Description
Driebusch’s article reports how Merrill Lynch
has been able to register growth in stark contrast to what would ordinarily be
expected. The period covered witnessed
the group lose some of its talent to a variety of factors. There were those
advisors that left due to natural attrition of age, others more to other retail
brokerages while some were eased due to underperformance (Driebusch, 2013). Of
importance is the fact that the group was still able to grow its revenue. This
growth is attributed to higher fees charged by the individual client advisors
and well as the possibility that the remaining advisors were also working
harder. Also revealed in the article are the concerted efforts by Merrill Lynch
to recruit private client advisors. This came in the backdrop of growing
account balances among this category of clients.
Strategic Significance
One key issue of strategic significance from
the article is the role of talent as a competitive edge in business (Guthridge,
Komm & Lawson, 2008). A research conducted way back in 2006 identified
talent is the single most strategic issue that will occupy executive in many
years to follow. Driebusch’s article raises exactly the same issue. Merrill
Lynch and other retail brokers are fiercely competing for advisors. That
competition is premised on the understanding that competent talent can make a
big difference to the performance of a company. The article under review even
note this when it indicates that Merrill Lynch has be growing revenues from
fewer advisors. It can only mean that each of the remaining advisors is
commanding relatively higher fees.
In the case of Merrill Lynch, demographic
changes occasioning retirement of some workers as well as the rise of the
knowledge workers are the key challenges in talent management. The modern
knowledge worker, like the advisors in the retail brokerage market, have so
much control over their talent that it sometimes become a problem to the
company.
References
Driebusch, C. (2013, April 17).Merrill Headcount Down but
Average Revenue Rises. The Wall Street Journal.
Guthridge, M., Komm, A.B., & Lawson, E. (2008).Making
Talent a Strategic Priority. The McKinsey Quarterly, 1, 50-59.
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