MBA Students: An Eye on Summer '14

CFN hosted its annual webinar to launch interview season

Most MBA students today, including Consortium students across the country, will argue there is no one segmented part of the calendar for "recruiting season."  Every aspect and experience of business school is "recruiting season," from the time students declare their intentions to attend a certain school until graduation. Every day, not just a few weeks in the fall, MBA students contemplate where they want to be and what they should do to secure the right job.

Students today, and their career-advisory specialists on campus, say there is seldom a time when an MBA student is not absorbed in thought about information interviews, mentors, alumni connections, career choices, or a specific post that awaits after graduation. Nonetheless, late fall usually signals the formal start of interviews:  information interviews,  first rounds, lottery interviews, interviews earned from being selected by companies, second rounds, technical interviews, and follow-up sessions to decide whether to accept an offer or go elsewhere.

The Consortium Finance Network hosted its third MBA recruiting webinar Nov. 13 for Consortium first-year MBA students to launch interview season for those interested in finance and financial services.  Panelists included Consortium graduates in a variety of finance roles, working for financial institutions and industrial, entertainment, and consumer-products companies. CFN steering-committee members, D-Lori Newsome-Pitts, Camilo Sandoval and Tracy Williams, moderated the presentation and subsequent discussion. Consortium students logged into the webinar from schools around the nation.

Panelists included Consortium alumni Abijah Nyong from Dow Chemical (Indiana-Kelley business school), Christina Guevara from Goldman Sachs (NYU-Stern), Stephanie Rosenkranz  from ESPN-Disney (USC-Marshall), and Brace Clement from Starbucks (Wisconsin). Some were recent graduates, fresh from the experience of going through the process. 

Nyong from Dow Chemical set the tone for the evening.  "When it comes to talent," he said, "good talent comes off the shelf.  Even if the business prognosis is not good, we take good talent."

To guide students, CFN presented a general recruiting outlook in several segments of finance. Opportunities in finance fluctuate and take assorted, unexpected turns from year to year.  In 2013-14, the outlook is generally upbeat, as banks, investment firms, and companies have become confident enough to open their doors for more MBAs.

But as most experienced finance professionals know well, it helps to be cautious, careful, and forewarned.  In finance, the tide and sentiment of recruiting can turn on a dime. Some years, companies hire more than they need. In other years, companies are sour on economic prospects and hire fewer than they should.  More than ever, however, financial institutions and companies are serious in hiring summer interns, since most hire interns with hopes of offering them full-time employment when the summer is over.

In corporate finance and corporate treasury, as the economy grows and improves, companies are growing and expanding and will, therefore, have financing needs and investment opportunities.

Nyong said companies like his employer are looking for outstanding candidates and are increasing hiring. "We want to ramp up to try to make sure good employees are in the pipeline."

In investment banking, whether it's M&A, FIG, real estate, energy or health care, all depends on the industry segment, expectations within that industry and general business trends. M&A, for example, had shown signs of starting to soar this summer, but experts now can't figure out why it stalls from time to time.

FIG investment banking has benefited from the capital requirements and restructuring initiatives of banks everywhere, in the wake new regulation and reforms. Equity finance is patting itself on the back after renewed confidence from IPOs (think Twitter) and investors' comfort in stocks.  Debt finance has been bolstered by low interest rates.

In private banking and wealth management, banks will continue to emphasize growth, because they like the fee-based businesses without having to build up their balance sheets.

"Banks have pushed to build out (in private banking) because of the sticky assets," Guevara said. "They are focused on growth."

In corporate banking, opportunities exist because big banks, which had swooned toward the high returns and headlines of investment banking, have learned to appreciate the stable returns and bread-and-butter benefits of corporate lending and cash management.

Sales & trading opportunities at financial institutions are limited, because regulation and reform will restrict what they can do--if not now, then over the next few years, as SEC and Dodd-Frank rules are written and become clear.

Banks everywhere have restructured trading desks and trading roles. The best opportunities, if any, for MBAs interested in trading will be at asset managers, boutiques, specialty trading firms and hedge funds. Others will remind us, however, how significant aspects of trading are now directed by computers, algorithm, client flow, and trading schemes--not requiring as many desk traders (or people).

For years, MBAs overlooked opportunities in risk management and didn't know much about the role. Financial institutions seldom tapped business schools for risk managers. After the crisis, financial institutions have learned lessons or have been forced to beef up emphasis, add professionals and become more attuned to all forms of risks. Regulators, too, in these times are always in the vicinity and insist that banks devote resources and attention to risk management in the way they may not have done so in years before the crisis.

Clement from Starbucks said, "I wish I took more classes in risk management (while in business school) and learned more how to manage (market) risks."  He described ways in which his company must hedge the complex risks of costs of commodity products. Business schools have responded in recent years to offer courses in risk management (for credit and market risks). 

Opportunities in venture capital, private equity and hedge funds are fleeting or uncertain, partly because these firms often recruit beyond the eyesight of business schools and tend to have opaque recruiting procedures. There exists, also, possible fall-out from recent insider-trading scandals (think SAC) and industry-wide hedge-fund shake-out.  Hedge-fund returns, believe it or not, trail that of equity markets in the past year or two, and more than a few hedge funds have closed their doors in the last year.

In venture capital and private equity, some industry observers say too much money might be chasing too few good deals.

Sandoval presented CFN's framework for approaching interviews.  The framework encourages students to examine and polish themselves in five areas:

(a) personal background,
(b) personal interest in the industry and company,
(c) personal drive and motivation,
(d) capability (expertise, knowledge, understanding of industry) and
(e) insight.

Nyong said, "I did a lot of informational interviews to find out what (industry segment) felt natural to me." He instructed students, "Look at the spectrum of positions available.  Seek out alumni."

Panelists emphasized the importance of being aware of current events, topics and issues, because interviewers will refer to them and being informed can help students make decisions about what they want to do. Guevara advised that students should make sure to "study markets and current events and have a sense of what's going on."

Rosenkranz recommended that students register and subscribe to www.smartbrief.com, a website that aggregates news stories and headlines, based on specific business areas (finance, accounting, marketing, etc.) or specific topics (derivatives, currencies, digital advertising, etc.). A student can tailor the website aggregation to his specific interests and can see the updates he needs to see.

Panelists emphasized frequently the importance of conveying interest, drive and enthusiasm in finance-oriented interviews. In interviews, Sandoval explained, "We forget to talk about our general interest and passion for finance."

Clement summed up, "You want them (the companies) to believe you can do this job."

"You have to know who you are and where you want to go," Nyong said. "If you can't buy it yourself, you can't sell it."

As panelists presented the CFN framework, Sandoval reminded students, "You are in the driver seat.  You design the framework that works for you. You control the questions."  

Year after year, finance students fear the technical interview, where financial institutions try to gauge what candidates know and how they describe finance scenarios on their feet. To prepare for what they perceive as stressful exercises, students study market trends and refresh themselves in principles of finance, markets and accounting. Beyond that, candidates seldom know how that interview will evolve.

Investment banks may require candidates to present a detailed deal strategy or advise in valuing a stock offering.  Hedge funds or asset managers may require candidates to  explain trends in interest rates or derivatives pricing. Corporate-finance managers may require candidates to evaluate a balance sheet.

Nyong advised, "Read the company's 10-K to prepare.  It offers a vision of their market and shows contrasts with competition."

Rosenkranz said, "Listen to the (company's) investor calls to see how management responds.  Listen to the kinds of questions (analysts) ask during the calls."  She added that for technical interviews, companies want to "see if you have intellectual curiosity." And she suggested that candidates can learn much about the company's structure, management and culture by referring to the website www.glassdoor.com.

"How does the company make money?" Rosenkranz asked, recommending candidates study closely the company's business model.

Clement saw the benefits of understanding thoroughly a company's income statement.  "You'll want to understand the P&L from top to bottom, understand the balance sheet," he said, because interviewers will be familiar with this financial information and will want candidates to show familiarity, as well.

CFN panelists, now experienced and entrenched in finance positions, shared other observations and advice.  However, while satisfied with their efforts to get from the classroom and case study to roles in finance, is there something they would have done differently in the recruiting process?

"I would have gotten a better sense of other roles (in the company)," Nyong said. They would include roles in operations, marketing, manufacturing and other functions, because finance touches so many important activities in an industrial company.  "I would have gotten a better understanding."

