From the Victoria and Albert Museum to the Stationers’ Hall, from Kings Place to the RSA, the London season of Summer receptions and conferences is well underway. Fidelio observes two trends. Firstly, there is definitely a whiff of growth in the air; secondly, there remain powerful reasons why growth is in the air but not yet coursing through the economy.
In Fidelio’s work with Boards and leadership teams we see a substantial focus on securing the licence to operate. In a social media driven world where stakeholders can be mercurial and corporate reputation fleeting, this is understandable and to be respected. However, growth does not flourish in a risk averse and cautious environment.
The Lord Mayor of London and other luminaries at The CityUK Summer Reception, 12th June, spoke optimistically of the outlook and potential of the Financial Services sector in the UK, in particular the hugely important professional services component. It was noted that the seeds of growth today will only become visible to the general public in two to three years’ time. Why the delay?
Recent research conducted by Fidelio shows the banking sector still on the back foot, reeling from the reputational blows it has received over the past 5 years. Other sectors with challenged reputations have moved back to a very healthy level of profitability; this is often underpinned by a realistic but sophisticated understanding of corporate reputation, combined with mature stakeholder engagement.
Tyrie report: Commission claims senior individuals at failed and unscrupulous banks escaped punishment via ‘accountability firewall’. Now lock up the banksters. This is an excellent idea.
– The Guardian, 19th June 2013
The banking industry cannot wait for stakeholders to articulate the case in favour of bankers. There are still far too many political points to be scored at their expense. No, bankers and the banking industry need to regain a sense of confidence and purpose, tough as that may be. It will look and sound very different from the simple story of enormous financial gain that buoyed up the industry until 2007. But this sense of mission and purpose is a vital ingredient for growth.
Equally, Fidelio attended an excellent debate on the health of the UK automotive industry hosted by the German British Forum on 6th June. We continue to be struck by how well the UK car industry is performing and how little this registers with the broader public. Indeed, we heard from a series of eminent voices about all the problems facing the industry including too few engineers, not enough local banks, lack of access to funding and huge fear over the risks from the Euro. With the Rt Hon John Redwood and Prof. Dr. Hans-Olaf Henkel, former President of the Association of German Industries, advocating different forms of break-up within the EU and the Eurozone, it’s hardly surprising that business derives little comfort!
Fidelio is entirely sympathetic to industry bodies highlighting what needs to change. But we are pragmatists. We’d like government to drive growth and we’d like the banks to be funding growth. But the prize will clearly not go to the business which waits for the environment to change.
On the contrary, the world of the entrepreneur, the leader, the winning athlete and the explorer, is characterised by vision, determination, and sheer bloody-mindedness. And talent. These ingredients do not guarantee success. But if we look at the gold medal haul for the UK in London 2012; the first solo unaided expedition to the North Pole; the extraordinary trajectory of Apple under Steve Jobs; or the dominating factor in the automotive world that is Volkswagen, we see all these ingredients in abundance, as well as a major dose of confidence.
Fidelio recognises that the transition from risk aversion to bold growth is far from easy. For Boards pre-occupied with macro-malaise, funding uncertainty and reputational sensitivity (both corporate and personal), it is indeed a big ask.
If we look across to the glorious achievements of the sporting world, it is clear that much preparation went on behind the scenes. And much of that preparation focused on readiness of mind set. At the BNY Mellon Women’s Symposium 4th June, Dr. Steve Peters, author of ‘The Chimp Paradox’, spoke with conviction about his pioneering work with our most successful athletes, including the UK Cycling Team. Understanding the ‘inner chimp’ clearly gives leading athletes the upper hand and prevents said chimp from sabotaging performance on the day.
Psychology versus physiology in pushing back the boundaries of what is known to be possible and going beyond one’s familiar comfort zone? It’s well above 90% psychology, both understanding and management. This is the barrier-enabler because it informs everything else.
– Former polar explorer, Pen Hadow, Fidelio Partners
Of course outstanding achievement in one field cannot be simply replicated in another. There is a simplicity and singularity of focus in preparing for a sporting event, stage performance or extreme endeavour. The business leader, on the other hand, deals in complexity with achievement measured across multiple time periods and by a wide variety of KPIs.
But it is clear to us that the vision and pioneering approach; the awareness of the fundamental role of psychology in high performance; and the sheer gritty resolution to succeed that underpins outstanding achievement is as relevant to business leaders and Boards as it is to entrepreneurs, athletes and explorers.
Rather than focus exclusively on Board vulnerability and reputational fears, there is clearly an opportunity for Boards and leadership teams to ready themselves for growth. A focus on heroic achievement is not a bad start to ensuring that by next year’s Summer season growth may be well and truly coursing through the UK economy as a whole.
Coming Up…
Overture explores how talent drives valuation. Future editions of Overture will explore
• How Boards keep on learning
• Evaluation with a purpose
• Building leadership teams for new markets
• Owning, building, defending Corporate reputation
Please contact us with comments or for more information on Fidelio Partners at info@fideliopartners.com