President's Message

by - Thomas Twombly

artist - Daisy Lopez

I’ve been musing a lot recently on the subject of stewardship.

Much of this, no doubt, springs from how I was raised and how I was expected to behave in my formative years. As the oldest child and the oldest grandchild on both sides of my extended family, the almost daily exhortation of my growing-up experience was to “be responsible.” And it was made clear to me from the get-go that that responsibility encompassed a heck of a lot more than simply caring for my interests alone. It was caring for things that came before me, and for things that had better survive me.

These thoughts also emanate from how I’ve been conditioned to think by the profession I chose 39 years ago, and the huge weight of fiduciary obligation and responsibility anybody in my position should always feel towards the welfare and well-being of other people’s critical interests.

But there’s no question that the recent impetus for these musings comes from the stunning lack of stewardship evident in the behavior of so many people whom we should expect, and demand, to know and do better. There are stunning numbers of people in leadership positions nowadays who are failing miserably at good stewardship. It is endangering everything we hold dear.

As one might guess, I’m certainly referring to the breathtaking lack of stewardship displayed by leaders of the handful of banks that have been brought down by recent events. But I’m also referring more broadly to the disingenuous, hyperbolic media feeding frenzy that has surrounded these events and many others we’re witnessing today, and to the winner-take-all political chicanery and cynical gamesmanship that has contributed to their gestation. We all must insist on better stewards – in every facet of our lives. It’s critical for us to demand better of ourselves and others. It’s time to restore trust.

Wikipedia defines stewardship as “an ethical value that embodies the responsible planning and management of resources.” It notes that the word derives originally from stig (meaning house or hall) and weard (meaning ward, guard, guardian, or keeper) and states that “stewardship is now generally recognized as the acceptance or assignment of responsibility to shepherd and safeguard the valuables of others.”

Obviously, money and financial assets such as stocks, bonds, and real estate are some of the first things that come to many people’s minds when “valuables” are mentioned. And because of that we’ve created a significant legal and regulatory infrastructure that governs the proper handling of those kinds of assets in the banking and investment worlds. Yet still we have breaches of trust because you can’t legislate morality and ethical behavior. Instead, we must demand and choose moral and ethical leaders.

But is it only money and financial resources that we should value? Is it only what we own minus what we owe (our net worth) that defines our full and complete worth? Is it only bankers and financial advisors that we should expect to be diligent stewards held to a fiduciary standard? Or are there other elements of our wealth and well-being, both as individuals and as a nation, that deserve equal levels of attention and safeguarding? And are there others who should be held to similar standards? I think so.

I have written before about other, deeper, dimensions of wealth that are much harder to define and identify than those that show up on somebody’s balance sheet or income statement. (https://www.lsggroup.com/articles/2017/7/7/how-do-you-define-wealth ; https://www.lsggroup.com/articles/2017/8/11/stewarding-social-wealth ; https://www.lsggroup.com/articles/2017/9/8/reflections-on-personal-wealth )  In my view, these dimensions of wealth are ultimately much more meaningful and much more precious. They are not easily converted to cash, nor quickly sold to a stranger, nor readily accepted as collateral for a loan. And yet they often comprise the core of who we are, what we truly stand for, and perhaps what we’re even prepared to fight and die for.

In the realm of social wealth, consider your personal influence with other people - your reputation for honesty, decency, integrity, and your commitment to straight-dealing. Consider your ability to build and maintain deep trust, and your willingness to selflessly put someone else ahead of you. Think about the people for whom you’d be willing to drop whatever you’re doing right now, and instantly go to their aid. Think about the people who’d instantly do the same for you, no matter what the circumstances. How valuable are relationships like that? It’s not the sheer number of connections you have, but their strength and durability that truly matters. Successfully building and protecting wealth like that demands vigilant stewardship – for each of us as individuals, and for us as a country.

In the realm of personal wealth, think about the experiences, lessons, and acquired values that define who you are as an individual. Consider the pillars of your belief system.  Who do you love? Who loves you?  What’s the most important lesson you’ve ever learned? What’s the biggest challenge you’ve ever overcome? What drives you? Deep down inside, what are you most proud of becoming? What’s the worst mistake you’ve ever made? What’s the one thing you will never do again? What will your legacy be? And how do you wish to be remembered?

The happiest and most contented people I know think deeply about all of these questions – and more. The answers they arrive at comprise the foundation on which every other aspect of their sense of wealth and well-being rests. They never think solely of themselves. They think of others. Because they know that true wealth requires constant, vigilant stewardship, especially if it’s going to survive them.

There is so much more to this discussion than can ever be covered in the space allowed here. And there are many more nuances of our individual sense of wealth and well-being to be explored. I hope to do more of it in the future, and I would gladly welcome your personal thoughts and insights as prompts.

Thank you again for your confidence and trust.

Thomas G. Twombly

President