"I would have found somebody to act as a blueprint," Clement said, explaining the importance of connecting with a school alumnus, an experienced mentor,  or a senior manager to learn more about the recruiting process, the industry, and the ropes for converting dreams into strategies into meaningful job offers.

Rosenkranz said she understood the importance of showing intellect, expertise and general knowledge about the industry, but wished she examined more carefully companies' work environment and culture.

Panelists concluded that most MBAs, especially ambitious Consortium students at top schools, will find opportunities and take advantage of some of them.

"You want to be intentional," Clement offered. "You shouldn't just want to find any place to land. You shouldn't be fishing for just any place."

Tracy Williams

(A recording of the webinar and the accompanying written presentation will be available to CFN members in Linkedin.)

See also:

CFN: MBAs and the Summer of 2013
CFN:  Is the MBA Under Attack? 2013
CFN:  MBA:  Remaining Relevant, 2011
CFN:  Mastering Technical Skills, 2010
CFN:  Who's Headed into Finance? 2013
CFN:  How Mentors Help, 2009

MBA Recruiting: Working the Game Plan

Cornell's Johnson School: Ready, set, network, interview

When recruiting season rolls around, MBA students in finance (including Consortium students in finance around the country) toss the books on the shelves and roll out the details of a game plan to secure a job for the summer or for full-time employment after graduation.

Student sentiments always seem the same year after year.  They never realize how much time, energy, effort, focus, and discipline the process entails.  Often recruiting season is launched right in the middle of midterms and just before first-semester exam season.

MBA students rejoice in the chance to dream of the opportunities presented to them and the chance to drift smoothly into a wonderful job in an ideal industry, making substantial impact, having meaningful experiences, and accumulating their fair share of sums of money.  That's summer-time luxury.  When recruiting season starts, the real world smacks right in the face.  There is time, but the game plan must be in place.

By the time information interviewing, networking, and corporate presentations are in full swing, the MBA finance student needs to have started the process of narrowing choices.  For most, it's not easy. When November approaches, it would be naive for a student to proclaim interests in investment banking, equity research, community banking, and derivatives trading (all of the above) and then be prepared to handle the tough interview process of three or more different finance segments.

Most MBA finance students at top schools know and understand the game.  They are surrounded by peers and career counselors. They discuss timetables, networking events, opportunities and career choices every day, throughout the day, in between classes and at wine receptions in the evening.  Most are open to advice, hints, and help from school advisers, alumni and contacts at major firms and companies.

Most understand and appreciate the value of information interviews and networking.  Students listen and learn and decide on corporate cultures, compensation incentives, work-life balance, and self-fulfillment on the job.

Many, however, under-estimate the importance of keeping up with current markets, deals, transactions and business and economic trends.  Case studies, projects, and exams often get in the way of knowing and understanding what's going on in current markets: recent deals, recent trends, recent regulation, or important discussions of corporate strategy and growth expectations in industry segments.

It becomes almost impossible to juggle preparing for a finance midterm with finding time to learn about Yahoo's latest earnings results, comprehend the interest-rate leanings of the Federal Reserve, or figure out why there were swings and dips in equity options markets.  But corporate interviewers and committee members who make selections tend to weigh heavily around the topics, transactions and activities they are involved with or familiar with.

Opportunities in finance are broad, and the hopelessness, fears and anxiety coming out of the crisis have receded. Finance students today have a buffet of choices.  Still, they must have a game plan ready, a fierce resolve and determination to go through the process, a refined idea of what they want to be and do and an in-depth awareness of what's going on in the financial headlines.

Tracy Williams

See also:
CFN:  First-year MBAs and Recruiting, 2011
CFN:  Gearing Up for Summer Internships, 2012
CFN:  MBA Job Hunting:  No Need to Panic Yet, 2012 

MBAs Gear Up for Summer, 2013

Now is the time to prepare for interviews

Most MBA students know that to secure the right job in financial services, you can't stroll out of the classroom, jump into an interview suit, and glide into a round of interviews.  Preparation is critical. You don't secure the dream job with a few practice sessions of the elevator speech.

One of the best ways to gear up and prepare for the rigors of recruiting season is to have a useful framework, one that you can use to formulate a strategy, demonstrate expertise, and express a self-brand. The goal is to get from campus to a significant summer internship in finance in investment or corporate banking, investment management, private equity, asset management or corporate finance.  Indeed in the post-crisis environment of 2013, the world of finance has emerged from the abyss, but opportunities continue to be fleeting, segmented and scarce.  Approaching interviewing season with strategy, framework, optimism and unbridled confidence can go a long way. Not to mention a proven mastery of technical skills.

The Consortium Finance Network hosted its second annual fall webinar on "Internships and Recruiting" Dec. 11 to help first-year Consortium MBA students in finance plan for the upcmoing interviewing season and emerge with offers from their top-choice institutions.  CFN hosts Camilo Sandoval, D-Lori Newsome-Pitts and Tracy Williams welcomed panelists Eric Lane and Mark Santos, recent Consortium graduates and led an hour-long discussion to launch the 2013 recruiting campaign.  For the MBA students participating, panelists provided stories and advice from their own successful campaigns to win job offers.

Lane is an associate in M&A and equity finance at Loop Capital in Chicago, a mid-size investment bank. Santos is in corporate finance at Dell, the computer company. Both entered business school at the height of the crisis and were able to use effective strategies to get from campus to positions in finance during a time when it seemed as if nobody was hiring.
 
CFN's framework for approaching interviewing season revolves around the MBA student demonstrating competence, experience or expertise in five pillars:

(a) background, 
(b) interest, 
(c) drive, 
(d) capability and 
(e) insight.  

The financial institution, whether it's Morgan Stanley or Loop Capital, is evaluating the candidate, in most cases, in those five broad categories. The successful candidate demonstrates excellence across the board throughout the process. The process includes information interviews, first-round interviews, and call-back, on-site interviews.

CFN, during the webinar, showed how MBA students, in numerous ways, can show excellence in each area.  Knowing that interviewers, for example, are seeking to detect interest and drive, MBA students should seize the process, demonstrate interest and drive and do it frequently.

Lane advised MBA students to look beyond the better-known institutions, the bulge-bracket firms such as Citi and Goldman Sachs, and explore working, too, at niche firms, regional firms, and boutiques.  Loop Capital is an example, as well as such firms as Lazard, Greenhill, M.R. Beal, and Evercore. Opportunities may exist outside the well-worn paths and may afford visible, broad roles for first-year MBA associates.

Santos advised MBA students interested in finance to take steps even beyond financial institutions and examine roles in corporate finance, corporate development, M&A and strategy within client companies--the industrials, the manufacturers, and the technology companies, such as, say, Dell, IBM, Pepsico or Eli Lily.  The companies have critical roles in corporate finance and ultimately choose to work directly with investment banks for advice or financing.

The formal interviewing season for MBA summer internships usually starts immediately after fall exams. The process accelerates in January. Major financial institutions have already identified some candidates they covet and desire to see on interview lists. They will inform some of them they have been invited to interview on "A" lists.  Candidates not on these lists can still seek interview slots in other ways. Smaller firms and corporates proceed with a different recruiting agenda and timetable-- partly because they have fewer slots and opportunities. 

Second-round interviews, where MBA candidates are brought on site, can occur from mid-winter until early spring. Many MBA graduates have told legendary stories about their interviewing experiences--often unique, sometimes memorable--to convince a Goldman Sachs, Credit Suisse, or Wells Fargo to hire them. Some have told about enduring sessions to show how they "think on their feet," how they would manage a trade or deal transaction, or how they would respond in a market crisis.


Throughout it all, successful candidates in the past had a few things in common:  a clear goal, a workable strategy, and a useful framework, all on top of networks, mentors, and special ties inside some institutions. Most successful candidates also had a passion for finance, boundless knowledge about markets, trends and products, and glowing confidence.

During the webinar, panelists and hosts reminded students of the importance of demonstrating knowledge and polishing it with rational viewpoints about markets, past transactions, and economic trends. An informed opinion shows candidates have thought about the topics of the moment and conveys leadership potential. Panelists also reminded students to concentrate on how to stand out and differentiate among others vying for the same spots. Demonstrate excellence, but distinguish yourself. However you look at it, it's a competition.

