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Q&A Interview with SirTradesaLot Part 3/3: Becoming the Boss
 

SirTradesaLot's picture
 
Points)
 on 1/9/13 at 3:30pm
sirtrades interview.jpeg

Andy note: Here's the final installment of the 3-part interview series with SirTradesaLot. See Part 1, Part 2.

Bio: He has worked in the finance industry for almost 15 years in a variety of roles at global investment banks and asset managers. A few years ago, he left a senior management position in the equities division of a large asset manager to start a hedge fund/asset management firm with former colleagues.

Becoming the "Boss"...
If you have a goal of managing a team or moving into senior management, there are steps you can take to increase your odds. Many people think that you need to be given a formal leadership position before you can start managing or leading people.  I think most people have that backwards.

You start training, mentoring, and guiding other people on the team and senior management will start giving you more and more management responsibilities.  If you do a good job, you will be given more management responsibilities and will start managing progressively larger teams.

Easiest ways to get managerial responsibilities
In my opinion, the easiest way to get the first managerial position is to be a technical expert in your field and be willing to share your knowledge.  Most people starting out in their career value their potential to learn more than anything else (the" learn in your twenties to earn in your thirties" mantra).  

Another way to garner more managerial responsibilities, is to become involved in recruiting, both for experienced and inexperienced hires.  Volunteering for things like on-campus recruiting, will allow you to hone your interviewing skills.  If you can build a reputation for selecting and retaining the best people, you can imagine that senior management will likely give you more responsibilities in this area.  Once you bring someone in to the firm, it's natural that they will seek you out for guidance and training.  If you aren't their boss initially, you at least set yourself up to be in the future.

If people can learn from you and you take their input, people will gladly follow you.  However, taking the input of the team is very difficult for many people to do.  I'm sure many of you have had bosses that have taken your work product and tweaked it in a way that made no substantive difference to the final product.  When that happens, most people significantly decrease their commitment to the product/project.  In other words, the boss has increased the value of the product by 1% and reduced the team's commitment to it by 50% by undermining the team's efforts.  Good luck with getting the most out of your employees on the next project.  They're going to half ass it, knowing that you are going to make significant changes to whatever they do.

Fair Treatment
Good managers do not treat people equally, in the sense that everybody takes a proportional share of each portion of the workload.  Good managers dole out assignments fairly, but give people things in which they have a comparative advantage.  People will naturally have different abilities and some people will simply be more effective than others.  You need to make sure you maximize the team output and reward the top performers, take your chances with the average performers, and let the laggards know they are laggards.  Once you get the managerial responsibility, your job is to make sure your team is fully engaged by challenging each team member and giving them responsibilities that play to their strengths.

Feedback
I am a big fan of immediate feedback.  Nobody should be wondering if they are doing a good job or how their year end discussion will go.  If someone is killing it, you need to tell them they are doing a great job and specifically what you like about what they are doing, so they know to keep doing those specific actions.

If someone is performing poorly, you need to figure out what is wrong.  Don't start off with accusations.  People are usually pretty receptive to feedback.  Often times, they don't know they're doing something wrong, or you have done a poor job of communicating what the goals are and what their role is in achieving them.  If you determine that they understand all of that, but they just aren't cutting it, you need to tell them what they are doing wrong, what your expectations are going forward, and if the problems persist, what the ramifications will be for not improving (i.e. -- prepare to get nuked).  The important thing is that you are measuring output, not input.  One time I had a problem employee who was telling me they were the first one in and the last one out every day.  My response:  "Why is it that you are getting the least amount done?"

Often, it sucks to be the "Boss"
If you really want to be the boss, you need to be prepared to fire people and tell them they are not doing a good job.  You also need to be prepared to give people disappointing bonuses even though they did a great job.  None of these things are fun, trust me. You also need to be willing to go to battle with those above you to make sure your team is getting treated fairly for things like compensation and promotions.  Managing people can be both very rewarding and very painful.  You should figure out if it's something you truly want to do and position your career accordingly.  There are a lot of ways to make money on Wall Street without managing people, should you choose to do so.

Turbo leverage for capital explosion -- BD Capital My WSO Blog
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Comments

In The Flesh's picture

Good stuff, Sir. Not as easy

HF
(Neanderthal, 2,813
 
Points)
 on 9/26/12 at 11:14am

Good stuff, Sir. Not as easy as it sounds being "The Boss," is it?

