As the UK faces a potential double-dip recession and many other countries fear economic meltdown, can financial institutions afford to be without coaching? Jennifer Spalding, Ulrike Dadachanji and Joella Bruckshaw ask the bankers
Against spectacular views over the City of London, bankers and coaches met at Barclays Bank’s offices in Canary Wharf to debate the role of coaching in banking.
Where were all the coaches when the banks went down?
This interesting and provocative question was the perfect lightning conductor for a lively debate in the style of BBC news programme, Question Time.
The panel consisted of a foreign exchange trader, new business project manager, quantitative analyst, COO and an M&A specialist. The audience was made up of independent coaches, coaching buyers and executive coaches – some having held senior roles in financial services.
As the event sponsor, Barclays provided an overview of coaching internally, sharing how services are now much more sophisticated, controlled and centrally managed than five years ago.
Guest speakers John Blakey and Ian Day, who co-wrote a book1 using the earlier question as its title, set the scene for the discussion at a networking event of Coaches in the City, a new LinkedIn group.
Blakey and Day wrote the book after Lehman Brothers declared bankruptcy in 2008. They said there had been too many “cosy” coaching conversations in “the good times”.
A number of interesting themes emerged, including limited leadership development in the banking industry; the challenges of a fast-paced environment and inevitability of placing profits before principles; high job insecurity, and poor understanding of what coaching can offer.
Limited development
The bankers expressed frustration at the limited management and leadership development they received. One complained that in 10 years he had received none and was struggling to motivate his team. Another talked of expectations to communicate upwards and downwards without guidance.
There was agreement that learning and development (L&D) opportunities still prioritise technical skills over interpersonal and management skills. This is particularly the case for promotion. Consequently, people often prefer to accept a role with additional responsibilities in another bank.
This genuine spirit of enquiry was delightful, as some of the bankers had assumed these industry ‘facts’ were widely known.
Culture and ethics
The bankers agreed that the working environment was challenging and fast-paced and professionals often enter the industry for a limited period, mainly for financial incentives.
We discussed rogue traders. A coach said that, given the nature of the industry, he was surprised there were so few. One banker replied, “Maybe they are few and far between, and clear criminals, but what about other dishonest behaviour we do not hear about?”
We discussed CEOs of bailed-out banks and the question of greed, legality and loopholes. It was striking to hear their pragmatic and, at times, cynical comments, driven by assumptions of the inevitability of unethical practices in an industry designed to make money.
A further dilemma was the role played by HR departments and how they are often not well-regarded. One banker said HR didn’t usually play a strategic role in his firm and was not taken very seriously.
High insecurity
The bankers expressed concerns about how to deal with the implications of increasing regulation and financial constraints. They face further restructuring, redundancies and cost cutting. It was noted that one coach is working with the CEO of one of the biggest global players in banking on rethinking their approach to developing a much stronger ethical approach with top management. But generally, this is not an environment where many want to deal with questions of leadership skills or ethical approaches. As one banker put it, the current debate at the water cooler is, “Will I still have my job next week?”
Take it to the bank
We circled back to the question of the role of coaches in this difficult environment, asking: “Are coaching and banking like oil and water?”
We concluded that to be successful in this industry, coaches need to have:
- a thorough understanding of the industry, gained either by direct experience or having worked substantially with clients in it
- sound training in psychological concepts and theories
- an ability to provide even the most difficult feedback, which may be uncomfortable for powerful and ambitious personalities
- an ability to hold the tension that may arise from challenging clients.
A couple of bankers explained that they would appreciate it if coaches could help them to structure and deliver difficult feedback – upwards and downwards. However, the reality is that banking is not an industry that prioritises management development. Coaches need to start where bankers are.
Where do we go from here?
The picture is complex. Banks and their leaders are not all the same, and neither are their needs. It appears there is little focus on preparing their future leaders to take on the challenge of managing and leading people rather than running complex trading books or other technical innovations.
The industry is fast-paced, and it’s easier to job-hop than rise through the ranks. As a result, fluctuation is high and long-term investment, which includes coaching, feels low on the agenda. However, the immense level of insecurity currently faced by the industry as a whole means the need for coaching has never been higher.
It was obvious from the meeting that clarification is needed on what coaching actually entails. The bankers were confused about how coaching would work and how it might prepare them for the challenges ahead. Maybe in the first instance we, as coaches, need to understand what’s happening in the City – and explain to many more bankers how we can actually help. n
Jennifer Spalding and Ulrike Dadachanji are HR/OD consultants and executive coaches and Joella Bruckshaw is an executive coach and mediator. All work in the financial services sector.
1 J Blakey and I Day, Where Were All the Coaches When the Banks Went Down? Advanced Skills for High Performance Coaching, 121partners, 2009. Their follow-up book, Challenging Coaching: Going Beyond Traditional Coaching to Face the FACTS, will be published by Nicholas Brealey in April 2012.
Banking does not prioritise management development. Coaches need to start where bankers are
Coaching at Work, Volume 7, Issue 1