I came across two articles this week on Canada's banking system. One was on its success, its ability to survive and avoid the current banking crisis. Why Canada's Banks Don't Need Help.
Consider that the Geneva-based World Economic Forum... earlier this month ranked Canada's banking system as the soundest in the world. The U.S. came in at No. 40.
The other article was on how those same rules wouldn't work here in the US, according to a banking expert: Canadian Bank Rules Don't Fit US Model.
Banking rules that spared Canada's big banks from the woes that hit global rivals would not work in the United States because of cultural differences..."You need principles-based rules and we're* (the U.S.) not going to do it."
The message could not have been any clearer, don't you think? These two articles conveniently juxtaposed at one business site that show the failings of our system vs the success of another make it clear.
But we've already understood this by now. Business models, and cultures, lacking principles are doomed to failure. Their failure arises as their business model implodes from their own unbridled excesses. They have no foundation to stand on with the changes in personnel, markets, economies, technology...They have no compass to guide them through the storms of change.
So. Are your business rules based on your principles?
Note: There's another time to digress into the discussion of free and open markets, transparent and full access to knowledge and information by all parties involved so that the consumer can make an informed decision, business models with proper incentives that reward achievements that build a sustainable brand, empowered regulatory bodies, etc.
* I for one wish the speaker whose quote I bolded would ask before he spoke for me. I know my culture is not one based on the lack of principles. Sure, there are those who have abused the trust we gave them and maybe we empowered them with our priorities that made us too busy to acknowledge the obvious blunders and excesses they gladly incentivized themselves to carry out. But if our culture was not based on these principles we would not be correcting the excesses incurred from allowing one powerful industry to violate our principles.
One last thought: Can Canada help us with our healthcare system? They seem to run their banking industry quite well. Maybe they know how to run a healthcare system?
Consider that the Geneva-based World Economic Forum... earlier this month ranked Canada's banking system as the soundest in the world. The U.S. came in at No. 40.
The other article was on how those same rules wouldn't work here in the US, according to a banking expert: Canadian Bank Rules Don't Fit US Model.
Banking rules that spared Canada's big banks from the woes that hit global rivals would not work in the United States because of cultural differences..."You need principles-based rules and we're* (the U.S.) not going to do it."
The message could not have been any clearer, don't you think? These two articles conveniently juxtaposed at one business site that show the failings of our system vs the success of another make it clear.
But we've already understood this by now. Business models, and cultures, lacking principles are doomed to failure. Their failure arises as their business model implodes from their own unbridled excesses. They have no foundation to stand on with the changes in personnel, markets, economies, technology...They have no compass to guide them through the storms of change.
So. Are your business rules based on your principles?
Note: There's another time to digress into the discussion of free and open markets, transparent and full access to knowledge and information by all parties involved so that the consumer can make an informed decision, business models with proper incentives that reward achievements that build a sustainable brand, empowered regulatory bodies, etc.
* I for one wish the speaker whose quote I bolded would ask before he spoke for me. I know my culture is not one based on the lack of principles. Sure, there are those who have abused the trust we gave them and maybe we empowered them with our priorities that made us too busy to acknowledge the obvious blunders and excesses they gladly incentivized themselves to carry out. But if our culture was not based on these principles we would not be correcting the excesses incurred from allowing one powerful industry to violate our principles.
One last thought: Can Canada help us with our healthcare system? They seem to run their banking industry quite well. Maybe they know how to run a healthcare system?
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