The webinar presentation and recording will be available to students who registered for the event and to others upon request (through the CFN's Linkedin page).

Tracy Williams

See also:

CFN:  Internships and Recruiting, Fall, 2011
CFN:  MBA Job Hunting, No Need to Panic Yet, 2012
CFN:  The Toughest Interviewers, 2012
CFN:  Mastering Technical Skills, 2010

Who's Heading into Finance, 2012?

Over 85 Consortium first-year MBAs this year indicated an interest in finance or financial services. That is within the range of what CFN has observed over the past four years--typically a range from 80-90, about a quarter of the total number of Consortium first-year MBA students in 2012.

In the aftermath of the financial crisis and amidst the occasional turbulence since then, many would swear the numbers of those expressing interest in finance would have declined over the years. MBA students, we are finding out, continue to have varying levels of interest in financial services. But most of them are less eager to rush to Wall Street to become associates in mergers & acquisitions at a big bank. The opportunities they dreamed of while applying are not always evident when recruiting season starts. And some, after they learn the process and procedures to secure Wall Street jobs, are reluctant to play the hard ball it sometimes takes to get there:  lotteries, informational interviews, technical interviews, and rounds and rounds of sweltering sessions with senior bankers. 

That's not to say Consortium MBAs aren't adequately represented on Wall Street. Year after year, many do find spots within the investment-banking corridors of Goldman Sachs, Merrill Lynch, Barclays, and JPMorgan. They thrive there, too.

Among the 85 or so, interests this year, as in recent years, vary from private equity to community banking, real estate (yes, even after that debacle in recent years), corporate banking, financial consulting, private banking, asset management and energy finance. MBA students in finance in 2012 know they must evaluate opportunities carefully and always make sure they have plenty of options. The recruiting game changes too often, too quickly and too vigorously. Not even the best, most experienced MBA students can become too confident or comfortable.

In this year's first-year class, it's no surprise that 14 from NYU-Stern will explore finance. But NYU is not the finance leader this year, as it tends to be among Consortium classes. At Cornell, 16 have expressed an interest in finance, eight at Rochester, and five each at Yale, Virginia, and Emory. (At least two from each of the 17 Consortium schools said they intended to study, explore or pursue finance.)

These numbers will likely change, just as students' interests and ambitions change. Opportunities in 2013 and how they present themselves this fall will either boost these numbers or cause them to dwindle. Seemingly remote factors as Europe in crisis and a presidential election, believe it or not, can have a direct impact on how many MBA associates banks, insurance companies and industrial companies will hire for the summer, 2013. How students survive finance, accounting and capital markets courses will have impact, too.  The 85 could blossom to 100 or dwindle to 60 by graduation, 2014.

The same numbers above often tend to be under-stated, as some students have many interests and may not yet be comfortable selecting one concentration before school starts.  These are the large numbers of MBA students interested, for example, in both finance and marketing, finance and economics, finance and corporate strategy, finance and international business.

Stay tuned, as students discover what they really want to be and do and as the finance industry evolves and rumbles along.

Tracy Williams

See also:

CFN:  The Class of 2012 Heads Out

CFN:  Composing the Class of 2014

CFN:  First-year MBAs, Internships, Class of 2013

CFN:  Finance Hiring in 2010

CFN:  Composing the Class of 2013

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MBA Job-Hunting: No Need to Panic Yet

On campus, the hiring process is not quite over.

For some MBA students, including those in Consortium schools, whether in their first year or about to graduate, February's arrival could cause panic:  Do I have significant job offers on the table?  Will I spend the summer at my first choice--proving myself in a formal internship program that will lead to a full-time offer in August?  Or must I resort to the only choice I have? Must I return to an old job I wanted to leave in the first place?  If graduation looms, do I settle for the first offer available, or do I wait for my dream post?

When February comes, some students beam and boast of offers from top-tier financial institutions, consulting firms, or big corporations. Some have already accepted offers. Others, without the offers or opportunities they covet, grow worried and try to figure out what to do with composure and a new strategy in mind. 

There's no need to panic just yet.  Buckle down. This is the time many gripe about campus career and placement services. These departments try to provide pathways from the classroom to corporate cubicles and conference rooms. They suffer, however, much criticism at schools everywhere. 

They operate under pressure to be all things to all students.  Deans watch them and push them to show the highest percentages possible of graduates finding jobs that pay the highest salaries possible.  In February, when they wish they could provide candid, thoughtful guidance on next steps for overworked, pressured students, they get mired in hiring statistics.  Take the first job offered at the highest compensation, they might advise unwittingly and without much thought.

For students still planning a summer or a first year beyond school, buckle down, and work with networks and alumni ties.  Reach out to alumni, professor and/or social contacts--at all levels. Most top firms, funds, banks and companies, where MBAs want to work, have already concluded the hiring cycle for 2012.  Students learn it is probably too late to seek employment at those places.  

But don't give up just yet.  Alumni and network contacts can alert you to what the real story is.  The hiring cycle has just ended, but there could be alternative ways to find an entrance through the backdoor.  

At the notable financial institutions, MBAs are hired for formal programs. But sometimes specific business groups with the larger company have sudden, special business needs. Human Resources may have under-counted the number of interns or first-year associates needed in the coming year. They misinterpreted the incremental work for new presentations, deals, clients, and finance models.  Business units will not want to wait for the next hiring cycle a year later; they seek to fill hiring gaps as soon as possible. 

In such scenarios, the institution will encourage the business unit to hire from within or look for someone willing to transfer into the unit.  Sometimes, however, the unit will head to campus to seek help or tap the MBA student who persevered and came through the backdoor. 

In the meantime, if the ideal offer hasn't come yet, now might be one more chance to review, refine and polish the story you are presenting to prospective employees. Make sure you convey a unique or intriguing story that shows how the finance MBA and past accomplishments translate smoothly into what you want to do, how a polished resume' will lead to immediate contributions in an entry position. 



The story you told before might indeed have been near perfect in your view; prospective employees might even agree.  But it may not have been for what they needed for the moment. Sometimes revising or re-engineering the story is an effective way of proving not just competence, but fit. 

Reach out to alumni at the places on your wish list, especially alumni who were in the same programs or management tracks you are pursuing. Touch bases even with first- or second-year alumni,  those who have recently gone through the process. They won't be involved in hiring strategies and decisions, but they are the ones who can share intelligence of hiring trends, hiring practices and strategies. They know which units are hiring, cutting back, or expanding abroad. Having been through the process, many don't mind sharing details of how they got through it or how they slipped through back, if that was necessary. 
 
Now is also the time to peek at Plan B and realize that Plan B may not be as bad as you initially thought.  Approach Plan B as if it were a stepping stone back to Plan A. You might find, in the process, that Plan A was wrapped in the wrong reasons to pursue a position (prestige, incentive compensation, amenities, e.g.).  Plan B might actually encompass the rational reasons (experience, exposure, skills refinement, immediate contributions, e.g.).

Explore carefully opportunities you might have dismissed early in the process. They may be at smaller companies, boutiques, or funds.  They could be in regions outside of the usual finance centers. They may be in industries (manufacturing, technology, communications, or energy) you hadn't discovered before, but where roles in finance, strategy, capital markets and M&A are still critical. 

If you pursue opportunities off the beaten path and are successful, negotiate an experience or role that will emphasize financial analysis, corporate finance, modeling, finance strategy, and/or markets. A profound summer experience at a global company or a first assignment in strategy, treasury or markets can still become gems on a resume' down the road. 

Everywhere in recent weeks, we detect hints, signs and trends that the environment has improved. The known banks and institutions are tip-toeing through this hopeful, but fragile scenario--still hesitant to hire in large numbers, still not sure what they should do for the long-term. Yet in pockets or office corners in scattered places, an alumnus contact might let you know that in her group, they desperately need a smart MBA intern from, say, Cornell, Virginia, Rochester, or Emory to help on a current deal, portfolio review, or strategy presentation.


Tracy Williams

First-Year MBAs: Internships and Recruiting

What are current sentiments, trends, and outlook, as MBA students prepare for a tough job market in 2012-13? What are the best tools, advice, and guidelines to get ready?

