It appears only natural for bankers, economists and government officials to view the present financial crisis simply as a technical problem of economics, as if it were the breakdown of a machine, with the solution being a matter of spending more public money, imposing greater regulation and tweaking organisation structures.
Anatole Kaletsky has noted that “consumers and businesses have already started to see recession as a moral retribution for past excesses”.
When considered in the context of the professional services in the construction industry, the root causes need tackling not just the effect. The changes needed have to be more radical and not just reductions in headcount.
It is clear that fundamental change is necessary and the responsibility for this change lies with business management. They must recreate a culture of integrity, prudence and attention to detail within their organisations. Boardrooms must rein in out-of-control egos. This change of ethos cannot be delegated to others; the board executives and their non executives have to take their personal responsibilities seriously to deliver change.
Businesses need to be able to flex and change to cope with the new economic world order, which means getting back to the core values of providing quality services, and their proper implementation, which truly reflect the Client needs. This will necessitate curbing the “sales teams” excesses in designing and creating ever more complex new “products”.
The services industries, particularly the bank and professional advisors, have now to recognise they are there to provide sound reliable advice and services which their Clients can rely on and not to just sell more “products” to them.
The fundamental change needed is in business culture.
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