By any measure, the asset management and private banking sectors have been seriously affected by this period of turmoil. It is not just the result of a profitability crisis, but more a reflection of deep structural issues affecting the core beliefs of the segment. In response the CEO agenda should be built around three priorities: stabilizing the business, restoring operating performance and repositioning the organization for the future.
From a board perspective, we expect more appointments of financially literate non-executives to asset management boards in strengthening business oversight, enhancing risk awareness and challenging incumbent managements. At the senior management level, turnover is beginning to increase as boards emphasize efficiency and cost management over growth. Risk management needs to be revolutionized. In portfolio management, we expect strong demand for asset allocation and credit skills, particularly in distressed security investing. We also see potential for team lift-outs. In sales and marketing solutions orientation and a more self-starter culture will prevail, focusing on serving clients, rather than pushing products. Lastly, compensation packages are being re-thought.
Our global Wealth Management Practice consists of a highly professional team around the world who partner with senior executives of organizations in all sectors of asset and wealth management to address hiring needs and assist with the assessment of existing management competencies, and to support boards of directors.
Our unique one-firm approach, which facilitates collaboration across geographical practice boundaries, enables us to bring highly skilled and experienced teams to the table, with proven expertise tailored to meet the needs of clients and achieve credibility with candidates and opinion leaders around the world. By focusing on people and skills management in the context of a specific strategy, we help wealth management institutions to rethink their organizations and their winning value propositions.