| Sport is a suitable metaphor for business. | | | | refer to the concept of sound and unsound |
| Formula-1 for instance offers the reasonable fit in | | | | business architecture. Some people have a |
| comparing investment banking with sport. ING | | | | beer-belly and (therefore) they cannot run fast. |
| started to sponsor the Renault team some years | | | | You can tell it from their profile. There is a |
| before the top of the investment market. | | | | difference between a bank who makes a mistake |
| The first parallel is the bonus-culture that link sport | | | | and a bank that is based on fraud. In sport this is |
| (F1) and business (investment banking). There is a | | | | not any different; there is a difference between a |
| big bonus to gain in either market. Only the winner | | | | simple lie and someone who is a fraud. That |
| gets the full bonus. The necessary control and | | | | people don't care to notice and investigate, that's |
| supervision is also evident in either market: | | | | their problem and part of the financial cause we |
| formula-1 needs control (against spying and | | | | are now in. Those who are currently blaming the |
| fair-play) and the investment banking needs | | | | investment bankers of all the fraud and misleading |
| control to prevent (Madoff-like) fraud. Cheating is | | | | in finance and blaming the bonus-culture, should |
| also part of business, whether it is sport (F1) or | | | | have a look at the formula-one or any other |
| investment banking. Investment bankers lie about | | | | sport. They work under the same principles. |
| return on investments, sportsmen lie about | | | | What's the lesson to learn from all this? |
| drug-use (doping) or about fair play. | | | | First and most of all, acknowledging the |
| The recent incident in the formula-1 is paramount | | | | differences between organizations making a |
| for all this. Last year we could witness some | | | | simple mistake and others subsequently misleading |
| exotics in the McLaren-team. The rivalry between | | | | clients. Both types of companies exist and clients |
| Hamilton and Alonso in the same team. We could | | | | and investors can tell the difference between |
| all wonder about the level of fair play in the | | | | either type of company, as long as they observe |
| McLaren team. It just like in business. Hamilton | | | | what is happening. We now have experienced |
| was favored by the management of the Mclaren | | | | some flaws in business and this will have its effect |
| team. We don't know for sure what happened | | | | on organization. Clients and stakeholders will (have |
| behind the scenes but we can only doubt whether | | | | to) be more assertive in detecting bad-practices |
| it was all fair. Alonso left as a gentleman, back to | | | | (instead of best-practices) and "inform" the |
| Renault with a less powerful vehicle. | | | | organization about it. |
| Now less than a year later we are again watching | | | | A bonus-culture is not necessarily inappropriate. |
| the fair-play in the formula-one, and: "... Lewis | | | | But it requires control as the chance of fraud |
| Hamilton apologizes after admitting to misleading | | | | increases. Have a look at sports and the affect of |
| stewards..." writes the BBC... "It was a huge | | | | (bonus) pressure on the attitude of its players / |
| mistake." | | | | members. |
| Maybe it was more than a simple mistake. I would | | | | |