The Consortium Finance Network hosted a webinar Nov. 22 for first-year Consortium MBAs in finance to discuss strategies for recruiting and securing internships for the summer, 2012.

Panelists included Consortium graduates Eddie Galvan, Denzil Vaughn, and Enoch Kariuki. CFN founding members Tracy Williams and Camilo Sandoval (also a Consortium alumnus) and the Consortium's D-Lori Newsome-Pitts organized the webinar.

Fortunately for students, the hiring environment for 2012 is not as discouraging as it was in 2008-09, when financial institutions worried more about survival than bringing aboard new MBAs.  Yet with announcements every other day from banks about rounds of lay-offs, finance students know the task of winning an offer for a meaningful internship will be tricky.

Market volatility in recent months, frenzied discussions about U.S. debt reduction, a stumbling economic recovery and persistent rumblings from Europe all have impact even in hiring MBA students.  The webinar provided strategies for new students.

Panelists said there is some optimism--despite all.  Financial institutions are in better shape now than they were in 2008. They have stronger capital cushion and are flooded with cash reserves, although they momentarily are suffering from trading losses or slow deal flow.  They are, however, hopeful they'll get over a late-2011-2012 hump, endure a long election year and want to be prepared for 2012-13.

Many large firms, panelists said, are optimistic and hopeful, but cautious. There are areas of opportunity (private banking, risk management, middle-market banking, e.g.), but there are also areas of decline or little hope (some sectors in trading).  Financial reform, not just economic conditions, will also affect recruiting trends. 

For now, financial institutions this fall made the rounds at Consortium and other top business schools, as they usually do, no matter the environment. A few canceled planned presentations on campus--still unsure about deal flow, new clients, new business, and costs to support business efforts in the short term. Most institutions are struggling to count how many spots for MBA internships it will offer.  The same institutions have a decades-long history for not getting the number right (over-hiring, under-hiring, and doing so too quickly). They certainly have a habit for changing the expected number throughout the process.

MBAs, nonethless, throughout the post-crisis fracas, continue to have degrees of interest in finance. Over 80 students in this year's Consortium first-year class expressed interest in financial services, banking, sales & trading, investment research, and asset management.

Panelist during the webinar provided a road map for students.  How do you take advantage of networks? How do you choose the right finance sector, culture and fit?  Why is it important to keep up with current topics?  How do you confront technical interviews?  Will you succeed in certain environments? How do you impress an institution where you prefer to work? How do you control and master rounds and rounds of interviewing?

Panelists shared stories of how they chose to work at a certain firm, why they chose one firm over another, or why they took a detour and went into a non-banking role.  They showed, too, how they tapped networks to find opportunities.  They advised on how students can manage academics, recruiting and keeping up with trends and events in markets. They reminded students to handle technical interviews with confidence and preparation.

They discussed trends in diversity. Are the major institutions still committed? Will institutions be committed in all times--good times, downturns, booms?

And once you have the offer, how do you negotiate and accept it? How do you make sure the summer internship leads to a full-time offer?  Panelists shared their experiences.

CFN, upon request, will share details of the presentation to Consortium students and alumni.

Tracy Williams

Is I-Banking Still Hot?

Does investment banking still have the same attraction? Do MBA students still swarm toward investment-banking roles? Do many have dreams of joining a top firm, hitting the ground running doing deals and anticipating big year-end bonuses?

After the industry turmoil and a series of setbacks and embarrassments, is investment banking still a hot area?

There have been upheaval, backlash and calls for reform since Lehman Brothers and Bear Stearns disappeared from the scene. Yet since 2008, trends suggest (a) i-banking is still attractive to many MBA students in finance at top schools and (b) the industry has evolved, but not yet gone through the major overhaul and transformation many predicted or hoped for.

Despite public pleas for changes in how banks conduct business and pay bankers and despite sluggish economic recovery and stomach-churning markets, deals are getting done. Companies are going public, issuing long-term debt, or acquiring other companies. Not necessarily at levels from 2006-07, but there is activity, enough so for banks to continue recruiting and for MBAs to pursue careers.

In this year's entering class of Consortium MBAs, at least 90 new students (about a third) have indicated an interest in finance--a number that is about the same or slightly higher from previous years. Of the 90, as many as 30 (about 10 percent of all Consortium students) have expressed a specific interest in investment banking, corporate banking or corporate finance. The actual number interested in i-banking could be higher, as many students will indicate a general interest in financial services, but have not yet acknowledged an interest in banking.

(Ten students say they are interested in investment managent, and a handful express specific interests in media finance, private equity, venture capital or real estate.)

Most students understand they will probably revise plans as they proceed through a grinding recruiting process. Banks, as they did before, put prospects through rounds of interviews, including tough technical sessions. Some students don't survive the process. Some change their minds, while others switch to other industries. Some become even more charged with enthusiasm about i-banking.

Interest in i-banking, therefore, has not disappeared. The actual number that will be recruited and hired in 2012 has yet to be determined, especially as banks struggle to make sense of this summer of volatility and uncertainty. Those who are committed and will pursue banking will encounter an evolving industry, but one that reflects familiar traditions and practices.

Over the past three years, the players and leading firms have changed.  The sudden departure of Lehman and Bear Stearns and the absoprtion of Merrill Lynch by Bank of America left gaping holes in the "bulge bracket" lists. Goldman Sachs, JPMorgan, and Morgan Stanley continue to jockey for the top spots in equity and bond finance and merger activity.  However, foreign banks, especially international banks with large investment-banking operations, have shoved themselves into the big picture:  UBS, Deutsche, RBC, and of course Barclays, which bought the U.S. operations of Lehman.

Firms like Jefferies and Lazard Freres, once comfortable in their own mid-tier niches, took advantage of industry shake-out and expanded their reach and business. Jefferies is a more diversified, comprehensive bank than it was a decade ago. Some regionals--mostly the i-banking units of commercial banks--have also stepped up where they could.

Smaller "boutique" firms have picked up pieces and grabbed business that bulge-bracket firms once kept among themselves.  Bulge brackets are now "bank holding companies," subject to banking oversight by the Federal Reserve an often weighed down--in their eyes--by onerous capital requirements and ominous regulation.

As with all banks, bulge brackets must address a laundry list of issues since TARP rolled out in 2008.  Dodd-Frank regulation will force them re-engineer their businesses. They can no longer rely on surges in trading revenues to offset the cyclicality of i-banking. While big banks tend to internal restructuring and worry about declining returns, boutiques have slipped in and swiped a few lucrative deals away from them.

Boutiques absorbed experienced bankers who were dismissed by bulge brackets let go or were demoralized by the crisis. The new bankers brought clients, deals, relationships and junior staff with them. Boutiques, meanwhile, have remained steadfast in being experts in special areas (M&A, media finance, technology finance, restructuring, capital-raising, or strategic advisory).

They didn't venture to foreign lands or create hard-to-manage bureaucracies and processes. And they seldom need to scratch their heads managing conflicts of interests, "tail" risks, or burdensome capital requirements. They just do deals.

And they've done more than their share over the past year. Centerview and Qatalyst, boutique banks, had primary advisory roles in the recently announced Google-Motorola merger. Sandler O'Neill, adamant about remaining small, is one of the top banks for financial institutions. Moelis, Evercore, Allen & Co., Greenhill, Keefe Bruyette, and Perella Weingberg are all respected, if not envied, players.

Some challenges and issues continue to stifle firms these days, big and small--enough to frustrate senior managers and deal-doers who wish they could focus on clients and deals and enough to discourage some MBAs from pursuing a career.

The turtle-crawl economic recovery has a direct bearing on i-banking activity. Corporations are reluctant to grow their busineses or consider acquisitions. They hesitate to issue new capital (debt or equity) to invest in new business or innovative products.  They let cash reserves sit around because they are engulfed in uncertainty. In the end, investment banks can't convince corporate CFOs or CEOs to take their advice or proceed with financings that at least make sense in Excel spreadsheets. Deals ready to go to market are suddenly shelved.

Thus, fees and revenues from mergers, acquisitions, underwritings, lending, and new products fluctuate unpredictably, while senior bankers figure out how to endure uncertainty and MBAs ponder whether they should pursue a dream.

