Reliability — the ability to perform the investment bank’s ‘promise to clients’ accurately, consistently, and timely — is the backbone of true professionalism. Every individual contributes to the firm’s reliability since more than one employee becomes involved in the product/service delivery process.

There is an uncompromising relationship between reliability and quality. Reliability is to quality what a key is to a locked door — indispensable. When an investment bank makes mistakes regularly, when it doesn’t keep its promises, clients lose confidence in the bank’s ability to do what it promises dependably, timely, and accurately. A lack of reliability means ‘game over’.

Clients frequently habituate (get used to) certain levels of service such that they are unaware of their true expectations regarding the service of the bank. Clients are more likely to habituate when the bank’s product/service delivery is highly reliable. It’s a tricky psychological process because violations of habituated expectations can provoke dramatic client reactions. For an investment bank, it is important to identify the habituated expectations of clients of whom they may be unaware. In-depth client research delivers the answers.

Investment banks are supposed to be reliable — they are supposed to provide the product or service they promise to provide. The opportunity to go beyond what is expected by the client is dangerous. Exceeding the expectations of clients usually requires the element of surprise. Most clients, however, dislike surprises. ‘Predictability’ (of results, etc) is key. Predictability touches the very essence of what clients expect. The intangibility of the products/services of investment banks heightens clients’ sensitivity to predictability. However, defining predictability in the context of specific client work is no easy feat.

Closely related to reliability is the delivery of ‘minimal’ quality, a threshold quality level. Clients demand — at least — ‘minimal’ (baseline) quality, so it is essential for an investment bank to know what ‘minimal’ quality means for each client. Each client has a different opinion about this threshold quality level. Performing below this quality level means damaging the reputation of the investment bank. Clients are (very) disappointed if investment banks perform below their threshold quality level.

Reliability seems a straightforward concept — you are either reliable or not. However, in practice, it becomes a complex issue because it hinges on client perception. It is the client’s reflection on the specific experience — the performance — and on how well the ‘promise’ has been or is being performed by the investment bank. That said, ‘habituation’, ‘predictability’, and ‘threshold quality levels’ turn reliability into an even more elusive and complex business issue.