Supporting the St. Louis Financial Services Industry

Buying and selling money is a complicated enterprise. In one way or another, we're all affected by how well the financial services industry fares here.

Not only does a financial services firm have to have its own infrastructure, but also plenty of help from outside: A phalanx of attorneys, accountants,

We count on our investment banker or broker to see the big picture. But someone else may have to make sure there's a wall to support it, a suitable frame, glass or no glass, and a hook.

Many of the companies we approached were loath to divulge their clients, which is understandable. So, we're grateful to Aon Consulting, Lockton Insurance Group and Husch Blackwell Sanders LLP for discussing, in general terms, how their organizations help the financial services industry in St. Louis run smoothly.

Aon Consulting, the global human capital consulting organization, is a force to be reckoned with. The company website lists 2006 revenues of $1.352 billion and 6,335 professionals in 117 offices worldwide. Aon concentrates on benefits, talent management and rewards strategies and solutions, serving as a strategic partner on issues affecting millions of employees worldwide. The evolution of the workforce and global economy have placed human capital issues at the forefront in the executive suite, according to the site.

"The financial services industry affects all other industries," says Paul Schultes, senior vice president of Aon's St. Louis office. "What was once a stable industry is now in peril due to factors such as the sub-prime fall out and credit crisis. As a partner to clients in this industry, Aon must be prepared to bring comprehensive solutions.

"Financial services companies traditionally have flat organizational structures, which poses a challenge of filling leadership positions. These organizations must be able to identify and develop high performers more skillfully than other industries."

Financial services execs often don't have the benefit of large blocks of time to reflect, ponder and stroke their chins. They have to be fast on their feet, and intuitively realize whether it's time to hold 'em or time to fold 'em. These people, once hired, must be nurtured - otherwise, someone else might have a better offer after lunch. It's free-agency, 365 days a year.

"Every organization makes significant investments in their talent to achieve sustainable growth, drive profit and ensure business continuity," Schultes says. "Reaching organizational goals requires visionary leaders, top talent at all levels of the organization, and the right rewards and benefits to attract, retain and develop world-class talent.

"The financial services industry consists of a very dynamic workforce with diverse business segments requiring various employee skill sets. In this industry, the actions of one individual and/or group can negatively affect the entire organization, which is why recruiting the right leaders is of utmost importance."

Officials at Lockton Cos., LLC, tout the company as the world's largest privately held independent insurance broker. Lockton works closely with many organizations in the financial services industry, providing clients with a wide range of insurance, risk management and employee-benefits consulting services.

The financial services industry is different largely because of the significant professional liability exposure these companies face in today's economy, says Brian Wolf, a producer at the firm. In particular, he points out, the number of claims has increased significantly over the past several months for this industry. Often, significant litigation in the area of professional liability can lead to related D&O claims.

"We work with our clients to make sure they are aware of any potential exposure and the consequences associated with them," Wolf says. "We protect our clients from the broad characterizations being used in their industry."

The financial services industry is rife with challenges. Though many are complicated, some can be described quite simply. For instance?

"Cost control," Schultes says flatly. "Due to the deteriorating credit quality and liquidity issues, our clients are requesting we bring ideas that control cost and expense volatility.

"Also, as shareholders blame poor company performance, leadership turnover is likely to occur, emphasizing the need for attracting, recruiting and retaining leaders. This is coupled with the fact that the majority of organizations are experiencing leadership shortages already."

At Husch Blackwell Sanders LLP, the Banking & Finance practice focuses on the lending and regulatory activities of regional and national commercial lenders, retail banks, life insurance companies, credit unions, savings associations and other financial institutions. The firm's website states that the firm "represents both commercial lenders and borrowers and understand(s) the requirements and approaches of both secured and credit debt financing."

The practice also focuses in regulatory compliance of financial institutions. There are more than 100 attorneys throughout the firm with experience in banking and finance. With nearly 30 years under his belt in the field, Thomas Prince considers himself one of the "old-timers."

"I've found the financial-services industry to be very creative, whether the economy is up or down," Prince observes. "Especially if they do their homework and avoid exotic investments."

While a down economy may be tough for most investors, these times present great opportunities for those with the good fortune to have liquidity.

"It's a great time for those individuals to take advantage of buying opportunities," says Prince. "This is not an environment for IPOs and business as usual for the financial services industry."

In a word that's not foreign to anyone with a St. Louis mindset: Conservative.

"It's a time to help clients develop long-term strategies, take the long view and take advantage of long-term opportunities," Prince emphasizes.