much experience and so much more to offer to get caught up this way, to have their aspirations crushed.

Aristotle said ‘Where talents and the needs of the world cross, therein lies your vocation’

 

This takes some courage to figure out. I emphasise again this importance of tapping into our talents and to link it to societies needs as it will provide us with a sense of direction, fuel our passion, unleash a drive and provide us with a sense of purpose. Take your time to re-think, listen to that ‘voice’ which is softly speaking through you and the answers will come.  If we can succeed in this challenge by then you will create a certain ease and a peace of mind and you will find a voice. You are ready to make that change and the step forward. You are ready then to conduct the ideal interview and for the perfect job. Your chances of success are high.

I remember there were times albeit rare in my career when I was introducing potentially talented individuals to employers seeking talent. In the interviews they came across as bright, totally at ease, at the same time humble and still able to sell themselves. They knew themselves well, had a focus and a sense of purpose. (A little humour is also good in interviews) Employers would give their feedback to me. ‘We want this person!’ they would say. ‘What do we need to do to get him or her on board?’ It seems ironic he or she had very little to do with the job description at hand. The employer felt the need to alter the job description considerable to fit this person’s needs and talents. Or they simply created a totally new position out of nothing. They knew that he/she would make that difference to them. They knew that he or she would add value to their company. It turned out that together they created the perfect job.

How can I get an Interview?

Essentially it is important to sit down, spend time to think and to try to attain a deeper sense of yourself. Start by asking yourselves several questions such as: how am I able to contribute something useful into our society? With my talents and interests how can I be of value to an employer? Where can I add or improve where something else is missing or needs improving in the marketplace?  How can I make a difference? What projects or initiatives does my conscience tell me to inspire me to take action?  Once we have come up with some answers, by this we can obtain a sense of direction, a focus and possibly acquire a passion, a vision and a purpose.  After which, well, we can begin to take some action.

Our next step is to concentrate on our CV.  This is important. I have seen hundreds of CV’s of which and believe me the most part are very poorly written. There are many different ways of writing CV’s. You can see this link to my website for a generic form. Some additional comments; Have two ready, one in your own language and the other in English.  Have your CV checked by someone in the ‘know’, an expert, career counsellor or coach for example.  Your CV in most cases is the first thing your target group will see. It is you on paper and it has to be easily readable for those who read it. Keep it down to two pages maximum. Tailor it slightly when necessary according to your different target group and eliminate any form of personal pronouns. ‘I’ ‘me’ us’ ‘we’ myself, themselves etc. Finally have it ready in PDF format but beware who you send it to! A resume at the same time is a confidential piece of information and must be treated as such.

Now we come to your target companies. This is where we need to be internet savvy. Look at their websites and check their job vacancy page. Search too by typing the position you are seeking and to see who is hiring. This way you will come across interesting SME’s and start ups most you have never heard of. Take note, senior positions although fewer and far between, are rarely advertised and are often contracted outside via third parties or searched through their own network. Mid management positions are often advertised typically on job sites such as Linkedin and efinancialcareers.com. There are many other job sites. It is a question of really getting the hang of searching online. Get to know them. Contact a handful of mid management recruitment companies and ensure they have you in their database. There are many. For senior positions; contact headhunters familiar with your market. (there are many therefore keep to the leading ones and ensure you get a good consultant!)  Check out positions in popular national newspapers and well known business magazines. Open applications are always worth a shot; and finally, never forget your own network!

Do not be afraid to make phone calls. Try and get to the person directly and always be polite but to the point on the phone. You have a ‘voice’ and you never know, the person on the other end may like the sound of it. Covering letters if required must remain reasonably brief and again to the point. Hand written letters (which may reflect a more dedicated effort) are sadly increasingly outdated and not handled well the other end as most applications are done online.

