Gordon Nixon: Supervisor at Royal Bank of Canada - Case Study Example

Gordon Nixon: Supervisor at Royal Bank of Canada Introduction Gordon Nixon is the senior supervisor at RoyalBank of Canada. Gordon Nixon comes from Montreal, Quebec. He started his education at Lower Canada College. Nixon joined Queen’s University where he received Bachelor degree in Commerce. Nixon started investing in Dominion Securities after graduating. Royal Bank of Canada acquired Dominion Securities in 1987 and in 1989, Nixon Gordon became Managing Director of Investment Banking. In 1995, Nixon Gordon rose to head Global Investment Banking. In 2001, Nixon Gordon became the Chief Executive Officer at Royal Bank of Canada. This was after John Cleghorn retired from the chief supervisor position in this bank (Royal Bank of Canada 1). Roles of Nixon Gordon in Royal Bank of Canada Nixon Gordon, supervisor at Royal Bank of Canada, is crucial to success of this bank. Nixon performs many functions that are critical to performance and success of the bank. To start with, the supervisor ensures that the bank remains sound in domestic and international financial systems. This entails putting stringent and practical measures that promote bank soundness. Secondly, supervisor ascertains that there is strong internal governance in various sectors of Royal Bank of Canada. The department comprises account opening, credit cards acquisition, loans, and inquiries section. Nixon makes certain that there is an adequate macroeconomic development which has positive impacts to the bank. Thirdly, the supervisor assures that all relevant information about the bank is in place. This includes disclosure of information that surrounds valuation of bank assets. Fourthly, Nixon maintains prudent manner of operations and guarantees that Royal Bank of Canada observes its norms. This encompasses looking at possible sources of risks that can destabilize the bank. Lastly, he initiates early, orderly, and efficient exit in cases of undercapitalization of the bank (Boudreau & Jesuthasan 155-160). Analysis Nixon Gordon ensures that there is closer attention to linkages between sound activities of Royal Bank of Canada and macroeconomic policies. This entails looking at microeconomic policy in terms of its instruments and policy mix. He realizes that the health of economy and effectiveness of monetary policy depend on a sound financial system. In the light of this, Nixon Gordon makes solid policies that are compliant with banking laws and regulations of Canada. For instance, the supervisor has increased the assets of Royal Bank of Canada in order to meet obligations and prevent unwanted and unacceptable losses. He ascertains that the bank sets effective liquidity risk management to ensure that liquidity does not affect the cash flow of the bank (Boudreau & Jesuthasan 155). Nixon Gordon has been instrumental in developing strategy, practices, and policies to manage liquidity risk in accordance with risk tolerance. On top of this, Nixon spearheads the management team at Royal Bank of Canada to review information on banker’s liquidity reports and developments on regular basis. Moreover, Nixon Gordon guides bank’s board of directors to approve plans and practices that are pertinent to management of liquidity risk effectively. Further, Gordon ensures that the Royal Bank of Canada incorporates liquidity costs, risks, and benefits in internal pricing, performance measurement, and approval of new products. This has allowed Royal Bank of Canada to align venturesome incentives of businesses with liquidity risk exposures. In addition, Nixon Gordon is instrumental in ensuring Royal Bank of Canada has sound procedure for monitoring, controlling, identifying, and measuring liquidity risk (Boudreau & Jesuthasan 155-160). The Chief Supervisor at Royal Bank of Canada guides devising of sound decision that elaborates on methods of funding. This has provided effective diversification of its sources of getting money. On top of this, it has maintained a strong grip with financial providers who promote their activities. The tight decisions and leadership of Nixon Gordon has enabled Royal Bank of Canada to raise huge sums of money and monitor closely estimates of capacity to get funds (Boudreau & Jesuthasan 164). With his sound leadership skills, the management of this bank has managed to pay and settle its obligations on a timely basis under good and straining conditions. Nixon Gordon motivates the employees of Royal Bank of Canada through Visa Prepaid Cards. This supervisor recognizes the good work which workers perform to ensure prosperity of the bank. Visa Prepaid Cards are some of initiatives that among other big lists that Gordon Nixon has initiated. Some of other initiatives comprise rebates, loyalty programs, and contests. The aim of motivation of employees is to improve their performance. This has streamlined business activities at Royal Bank of Canada (Royal Bank of Canada 1). Leadership is a virtue which