Head of Metal Website: www.headofmetal.com

https://twitter.com/headofmetal2012

Vi's picture

Great post. You are

IB
(Orangutan, 305
 
Points)
 on 9/26/12 at 11:22am

Great post. You are absolutely right when write that you don't need a formal leadership position. If you assert yourself in the correct way and you are proficient at what you do then people will look to you for advice and help.

Vi's picture

I don't know why, but

IB
(Orangutan, 305
 
Points)
 on 9/26/12 at 11:23am

I don't know why, but whenever I'm on my laptop it always double posts. Sorry.

FeelingMean's picture

Best series on here at the

VC
(Gorilla, 657
 
Points)
 on 9/26/12 at 11:32am

Best series on here at the moment. Thanks again.

"That dude is so haole, he don't even have any breath left."

AndyLouis's picture

FeelingMean: Best series on

 
Points)
 on 9/26/12 at 12:11pm
FeelingMean:

Best series on here at the moment. Thanks again.

encore encore

WSO's COO (Chief Operating Orangutan) | My story | Connect with me on Linkedin.

2013 WSO Conference

ChickMakingDeals's picture

"I am a big fan of immediate

O
 
Points)
 on 9/26/12 at 12:27pm

"I am a big fan of immediate feedback. Nobody should be wondering if they are doing a good job or how their year end discussion will go. If someone is killing it, you need to tell them they are doing a great job and specifically what you like about what they are doing, so they know to keep doing those specific actions."

I couldn't agree more. One of the best posts I've read on here.

txjustin's picture

Good job el hefe

O
(Neanderthal, 2,447
 
Points)
 on 9/26/12 at 12:42pm

Good job el hefe

TheSquale's picture

Managing people can be both

AM
 
Points)
 on 9/26/12 at 12:51pm

Managing people can be both very rewarding and very painful.  You should figure out if it's something you truly want to do and position your career accordingly.  There are a lot of ways to make money on Wall Street without managing people, should you choose to do so.

That's the best conclusion you could have made to this ITW series. Very good job sir.

UFOinsider's picture

Excellent post, thank you!

O
(Human, 10,349
 
Points)
 on 9/26/12 at 12:51pm

Excellent post, thank you!

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

Financier4Hire's picture

For people that want to

PE
(King Kong, 1,112
 
Points)
 on 9/26/12 at 1:17pm

For people that want to understand Wall Street culture and risk management culture in general I recommend you read How the Trading Floor Really Works by Terri Duhon

I was wondering if SirTrades could perhaps elaborate on their hiring, or more interesting, on their firing practices. In other worlds, how many times do you review performance in Asset Management. If monthly, say is it three strikes you're out kind of thing, how many times do you have to get it wrong and get fired.

"The future isn't what it used to be "-Yogi Berra

"Perhaps you've failed to take into account my hidden assets"-007


The coolest cat on WSO
My BLOG

Interest.ed's picture

How much you making,

 
Points)
 on 9/26/12 at 6:05pm

How much you making, seriously, all in? PM me if you prefer.

SirTradesaLot's picture

Financier4Hire: I was

 
Points)
 on 9/26/12 at 6:13pm
Financier4Hire:

I was wondering if SirTrades could perhaps elaborate on their hiring, or more interesting, on their firing practices. In other worlds, how many times do you review performance in Asset Management. If monthly, say is it three strikes you're out kind of thing, how many times do you have to get it wrong and get fired.

Our portfolio management teams had a lot of autonomy. We would obviously review performance every day, but not with the teams. We would do that twice a year.

As for staff, feedback would be real time (as I mentioned previously) and we would have annual reviews shortly before bonus discussions. People who were problematic we're generally asked if they were clear about what expectations were of them, what was preventing them from meeting expectations, and how they planned on rectifying the situation. If all was clear, we would schedule a time to follow-up on progress. Some people improved dramatically and there was no need to change much from there. If some progress was being made, you generally got more time. If problems persisted, they were told they had X amount of time (usually a month) to improve or they would be asked to leave. Since we were dual registered, people would generally quit beforehand so as not to have a mark on their U4.

Then there were layoffs/restructurings, generally, you would get a call from upstairs and you would go into the office and you would be told you were being laid off or sent to another area of the firm.

Fun stuff.

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

SirTradesaLot's picture

Interest.ed: How much you

 
Points)
 on 9/26/12 at 6:16pm
Interest.ed:

How much you making, seriously, all in? PM me if you prefer.

