egyii blog

“It’s all about long-term professional relation building. Leverage & greed were the cause of the financial crisis.” JP Cuoni, CEO EFG Bank

Jean Pierre Cuoni, Co-Founder & Chairman of Swiss based EFG bank, saw the light early on in the private banking industry.

Mr. Cuoni retired in 1994 from Coutts as the CEO, and held numerous senior positions at Handelsbank NatWest and Citibank.

In 1995 he and Mr. Lonnie Howell set up EFG bank.

Mr. Cuoni, in the business since 1960, realised that little had changed in private banking. He said (and still says) that banking is personal and all about relationships, relationships that lead to trust and confidence in the bank relationship manager and the bank itself.

However, in the 1990′s, he started to see things fall apart in the banks’ operations. The banks were changing the way they operated. “Hedge funds, structured products, funds of funds, alternative investments… All these are new products that only started in the 1990s.”

The business was becoming less personalized and was lacking the proper client focus.

So, in response to the shock of this, EFG was born.

EFG is very unique in the way it operates. EFG woos older, experienced bankers who are looking to be on their own, however, would like an infrastructure to support them. They use their skills to become “private bank entrepreneurs”- running their own business off of EFG’s physical platforms.

This, combined with a caring philosophy and approach to clients and relationships, has lead to a huge success. Although business is down, as we all expect, EFG continues to flourish ahead of many of the “fallen” banks who focused purely on the bank’s motives (vs the client’s motives).

On a local level, I have met Mr. Kees Stoute, Managing Director of EFG Singapore. Mr. Stoute worked his way up in the  banking business from roles in IT and as the COO and MD in other banks before joining EFG. Why did he make the change to EFG? He saw EFG was following  the core beliefs and principles that make a bank successful.

I had a conversation with Mr. Stoute on trust, an integral part of both his and EFG’s business philosophy. The following is an excerpt from that conversation:

“Trust is not a soft skill. It makes the difference in the business. Trust is the core of business,” said Mr. Stoute.

EFG is and should be the model bank of the future.

For more information on EFG Bank, click here. You will be greeted with the following important message:

“What is the essence of private banking?

Relationships, and the conditions for them to flourish. A nurturing environment, that enables our people to excel at crafting solutions for you.

To us, the fundamental building blocks are people.

Professionals of the highest calibre, free to act in their clients’ best interests. Who strive to eradicate life’s inconveniences; who simplify complexity.

Welcome to EFG Bank, truly a private bank unlike any other.”

Trip Allen, Team Egyii, Singapore

Bill O’Brien, the late CEO of Hanover Insurance, once told C. Otto Scharmer, author of Theory U – Leading from the Future as It Emerges that when facilitating corporate change, the success of an intervention depends on the interior condition of the intervener.

This idea, that to create change in the new world of business, leaders need to look inside themelves first and connect with their own instincts, deep understandings and self-awareness, is the key to creating the kind of change that businesses need to succeed in the future.

It’s no good using the past to inform the present and future. What went well before, what the consensus of opinion is, and what is comfortable for the majority will only return businesses to the old world where external measurements and influences based on past experiences were used to decide on the future direction of the business.

According to C. Otto Scharmer, leaders need to engage in internal work before even considering change interventions. There are three kinds of internal work that need to be engaged in:

Suspending habitual patterns and seeing the situation with a fresh pair of eyes

Redirecting your attention from the exterior to your interior mental processes and really listening to yourself

Letting go of old identities and intentions

It is only when this internal work has been completed that leaders will be open to new visions and intentions, to redirecting attention to exterior action, and to creating new action, structures and practices to lead the business forward.

Every leader, whether a CEO or a learning and development designer, can benefit from turning inwards and connecting with their own source of wisdom before automatically adopting ideas and structures that are acceptable to the majority. These ideas will usually only present you with what is already acceptable and comfortable, and therefore what fits with the existing status quo.

Thus, the new learning and development will be first and foremost about internal awareness, insight and personal change. And coming out of this process will be new ideas, decisions and actions that will propel your business into a successful future.

James Irvine, Team Egyii, Singapore

You are probably aware of the story of the fraud committed by B. Ramalinga Raju, owner of Satyam Computer Services in India. He falsified accounts to make it appear that his company’s performance was actually much stronger than it really was. In this he was definitely a risk-taker, and this aspect of his personality may have been his downfall.

Yet the story of how he got his first business break, also through taking a risk, has some useful lessons for all of us. I quote Monday’s Herald Tribune:

“The founder of Satyam Computer Services, B. Ramalinga Raju, made a risky proposition to win his first big client, the tractor maker John Deere: If you don’t like our service, you don’t pay.

With that pitch, which is now the stuff of legend in India, he persuaded John Deere in 1991 to allow his computer programmers to work just across the street from the client’s U.S. headquarters, in a house Raju dubbed ‘Little India.’ Working only overnight shifts, with no physical contact with John Deere’s executives, the programmers got the job done – proving Raju’s theory that they could work just as well from India, and helping give birth to the country’s outsourcing industry.”

Imagine what it must have felt like setting up an office in a foreign country and working without any assurance that a result will come from it. The truth is, doing this without any guarantee most likely made the prospect of success even more assured.

This is the power of uncertainty. Let go of your tight grip on the future. Make a decision with no guarantee of the outcome and then take action and enter pure space. Accept. And pay attention to each moment, letting them flow through you. When you are comfortable with uncertainty, great courage and power will come to you.

So if you are a banker or another leader caught in the vicious cycle of thinking that goes “What specific results and I going to get if I take this action?” then my answer to you is, “I don’t know. But whatever it is, your chance of pulling yourself out of the situation you are in is better if you think carefully about your plan and then just take action with no guarantees, than if you sit tight on your hands and wait for the government, your clients, or your grandmother to do something to change your circumstances.”

My advice to you is “Don’t wait!” Take 100% responsibility for winning the game at this turbulent time, make a decision and enter the void. Now.”

James Irvine, Team Egyii, Singapore

It’s time for change.

No more pushing products and services at customers in an effort to meet monthly targets. No more macho, aggressive behaviour pushing employees for results without stopping to think about how to get them. And no more grandstanding about how the customer comes first without stopping to see the situation through your customer’s eyes rather than your organisation’s.

It’s time to step back. Nick Morgan, in his latest book Trust Me – Four Steps to Authenticity and Charisma, tells us that being authentic in all our dealings with others is the secret of building trust and loyalty. And this starts not with actions, behaviour or words, but with intent.

If you’re trying too hard to be authentic, it means you’re thinking too much. You’re concentrating on how your are behaving and what you are saying. If you’re a company, you’re focusing on crafting the perfect message for the public or your employees. All these ‘up front’ actions will continue to fall on deaf ears if you don’t step back and reflect on your true intention in meeting a client or an employee, or in creating your company strategy.

It’s time for leaders, relationship managers and organisations to look inside themselves and connect with the higher cause that drives them personally and organisationally. Forget about your targets and the pressing need to win more business. Why are you doing this in the first place? What is it about you that you want to give to the world? Why was your company originally set up? What difference does it want to make?

Connect with your intent and the world will see you and your organisation as more authentic, patient and understanding. Only once you arrive at this place can you then begin to build your business based on integrity and trust. And in the new world of business that we must now enter, stepping back and addressing the fundamental issues of intent and authenticity is the only way to create the trust that leads to hard business results.

James Irvine and the Egyii team, Singapore