Thursday, 15 March 2012

The real cost of not living your brand in professional services

It was fascinating to see the resignation letter of Goldman Sachs’ Executive Director, Greg Smith, published in the New York Times this week. The letter wiped $2bn off the market value of the firm in one day.

Greg joined Goldman Sachs as a graduate twelve years ago and ultimately became head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa. What makes the letter special is that this does not appear to be the rant of a disgruntled employee. Instead, it reads like a considered analysis of a fundamentally changed environment by a key management team member who was actively involved in the recruitment and mentoring of graduates.

In his letter, Greg laments the “decline in the firm’s moral fibre” where he claims the rising stars are rewarded for “ripping their clients off” with no regard for the “client’s success or progress”. His assertions have already been backed up on social media channels from existing clients who feel their investments are locked in to underperforming funds with a perceived lack of transparency in dealings.

This will undoubtedly add fuel to the fire for those calling for increased accountability and social responsibility amongst executives in the financial services sector. It also begs the question, has nothing been learned from the financial crisis we are experiencing globally? When it comes to running a successful professional services business any focus on short term financial gain may deliver results in your year end accounts, but the impact could be detrimental to your brand reputation longer term.

As Peter Doyle articulated in his book Value Based Marketing,
Managers confuse maximising shareholder value with maximising profits. The two are completely different. Maximising profits is about short term management; cutting costs, reducing investment and downsizing. It is totally antithetical to developing long-term marketing strategies and building world class businesses.
In professional services, it is easy to talk about ‘client focus’ and ‘adding value’, but the ultimate test is to be able to demonstrate how those organisational values pervade every aspect and every level within your business.

For me, Greg Smith succinctly hit the nail on the head with his observation “If clients don’t trust you they will eventually stop doing business with you. It doesn’t matter how smart you are.”

20 comments:

Oscar G. Gunter said...

Email sending programming is to a great degree valuable for anybody needing to advertise on the web. It enables you to expand benefits and spare time by remaining before your client base or supporter list. You can advise clients of new items when they hit the market. Click Here

anonymous said...

You share the great picture and I think you are accomplishing something and here is esy to manage the best essays for good work. In the event that I inspect this image you attempt to brief something about shooting or chasing as a result of your look.

brucecarpenter said...

wonderful points altogether, you just gained a new reader. What would you suggest in regards to your post that you made a few days ago? Any positive? design company

Maddova Media said...

Great post. I was checking constantly this post and I am impressed! Very helpful information. I care for such information a lot. I was looking for this particular info for a very long time. Thank you and best of luck. Digital marketing agency Noida

Jennifer said...

It’s very excellent information and more real facts to provided that post.Thank you for sharing this information. Data-Architecture-And-Management-Designer exam questions answers

saraan said...

fantastic post, very informative. I ponder why the opposite specialists of this sector don't realize this. You must continue your writing. I'm sure, you've a great readers' base already! seo sem

Dimitry kolokov said...

My brother suggested I might like this web site. He was totally right. This post truly made my day. You cann't imagine simply how much time I had spent for this info! Thanks!buy leads singapore

kristinahojholt said...

Hello, i believe that i saw you visited my site so i got here to “return the choose”.I'm trying to find issues to enhance my site!I guess its adequate to use some of your concepts!! affordable web design

REBBCADAVids said...

excellent post, very informative. I wonder why the other experts of this sector don't notice this. You should continue your writing. I am confident, you've a huge readers' base already!t shirts for men

Bourton Valies said...

I’m impressed, I have to say. Actually hardly ever do I encounter a blog that’s both educative and entertaining, and let me tell you, you could have hit the nail on the head. Your thought is outstanding; the issue is something that not sufficient people are talking intelligently about. I am very pleased that I stumbled across this in my search for one thing regarding this. psg grant singapore

REBBCADAVids said...

Hello my family member! I wish to say that this post is awesome, great written and come with almost all important infos. I’d like to look more posts like this .armorzone barrier

Dimitry kolokov said...

Have you ever considered writing an e-book or guest authoring on other websites? I have a blog based on the same topics you discuss and would really like to have you share some stories/information. I know my audience would enjoy your work. If you are even remotely interested, feel free to send me an email. social media strategy

WintyWen said...

At this time it sounds like BlogEngine is the top blogging platform available right now. (from what I've read) Is that what you are using on your blog? ecommerce website development company

Abigail lotis said...

Hello there, I found your site by way of Google even as looking for a related topic, your website got here up, it appears good. I have bookmarked it in my google bookmarks.
e commerce in singapore

CofieldNeas said...

Howdy! This is kind of off topic but I need some help from an established blog. Is it very hard to set up your own blog? I'm not very techincal but I can figure things out pretty quick. I'm thinking about creating my own but I'm not sure where to start. Do you have any points or suggestions? a level math tuition

kristinahojholt said...

Woah! I'm really digging the template/theme of this website. It's simple, yet effective. A lot of times it's hard to get that "perfect balance" between usability and appearance. I must say you've done a fantastic job with this. In addition, the blog loads very quick for me on Internet explorer. Exceptional Blog!
laminate wood flooring singapore

Warren Oberien said...

Terrific work! That is the kind of information that are meant to be shared around the internet. Disgrace on the search engines for no longer positioning this put up upper! Come on over and seek advice from my website . Thank you =)
interior design singapore

kristinahojholt said...

Hello would you mind letting me know which hosting company you're using? I've loaded your blog in 3 completely different web browsers and I must say this blog loads a lot quicker then most. Can you suggest a good internet hosting provider at a fair price? Thanks a lot, I appreciate it!
office cabinet Singapore

FelixMounce said...

You managed to hit the nail upon the top and also defined out the whole thing without having side-effects , people could take a signal. Will probably be back to get more. Thanks. virtual B2C marketplace

kristinahojholt said...

Good day very nice web site!! Guy .. Excellent .. Wonderful .. I'll bookmark your website and take the feeds also…I am satisfied to seek out so many useful information right here within the put up, we'd like work out more techniques in this regard, thanks for sharing. . . . . .competitive online marketplace

Post a Comment