In the Classroom
A Booster Shot of Knowledge

Over more than 50 years, thousands of securities industry executives have completed the Securities Industry Institute (SII). This 3-year program, developed by the Wharton School and the Securities Industry Association, has been the gold standard for management education in the industry. But now, with continued changes in the competitive environment, the bar has been raised again.

The new SII Masters Program, which will be launched in June, offers alumni of the SII program current financial knowledge and broader strategic perspectives. “Leaders need more tools in the tool kit,” said Laura Goldzung, vice president and managing director of Education Services at the Securities Industries Association. “There are so many issues they must be prepared to face today. This program helps those leaders better harness the intelligence they need to harness. It is not just an alumni program. It offers a broader perspective on the industry.”

Strategic Challenges

There is a range of changes in the industry that require new strategic perspectives. “The regulatory issues clearly are one major uncertainty,” said Roch Parayre, academic co-director of the new program, who will lead sessions on scenario planning and strategic thinking. “There is uncertainty about the regulatory burden, market volatility, and how quickly the movement will take place toward wealth management. There have been industry scandals, and there are trends toward more knowledgeable consumers and increasing regulatory requirements.”

In the long run, the commoditization of the financial services industry could lead to more dramatic shifts. “What if Wal-Mart moves in?” Parayre asked. “The focus of the program is to give participants a broader view of their industry and to consider what business models might emerge in their space and what strategic changes they need to make in the light of these models.”

In boom times, these strategic insights were less important than they are today. “As an industry, the securities industry has been riding the gravy train,” Parayre said. “They have had no reason to reinvent themselves. Now shocks are coming into the system from the outside. The gravy train has gone by, and now they have to think more carefully about strategy.”

Financial Innovation

There also have been many changes in financial instruments and systems over the past couple of decades, all of which require new knowledge. “There is globalization, the rapid growth of China and India, the rise of exchange-traded funds, and the increasing role of hedge funds. Ten or 15 years ago, these topics were barely mentioned, if at all,” said Wharton Finance Professor Jeremy Siegel, academic co-director of the SII Masters Program and long time academic director of the Securities Industry Institute.

These perspectives on the industry and new tools can be very valuable for participants. “I deal closely with the brokerage community, and successful financial advisors are entrepreneurs unto themselves. They are constantly looking for ideas to stay at the edge because competition is very fierce. This program offers those ideas.”

Continuous Improvement

A focus on continuous innovation in the program, as seen in the new Masters Program, is part of what has made the Securities Industry Institute the longest-running executive program in the United States, and probably the world.

“The only way to stay on top is to keep the program relevant,” Siegel said. “After every course, we do an exhaustive analysis of participant comments and react accordingly.” Since participants are away from their clients for several weeks over 3 years, this sacrifice is a testament to the value of the program. “The fact that we are oversubscribed almost every year means this has to have fantastic word of mouth,” Siegel said.

“It is an innovative curriculum, changing every year, based on data from the program and insights from the board of trustees,” said Goldzung. “People who attend the program, many of whom already have MBAs and other advanced degrees, have said that they have found this the most valuable educational experience they have had. Together with our Wharton partners, we managed to surprise them every year.”

    

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