Pending regulation and reform are looming challenges. Banks try to interpret new rules and anticipate what they will be once regulators write them up more formally. Then they huddle in backrooms to reorganize their business to make them operate profitably with the new restrictions. The 25% return on equity some bulge brackets could count on in the glory days of the mid-2000s or late 1990s might become an unreasonable target. Disgruntled shareholders may need to become accustomed to, at best, 15% returns under new models.

Risk management at all banks has gotten much attention. Banks have increased risk staff and force deal-doers to assess, probe, analyze, and measure the worst-case risks in doing a deal or bring in a new client. Risk-vs.-reward exercises are more prominent than ever.

Derivatives once attracted Ph.d. graduates and quant jocks and spawned floods of profits over the past decade or so. Going forward, regulation will force most of them to be traded on exchanges and through designated dealers. Investment banks aren't sure what the new profit dynamics will be or whether it will be worth the effort to encourage quant jocks to create new forms of them. Quant jocks aren't sure they will be welcome or will flee to hedge funds. I-bankers haven't yet figured out what they should say to clients on a consistent basis.

Work-life balance in the industry was supposed to have improved, if only to attract graduates who fear that lower bonus payouts in the future won't make it worth spending 12-14-hour days in the office, six days a week. Anecdotes suggest work-life balance is often discussed and mulled over, but when deals must be done, it's back to back-breaking, suffocating hours in the office.

The current environment with uncertainfy, regulation, and dwindling profitability will add more pressure to bankers to find new clients, win more mandates and get more deals done.  Expectations by management and the public have risen the past three years. Competition from other banks is just as fierce, and clients are demanding more from banks. The pressure has not waned.

Yet the attraction to i-banking is still apparent. Despite the nervous environment, Consortium numbers suggest new students still want a shot at doing deals, helping clients borrow money or go public, or advising them on how to expand and grow.

The adrenaline from participating in a headline-grabbing transaction or a billion-dollar bond issue still exists. The satisfaction of deriving and negotiating the fair value of a targeted firm is still there. The thrill in traveling all over the country or globe to meet new clients in new industries continues.  Of course, compensation--even if it has become as volatile as markets--is generally still attractive.

One tradition has not changed. I-bank recruiting and the campaign to win a spot on a bank's interview list start the first week MBAs get to campus. Those who have ambitions of securing a spot in 2012 must get going now.

Tracy Williams

Money Madness in March

You think you can pick stocks, determine which ones have the best chance of making the most gains in a one-month period? Do you think you can apply investment-analysis principles, ratio analysis, technical trends, or just plain instinct to determine which stocks are the best bet this spring?

Then consider competing in Consortium alum's Rob Wilson's second-annual March Money Madness stock-picking contest. Last year, he started the competition to take advantage of "bracket-mania" that accompanies the annual NCAA basketball championship and to promote investing in equity markets. This year, he resumes his version of the tournament with hopes he can attract many more participants (and sponsors) and award more prizes.

March Money Madness works similar to picking winners in traditional NCAA college brackets. There are rounds of competition, and in each round, participants try to pick a weekly winner between two stocks (like two college teams competiting). Just like the NCAA, in the early rounds, there are 32 and then 16 stock pairs. In subsequent rounds, participants choose winners among the companies that are remaining in the tournament.

From round to round, winners in pairings are determined based on the higher market return in the following week. Last year, the top prize was in iPad. This year, winners in the final round (the championship) will also receive prizes.

To win, stock-pickers of course must focus on short-term gains. But Wilson says the primary purpose is to promote investment education, to help participants learn more about equity markets and get comfortable in making stock selections, and to understand more about market trends and behavior.

To register and participate in this year's tournament, go to http://www.marchmoneymadness.net/ for competition rules. Reach out to Wilson at rob@robwilson.tv if you have feedback or are interested in being a sponsor. You can register after Feb. 15, but must do so before Mar. 16.

Wilson is a 2005 Consortium graduate of Carnegie Mellon. He is a Vice President in financial consulting at Blazer Capital Management and is a TV contributor and commentator on financial topics on Pittsburgh's KDKA-TV (See http://www.robwilson.tv/.)

--Tracy Williams

Where Would You Want to Work?

Everybody is attracted to lists, including corporate lists that rank the size of top corporations, the best places for diversity, and the places that offer the best opportunities. Lists provide a quick snapshot of voluminous information, of interesting statistics, or of a trend, issue, or phenomenon--no matter whether the lists are sometimes subjectively and unfairly compiled.
Fortune magazine may have started it all with its well-known Fortune 500. Few people may comb through the list line by line and in depth, but all business leaders, managers and students know what it implies--corporate size, influence, strength and global expansiveness.
Forbes owns the Forbes 400, the popular list that ranks the wealthiest people in the world. Other business media have popular lists that attract a following or at least spawn water-cooler and Internet chatter: BusinessWeek, Black Enterprise, and Institutional Investor.
Fortune may have the most abundant of lists. Beyond its list of the largest 500, it owns such lists as the most powerful women in business, the most influential business people and the most important (in its view) business people under 40.
Its latest list is out this week. It's the 100 Best Companies to Work For. (See http://www.fortune.com/.) Fortune has researched, compiled and presented this list for years. Year after year, it strives to present something as objectively as possible, although the list is based on surveys completed by the companies themselves, impressions from those who have worked there, and a handful of performance statistics. In general, the list is likely fair to those that make it. Companies on the list are likely justified. Perks, performance, and pay are what they are. The list might be unfair to dozens (if not hundreds) of small companies that are overlooked or out of sight when the lists are prepared.
Financial institutions, for various reasons, have not fared well on the "Best Companies to Work For" list. But a few appear year after year. They may legitimately be attractive companies to work for. Or they may have human-resources departments and employees who religiously take the time to complete surveys and provide data on benefits, perks and compensation (variables that rank high on the list).
Diversity, inclusion and employee satisfaction are important variables, so it shouldn't be a surprise that many on the list are Consortium sponsors (past and present): American Express, Goldman Sachs, General Mills, KPMG, and Deloitte, to name a few.
Fortune's 2011 list hardly differs from its 2010 list. Notable is the unusual number of consulting, accounting and law firms on the list: BCG, a dream target for many MBAs, is no. 2. Booz Allen, Accenture and Ernst & Young also make the list. These firms make the lists for various reasons. That new employees can aspire to be well-compensated partners one day might be a factor. Another could be their flat organizations and business models that minimize bureaucracy, processes and procedures.
A scattering of financial institutions made the list. There is no discernible pattern. Big global institutions like American Express and Goldman Sachs made it. Goldman would make most lists of the toughest companies to work for, as well, but its perks, compensation and long-term career paths may make the painstaking efforts to be employed their worth it. American Express was noted for promoting and retaining women in senior roles.
Oddly there are a few discount broker/dealers and investment managers on the list. One explanation could be the opportunity for day-to-day independence and business accountability for brokers and financial consultants. Edward Jones, Scottrade and Robert Baird made the 2011 list. In a strange way, Jones made the list despite, as Fortune says, a workforce of 93% white. But the firm was applauded for its recent efforts to do something about that. The company says it wants to be more than a "firm of middle-aged white men." Certainly an example where it gets an "A" for effort, although its past grade in diversity might have been a "D."
Familiar names make the list, as they do each year: Google, Dreamworks, Cisco, Genentech, Intel, and Starbucks--often because of the perks that have come in working at young, dynamic firms or firms with technology, project-oriented cultures. Those perks, of course, include flexible work hours, minimum (if any) dress codes, cafeteria privileges, stock options, and day-care arrangements--all sufficient enough for any employee to rank their company as high as possible on a Fortune survey.
Tracy Williams

MBAs: Second-Year Dilemma

Many Consortium MBAs in finance returned to business school this fall with a comfortable smile on their faces. They had productive summer internships at banks, corporations, investment funds, and private-equity firms. Many of them also had offer letters, permitting them to return after graduation in a full-time role.

But many of them have "exploding" letters, which require them to make a decision to accept or reject in a matter of weeks. If they don't, the offer is forfeited. The feel-good moments in the waning days of summer can turn suddenly into an anxiety period: Do I accept or reject this opportunity of a lifetime? Do I explore something else? Do I really like banking (or trading, investing, research or analysis)? Do I prefer to do the same at another firm? Do I give myself the well-deserved chance to shop around? Do I still look for that "dream role"? Or do I try to negotiate with the company to get more time to think this through?

