Culture is critical to competitive advantage
“We want to create a culture of mutual respect. If you do that, you will find every element of the business is willing to go the extra mile because they’re fully aligned.”
In the second panel of the ACT 2nd Birthday event, leaders of asset management businesses spoke of their key role in ensuring company values are understood and integrated across teams, sharing examples of the sometimes-difficult decisions needed to align values and client interests.
“We want to create a culture of mutual respect. If you do that, you will find every element of the business is willing to go the extra mile because they’re fully aligned,” said Erich Gerth, CEO at RBC Bluebay Asset Management.
The business leaders pointed out it was their role to take difficult decisions as they have oversight of the whole business - and the interest of clients needs to be at the heart of those decisions.
“A lot of the change that comes about is how we, as leaders, consciously take action,” added Jasbir Nizar, UK CEO at Lombard Odier Investment Management as the panelled explored their role in ensuring values are felt across the business. “Whether it's hiring or promotion decisions, teamwork, collaboration, the values of the firm… every day we are making multiple decisions and it’s all so fast. Sometimes we need to take a step back and ask are we looking at this with the right lens? What are we trying to achieve? How can we bring about those changes in terms of our culture and values - sometimes the decision making can be slightly different.”
The panellists spoke candidly about various times when they have overseen teams being brought together, either through acquisition or business structuring, and what they believe is good practice.
For example, Jasper Berens, head of client relationships and distribution at CCLA, explained how he integrated two commercially different teams, each responsible for retail or charity clients, when he arrived at the firm and worked out how they could continue to work effectively together.
“Communication is such a vital part of what we do as part of our culture. Sending stuff [that attempts to impose a cultural view or change] by email is entirely the wrong way, and we forget that way too easily. Face-to-face communication is the most important thing you can do in terms of integration of teams and culture.”
Erich also discussed the integration of the RBC business with BlueBay business, with leaders conscious of people coming together. “If you go in and assume the things you did were right, and the things they did were wrong, that's the first bad idea. Even if it adds complexity to your job as a CEO, sitting down and incorporating their ideas, and making sure communication is coming in multiple ways - it might be email as we have got offices around the world… We need to not think it’s our culture versus their culture, it’s got to be one culture.”
Eroding trust
Summarising these points on bringing cultures together, Mandy said: “You are talking about marrying two cultures but what is underlying that is the focus on the client and being true to the values of the organisation.”
Jasbir also emphasised the importance of authenticity and conviction. “We have seen a lot of people talk about things like sustainability but then as you see client sentiment change, corporates have slowly dialled back on their commitments.
“That is the quickest way to erode trust with clients and people internally as it shows a lack of conviction and that you never meant it in the first place.”
The panel reflected that for the industry to make further progress on culture it must build trust. For some companies, Erich added, establishing that mutual respect and solid culture is key: “We are in a very mature industry, you have to find this small edge, something that will allow you to take market share. For me, I look at culture as being critical to creating that competitive advantage.”
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