Changes in Management and Organisation at the Global Wealth Management Group

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Except for new systems, there are some changes in management and organization in order to return revenue and profit growth at the Global Wealth Management Group. This article states that the Chief Executive John Mack brought in a new boss for the Global Wealth Management Group, this change in the senior level of employees follow the theory which is expressed by Kenneth c. (2006) as people is one of the key elements of an organization. Additionally as a number of productive brokers left the company, the firm is trying to fix the problem by addressing the issue of a “one-firm culture”, so the combination of these two factors in the principle “the key elements of an organization are its people, structure, business processes, politics and culture” (Kenneth c., 2006) was carried out well. Last but not least, the considerable change taking place in the Global Wealth Management Group was the enormous investment in technology to help the brokers do their works efficiently and to help their financial advisors better serve their clients and help their clients better manage relationship with them. Actually, “complementary assets are those assets required to derive value from a primary investment” ( Teece, 1988) “‘Recent research on business information technology investment indicates that firms that support their technology investments with investments in complementary assets, such as new business models, new business processes, management behavior, organizational culture, or training, receive superior returns, whereas those firms failing to make these complementary investments receive less or no returns on their information technology investments(Brynjolfsson, 2003; Brynjolfsson and Hitt, 2000; Davern and Kauffman, 2000; Laudon,1974).’These investments in organization and management are also known as organizational and management capital” (Kenneth c., 2006).So we can see that the explanation of organizational and management capital show the reason why the leader of the...
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