Some companies apply pressure and request a final decision be made before a set date--sometimes as early as October 1. Second-year MBAs face a dilemma and must make tough decisions. Outsiders might suggest that in the current environment it's a dilemma they are fortunate to have, because they have a real opportunity and a real job at graduation.

How can second-years handle this special situation?

1. Objectives. It helps for them to understand their short-term and long-term career objectives. Many times, the offer in hand might fulfill a short-term goal (business, client, deal or trading experience, upward-sloping learning curves, extended networks, organization experience, and compensation). Does, however, the short-term goal permit you to reach the long-term goal (whatever that long-term goal could be)?

Outlining objectives and examining them thoroughly might permit the second-year to make the right decision, especially if the longer-term objective is most important.

2. Aptitude. Another approach is to understand what you want to do and what you can do. Many MBA graduates want to start in positions where they will thrive and do well. They want to launch their careers as success stories.

The second-year, therefore, may choose to delineate in detail

(a) what you want to do in that first job,
(b) what you know you can do well, and
(c) what you like to do day to day.

If all three overlap in some way, or if an MBA in finance wants to, can do, and will like doing the job, then it's likely he or she will do well starting out. When the offer presents a role where all three come together, then the MBA can't go wrong in accepting the job.

If the offer doesn't permit the three to intersect in a substantial way, then it might make sense to explore other opportunities.

It's not as easy as it appears here, because often you know you can do the job and wouldn't mind doing it, but it may be something you dislike or can't tolerate. But it may be the role that is a convenient stepping stone to a long-term objective. If the long-term goal is important and if you can do the job well, then you might rationalize accepting the offer.

These kinds of self-assessments can help guide in final decisions.

3. Options, Opportunities. Second-years in these times must survey what the opportunities and options are in finance. Uncertainty in markets and in the recovery will limit options. So they must be sincere with themselves about the implications of turning down an offer that's in hand.

Banks and other financial institutions turned up the gears in hiring in early 2010. There are hints now, however, they may slow down a bit, not because business has evaporated, but because they certainly will be cautious about over-hiring.

Second-years who want to explore options and opportunities are in the best environment to do so--on campus, where banks and corporations will continue to touch bases with business schools even if they may not be recruiting aggressively.

4. Mentors, Alumni, and Networks. Second-years would benefit from discussing their situations with others who have been through the same. They'll learn how others grasped and approached the decision and understand factors in those decisions. More experienced mentors and alumni will even acknowledge whether their decisions were wrong or bad and contemplate what they might have done, if they had the same decision today.

The second-year who still has doubts about the summer experience and is frustrated by an impending "explosion" from an offer might still ask for an extension from the hiring company. There are rules, but companies bend them. A follow-up discussion with the company might give the second-year a chance to see the company in a different way, speak to others to get more details about the position, or negotiate a move to a more satisfying or vibrant group.

At some point, decisions must be made. Most second-years will agree these decisions are tough (because they often involve relocation and personal commitment of about two years to the role), but this one may not be the toughest of all. Deciding whether to attend business school and choosing which business school might have been tougher.

Tracy Williams

Summertime, Summer Internships

Several years ago, for MBA's in finance, the summer internship was, well, a 10-week cocktail party. Back then (the 1990s? the 1980s?), financial institutions (the big banks, the smaller boutiques, the funds, the asset managers, the venture-capital firms, etc.) spent the summer wooing first-year students, wining and dining them, and presenting them one fabulous time after another--all to make sure they could clinch the hiring of a talented crop.

Times have changed. Today partly because of the post-crisis environment, financial institutions have an upper hand. They, too, are careful how they spend summertime money and they learned at some point that MBA interns can contribute and participate in deals, projects, and research.

Most important, now more than ever, they use the internship program to facilitate full-time hiring. If they could hire all full-time MBA's from the summer-internship class, they would--even if it means hiring nobody from the second-year class during the school term.

Because they pick most of the full-time class from the internship class, they are also keen to make sure they choose strong, competent, well-rounded associates. Hence, unlike in years past, MBA interns spend much of the summer proving themselves in order to win a coveted full-time offer by September.

Of course, some wooing and wining and dining still goes on. They certainly don't want to turn off talented MBA's, discouraging them and sending them fleeing to competitors, hedge funds, or smaller start-ups.

At the same time, nonetheless, they want to make sure they get the full-time offers correct. So while interns are burying their heads in financial models, acquisition projects, debt-restructurings, portfolio analysis, asset allocations, equity valuation, client-meeting preparation or project analysis, they in turn will be evaluating, ranking, rating, and dissecting the talent before them. They want to ensure the finance and accounting MBA's absorbed in large doses during the year can be applied properly and swiftly in real transactions and business activity. They want to reaffirm technical competence.

That may sound daunting, but the numbers aren't. More than half the interns at some major banks will be extended full-time offers. And during good times when there is a growing need for associates, they don't mind extending 100-percent offers.

Consortium first-years in finance will be starting internships all over the country over the next week. In numbers that are slight improvements from a year ago, they are setting out to make their marks at UBS, Deutsche Bank, JPMorgan, Goldman Sachs, Barclays Capital, and many more--heading to New York, San Francisco, Chicago, Charlotte, and Atlanta.

Even if the numbers work in their favor and if the hardest part is getting the internship offer in the first place, interns (including Consortium MBA's) can get the most from the experience if they remember a few things:

1. First, have a good time and meet new people, contacts, and students from other schools, but take care to get the offer. Network, socialize, venture out to Connecticut for a cookout with senior bankers, and become buddies with others, but take care to get the offer--even if you find you don't like the firm or conclude that banking is not for you.

2. Show mastery of the technical skills you learned in school and demonstrate enthusiasm and strong work ethic.

3. Do right by yourself. It's okay to conclude in the end the firm, the role, and the work are not for you. But continue to work hard and try to secure the offer to use as leverage when you look elsewhere during the second year.

4. Observe that institution's culture for yourself and decide if it's a match for you. You'll hear a lot about what others say. Draw your own conclusions and ask mentors, colleagues and other (Consortium) alumni to be candid about work atmosphere, fair opportunities, development, long-term prospects, and respect for work-life balance.

5. Don't worry or get involved in office politics. You don't want to be defined by it, and ten weeks will elapse so quickly you won't care about it when you are back in school.

6. Take the opportunity to learn. Compare the theory from school to the application on the trading desk, in financial models, or in corporate strategy. Observe markets, deal teams, activities, deal flow, transaction dynamics, decision-making, and the way a business group gets things done.

7. Improve skills in client relationships (although many interns won't see clients much), business development, product innovation, and business generation. These skills are sometimes brushed over in business school, but can be invaluable in the real-world setting.

8. Yes, check out diversity. Observe the firm's progress. Check to see if the firm is walking the walk, talking the talk it claimed to have been doing when you saw its representatives on campus. Check to see if the firm is promoting diversity by checking the box or genuinely encourages it with passion and purpose.

9. Make the most of the summer. But try hard to get that offer, so you can return to school with relief, less pressure and momentum as you embark on second year. And if you don't, push ahead if you know you learned much and did your best.

Tracy Williams

If It's June, It Must Be OP Time

If June approaches, then the Consortium's annual Orientation Program must be around the corner. This year Orlando (above) will host the big event--always a festive, memorable occasion to welcome over 300 new students to the Consortium family.

Orlando last hosted the OP in 1999 right in the shadow of DisneyWorld. The 44th OP is scheduled June 13-16 this year at the Hilton Bonnet Creek Hotel. True to the tradition of Consortium OP's, hundreds and hundreds of students, university representatives, corporate sponsors, and (more and more) alumni and other supporters will converge on the city to participate in one of the grandest and (increasingly) one of the most important business-school and diversity congregations in the land. One of the biggest networking sessions of all--where students and alumni have ample opportunity to connect with corporate representatives from every corner of the country. And where students get a head start on the business-school experience.

Over the years, OP has offered not only corporate contacts and introductions to b-school classmates and professors, but has afforded special experiences and lasting memories. On the surface, OP is a large-scale networking event. Beyond that, it is more than that--an uplifting event and confidence-builder for the 300-plus students, a launching pad to help them take full advantage of the b-school experience.

