This is an incident as narrated to me by one of my friends in the treasury department of a reputed bank. I shall not name him and the bank because being a banker myself I should not be seen as a person who cries foul about other banks. This is to highlight the macro-issue of work culture we are all subjected to these days.
The trading house is an insulated department from the "real bank" not just geographically but in all respects. While we get a confirmation from the client, get an acceptance letter signed and setup the limit; the treasury department first books a deal, gets the acceptance signed and gives a confirmation on the deal.
There are two kinds of clients: one who blindly trust the dealer's advise; the other trusts his/her own instinct and forces the dealer to close his position. My friend met a third kind.
Friend: Sir, this is the wrong time to close your position. Just wait for a couple of days, the dust will settle down and then we can make an informed decision.
Client: I don't want to lose any money. My WC requirements are tight and I cant afford any slip-ups.
Friend: Sir, you have to trust my judgment. This is really not the right time. I assure you there will not be any slip ups. Your position is secure. Don't touch it now.
Client: I don't know. My gut says now is the time. Anyways, you are the expert. I trust you.
Friend: Thank you sir!! You won't regret it.
Client hangs up. Calls dealer 2 in the same bank.
Client: I want to close my position now.
Dealer2: Sir, I don't handle your account. I am not authorized to.
Client: He is not available. Should I wait for him to come and see my money going down the drain?
The dealer 2 is an new employee. He has been taught by his boss to put the customer first. He starts sweating.
Dealer2: Sir, we are out here to help you. I just hope he is in the loop. I shall close the deal for you and send you the confirmation.
Client: Yes, please do.
Dealer2 closes the deal. The next day there is a sharp dip and the client realizes he has lost 40 lakhs. At the same time he gets the acceptance letter that needs to be signed. Now the client starts to sweat. He sits on that letter and doesn't respond to it.
After 2 days:
Boss in bank: Sir, we have not received your payment as yet.
Client: What payment? Who had asked you to close the position? Why was it done without my permission?
Boss in bank: Sir, there has to be an explanation. I am sure Dealer 1(Friend) did it with your permission.
Client: I had specifically discussed this and we agreed not to close the position. Please assign me another set of dealers. This is not done. I don't want to see Dealer 1's face again.
Client slams the phone
Boss: Did the client ask you to keep the position open.
Friend: (totally unaware) Yes sir. He did.
Boss fires my friend left and right and gives hoards of gyaan about customer trust and ethics. He is not given a chance to speak. At last he is ordered to visit the client and apologize to him personally.
Now!! This was a situation even the client had not seen coming. He just thought the dealers would change. My friend arrives at the client's place. The client is embarrassed. He starts sweating
Client: I am really very sorry. I should never have put your job on the line. It was all my fault.
Friend: (just back from the gyaan of customer first) No problem sir. I would have probably done the same thing if I were in your shoes. I am here to propose to you another deal that would cut your losses(40 lakhs) by 1/4th.
Client: I trust you this time. Please do so, and once more I am really very sorry.
My friend goes back, works out a deal and goes to his boss.
Friend: Boss, I have done some damage control. I have found a quote for the client that would reduce his loss to 5 lakhs.
Boss: Hmm... Quote higher. That is not a favorable quote.
Friend: But sir, this quote would limit his loss.
Boss: Do as I say and the client reduces his loss to 8 lakhs and we make 3L on the transaction. You are an MBA, you should know how to make a transaction win-win. Our side of the win is equally important.
Friend closes the transaction. Boss shoots him a mail of appreciation marking all national heads. As a reply to that mail my friend tenders his resignation.
I offered to look for opportunities for him in my bank. But he had become so skeptical about sales and numbers that he took up a job in a firm which releases reports. His salary is the same but the satisfaction level different. How different is something I leave to his judgment.
Critiques to this post might argue - not all clients are like that, not all bosses are like that. That is a lame explanation. I put myself in his shoes. My clients represent the market to me. My boss represents the organization to me. People react to situations based on the inputs from a perceivable environment( read: immediate boss and his clients)
On the face of it, client is happy he limited his loss to 8 lakhs. Customer satisfaction achieved. The boss pocketed 3 lakhs and achieved his target. Since he represents the organization, organizational motive of higher revenue achieved. Win-win? Yes.
But where does the win-win leave an employee?
Signed,
Barat Ramkumar
Note: Introspect and you will realise that it applies to you as well. Blame the self-imposed targets and definitions of success that we wear as a blanket to hide from hard-hitting realities. Throwing the ethical mantle on the other person's back has become the order of the day. Its unfair, I argue. I get a reply 'So is life. Move on'
The trading house is an insulated department from the "real bank" not just geographically but in all respects. While we get a confirmation from the client, get an acceptance letter signed and setup the limit; the treasury department first books a deal, gets the acceptance signed and gives a confirmation on the deal.
There are two kinds of clients: one who blindly trust the dealer's advise; the other trusts his/her own instinct and forces the dealer to close his position. My friend met a third kind.
Friend: Sir, this is the wrong time to close your position. Just wait for a couple of days, the dust will settle down and then we can make an informed decision.
Client: I don't want to lose any money. My WC requirements are tight and I cant afford any slip-ups.
