Bank Julius Baer Case Essay

2229 WordsApr 15, 20129 Pages
Bank Julius Baer, North America Situation before the arrival of Stuart Adam Before the arrival and leadership of Stuart Adam (“Adam”), Bank Julius Baer, North America (“BJB-NA” or the “Company”), the largest independently-owned European private bank in the United States, faced financial difficulties. By mid-2001, a worldwide market downturn caused a significant decline in Julius Baer Group’s (“JB” or the “Parent”) performance. In 2001, JB’s stock price was down by over 40% while the Parent experienced a 39% decline in net profits, 9% increase in operating expenses and an increase of 14% in employee headcount. BJB-NA, the “crown jewel” of JB, was barely profitable but no one inside the Company knew its true financial…show more content…
He established measurable criteria related to book value, relationships and accounts. Previously, Company employees truly did not know their clients. As a result, it was difficult for management to identify top and low performers. Adam’s established criteria that pushed Relationship Managers past their comfort zone. Before Adam took the helm at BJB-NA, almost everyone received bonuses regardless of their performance. Tying a bonus program with a structure performance evaluation system incentivizes those who bring success and growth potential to the Company. Modify the organization structure: Adam slightly altered the structure of BJB-NA by having a client-segment focus within existing geographic areas. As such, the decision making processes were now decentralized to each of the regional teams. Previously, the advisory and product services departments worked with all regions. After Adam took charge, he assigned advisory teams to each of the different regions to further strengthen customer relationships. Recommendations BJB-NA recognizes that its future success hinges on one important factor: its clients. Our consulting firm wants the Company to further expand and impact its clients beyond what Adam has already planned. Our approach is a client-centric strategy that focuses on two key initiatives: (1) Aggressively recruiting top talent to enhance client acquisition and performance (2) Overhauling the

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