Students arrive excited about their having been admitted to top schools or having won fellowships. But they come wondering about the decisions they made and the engulfing academic experience they are about to encounter.

They leave OP energized by new friendships and encouragement from every person in sight. Many come away inspired and connected; many devise well-outlined game plans for how to manage the rigors of courses and recruiting. Some actually come away with actual job offers, although that's not a primary purpose.

Often at OP, there has been the perennially popular "Diversity Theater," featuring real actors playing roles in skits with diversity-related plots followed by lively, heated discussion afterward, an event students had to been torn away from. Through the years, there have been the career fairs, the industry panels, the university programs, and stunning speeches that rouse students and reps to standing ovations.

There have been prizes and events to meet whomever you want, to discuss whatever you wish. There have been private meetings, informational interviews, and academic competition.

There, too, have been the chances for a batch of Dartmouth students to convene for barbeque nearby to set strategy for the fall and just bond with each other. Or there are those moments when Michigan students spontaneously shout, "Go, Big Blue" a few dozen times to whomever around. A feel-good time to supplement the meetings, the connections, the business cards, and the we'll-there-for-you messages from mentors, staffers, and university reps.

There, too, have been the parade of colors--the assortment of reds, blues, greens, and oranges(mostly reds!) emblazoned on the students, who wear school attire, wave school pennants, or sit at decorated school tables. The fiery reds of Wash-U, Indiana, Wisconsin, Cornell, or USC. The cool blues of Michigan, Berkeley, UNC, Yale and UVA. The burning orange of Texas. The conspicuous purple from NYU.

In the 40-plus years of this frenetic, adrenaline-filled convention, experiences differ from year to year based on hosting sponsors, the times at hand, the dreams and desires of students, and the host city itself. That city gets to show off; the hosting sponsor gets to present itself as a most attractive prospective employer.

Minneapolis, for example, has hosted twice (the first time in 1997)--thanks to such sponsors as General Mills, 3M, and Target--and shown that a June Minnesota is as comfortable and fun as the visions of a January Minnesota may not be.

In 1998, OP landed in the middle of Times Square in New York City--thanks to host Chase Manhattan and host school NYU--where students could steal away to bustling Broadway in between sessions.

In Cincinnati in 2001, OP resided just down the road from lead sponsor Procter & Gamble, which had dozens of it reps from all over the globe around and about. San Francisco was a host in 2002, when many were at first concerned about travel in the wake of 9/11. Attendance and enthusiasm, nonetheless, were as high as ever. Well-known state politician Willie Brown addressed Consortium students at one luncheon.

It might have been hot, unbearable outside when the OP was in Atlanta and in Dallas (2008). Yet in both places, the 4-5 days were spirited, lively--with much to do and many to see inside. In Dallas, Pepsio-Frito Lay was a lead sponsor, and host school Texas gladly tooted its horns, happy to have been able to lure its Consortium brethren to the Southwest.

St. Louis in 2006 was a special year, as the Consortium celebrated its 40th year, taking time to reflect on significant progress, the organization's growth, and its evolution. Emerson was a lead sponsor. Banking and finance opportunities had peaked, and nearly a hundred students expressed interests in financial services.

Chicago hosted in 2000. In perhaps its last hurrah before its demise, with a proud public face, long-time contributor Arthur Andersen was a major host. In 2007, OP went to Indianapolis, thanks to sponsor Eli Lily. In one keynote addresss, Consortium alum Derica Rice spoke to students and described his career path from Consortium MBA (Indiana) to CFO at Lily.

Philadelphia and Washington have also been host cities over the past 15 years.

Ask just about any Consortium supporter, student, alumnus, corporate rep, or univeristy rep what they like best about the Consortium experience. The answers will vary, but inevitably they snap and admit "OP" is near the top. Ask others who have heard about the Consortium, some will say they are considering being a part of it--because of "OP."

"Make Your Move" is this year's theme for Orlando. So go ahead and make it.

(For more information, see http://www.cgsm.org/op/OP2010.asp.)

Tracy Williams

What is an Elevator Pitch and Why is it Important?

The Elevator Pitch is a term that is bandied about often. But what is it? Is it actually something you would quickly say to an executive as you were going up in an elevator together? Well, yes and no. Your elevator pitch is your quick personal selling/request statement. It might be used if you were riding in an elevator with Bill Gates; however, there are many more likely uses such as cover letters, email introductions, mentor requests and introductions at career fairs. The elevator pitch is so important because it is the first thing that people ever hear / read about you. Even before your resume gets in their hands, your elevator pitch sets the stage for why they would spend the time to look at your resume, which leads to the interview, which leads to the job offer.

So how do you structure an elevator pitch so that it works so well in all of these different forms? Think of your elevator pitch as a foundation on which all of the communications mentioned above are built. It is similar to the flat slab at the base of all lego building sets. That base is the same whether you are building a house, police station or office building. The key to your elevator pitch is to get the foundation right.

Here is how:

The pitch should be short.
The base of your pitch should take no more than one (1) minute to recite or 200 words to write

The pitch should include the following:

1) Who you are plus a credential
You should think of your credential as either something that differentiates you from you peers (e.g. varsity basketball player, army lieutenant, Rhodes Scholar) or something that establishes a relationship between you and your audience (e.g. graduate of same college, member of same sorority, from the same home town).

2) A specific objective
Get to the point quickly about what you are looking for or how that person can help. There is no need to soft shoe around your objective; however, your objective should be something that the person can directly facilitate either by making the decision him or herself or connecting you to someone that can get you closer to that objective.

3) How you have demonstrated your interest
There is a difference between "communicating" your interest and "demonstrating" your interest. When you demonstrate your interest, you give examples of things that you have ALREADY completed or committed to that illustrate this interest. Don`t just say that "I have always want to be an doctor". You should be able to say, "I have taken pre-med courses". If you haven`t done anything to demonstrate your interest, which might be as simple as talking to people with an expertise, then start doing something!

4) Why you are qualified
This is your chance to communicate what makes you someone that your audience should consider helping. People typically like to help those that they feel will be successful in the process. There are a couple of things you should think about when highlighting your qualifications:
- industry relevance
- leadership
- expertise
- pedigree
- impact

5) Give the person two options on how they can assist
This is an old sales trick. Always give two options. A person will often flatly turn you down if you give them one option, but if you give them two options, then they often commit to one of them. This is different than communicating your objective. As I mentioned above, the objective is the end goal; here you want to communicate how the person can help you in the process that leads to that end goal.

Let`s take an example:

Dear Mr. Miller,
My name is Josh Paul. I am a graduating senior from Davidson College. I am looking for an internship in a law firm this summer. I have had a strong interest in the law since I first enrolled in college and have participated in several seminars of constitutional and corporate law. Although those seminars were ungraded, I have maintained a 3.4 GPA while also participating in several extra curricular activities including the Pre-law society. If your firm offers internships, I would appreciate an introduction to the people in charge of that program. Alternatively, I would appreciate the opportunity to give you a call and/or meet with you in person to discuss your career path and how I might find opportunities within the legal profession.

This example could be used as in email introduction, cover letter, conversation or even in an elevator. Notice that all five elements outlined above are included; and, the entire pitch is under 150 words. This does not mean that your conversation, email, or cover letter would only include this text. You might also include how you were connected to this person or why you are interested in his particular company, but this is the perfect foundation from which to build.

Camilo

Finance Hiring in 2010: What Do the Stats Say?

There's no disagreement among banks, recruiters, business schools and career advisers that last year was dismal for recruiting among MBA's or for those who wanted to transition into finance. The statistics show the declines, and students and young alumni can tell long tormentuous stories about difficulties in finding the right job, opportunity or position.

In 2010, all agree there are general signs of a recovery. Recruiters have been out and about. Banks, corporations, and firms have flocked to campus to state their cases and generate excitement about their institutions. And there have been scattered cases where those who sought positions in financial institution received offers or where those who were laid off at one firm found an even better position elsewhere.

But the actual statistics that are supposed to prove things are much better in 2010 than 2009 are fleeting, too elusive to pinpoint. In fact, some business publications or observers can't quite agree there is an obvious, discernible improvement in hiring or if 2010 mirrors much of the inaction or inertia of 2009.

Take articles or news features in the past several days in the New York Times, the Wall Street Journal, the Sacramento Bee, and CNBC-TV. They all present statistics, yet they present numbers that show times are better and times are worst. You have to interpret the numbers with care and at your discretion.