Thanks for giving me the option to PM you...but I think I'll pass thanks.

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

Flake's picture

Great read, thanks Sir.

ER
(Neanderthal, 3,599
 
Points)
 on 9/26/12 at 6:58pm

Great read, thanks Sir.

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.

Cmoss's picture

SirTradesaLot: Andy note:

O
 
Points)
 on 9/26/12 at 8:25pm
SirTradesaLot:

Andy note: Here's the final installment of the 3-part interview series with SirTradesaLot. See Part 1, Part 2.

... Fair Treatment
Good managers do not treat people equally, in the sense that everybody takes a proportional share of each portion of the workload.  Good managers dole out assignments fairly, but give people things in which they have a comparative advantage.  People will naturally have different abilities and some people will simply be more effective than others.  You need to make sure you maximize the team output and reward the top performers, take your chances with the average performers, and let the laggards know they are laggards.  Once you get the managerial responsibility, your job is to make sure your team is fully engaged by challenging each team member and giving them responsibilities that play to their strengths.

Feedback
I am a big fan of immediate feedback.  Nobody should be wondering if they are doing a good job or how their year end discussion will go.  If someone is killing it, you need to tell them they are doing a great job and specifically what you like about what they are doing, so they know to keep doing those specific actions.

If someone is performing poorly, you need to figure out what is wrong.  Don't start off with accusations.  People are usually pretty receptive to feedback.  Often times, they don't know they're doing something wrong, or you have done a poor job of communicating what the goals are and what their role is in achieving them.  If you determine that they understand all of that, but they just aren't cutting it, you need to tell them what they are doing wrong, what your expectations are going forward, and if the problems persist, what the ramifications will be for not improving (i.e. -- prepare to get nuked).  The important thing is that you are measuring output, not input.  One time I had a problem employee who was telling me they were the first one in and the last one out every day.  My response:  "Why is it that you are getting the least amount done?"
....

Sooo much truth in this! I have found that people respect your honest/frank feedback if you have developed a rapport with them and they know you want what's best for them or the company.

Interest.ed's picture

SirTradesaLot: Interest.ed:

 
Points)
 on 9/27/12 at 12:11am
SirTradesaLot's picture

.

 
Points)
 on 9/27/12 at 12:20am

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

Febreeze's picture

Great thread, thanks for the

(King Kong, 1,151
 
Points)
 on 9/27/12 at 12:59am

RIP WSO Chat.

SirTradesaLot's picture

Interest.ed: SirTradesaLot:

 
Points)
 on 9/27/12 at 12:54am

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

txjustin's picture

SirTradesaLot: Interest.ed:

O
(Neanderthal, 2,447
 
Points)
 on 9/27/12 at 12:47pm
huanleshalemei's picture

Nice trilogy, well done,

(Gorilla, 519
 
Points)
 on 9/27/12 at 1:20pm

The Auto Show

Aldushy's picture

Appreciate the advices put

O
(Monkey, 44
 
Points)
 on 9/27/12 at 11:05pm

Death is certain; Life aint.

yeahright's picture

Whats the headcount rangewise

O
(King Kong, 1,107
 
Points)
 on 1/9/13 at 3:55pm

Frank Sinatra - "Alcohol may be man's worst enemy, but the bible says love your enemy."

SirTradesaLot's picture

yeahright: Whats the

 
Points)
 on 1/9/13 at 4:25pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

FreedayFF's picture

Thank you, SirTradesaLot, for

(Baboon, 149
 
Points)
 on 1/10/13 at 3:16am
SirTradesaLot's picture

FreedayFF: Thank you,

 
Points)
 on 1/10/13 at 8:58am

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

brandon st randy's picture

Interest.ed: How much you

PE
(Gorilla, 705
 
Points)
 on 1/10/13 at 2:54pm

...well, he's no use to us if Detroit is his idea of a small town!

calikid3820's picture

SirTradesaLot: Easiest ways

CO
(Orangutan, 250
 
Points)
 on 1/11/13 at 10:31pm
calikid3820's picture

SirTradesaLot: Feedback I am

CO
(Orangutan, 250
 
Points)
 on 1/11/13 at 10:36pm
Beny23's picture

Great read. Thanks for

IB
(King Kong, 1,029
 
Points)
 on 1/12/13 at 6:53pm

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