 

Searching for a job can be very disconcerting and can really affect ones self-esteem. In my view, this is one of the biggest challenges a human being can face, particularly in these harder times. It can really take time. Do not despair as most people have been there in some form or another at a different stage in their career. Normally people at the other end will understand. It is only by fighting this you will reach your goal. Remain concentrated on what you have and not what you don’t have. Remain focused. Treat it as a part time job. I would advise you to hire outside expertise, a career coach or counsellor. This is to give you the extra added value, a stronger sense of direction and better self-awareness and to help you answer those questions I put across earlier on.  It can also help you instil inner belief; add extra discipline, and tips on how to market yourself, almost like building a roadmap to success. Do not be afraid to knock on doors, calling people and yes, your network. Use it!

‘Ask and it will be given to you; seek and you will find; knock and the door will be opened’

Next blog post; How do I get the perfect job?

The basics on how to write a CV.

• Personal details, including name, address, phone number, email address and possibly any professional social media presence. You no longer need to include your date of birth, owing to age discrimination rules
• Qualifications and training from previous jobs, with the most recent first with dates of graduation
• A personal profile which sells yourself and your qualities, tailored towards the job you are applying for (generic is ok)
• Career history, starting with your most recent job first. Include dates and temporary or voluntary jobs. The company must be described if unknown and business unit if it is a large organisation. Your position must be clearly stated followed by your responsibilities.
• Achievements from previous jobs that are relevant
• Interests, if they are relevant and especially if the skills or teamwork concerned are relevant for the job
• Any extra information, such as reasons for a career change or reasons for gaps in career history, such as caring duties
• References, ideally two or more and including a recent employer

The Economic Crisis - Every man for themselves?

I rang up a friend recently in London who was working in hedge funds. I had asked him, how things were? How is the market? Is there really a recession? He took a deep breath and he sighed.  ‘Things are flat, not a lot going on. It seems to be a case of every man for themselves.’ This was not the first time I had such a phrase. It is an interesting study -  human behavourial patterns when things get rough in business. How to be cool in a tough economic climate and how to behave rationally in a crisis.

Another friend working in a business that due to few deals coming through, it was not what it used to be, everyone in the company was at each other’s throat, total mistrust and loss of synergy. The company is clearly a sinking ship. In the case of the spectacular tragic semi submerged cruise ship last month, I had read differing reports of whether women and children were allowed off first or was it a case of ‘every man for themselves’ and in some cases even the crew.  Acts of selflessness are rare and in few circumstances.  I am no expert in disaster situations as I have not experienced one, I wonder how I would behave in such a dramatic situation. I have only experienced a crisis.

One other chap joked to me that in his rich neighbourhood nowadays, businessmen in the evenings if they were not drinking heavily in the pubs, they were fighting their wives back home because they were close to bankruptcy or their firms were suffering.  In public during daylight they would be keeping up appearances as decent and respectable businessmen. Yes, different masks were put on adaptable to each situation.  Oil crisis have a tendency to cause panic buying of petrol even of food, foolish really if you think about it that we should be so dependent on oil.

Internal selling of shares when you know there might be a profit warning on the horizon. (as with 2 recent Tesco business executives reported recently in the UK) This could also be a case of unfortunate misconception but suspicious nevertheless. 50% above Inflation busting salary rises in the case of top executives in 2011 reported in the BBC business just after Christmas and the increasing debate on pay inequality where clearly more transparency is needed.

It is a very dangerous concept ‘Every man for themselves’ Human nature can become raw, and our selfish tendencies more exposed, corrupt….possibly savage. It is a condition of fear and panic closely intertwined.  It can instil so many negative emotions whereby we behave irrationally, lack sound judgement and character.  Like an illness, when one person catches it, it is easily transferred to the one next to you. You can let down the whole group, the crew….everyone else. The entire ship will sink.

This is a time when in fact we ought to be behaving the opposite, a time to develop our true character.  How do we help ourselves, each other in a time of hardship? Many years now of stagnation in our economies, is this not giving us a clear signal?  Is this not the perfect time we group together, to really spend time to think, how we can move forward for the long term?  Do we have a vision? Be creative, have passion in our ideas or possessing discipline in executing our strategies. Showing acts of courage and selflessness in our businesses and crisis situations and thinking ‘we’ and not ‘me.’  Have a deeper understanding of what is required and missing in our world, seeking to understand, redefining our attitudes, to do things differently and to change.  If one responsible or influential person gets it the others will follow suit, not like an illness but more like something positively motivating.

