Soft Skills in Investment Banking
Hi,
I would like to know what are your thoughts on soft skills in IB. Which are the most important? How do you improve emotional intelligence?
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Thanks i will check it out!
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Most of IB is soft skills past the analyst level/ass1. You’re not getting paid for spreadsheets and decks, you’re paid because of factors like marketing, reach, your relationship with buyers or negotiation skills.
Most IMs are more or less the same and it is very hard to stand out from the crowd solely on «hard skills» such as modeling or deck production.
limited gag reflex
I mean it's pretty simple just don't be a freak and use common sense...You should know how to talk about recent sports news or the big game last night for water cooler bsing. Avoid talking about the weather if you can. Pick up on basic cues if you're at internal happy hour or dinner with clients i.e. if they take you out to a steakhouse, and everyone is ordering a filet and a glass of wine, don't be a first year analyst who orders the $150 tomahawk ribeye or the seafood tower with a grey goose martini just bc it's free. Wait till everyone else at the table gets their food before you start digging in. You get the point...
If I had to summarize soft-skill needs in IBD - here are my 5 key points:
Have a thick skin - you are going to make a lot of mistakes and going to get yelled at. Don't argue with our seniors. Write down why something went wrong and how you can do better. Don't think of a quick witty comeback. Most senior people don't have patient for this.
Be accountable - if an associate ask you to finish all the deck after he had done a first draft; make sure you go over all the details. And if you are stuck, list down all the issues and go at the associate on one go - rather than come and nag him all the time. And do not at all time, leave shit at the last minute and dump it on the associate. And don't throw emotional tantrum just because things don't go your way. If you have something against your associate, get what was asked of you done first; and then complains to your VP.
Have a growth mindset - rather than saying you cannot do something big; try to break things down into feasible smaller tasks. And also work on refining what you do - better and faster. And rather than learning from one single mistake, try to think of other lessons or mistakes that you can avoid after this one mistakes. Think about bigger picture of what you are doing.
Put client first, be client friendly - people are more altruist than they think they are. Rather than saying like I am going to get this done so that I get promoted, think I want to make my client happy or I want my team to win. It is just a small shift in mindset but the quality of work and relationship with people will improve - exponentially.
Focus on the process, not the result - in the beginning you want to make sure that you are well aware of the need of the processes. Think about why such processes are in place and whose interests it serves and why the team is following such protocols. You may do a shitty job in the beginning, but if you keep refining your work, it will get better. Single out one process and do it a thousand time until it get better; then move onto the next one. Before you know it you will be better than the rest of the analyst class. Process can be mundane things like a) I will make a to do list, b) I will write better emails, c) I will actually put together deal activity sheet to track progress, d) I will do self review on a weekly basis, e) I will put together my own database of each client, coworker, investor on what they like and what they don't like. Small things add up. If you do small things with great care, you will end up doing big things in this world. Good luck.
Very helpful, thanks!
Yes, and to add to #5, I also like utilizing Toyota's famous "5 Why's" to think about problems at a big picture level.
+1
This is key in every industry, not just IB. Soft skills are critical for advancement. Once you get to a certain level, generally fairly low if it's a competitive industry, technical skills are table stakes. Stars rise through the ranks due to people skills.
This is even true in the entrepreneurial world. Even if you're the founder. In order to grow, you need good people around you. They won't join your cause if you have poor people skills. They'll knock down a wall for you if you have the right acumen and opportunity.
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there is a great book you can read...soft skills are all about manipulation...and manipulation does not have to be a bad thing..for example, you can manipulate somebody to eat healthy and exercise....those are good things....you can also manipulate somebody to eat trash and be a sloth. Manipulation is a skill...what you use it for is up to you.
suggest reading this book. https://amzn.to/2X65mwz
Honestly at the analyst monkey level the only skills you need are excel, powerpoint, and doing what you are told.
Analysts and even some Associates are green and will usually never speak to a client because the MD, VP, or Director will do the talking and Analyst is there for backup on the numbers or to do a quick math problem in a meeting. The Analyst/Associate's sole job is to make the biggest guy in the room look good (VP, MD, Director).
As you work your way up the IB/PE ladder you will need more and more soft skills to negotiate, speak with clients, intemperate their thoughts and help them understand the very complex deal proposal in front of them.
MD/Senior Directors, and some Directors need lots of soft - people, psychological, negotiation, and finesse. As an MD, I haven't built a model from scratch in years, but I review my analyst/associate's models and do quick back of the napkin calculations to double check, and think about structure, price, and so forth. Most of my time as an MD is rain making (aka bringing in deals through networking, meeting people, going to events, talking to capital partners, and target company CEOs on the phone and in person all day long.)
Years in the making of climbing the ladder helps you perfect and sharpen these skills, but there should always be a NO ASSHOLE RULE. Number one skill is to NOT be a douche-bag.
Everyone in the IB/PE world knows company CEOs are often in their 60s and somehow got to their position through nepotism, pure luck, and/or through inheritance for Middle Market Private companies. Don't be a dick no matter how stupid the CEO is, or how many endless questions a CFO asks, and I 100% refuse to work with a CEO or management team that has an attitude. If there a dick before the deal closes, imagine how they will act after they get a fat check in their bank account, and now there my employee. There will be hard to manage, and an ego that won't fit through the door.
All of this to say -- Starting out entry level jobs are all hard skills: excel, PPT, modeling, pitch decks, etc. The higher up the ladder you go the less actual "work" you do, more managing people, expectations, emotions, and egos is that a Seasoned Director or MD does.
-PE-MD
Thank you, that's great advice.
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