Intra-preneurial Spirit
Over several years, we have provided service for, and have been affiliated with, a number of large financial service organizations who have formed their own asset management units. The appeal of asset management is quite obvious: recurrent revenue and generous profit margins. Despite the effects of the financial crisis which will continue to put pressure on these businesses, well run asset managers should continue to thrive.
When set up properly, asset management groups within large organizations can operate quite independently of their parent, yet draw on its vast resources. If they can establish the entrepreneurial culture necessary to be successful in the business, they can also serve as a model for other businesses within the greater organization. In order to do so, there must be separate leadership, infrastructure, and compensation incentives which are aligned with the goals and progress of the asset management effort.
In the best situations, this “intra-preneurial” spirit can not only drive the success of the asset management business, but provide an example of best practices for the rest of the organization.
Add comment July 7th, 2010
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