Chicago Fed President Speaks to GSB Alumni
Michael Moskow Recounts His Efforts to Revitalize the Federal Reserve Bank of Chicago
Scott Sharabura
Issue date: 1/7/02 Section: GSB Business
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On December 3, the Chicago GSB Club hosted Michael H. Moskow, the President and CEO of the Federal Reserve Bank of Chicago, at the Gleacher Center. Dr. Moskow's speech to a mostly alumni audience was entitled "Cultural Transformation at the Chicago Fed."
Dr. Moskow has been the President of the Chicago Fed since 1994. With a Ph.D. in economics from the University of Pennsylvania, he taught economics and labor relations at several schools and held several senior U.S. government positions during the 1970s. His private sector experience includes senior management positions at Northwest Industries, Dart, Kraft, and Premark International. He also served as Deputy U.S. Trade Representative under President George H.W. Bush, and taught strategy and international management at the Kellogg Graduate School of Management before his appointment as President of the Chicago Fed.
In the mid-1990s, it became apparent that the Chicago Fed was falling behind private-sector competitors and other Federal Reserve Banks. "We were slow to change, bureaucratic," said Dr. Moskow. "We tended to over-analyze every decision. We were risk-averse to a fault. Our conservative culture was affecting productivity, morale, and our ability to succeed in a changing world." When compared to other Federal Reserve Banks, the Chicago bank was losing influence. Chicago was turned down several times to lead national programs for the Fed System, and in general was not seen as a leader among its peers.
The need for change was obvious. First, Dr. Moskow and his senior leadership team developed a clear vision for the organization, and then surveyed employees and customers about Bank culture. "The results were sobering," recalls Dr. Moskow. "It was very clear that we had to transform our culture if we were going to be a high-performing organization."
They took action very quickly in problem areas. They set up a new centralized call center for customers, consolidated and outsourced support services, and reduced layers of management. "I must confess that this was one of our most difficult decisions," says Dr. Moskow about his 13 percent staff reduction among the officer ranks. "But it was absolutely necessary to show how committed we were to increasing spans of control and streamlining the organization."
Dr. Moskow has been the President of the Chicago Fed since 1994. With a Ph.D. in economics from the University of Pennsylvania, he taught economics and labor relations at several schools and held several senior U.S. government positions during the 1970s. His private sector experience includes senior management positions at Northwest Industries, Dart, Kraft, and Premark International. He also served as Deputy U.S. Trade Representative under President George H.W. Bush, and taught strategy and international management at the Kellogg Graduate School of Management before his appointment as President of the Chicago Fed.
In the mid-1990s, it became apparent that the Chicago Fed was falling behind private-sector competitors and other Federal Reserve Banks. "We were slow to change, bureaucratic," said Dr. Moskow. "We tended to over-analyze every decision. We were risk-averse to a fault. Our conservative culture was affecting productivity, morale, and our ability to succeed in a changing world." When compared to other Federal Reserve Banks, the Chicago bank was losing influence. Chicago was turned down several times to lead national programs for the Fed System, and in general was not seen as a leader among its peers.
The need for change was obvious. First, Dr. Moskow and his senior leadership team developed a clear vision for the organization, and then surveyed employees and customers about Bank culture. "The results were sobering," recalls Dr. Moskow. "It was very clear that we had to transform our culture if we were going to be a high-performing organization."
They took action very quickly in problem areas. They set up a new centralized call center for customers, consolidated and outsourced support services, and reduced layers of management. "I must confess that this was one of our most difficult decisions," says Dr. Moskow about his 13 percent staff reduction among the officer ranks. "But it was absolutely necessary to show how committed we were to increasing spans of control and streamlining the organization."