“For many GSIFIs, this strategy holds the best possibility of preserving stability while removing taxpayer support,” wrote FDIC chairman Martin Gruenberg and BoE deputy governor Paul Tucker in The Financial Times. “It holds shareholders, creditors and management in a failed GSIFI accountable for its losses.”
London-based HSBC will pay a staggering $1.92 billion to U.S. authorities, the bank announced Tuesday, settling even-more-staggering allegations relating to Middle East terrorist financing and Mexican money laundering. A day earlier, London-based Standard Chartered said it would pay $327 million to U.S. agencies — in addition to $340 it agreed to pay New York regulators in August — stemming from allegations of sanctions law violations and hindered government investigations.
Boarding up these institutions is not an option; at least not the way U.S. federal law enforcement might shutter a dry cleaner that served as a mafia front. Making sure that these banks keep liquidity flowing has to be a major concern for governments, especially this soon after the financial crisis.
Let’s not forget that these are still big banks — too big to fail and too big to shut down.
Article published by Derek Klobucher. It originally appeared on SAP and has been republished with permission.
Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.
The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.
The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.
Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.
1. Encourage side projects
Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.
Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.
2. Encourage workers to engage with customers
At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.
3. Encourage workers to work cross-functionally
Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.
This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.
4. Encourage networking in their industry
This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.
What do you do to increase employee engagement? Let me know your thoughts in the comments!
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This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.
Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:
Inflated bills or expense accounts
Bribery and corruption
Phantom vendor accounts or invoices
Grey markets (counterfeit or knockoff products)
Failure to meet specifications (resulting in substandard or dangerous goods)
Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).
Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.
Build a culture to fight fraud
The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:
Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
Market the organization’s supply chain policies internally and among contractors.
Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
Require two employees to sign off on any proposed changes to suppliers.
Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.
The financial services industry has suffered consecutive blows in recent years. The global banking crisis, new regulations, empowered customers calling the shots, not to mention a new breed of digital disruptors out to steal market share, have wreaked havoc on business as usual. Profits have been slashed, reputations have been damaged, and management has been blindsided.
The only way forward is change – a change of business model, a change of mindset, and a change of ecosystem. It’s a major upheaval, and not to be taken lightly. Banks in particular have operated largely the same way for the past 300 years. Management is facing a once in a generation reassessment of 21st century banking.
Changes in customer behaviour, including 24×7 omnichannel service expectations, lack of loyalty by current customers willing to exchange privacy for easier access to information, generational expectations of future customers – “screenagers” and tech savvy Millennials – and technology advances in cloud, mobile, real-time data, and predictive analytics make yesterday’s business model redundant.
Banking isn’t actually about banking anymore. It’s about enabling people’s lifestyles. That means you have to completely re-think how you engage with customers. The lessons are everywhere in parallel industries. Nokia, for example, thought it was about the phone, not the customer experience. Digitisation has both emboldened and empowered customers. Ignoring this fact is pointless. You need to cater to what consumers want. That means your back-end systems need to be integrated, consistent, contextualised and easy to deploy across any channel.
There’s also a whole new ecosystem required to support this new business model. Banks are facing disaggregation as they no longer own the end-to-end value chain, as well as disintermediation as new market entrants attack specific parts of the business (think Apple Pay). Smart banks are forging relationships with different and unexpected partners, such as mobile and retail organisations, even providing products from outside of the group where they are the best fit for a customer’s needs. As I’ve said in one of my previous blogs, there’s a new mantra for modern banking: “Must play well with others.”
Old-fashioned banking is gone, and with it so have old style processes, business models and attitudes. Nobody wants to be the last dinosaur. It’s time for the industry to dust itself off, and step up. Embracing change is easier – and far more profitable – than risking irrelevance in the widening digital divide.
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About Laurence Leyden
Laurence is Director, transaction Banking for EMEA and is primarily involved in helping banks in their transformation agenda. Prior to SAP he worked for numerous banks in Europe and Asia including Barclays, Lloyds Banking Group and HSBC. He regularly presents on industry trends and SAP’s banking strategy.
Among the studies of climate change that indict human inventions and activities for the ecological damage done to the earth, there is a hopeful glimmer that digital business can bend the curve to reduce carbon emissions. According to #SMARTer2030, a study by the Global e-Sustainability Initiative (GeSI) and Accenture Strategy, it is possible, during the next 15 years, to hold worldwide carbon emissions to 2015 levels by digitizing business processes and applying data to decisions about resource use. That would represent a valuable contribution, according to the research, in decoupling economic growth and greenhouse gas emissions, thus helping to solve the tradeoff between the two.
SAP looked at a subset of companies in six major industries that are currently using business software such as enterprise resource planning, data analytics, supply chain, logistics, production planning, resource optimization, and remote access. Then SAP did their own analysis to estimate how applying these technologies to emerging digital business models in these industries globally would contribute to reducing carbon emissions.
The “Business as Usual” Scenario
The heat is on. The Intergovernmental Panel on Climate Change, the world body established in 1988 to assess the impact of humans on the climate, notes in its most recent report that “business as usual” practices would lead to temperature increases between 2.6°C and 4.8°C by the end of the century—beyond our expected ability to reverse the damage.
More IT = Less CO2
By rolling out information and communications technologies (ICT) across the global economy, total emissions of carbon dioxide equivalent could be cut 12.1 gigatons by 2030 and help forestall temperature increases, GeSI research has concluded. GeSI is an ICT industry association working with, among others, the United Nations Framework Convention on Climate Change to improve its members’ sustainability performance and promote technologies that foster sustainable development.