For the most part, people in banking and finance circles will say times are still challenging, but there is a consensus that top financial institutions now are interested in increasing hiring among those at top-tier business schools (including Consortium schools). If they have not yet boosted hiring numbers signficantly, they are at least preparing for an upturn.

In an article on bank hiring at b-schools, the New York Times (March 8) presented a favorable trend at top schools and backed that up with numbers, although they apply to specific cases at designated schools.

It reported that at Consortium school UVA-Darden, the number of banks interviewing on campus increased by 20% this year; the number of job offers (internships and full-time offers) from top banks increased by 33%. At Consortium school UNC, the number of investment bankers who appeared on campus (for recruiting events and interviewing) increased 67%. This may not yet reflect a substantial increase in the number of MBA students receiving finance offers, but it denotes a positive trend.

The article also noted that at non-Consortium Duke-Fuqua, the number of students submitting resumes' to banks increased 37% and the number of students who visited Wall Street last fall in its week in New York increased from 60-90. That doesn't reflect actual offers, but suggests students are more confident that financial institutions have resumed their brisk pace of recruiting.

Meanwhile, the Wall Street Journal (February 23) reported that 79% of b-schools sampled say they saw a decline in recruiting last fall and recruiting visits from corporations fell 20%. The Sacramento Bee (March 8) reported that 50% of MBA employers across the country have scaled back recruiting this season.

So whom can you believe?

The numbers reported by the Journal and the Bee cover all industry groups and all kinds and classes of b-school programs. So they don't necessarily summarize better the upbeat activity among top financial institutions (Goldman Sachs, BoA-Merrill, Morgan Stanley, Wells Fargo, etc.) and recruiting at top-tier schools.

That's what a segment on CNBC-TV suggested (March 8), where representatives from the MBA Career Services Council (http://www.mbacsc.org/) and MIT-Sloan b-school reminded the audience that top-tier banks are recruiting aggressively at top-tier b-schools, since they are no longer fighting for their financial lives and are focused on growth prospects again. Hence, they have returned to top schools to chase after top talent, while smaller financial institutions might still be scrambling to recover from the crisis.

The Journal suggested another phenomenon in recruiting these days: Some institutions are ready and willing to hire MBA's, but no longer want to incur the costs of traveling to remote campuses or bringing students back to headquarters for second rounds. The Journal mentioned what Consortium school Washington Univ.-Olin is doing these days: introducing video technology to permit students to interview from campus, hosting and picking up some of the costs for employers, or arranging for its students to travel for second and final rounds of interviews. Olin, in some ways, doesn't want to give employers an excuse to not hire its students.

Consortium students are still in motion and still actively planning their summers and full-time positions for 2010. Although early signs suggest the outlook and the numbers are much better than last year's drought, it's still too soon to tell across all schools. Some students already have offers in hand from Goldman Sachs, JPMorgan, Bank of America-Merrill, Barclays Capital, the Federal Reserve Bank, Credit Suisse and UBS in many segments. Yet there is still time left on the clock for 2010.

Tracy Williams

Finance Careers: Decisions, Decisions

How do you decide what sector of finance is best for you?

A career in finance and banking might entail anything from a financial counselor to business analyst, CFO or treasurer; from an advisor in mergers and acquisitions to a venture capitalist or manager of bank branches in a big region; from being an equity-derivatives trader to a private banker or a salesperson of money-transfer services.

Whether you are a current MBA finance student, one who's contemplating returning to business school, or a finance professional five years out of school trying to decide a next step--how do you decide what's right for you?

First, ask yourself a few questions. What motivates and drives you? People, numbers, risk, selling, analyzing, managing, clients, decision-making, organizations, systems, deals, or, yes, compensation?

Decide what you like to do do, what subjects in finance you find appealing, and what activities you prefer to be involved in. In business school, what stimulated you the most--finance theory, financial accounting, managerial accounting, investments, structured finance, derivatives, capital markets, global finance, money and capital flows, central banking, firm valuation, securities analysis, or real estate?

Do you prefer research, modeling, and quantitative anlysis, the intrigue of dozens of pages of Excel spreadsheets to help determine whether to make an investment or not, to acquire a firm or not, to issue new equity or debt or not?

Do you like client interaction, client negotiation, marketing, pitching, sales, the satisfaction of closing a transaction after a long effort to present your firm's credentials and agree on terms? Do you like trying to understand what makes a client tick?

Do you like to take risks or get excited by market movement or, even more, market volatility? Do you feel a jolt of energy when market indices soar or take a nose-dive? Are you amused by the complexities and profit opportunties of exotic trading instruments?

Do you like to do deals, projects and transactions? Or do you like to manage teams, groups and businesses?

Do you like to analyze and value large companies--or value parts, divisions and subsidiaries of large enterprises? Are you interested in foreign markets, international business, and foreign currencies--those heavily traded and those rarely so?

Do you enjoy developing young talent and teaching others about models, markets, deals, products and services? Do you like to advise individual clients on how to prepare for a financial future?

Are you attracted to systems and technology? Do you have ideas about how systems can be used to exploit trading inefficiencies or capture and analyze massive amounts of financial data, or be used to provide financial services for clients?

Note your areas of comfort and expertise. They may all involve finance: a financial product, service, instrument or idea, or quantitative models and analysis. But that comfort area might involve people: marketing, sales, projects, business management, business development, and expansion.

While asking yourself questions and pinpointing your comfort and expert areas, at the same time, decide where there are opportunities, today and tomorrow.

Responding to these questions will help you outline a path toward a sector (or sectors) of finance where you can excel. The probability of success soars when you combine your comfort areas, your special expertise, and current and future opportunities. Match your preferences with opportunities and choose sectors where you have realistic chances to grow and do well.

The sectors of finance to choose from are numerous and broad. And they change over time, as the industry evolves, grows, and self-reflects after the recent crisis. They include private banking, equity research, credit analysis, risk management, investment banking, community banking, microfinance, bond trading, retail banking, securities brokerage, insurance, hedge-fund trading, prime brokerage, private equity, corporate treasury, collateral management, currency hedging, cash management, mutual funds, financial management, and on and on.

What if you are competent in sales and marketing and have contacts within an industry or from business school, have a thirst for generating new business, and enjoy the ongoing dialogue with dozens of clients? And what if you have strong technical skills in corporate finance, equity valuation, or debt financing? Then you might find appealing the role of investment- or corporate-banking client management.

What if you enjoy immersing yourself into the depths of one industry and are continually fascinated by its prospects, it business model, its company participants, its growth potential, its challenges, its regulation, and its leaders? And what if you're just as fascinated by its financial numbers (the balance sheets, the footnotes, off-balance-sheet risks, the P&L, the cash-flow statements, and projections going 10 years out)? Then you might like the role of an equity-research analyst or an investment manager.

At the same time, you'll need to have a special knack for written presentations and an ability to get company CFO's and CEO's to provide details, forecasts, and explanations on how a new product will be unveiled.

What if you like being the trusted advisor to high-net-worth individuals and enjoy working closely with them to assess investment portfolios or long-term cash needs? Or enjoy outlining a plan for them for a generation ahead? Or helping them decide what to do if they have major stakes in small companies? Then you might be attracted to private banking.

What if you think you can stomach the challenge of big risks and the potential for daily losses from huge trading positions? What if you think you can confront unforeseen market movements and can think quickly to determine how macro-factors will affect trading portfolios? What if you can make decisions fast and with conviction, recover quickly from setbacks, or figure out to how hedge risks or reduce losses when markets knock you down? Then sales & trading might be your preferred gig.

If the art of the deal thrills you, then you might consider corporate finance. You would be one who excels in project management, teamwork, tight timetables, client presentations, tough negotiations, and being able to draw polished, precise conclusions from long, detailed financial models.

You dare to go in front of a company's board to explain why it should sell itself. You would thrive under pressure and be energized by the possibility of getting the deal done, beating out a competing firm, or helping another company make a bid to acquire another firm.

Comfort zones, expertise, and opportunities. Ask yourself questions of motivation and drive. Determine your special expertise. And comb through opportunities. Together, useful tools to help you decide where in that financial spectrum you might want to belong.

Tracy Williams