Friend: Sir, you have to trust my judgment. This is really not the right time. I assure you there will not be any slip ups. Your position is secure. Don't touch it now.
Client: I don't know. My gut says now is the time. Anyways, you are the expert. I trust you.
Friend: Thank you sir!! You won't regret it.
Client hangs up. Calls dealer 2 in the same bank.
Client: I want to close my position now.
Dealer2: Sir, I don't handle your account. I am not authorized to.
Client: He is not available. Should I wait for him to come and see my money going down the drain?
The dealer 2 is an new employee. He has been taught by his boss to put the customer first. He starts sweating.
Dealer2: Sir, we are out here to help you. I just hope he is in the loop. I shall close the deal for you and send you the confirmation.
Client: Yes, please do.
Dealer2 closes the deal. The next day there is a sharp dip and the client realizes he has lost 40 lakhs. At the same time he gets the acceptance letter that needs to be signed. Now the client starts to sweat. He sits on that letter and doesn't respond to it.
After 2 days:
Boss in bank: Sir, we have not received your payment as yet.
Client: What payment? Who had asked you to close the position? Why was it done without my permission?
Boss in bank: Sir, there has to be an explanation. I am sure Dealer 1(Friend) did it with your permission.
Client: I had specifically discussed this and we agreed not to close the position. Please assign me another set of dealers. This is not done. I don't want to see Dealer 1's face again.
Client slams the phone
Boss: Did the client ask you to keep the position open.
Friend: (totally unaware) Yes sir. He did.
Boss fires my friend left and right and gives hoards of gyaan about customer trust and ethics. He is not given a chance to speak. At last he is ordered to visit the client and apologize to him personally.
Now!! This was a situation even the client had not seen coming. He just thought the dealers would change. My friend arrives at the client's place. The client is embarrassed. He starts sweating
Client: I am really very sorry. I should never have put your job on the line. It was all my fault.
Friend: (just back from the gyaan of customer first) No problem sir. I would have probably done the same thing if I were in your shoes. I am here to propose to you another deal that would cut your losses(40 lakhs) by 1/4th.
Client: I trust you this time. Please do so, and once more I am really very sorry.
My friend goes back, works out a deal and goes to his boss.
Friend: Boss, I have done some damage control. I have found a quote for the client that would reduce his loss to 5 lakhs.
Boss: Hmm... Quote higher. That is not a favorable quote.
Friend: But sir, this quote would limit his loss.
Boss: Do as I say and the client reduces his loss to 8 lakhs and we make 3L on the transaction. You are an MBA, you should know how to make a transaction win-win. Our side of the win is equally important.
Friend closes the transaction. Boss shoots him a mail of appreciation marking all national heads. As a reply to that mail my friend tenders his resignation.
I offered to look for opportunities for him in my bank. But he had become so skeptical about sales and numbers that he took up a job in a firm which releases reports. His salary is the same but the satisfaction level different. How different is something I leave to his judgment.
Critiques to this post might argue - not all clients are like that, not all bosses are like that. That is a lame explanation. I put myself in his shoes. My clients represent the market to me. My boss represents the organization to me. People react to situations based on the inputs from a perceivable environment( read: immediate boss and his clients)
On the face of it, client is happy he limited his loss to 8 lakhs. Customer satisfaction achieved. The boss pocketed 3 lakhs and achieved his target. Since he represents the organization, organizational motive of higher revenue achieved. Win-win? Yes.
But where does the win-win leave an employee?
Signed,
Barat Ramkumar
Note: Introspect and you will realise that it applies to you as well. Blame the self-imposed targets and definitions of success that we wear as a blanket to hide from hard-hitting realities. Throwing the ethical mantle on the other person's back has become the order of the day. Its unfair, I argue. I get a reply 'So is life. Move on'
5 comments:
interesting post.
I am little bit surprised that your friend actually resigned!
And just imagine what our Jamru would have done.
A fourth type.
Reduce clients loses to 10 Lakhs. Inform boss that he reduced it to 8 Lakhs. Give 3 lakhs to Boss and keep 2 Lakhs for himself.
If only all this is really possible :D
I am very skeptical on the authenticity of the incident, firstly there are recorded lines in a treasury, dealer 2 wud have informed dealer 1 of the closed position, and also in terms of dispute the recorded conversation is checked, finally u mentioned a loss of 40 lacs was realized by closing the position, pray tell me how cud the dealer have made it 5 lacs, i am sorry but the story of your friend is a figment of your imagination
X has a position, at the time of the unwind of the deal 40 lacs loss realised.So if he has to reduce it, the dealer has to initiate another trade which gives a profit of 35 lacs, if such a trade exists in the mkt, why is ur friend insales, he shud be in prop making the money for the bank...a simple market aphorism..there are no 100 $ bills lying on the road..cos somebdy has or will pick all of them.
Dear Anonymous,
Thanks for your insight!
1. Whatever language you talked just went over me.
2. The intricacies of the deal wasn't the point. It was something deeper and relevant to the present day work environment that I was trying to project.
3. This blog aint meant for nerds like you to point out technical faults. Its for normal people who can appreciate the context and relate to it.
4. Am kidding. I didnt mean any of the three above comments. Please keep filling the comments section. :)
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