Putnam Investments: Rebuilding the Culture Case Solution & Answer

Putnam Investments: Rebuilding the Culture

Answer 4

To deal with the Voyager Fund and the 401K transaction episode the Haldeman efforts to address the main constituents of these events (i.e., clients, regulators, and employees) were the most feasible. As he decided to carry on with the settlements with the regulators outside the court dealings, by doing so he very conveniently saved a lot of the firm’s precious time and resources that would have gone wasted while dealing with the court and regulators. Other than that, his decision to have personal meetings with the clients was also beneficial as by these meetings he would apologize and explain to the clients regarding the firm’s declining reputation and would tryto gain back their trust once again. The employees who were involved in the incidents like inside market trading were subjected to Haldeman’s aggressive actions that were required badly to regain clients’ trust in the firm’s funds and also regain its market reputation.

Answer 5

Although dealing and addressing the mentioned constituents in such a way was not less than a shame to the company because before these incidents the firm was paving its way towards great success and growth and due to the sudden market crash, the firm’s former CEO was forced to apologize to its clients. After taking the charge Haldeman had to have personal meetings with several clients out of which very few were successful. He also had to fire some of the managers involved in the market trading practices. Employeelayoff is never a good sign for the company’s reputation. But these steps and radical changes were necessary to take as discussed earlier would have positive impacts on the firm’s reputation and image. By doing these changes possibilities for the company increased to regain its lost image and trust of its clients and employees.


Based on the case analysis, facts, and overall issues of the case, the following recommendations are suggested that need to be implemented by the company management and could lead by Haldeman.

  • Significant changes in the company’s culture, mainly in the legal, governance, compliance, investments, human resource, and compliance are necessary to be made. These changes must be implemented under Haldeman’s leadership with proper check and balance.
  • A regular check over the company’s inside practices of its employees and clients is mandatory to avoid circumstances like market trading by the employees.
  • Compliance with SEC rules and policies is the most compulsory thing that every member of the company including the employees, lower management, and top management of the company must follow to avoid future mishaps and scandals in the company.

Broader Implications

With the key management and ethical issues of the company, the case also discusses Haldeman’s efforts and strategies to rebuild the firm’s culture. His analysis of the firm’s circumstances is significant as there is a major role of unethical practices in the company in its lagging performance. Hence Haldeman’s efforts to address the main constituents like regulators, clients, and employees must be appreciated because it could help the company to regain its corporate image and win back its clients….

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