Book
Investment Banking: Addressing the Management Issues (Hardcover)
by Steven I. Davis (Author
• Hardcover: 288 pages
• Publisher: Palgrave Macmillan (February 8, 2003)
http://www.amazon.com/Investment-Banking-Addressing-Management-Issues/dp/1403901449
Tuesday, August 26, 2008
Cost Reduction Measures – Investment Banks – 2008
Globally financial firms have reduced head count by 1,01,250 since beginning of credit crunch.
Citibank
Citigroup has cut about 14,000 jobs in the first half of 2008.
Citigroup is scaling down external training.
Purchases of computer hardware and software needs to be preapproved.
Blackberry buying requires preapproval.
All nonclient travel requires preapproval.
Off site meetings of employees cutback.
Colour copying limited to client presentations
Efficiency in spending is priority.
(According to contents of an internal memo published in the UK’s Daily Telegraph.)
Deutsche Bank
Business meas must not exceed 50 pounds per person ($92).
Dealmakers to get approval for taxi journeys in advance from their manager.
(According to Independent news paper)
UBS
UBS has made cost reduction program as a part of its new organization change initiative
(http://www.efinancialnews.com/homepage/index/content/2451589688)
Operating expenses
2nd Quater 08 vs 2nd Quarter 07:
Total operating expenses declined by 36%, falling to CHF 2,931 million from CHF 4,565 million.
A 56% decline in personnel expenses, to CHF 1,494 million, reflects lower accruals for performance-related compensation and an adjustment relating to changes to the forfeiture provisions of future equity ownership plan (EOP) awards. Salary costs also declined as personnel were reduced by 2,662 full-time equivalents.
General and administrative expense decreased by 17% to CHF 784 million, with reductions in a number of expense lines. The most notable reductions were in travel and entertainment, and IT and outsourcing, and are largely attributable to the ongoing cost reduction program.
(http://www.ubs.com/1/e/investors/08q2/0014/0016.html)
Merrill Lynch
1st quarter 2008
Compensation Expenses
Compensation and benefits expenses were $4.2 billion for the first quarter of 2008, down 14 percent from $4.9 billion in the first quarter of 2007, due to a decline in compensation expense accruals reflecting lower net revenues.
The firm intends to reduce its headcount from year-end levels by approximately 4,000 employees, or 10 percent, excluding FAs and investment associates. Headcount reductions will be targeted in GMI and support areas, and will not impact the firm's financial advisor or investment associate population. Cost savings from this reduction are expected to be approximately $800 million on an annualized basis, including approximately $600 million for the remainder of 2008. As a result, the firm expects to record a restructuring charge of approximately $350 million in the 2008 second quarter.
(http://www.ml.com/index.asp?id=7695_7696_8149_88278_95339_96026)
Citibank
Citigroup has cut about 14,000 jobs in the first half of 2008.
Citigroup is scaling down external training.
Purchases of computer hardware and software needs to be preapproved.
Blackberry buying requires preapproval.
All nonclient travel requires preapproval.
Off site meetings of employees cutback.
Colour copying limited to client presentations
Efficiency in spending is priority.
(According to contents of an internal memo published in the UK’s Daily Telegraph.)
Deutsche Bank
Business meas must not exceed 50 pounds per person ($92).
Dealmakers to get approval for taxi journeys in advance from their manager.
(According to Independent news paper)
UBS
UBS has made cost reduction program as a part of its new organization change initiative
(http://www.efinancialnews.com/homepage/index/content/2451589688)
Operating expenses
2nd Quater 08 vs 2nd Quarter 07:
Total operating expenses declined by 36%, falling to CHF 2,931 million from CHF 4,565 million.
A 56% decline in personnel expenses, to CHF 1,494 million, reflects lower accruals for performance-related compensation and an adjustment relating to changes to the forfeiture provisions of future equity ownership plan (EOP) awards. Salary costs also declined as personnel were reduced by 2,662 full-time equivalents.
General and administrative expense decreased by 17% to CHF 784 million, with reductions in a number of expense lines. The most notable reductions were in travel and entertainment, and IT and outsourcing, and are largely attributable to the ongoing cost reduction program.
(http://www.ubs.com/1/e/investors/08q2/0014/0016.html)
Merrill Lynch
1st quarter 2008
Compensation Expenses
Compensation and benefits expenses were $4.2 billion for the first quarter of 2008, down 14 percent from $4.9 billion in the first quarter of 2007, due to a decline in compensation expense accruals reflecting lower net revenues.
The firm intends to reduce its headcount from year-end levels by approximately 4,000 employees, or 10 percent, excluding FAs and investment associates. Headcount reductions will be targeted in GMI and support areas, and will not impact the firm's financial advisor or investment associate population. Cost savings from this reduction are expected to be approximately $800 million on an annualized basis, including approximately $600 million for the remainder of 2008. As a result, the firm expects to record a restructuring charge of approximately $350 million in the 2008 second quarter.
(http://www.ml.com/index.asp?id=7695_7696_8149_88278_95339_96026)
Criticism of Federal Reserve - Becoming Strident
Willem Buiter, Ex-Chief Economist at the European Bank for Reconstruction and Development criticized Fed in a paper "Central Banks and Financial Crises" presented at Jackson Hole economics symposium.
He charged the US Fed with messing up its response to the credit crisis and being close to and captured by interests on Wall street.
He argues that rate cuts the Fed has announced so far are due to Fed's desire to stop the slide in share prices, a desire that reflected too close proximity to Wall street.
He charged the US Fed with messing up its response to the credit crisis and being close to and captured by interests on Wall street.
He argues that rate cuts the Fed has announced so far are due to Fed's desire to stop the slide in share prices, a desire that reflected too close proximity to Wall street.