It is really very simple. There is a natural principle and moral compass in each of us that points North. It is thus that governs our natural principles and behaviour.  When it veers off course as it so often does, it starts to rattle and shake, possibly move backwards.  It may just stagnate.  It may just sink… and next time with everyone else on board.

‘Character in the long run is the decisive factor in life as an individual and of nations alike’ Theodore Roosevelt.

Creativity - Do we dare the impossible?

Today is a confusing period in our history dominated by big business, a stagnated growth, number crunching, profit tomorrow, and regular cost restructuring. I have mentioned before that we tend to lose sight of our long term strategies and goals even our mission statement.  It does appear to be a time that we are void of imagination in business, void of creativity and ideas. So therefore the key question must be - how do we develop them?  Creative people can rightly or wrongly be perceived as a bit whacky, different, idealists, gifted, perhaps psychologically flawed and unconventional.  Sherlock Holmes, for example, or Winston Churchill. They are so full of ideas, that is what makes them creative.

I believe creativity is individual and not communal. In my case, in order to have ideas, I would primarily need to initiate a vision, an interest, inner drive or a passion in what I do. Ideas will help me maintain this and advance forward.  In order to generate my ideas and to be inspired in my business, for example, I need a peace of mind, time to think, read, acquire knowledge and interact with people and things will capture my interest. When it comes to writing an article, an idea of a topic will spring to mind and then I write.  I find that in order to write it requires imagination and thought therefore I need to be disciplined, solidary and peaceful, this allows me to write down my ideas in an orderly fashion.

Ideas and creativity requires knowledge and knowledge is a function of your memory. And your memory needs to be constantly updated, checked, challenged, used and exercised in a meaningful way. In short, to THINK that’s the key, and ideas will catch you by surprise, in your sleep, after an event, going for a walk.

The problem lies herein: yes there are many ideas generated but only a few that get past the first hurdle. We are not confident enough to implement them. It requires a creative visionary with enough foresight to generate the great ones, and it requires a degree of boldness, and an element of fearlessness to implement them. A person who has found his inner belief or passion and is not the least concerned with the effect he or she is creating around them.   It also requires considerable energy, time, and discipline not to mention the cost where risk can come into play if more capital is needed to execute. With all the above – well it takes what some people may call individual genius or a group of them. Perhaps this is why so many potentially great ideas are seldom, and so many of the smaller ones if any are so often just thrown into the in tray and buried beneath the ashes together with everything else.

Let’s try to give an example:

John F, Kennedy in his moon speech in 1961, made a dramatic goal to put a first American on the moon by the end of the decade. Spectacular idea! It drew criticism as unrealistic, mad and a waste of money.  Well with engineering ingenuity together with enough boldness and resources, we know what happened next.

I am no JFK but here is a challenge for the future. Solar impulse makes first International solar powered flight from Switzerland to Brussels.  Wow! The idea is fantastic albeit may have been around for a while but to actually design and implement it!  How about we have our first commercially viable solar powered flight carrying passengers before the end of this decade?  Just think. No more fossil fuels, air and noise pollution, political environmentalists etc. Just to depend on the sun as a sole source of power. With enough ingenuity, talented industry engineers and experts, and financial resources, could we possibly dare the impossible?

Listen – come closer because I am going to say this very quietly. Here is the thing - there are some of us who are out there, more than we know. Those geniuses I am describing, the ones who are half awake… waiting perhaps for a tap on the shoulder… yes. You.  What are you going to do about it?

It is really such a pity in a time where we need them more than ever. Ideas, provided it is a good one, will generate change and bring us forward and I know change can so easily go against current convention but so what.  Am I conventional? I have no idea but I know there are many social norms in society I am not willing to abide by.