Economics

If you survive – get the right strategy now

By 20. Oktober 2008 No Comments

Funny times, everybody is talking about the crisis and everyone has a different recipe. I talked to my colleague Christian Schuster from Munich at Italian lunch and he said: “Go to Switzerland, they are so much different in their behaviour. They long for sustainability, they do the things right and of course they do the right things. In other cultures people start a lot of projects and know, they will stop 30 % for any reasons. That is why they do not care that much for this one, it could be one to be stopped. People do more and more careless, which ruins the result and the focus; it is just speeding up for no value.

The Swiss care. They are at the meeting in time, they are prepared and follow the agenda, they work it out and come to a result. They do only 6 topics if there is time for 8 to have a result. In Germany they do 8 topics but have only time for 6.

They care; if you go to the bathroom in a restaurant, people clean the place after splashing water around. It is a consensus culture. This is why all the concepts in Switzerland work out. They do not only care about the finance issues and the project itself, but also for the leadership style and the triggers behind it. They try to find the errors of behaviour and look at it. This is what I call: Do the things right. Bring it to an end.”

Thinking about Swiss – I think about watches and banks. So – what is about the behaviour of Swiss banks? They have been as involved as all the others. Back home I found this great article of Strategy + Business from Booz & Company. The consultant is in Munich – and his thesis is very similar: sustainability – less speed, more overview and insight. And he is talking about BANKS – so good input.

Shortcut Article Klaus-Peter Gushurst – Booz & Company.

„Just a shortcut in his article: The financial-services survivors in developed countries seem to be largely retail banks and wealth management companies. Three factors have helped them.

1. They avoided the excesses of fast growth

2. These surviving institutions have maintained strong capital positions and diversified funding sources.

3. They have communicated effectively with their boards and the market.

These financial-services institutions are proactively restructuring their businesses to make the most of their new opportunities. They are divesting assets to raise capital, boosting their positions in emerging markets, raising capital through rights issues, simplifying their portfolios, increasing their productivity and performance, and looking closely at their risk management practices. We expect to see further consolidation.

Role of Government: Policymakers and governments will take as much interest in managing investment flows as they do in managing global trade. They will harmonize tax regimes, regulate foreign investment, and involve themselves more in foreign ownership and capital flow. Their goal: to prevent future crises and oversee the funding that they have injected into the markets. International agreements will be based more on pragmatic “rules of thumb” and less on complicated analytical models. Regulators will be open to well-formulated proposals on the design of measures that will support the building of institutions in this new world.“

Hopefully our politicians gain this insight before they overregulate !
Hope our companies read this before they cut down mobility and training in order to save cash. Get a helicopter perspective and plan in scenarios. Keep yourself aware to adjust in time. Do not panic.

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