Reto Jauch: «Ralph Hamers Needs to Soften UBS' Hierarchy»

A transformation of UBS under new CEO Ralph Hamers will only work with a cultural change, headhunter Reto Jauch tells finews.tv. He highlights other successful Swiss examples. 

The choice of ING boss Ralph Hamers to replace UBS CEO Sergio Ermotti in November is a strong signal: the Dutch executive is expected kickstart the Swiss wealth manager's digital transformation.

Reto Jauch, managing partner at Zurich-based headhunting boutique Schulthess Zimmermann & Jauch, doesn't dispute the interpretation – but emphasizes that Hamers at UBS is «more of a cultural placement than hiring a digital CEO».

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What measures can we expect of Hamers in order to enact a cultural shift at hidebound UBS? «The buzzwords of this would be agility, transparency, and changes in hierarchy,» Jauch said. «I expect Hamers to initially work on these topics and to soften the deeply-entrenched hierarchical structure of UBS in order to succeed.»

Soft Factors, Personality

UBS' prospects to rejuvenate its culture are intact, according to Jauch – and Chairman Axel Weber has already made a start. «This particular combination of chairman and CEO can more decisively define this development.»

In the past, the evaluation of candidates in succession planning was more focused on personality elements as well as soft factors. A 194-year-old cooperatively-organized Swiss insurer offers a prime example of how to marry succession with successful cultural change, Jauch said.

Dissolving Hierarchies 

The chairman of Bern-based Mobiliar, Urs Berger, began early on through «significant decisions» to build a leadership team to spur transformation. «The noteworthy thing about Mobiliar is that topics like agility and transparency were implemented and that the company found team structures to work effectively, independent of hierarchies,» Jauch said.

While Switzerland's big banks have ample resources for technology and digitalization, UBS and Credit Suisse's boards aren't fully set up for the shift yet. «The board floated several trial balloons, but this ultimately fizzled,» he said.

The idea of «getting someone from Google or Amazon in» isn't truly grasping the nettle. The complexity of finance with multi-faced regulation requires know-how and skills. «Its almost impossible to transplant someone from outside of finance into a leadership role in banking,» Jauch said.