If you are seeking global business leadership in banking and finance, you should definitely read this article. In particular, I'll discuss why we as a profession need investment management awards so badly, and what these awards are all about. After reading this article, hopefully you'll be able to see why I am so passionate about having global investors involved in the finance industry. Global Business leadership is critical to any company who wishes to succeed in today's unstable global economy. When you read on, you'll discover why the world of banking and finance must offer clients not only reliable investment management services but also great mentoring and leadership.
I have been researching the global banking and finance industry for nearly a decade, and I've found many awards ceremonies and events to be very symbolic and meaningless. For example, many of these awards ceremonies honour individual bankers and investment managers by presenting them with "chairmanship awards". It is simply a way for individual banks and investment managers to receive "confidence" from members of their industry peers. This is not the type of leadership and mentoring any professional business leader or manager needs to provide for their teams or employees.
In my opinion, it is my duty to help future business leaders become very good leaders themselves. That is why I began writing articles about investment management awards and seminars. I realized very quickly that very few bankers and investment managers read my work, which made it all the more important for me to bring this topic to the attention of readers. Through my articles, I hope to inspire current managers to use their IT skills, and leadership experience, to expand the reach of their companies, and their companies' reach. In addition, I hope to increase the number of global investors and entrepreneurs - both wealthy and poor - who are willing to lend their money and leadership to underdeveloped countries.
In my mission to write about Investment Management Awards and other related topics for corporate executives and finance managers, I have become convinced that an investment management award, as a gesture of good faith by an external debt investor, is not worth the paper it is written on. For example, I recently read a case study in which an outside debt investor provided a major boost to a small Latin American country that was struggling with excessive credit card indebtedness. However, upon reviewing the case study, I realized that the external debt funding source had awarded the company a one-time cash flow boost based upon the company achieving its credit card debts. Despite boasting about the company's accomplishments, the case study did not discuss any of the negative outcomes or risks that may result from the one-time cash flow injection.
It is my belief that the best awards programs, which encourage long-term investment strategies, should focus on long-term plans with well-defined risk/reward profiles. For example, I recently read an article discussing the lack of focus by managers in building long-term wealth building portfolios. The author recommended that managers consider creating more asset allocation portfolios. Asset allocation is a term that can mean various things to different people. For example, some people might be looking for a way to create wealth portfolio with more of their assets going towards stocks while others might be looking for ways to create wealth portfolio with more of their assets going towards cash.
Many firms are now providing "click here" access to their wealth managers. I think this is a very good thing because it allows firms to attract people who are outside of their core business areas, but who are willing to learn how to best manage global investments. As an example, I believe that firms that are creating investment products for global wealth managers are making a mistake by not focusing on creating products that target managed funds. They are also likely missing opportunities for new global value investors to enter the mix. Finally, as firms fail to focus on attracting global value investors, firms that focus on attracting global wealth managers will most likely become extinct.
Another area where the global community has an impact on investment strategy and management is through asset allocation risk management. This is where the global community plays an active role in managing risk in investments. Some firms are very good at creating risk profiles which are very useful for identifying opportunities in global value investing. Other firms are less successful at creating effective risk profiles, and therefore they are not as capable as they should be in managing global risk.
During this recent global financial crisis many firms have chosen to focus on profits and short term profitability over long term viability. Most managers have chosen to focus on short term profitability instead of long term viability. While some firms have made significant profits during the recent financial crisis, many others have suffered substantial losses and many still are struggling. The awards programs created by these firms are actually hurting the financial industry and hindering the global economy from being able to rebound from the recent financial crisis.