Brave and Confident Brands
Characteristics
1. The brand can actually back the claim it is making.
2. The brand is willing to focus on values and insights tat bring the brand alive rather than just bringing in revenue.
3. The brand creats an idea that theoretically goes against the category theme.
Of course a brand cannot be deeded confident or brave on the basis on one campaign.
Companies have to make that confidence and boldness an aspect of their business model.
Mint, 27 August 2008
www.livemint.com
1. The brand can actually back the claim it is making.
2. The brand is willing to focus on values and insights tat bring the brand alive rather than just bringing in revenue.
3. The brand creats an idea that theoretically goes against the category theme.
Of course a brand cannot be deeded confident or brave on the basis on one campaign.
Companies have to make that confidence and boldness an aspect of their business model.
Mint, 27 August 2008
www.livemint.com
Monday, August 25, 2008
Beating the Odds of Brand Growth
Some mature brands grew through innovating product formulas, others through repositioning.
Packaging innovation alone could make a difference.
Innovate around your core and shout about it, and you're likely to unleash growth potential.
Updated Study in 2008
Learning from the lucky thirteen
Brandweek 05/26/08
by John Blasberg and Ivan Hindshaw
There are two strategic steps that, year after year, have been proven to help brands outperform their competitors. It can't be all that difficult to remember two of anything, and yet we consistently see so many companies fail to stick to those two steps.
1. Don't let the wrong innovations slip through
2. Have ongoing commitment to the post-launch through advertising.
You have to shout your innovation
References
Beating the Odds of Brand Growth
by John Blasberg and Vijay Vishwanath
http://www.bain.com/bainweb/publications/publications_detail.asp?id=12288&menu_url=publications_results.asp
For more detailed reading
Harvard Business Review, by John Blasberg and Vijay Vishwanath June 2003.
Learning from the lucky thirteen
Brandweek 05/26/08
by John Blasberg and Ivan Hindshaw
http://www.bain.com/bainweb/publications/publications_detail.asp?id=26424&menu_url=publications%5Fresults%2Easp
Packaging innovation alone could make a difference.
Innovate around your core and shout about it, and you're likely to unleash growth potential.
Updated Study in 2008
Learning from the lucky thirteen
Brandweek 05/26/08
by John Blasberg and Ivan Hindshaw
There are two strategic steps that, year after year, have been proven to help brands outperform their competitors. It can't be all that difficult to remember two of anything, and yet we consistently see so many companies fail to stick to those two steps.
1. Don't let the wrong innovations slip through
2. Have ongoing commitment to the post-launch through advertising.
You have to shout your innovation
References
Beating the Odds of Brand Growth
by John Blasberg and Vijay Vishwanath
http://www.bain.com/bainweb/publications/publications_detail.asp?id=12288&menu_url=publications_results.asp
For more detailed reading
Harvard Business Review, by John Blasberg and Vijay Vishwanath June 2003.
Learning from the lucky thirteen
Brandweek 05/26/08
by John Blasberg and Ivan Hindshaw
http://www.bain.com/bainweb/publications/publications_detail.asp?id=26424&menu_url=publications%5Fresults%2Easp
Sunday, August 24, 2008
Principles of Communication
Four critical areas of communication are message quality, conditions for reception, maintenance of integrity of organized effort, and taking advantage of informal organization. Principles useful for establishing good communications are:
1. Principle of clarity: Communicate in commonly understood language. It requires familiarity with language patterns of subordinates, peers and superiors. Following this principle will avoid badly mistakes in messages like badly expressed content, and unclarified assumptions etc.
2. Principle of attention: This principle is for the listener. Give attention to the receiving communication.
3. Principle of integrity: This principle relates to the purpose of communication. To a manager, a communication is always a means, never an end. It is one his tools for securing and maintaining cooperation in achieving enterprise objectives.
4. Principle of strategic use of informal organization: The informal organization is a reality and managers need to use this channel intelligently. But no orders should be given through this channel.
Adherence to these principles requires voluntary application by all members of the organization. No one can point out to dollar savings, for the cost of poor communication cannot be calculated. But all agree that there will be cost improvements from better communications.
For further reading
Rogers, C.R., and F.J. Roethlisberger, “Barriers and Gateways to Communication” Harvard Business Review, Vo. 30, No.4, July-August, 1952, pp. 46-52.
1. Principle of clarity: Communicate in commonly understood language. It requires familiarity with language patterns of subordinates, peers and superiors. Following this principle will avoid badly mistakes in messages like badly expressed content, and unclarified assumptions etc.
2. Principle of attention: This principle is for the listener. Give attention to the receiving communication.
3. Principle of integrity: This principle relates to the purpose of communication. To a manager, a communication is always a means, never an end. It is one his tools for securing and maintaining cooperation in achieving enterprise objectives.
4. Principle of strategic use of informal organization: The informal organization is a reality and managers need to use this channel intelligently. But no orders should be given through this channel.
Adherence to these principles requires voluntary application by all members of the organization. No one can point out to dollar savings, for the cost of poor communication cannot be calculated. But all agree that there will be cost improvements from better communications.
For further reading
Rogers, C.R., and F.J. Roethlisberger, “Barriers and Gateways to Communication” Harvard Business Review, Vo. 30, No.4, July-August, 1952, pp. 46-52.
Articles/Knols on Selling Process
I posted articles on various steps in selling process. The starting article is
1. Selling Process
http://knol.google.com/k/narayana-rao-kvss/-/2utb2lsm2k7a/38#
As Knol is a wiki platform readers can edit the article for improving it.
1. Selling Process
http://knol.google.com/k/narayana-rao-kvss/-/2utb2lsm2k7a/38#
As Knol is a wiki platform readers can edit the article for improving it.
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