The Cicutto Rout
Yes the NAB bank lost $360M but the real question is why? Rogue traders, yes but why did they go feral? This question Cicutto could not or did not answer well.
His first response was to restructure. This is standard play when you really don't know what to do, you want to look like you are doing something and want some time to regroup. We all know restructuring is complex and takes time. But, as we also know, it's rarely the real answer to anything. It creates activity, instability and the expectation that there will be no outcomes for another 12 months buys time, get out of jail!
The more appropriate response should have been to admit that the NAB had an ineffective performance measurement and management system.
Trading is IT based and it lives in a rich information environment. If senior management were tracking performance daily, weekly or even monthly, plus talking to staff about performance (in this case risk exposure), this would not have happened.
Performance measurement and management is the powerhouse that drives:
When Frank reached for the restructure and sack a few people solution, the market did not buy it. Better internal performance management may have been a better card to play.
The Thought For The Month: Which part of your business is the key to the success of your business, and, do you have an effective internal performance management system in place?
How's your energy?
You will recall that in January we started with "Sustain the Energy of January Throughout the Whole Year". Sally Flynn from StillMotion advised to 'TURN UP' (hope you have been practicing).
The next step is:
Once we've started being present in the moment it's remarkable what we find here and often it's things about ourselves we would be happier to do without. Whether it be a worry, an old habit or a negative attitude let it go. Clinging to our 'stuff' is unproductive and requires an awful lot of precious life energy to sustain it. Remember, if there is a problem that you have a solution for, there's no point worrying you already have a solution move on. If the problem doesn't have a solution, let it go because worry only creates tension and that is guaranteed to clog up your creative 'works' so the solution will never emerge.
If you are interested in more information please give us a call on +61 412 026 909 and ask to speak to one of our consultants.
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