Steve Young recently penned an article for the FTSE technology blog on how asset managers can overcome a silo approach to pave the way for innovation. We are seeing the increasing emergence of a new breed of C-level executives to address the challenges facing the asset management industry: Chief Data Officer, Chief Digital Officer, Chief Marketing Officer and so on. These appointments are understandable and sometimes necessary, but many of these skills will very soon, if they have not already, become a pre-requisite of all senior managers.
Steve writes, "If one of the biggest obstacles to innovation is culture, one of the best ways to transform a culture is to alter the people alongside the roles and responsibilities, a move that should result in lasting changes in behaviour. Firms need to break down the traditional barriers and have people focused on the future direction of the firm. In my experience, however, very few asset managers are prepared to challenge the norm and create revolutionary new organisational configurations; most firms are still arranged into deeply entrenched departmental silos. This kind of radical step needs to come from the top of the organisation, yet breaking down the traditional composition is rarely on a CEO’s agenda."
For more of Steve's insight on the changing landscape in asset management and how firms can help their culture catch up, read the full blog.