Bank Julius Baer Case

2216 words 9 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
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I. Recruiting the Right Talent.
Recruiting the right people to manage and advise BJB-NA’s clients will be critical to sustaining long-term growth and increasing assets-under-management. Recruiting will align with the Company’s geographic approach to segmentation by adopting three tactics:
· Local talent recruitment – a successful private banker needs an outgoing, service-orientated personality, and the ability to connect with potential and existing clients. In connecting with clients, it becomes mandatory that future private bankers will be recruited from local regions. This strategy will generate bankers who know the local customs and cultures, speak the language, and are involved in the community. As a result, it creates comfort and familiarity for potential clients.
· Recruit from bulge bracket private banks –Company acquisition is not a feasible option at this time. However, employee/talent acquisition is an even better method to help improve the Company. Bulge bracket private banks are typically a part of much larger conglomerates, often weighed down high-level corporate strategies and “red tape.” To attract bulge bracket private bankers, BJB-NA should promote an entrepreneurial environment that offers autonomy and flexibility while still offering resources found at larger firms.