Rebooting the global asset management industry

52 Rebooting the global asset management industry Using Culture as a Transformational Tool “It’s just the way we do things around here.” This is commonly how culture is defined. But it’s time to do things differently. AI and GenAI recognize no business hierarchy or silos as they become a big bet top-of-the-house strategic priority over time. The centrality of reorienting the business culture is duly recognized, as is the complexity that goes with seeking a clear alignment between its three interfacing layers: business values that define the new culture and its norms; the staff behaviors that are dictated by the espoused values; and systems and controls that provide checks and balances on behaviors so as to align them with values (see Insights on the next page). Progress in each of these areas is slow but evident (Figure 5.2). Putting client interests above corporate interest is the core value (59%), as shown in the upper panel. Its centrality reflects the new needs of the next generation of clients – many of them being the beneficiaries of the biggest wealth transfer in history. It also seeks to align values to the vision, as discussed in the previous subsection (58%). It also aligns values to staff behaviors and their monitoring systems that promote self-regulating behaviors (49%). The espoused values also encourage staff to try out new ideas and working methods in the belief that the digital journey is one of experiential learning, based on trial and error (40%), while providing constructive real-time feedback as a learning tool (37%). As such, business values are seen as transforming the corporate DNA that can capitalize on the rapid transformation of the asset management industry expected over the next five years, led by technology. It is likely to favor those asset managers who go from a knowledge-hoarding culture to a knowledge- sharing culture. This is in the belief that ideas create ideas, in a positive feedback loop. The main action being taken to embed values into behaviors is likely to rely on increasing cross- functional teamworking as required by AI and GenAI (52%). AI and GenAI recognize no business hierarchy or silos. Figure 5.2 In light of the newly emerging businessmodels, which business culture changes are your organization currently implementing or are likely to implement over the next three years? Source: Citi/CREATE-Research Survey 2025 % of respondents Action Encouraging cross-functional teamworking Ensuring values are embedded inHR practices Promotingmeritocratic incentives Offering personal recognition and financial rewards Surveying staff to ensure values are observed Business values Putting client interests above corporate interests Ensuring that business values support the vision Building values intobusiness processes&behaviors Encouraging employees to try out new ideas Promoting honest real-time constructive feedback 58 59 49 40 37 52 48 42 24 21 “There are toomany wild variables impacting markets. Our values seek to balance customer interest with business commerciality.” “Culture starts at the top: the tone, the example, the words, the deeds, the outcomes.” Interview Quotes