A letter from the president of the Austin CFA society:
The CFA Institute has announced that John Rogers, CFA will be departing as CEO at the end of the fiscal year - August 31, 2014.
My personal view is that John Rogers has been an excellent leader of the CFA Institute since he took over at the helm in January, 2008. I also understand the frustration. The CFA Institute has certainly had a strong outward focus over the last several years. Unfortunately, that outward focus has invited some strong criticism by members. A program such as Claritas is needed for future growth as it accesses a much larger base of individuals, and hence, revenue. However, it has also become clear that the Claritas program needs to be significantly modified to be successful locally as well as globally. Local Society membership has been addressed. A new cohesive and global marketing and branding program for all Societies has been introduced. A larger share of the day to day operational management of the local Societies has been pushed down to the local Societies. Some societies were more prepared to manage this increased autonomy better than others. While the larger Societies have always operated more autonomously, they questioned the motivation. Smaller Societies seemed to grow frustrated with the lack of support and hand-holding from the CFA Institute. As any corporation leader will tell you, a successful company is the result of effective strategic planning, articulating the vision, and then execution. Day to day issues will always arise, but it’s the leader that must keep his/her eye on the vision and keep the organization moving forward.
The change at the helm of the CFA Institute reminds me of the leadership changes that occurred at McDonald’s Corporation in the late 1990s - early 2000s. At that time, the CEO was Jack Greenberg, and the focus was external growth. When Jim Skinner took over in 2005, McDonald’s moved to internal improvements and focused on its core brand. The fortunes of the Company soon began to improve - and dramatically.
We understand that the CFA Institute is discussing the strategy of following a similar path focusing on internal improvement and greater focus on delivering value to the local Societies. We believe that this will improve the fortunes of the CFA Institute. Two additional points. First, the industry is changing. There are fewer jobs for CFA Charterholders as analysts and portfolio managers. Charterholders displaced by an industry constantly consolidating are moving in greater numbers to become wealth managers. The number of candidates sitting for exams in high growth areas has begun to decline. Question: why do I want to pursue a CFA charter if the number of available jobs are declining, or the job options available to me are not interesting to me?
Secondly, I was recently searching for a new tax accountant. Our trust attorney recommended a sole practitioner. That CPA described to me that he was building a business, and hence, he was not interested in doing our taxes unless he was also awarded the position of our wealth manager. I was horrified. What training did this individual have to manage money? He did not provide me with a resume or state his credentials. He simply indicated that he was building a business. There is no doubt that this occurs all the time across the USA and across the world. Needless to say, I was not interested in abdicating the management of our portfolio to a tax accountant or a group of salespeople - but I’m sure that a very large number of people do exactly that, every single day.
Which client group views a CFA charter as a “must-have” designation? Institutional money managers? Retail investors? High net worth individuals?
In other words, if CFA charterholders are becoming high net worth wealth managers in greater numbers, then does this client group see a CFA Charterholder as their first choice, or are they “OK” with tax accountants and salespeople?
The focus of the last few President’s letters has been on moving our Society towards greater financial independence. A large portion of our member value occurs from providing members with industry education and knowledge. When we are financially independent, we can pay speakers their “fee and expenses.” Financial independence will allow our Society to provide greater value to our members with better speakers and events.
This is the future. We are preparing for greater growth and we are focused on providing greater value to our members.
If you agree with our direction, please raise your hand and volunteer. We have already interviewed several truly outstanding candidates to join our Board next year. Our future looks very bright. Nevertheless, you should raise your hand. Please consider joining our Board. There are many challenges ahead, and your voice and participation will help shape our direction for years to come.
Sincerely, Richard Piotrowski, CFA
President, CFA Society of Austi