Nixon Gordon possesses. Sound leadership from this competent leader has enabled the Royal Bank of Canada to rank top in the list of Canadian banks. Nixon Gordon has seen the bank register positive impacts on a significant number of people, countries, and communities. Gordon has headed Royal Bank of Canada to the forefront in giving back to the community through initiating leadership programs. This program aims at empowering citizens to direct development not only in Canada but also in other parts where Royal Bank of Canada has influence. This is a move to establish a strong base of leaders through capacity building program. Furthermore, the supervisor guides the Royal Bank of Canada to participate in major projects such as RBC Blue Water Project, RBC Children’s Mental Health Project, and RBC Emerging Artists Project and Diversity (Boudreau & Jesuthasan 140-168). Conclusion and Recommendations Nixon Gordon is influential in ensuring Royal Bank of Canada and employees excel in provision of a variety of international banking services. His sound leadership and problem solving skills have enabled exemplary performance of employees of Royal Bank of Canada. The supervisor has motivated workers to come up with great ideas such as customized private banking services and products for the clients of this bank. On top of this, Nixon Gordon has headed employees in devising multi-currency banking services, unique private banking client card, overdraft protection, consolidated account reporting, foreign check handling, and funds transfer between accounts. Nixon Gordon sound supervision and guidance of the bank and employees to devise prudent strategies have enabled Royal Bank of Canada to improve customers’ experiences. Nixon Gordon has displayed a central approach in development of new analytical and metric techniques that have allowed the bank to give customized services to their clients. For instance, this supervisor leads the Royal Bank of Canada to utilize metric techniques in back-offices services such as credit and marketing. Similarly, Nixon ascertains that employees employ techniques in front office such as branch-based sales representatives. Metric method has enabled the bank to monitor the number of high-value segment customers acquired and assesses reduction in low-value segment. This has seen the bank to increase its responsiveness and focus to their customers in a very competitive banking environment. In order for Nixon Gordon to continue leading employees to direct Royal Bank of Canada in leaping success and huge profit margins, this report gives some important recommendations. To start with, the supervisor should direct workers to embrace new marketing strategies. This will change re-evaluation method of low value and low potential customers. This will help the marketing team in re-pricing its opportunities. On top of this, re-evaluation will enable the bank to prevent losing money and profits. Secondly, Nixon Gordon should encourage his employees to explore continue working as one team in order to realize development agendas of Royal Bank of Canada. Nixon should encourage good governance, accountability, and transparency among employees of different departments in Royal Bank of Canada. Thirdly, Nixon Gordon should guide his team to look at the ways in that satisfies fully needs of employees. The rewards, which Nixon provides to employees, should match their interests, skills, and strengths of their jobs. This is because when there is no match of rewards with the jobs, interests of workers to the job wanes. This affects the performance and productivity of employees. In the assessment of the things which motivate employees, Nixon Gordon should look at different generations such as “X” and “Y”. This will help the supervisor to come up with rewards that satisfy fully each employee. Nixon Gordon should also devise special rewards to recognize employees whenever they perform and succeed in challenging jobs in Royal Bank of Canada. He should realize that employees need attention when they have accomplished a task which seemed difficult. The supervisor should acknowledge and praise workers for their exemplary performance on these unique tasks. This will be one of greatest motivators to employees at Royal Bank of Canada. This report believes that Nixon Gordon will continue succeeding in his supervision role at Royal Bank of Canada when he follows the recommendations it has advanced. Works Cited Boudreau, John and Ravin Jesuthasan. Transformative HR: How Great Companies Use Evidence-Based Change for Sustainable Advantage. New Jersey: John Wiley & Sons, 2011. Print. Royal Bank of Canada. Royal Bank of Canada. Web. 21 June 2012. www.rbc.com. nub jockey Appendix Royal Bank of Canada Annual Dividends Versus Stock Price Web. 22 June 2012. http://topforeignstocks.com/wp-content/uploads/2010/06/2-cm.png. Performance of Canadian Banks . Web.http://static.seekingalpha.com/uploads/2009/4/6/saupload_canadian_banks_2_year_chart.png. Read More