08/11/2020 | News release | Distributed by Public on 08/10/2020 22:37
New regulations, break-through technology, changing consumer behavior, another global pandemic-what will be the next big disruption for the asset management industry? Because there will certainly be one.
In our newest whitepaper, we talk about how a well-defined culture is critical to thriving amid disruption. It keeps a company united in the face of challenges, with employees aligned and working toward a common goal. And it acts as a reliable compass to guide employees' decisions and actions, so they can accomplish their goals faster and more effectively. In fact, research shows companies with a strong culture generate four times the revenue growth of companies without one.
Every asset management firm has a culture, whether management intentionally created it or not. Leading firms know that culture starts at the top, with company leaders thoughtfully establishing the core values, communicating them clearly and repeatedly across the firm, and consistently modeling them in their own actions and behavior. Furthermore, we believe that there are five key elements that position a firm's culture to thrive, despite the disruptions ahead:
Many asset managers claim to put the customer first, but they are still organized around the firm's products and sales process-instead of the customer's needs and journey. And they communicate with prospects and customers as if they are homogenous channels, instead of individuals with a unique set of needs, interests and preferences. For example, while the technology to deliver a more personalized experience on websites has existed for several years, just 11.1% of the 54 asset manager websites we evaluated last year were using that technology to ensure financial advisors see the most relevant content when they land on the home page. This must change for firms that want to make the customer experience a key differentiator.
Transparency also means robust internal information and data flow. Just 24.2% of asset management CMOs said sales and marketing teams share an integrated view of all customer touchpoints-a must for any firm that aspires to be customer-centric. Firms must kill the information and data silos so everyone is working from the most complete and up-to-date information about the business, its customers and its products.
As a result, asset managers must be willing to invest where other firms are not. You cannot create a culture of innovation with occasional brainstorming sessions and idea contests. Instead, firms must broaden the concept of innovation beyond new products-encouraging employees to think creatively about ways to improve the firm's business model, processes and policies in ways that will create value for the firm.
By shoring up these five pillars of culture, asset managers will be able to better withstand whatever challenges arise in the months and years ahead. To learn more, please read our full whitepaper.