Successful firms recognize that culture is central to the attraction and retention of talent, the motivational forces that inspire strong performance and, ultimately, the creation of value.
Only a small proportion of asset managers have measured and actively manage their own culture, which is a big differentiator in determining the successful asset management firms of the future, according to «The Asset Manager of Tomorrow,» a research paper by the Thinking Ahead Institute (TAI) published today.
TAI argues that enhancing the influence of team members from diverse backgrounds to produce deeper cognitive inputs, wider perspectives, and better-informed decisions. It also said that building a fairer and better culture helps with motivation and well-being.
«Many firms are so hard-wired to the use of precise measurement that they omit culture altogether in their strategy, treating it as a non-controllable item. The dangers of this are particularly apparent when organizations confront growth and disruptive changes, as these put even effective cultures into reverse,» Roger Urwin, TAI's global head of investment content, said.
Effective Culture
According to the paper, attributes of «effective culture» include cultural embedded in behaviors, in which leaders actively promote and manage culture, and staff actively live out and experience the culture, as well as culture that is synchronized with vision and strategy.
The biggest disruptions that the investment industry faces – margin and growth headwinds; data, technology and artificial intelligence evolution; new strategic relationship models; and new fee models and pressures – also pose the biggest opportunities for firms.
However, dealing with them will only be effective through a positive cultural mindset in being prepared for change, the paper said.
