Bank on Banking

With summer and full time analyst program start dates just around the corner (not to mention all of the 1st and 2nd year analysts looking forward to the next step [and hopefully pay bump]), knowing how to boost your rank and leave the best impression will absolutely help you to not only get a great letter of recommendation but also fill your wallet as a FT analyst and land the return offer as a SA. Just as with many other things in the banking world, there is a component of this process that is definitely within your control, and then a component that is either not in your control or, at least not completely in your control – for lack of better terms, we’ll call these components “The Luck of It” and “The Work of It.” So let’s jump right in!

The Luck of it

One of the big components of your rank is in what you’ve done for the team – fortunately, or unfortunately (depending on which side of the spectrum you are on), that means the projects you work on and played a role in count. In other words, if you ended up being staffed on a big deal that went live, required a lot of work, a ton of hours, and some concrete thought on your part, the case made for you to earn a higher rank (4 or 5) will be easier to strengthen than the smart analyst who wasn’t staffed on a noteworthy live deal and didn’t end up doing much more than a ton of pitch work over the past several months/year.

Yes, there are certainly analysts who don’t get staffed on the big live deals who earn 4s and 5s, and there are of course analysts who do get on those types of deals who end up getting 2s and low 3s, but apples to apples, it is easier for a strong analyst to shine when he/she lands a few big deals and has the opportunity to “show the goods.” When I 1st started, I knew an analyst (not a 1st year) who was an all-star – ranked a 5, everyone wanted him on their deals, had a great reputation for delivering great low-error, really high quality work in short periods of time, helped other analysts, etc. This analyst was staffed on several deals – unfortunately, after his 1st 2 years, he didn’t have 1 closed deal to show for it – not one closed deal for his personal league table. I bring this up because it is possible to shine without closed deals – making this point, however, does not negate the fact that it is much easier to shine with the big deals under your belt. Great or crappy, nice or nasty, this business is about what you have done for me in general and what have you done for me lately – getting your name out there and on some big deals matters to your reviewers, to headhunters and to your prospective employers (if you’re looking to other avenues after your 1st, 2nd, 3rd year, etc) – but I can spend all day talking about what prospective employers and headhunters want to see (or at least another article).

Back to the point at hand – besides the deal flow you see, the luck of your ranking is also based on exactly that – the luck of the process. When it comes right down to it, there is a bonus pool and for analysts your ranking dictates what slice of the pool you receive. With that in mind, every analyst cannot get a 4 or 5 (and frankly, not every analyst deserves it). Landing a 4 or 5 means that you are (or should mean that you are – politics and such aside) better than average – sometimes much better than average (since many systems have a 3 for average and a 3+ for above average) – and in the case of a 5 definitely much stronger than the average analyst. Since that is the spoken rationale behind the ranking, a benchmark needs to be made and with every cutoff or bucket for placement, there are only so many people that can land in each – especially in flat or down periods. This also ties into why it is harder for those analysts who don’t land the big or at least live deals of any size to receive the best ranking – with only so many 4s and far fewer 5s to be given out, it is easiest for senior bankers to justify high ranks for those analysts that have made the most visible marks on their teams – and those visible marks can readily come from the live and recently closed deals. Remember, by the time the ranking process and bonus talk gets down to the analyst level, the MDs at the top often need to bring in lower senior bankers (Ds and VPs) to help with the decision and inject some real insight into the caliber of the analyst. If the VP can point to specific input, it becomes much easier to support his or her ranking – not to mention the fact that the VP would like to have a reason for picking a ranking himself and not just – well it seems like he’s a hard worker or that he thinks he remembers you working hard on that project 9.5 months ago – again, it’s what you’ve done for me in general and what you’ve done for me lately.

The Work of it

Yes, there’s definitely some luck behind your ranking in some form or another, but just because luck can be a factor or play a role in your ranking, it does not mean that you can or should rely solely on luck to carry you. It also does not mean that you are powerless against the forces of luck or that you cannot absolutely boost your rank without the big deals or a host of live deals. First and foremost, you need to step up and become the Go-To Analyst. You need to create a name for yourself and show that you are smart, capable, detail-oriented, analytically inclined and an overall strong analyst with or without a live deal going on. Tackling your projects with intensity is definitely worth a gold star, and being able to tackle any project – whether for a big deal, or a pitch on a small deal bound to go dead – with a strong level of intensity and commitment will definitely help to highlight you as a talented and above-average-level analyst.

Yes, you need to keep your spirits up and yes you need to keep that strong focus and intensity. All of that, however, either won’t mean much of anything to senior bankers or won’t mean much for very long if you can’t turn projects around quickly and maintain a high level of accuracy (little errors and when errors are made, you correct them quickly). The quick turnaround time is essential in banking, just as in any high-intensity/stressful/demanding job out there. A quick turnaround time is important, but coupling that with an ability to minimize errors and consistently improve upon your work is the “magic formula” when it comes to impressing colleagues and earning better projects and assignments. As a former superior once put it, “I don’t expect everything that you hand to me to be 100% perfect, if for no other reason than we are going to change a lot of it anyway by the second turn. I do, however, expect it to be at least 85% right and immediately corrected.” In other words, mistakes are going to happen, but you want to avoid the repetitive and silly mistakes (spelling, simple formatting, etc) as much as you can and then correct them as quickly as you can when they occur. Additionally, while it is important to minimize errors, it is possible even MORE important to eliminate or minimize repetitive errors – in other words, making the same errors time and time again.

So you’re bringing your “A” game to the table – you’ve got drive and a strong skill set, you make minimal errors (even less repetitive errors) and you are on the ball when it comes to correcting your oversights – what else can you do? Next on the list comes one of the most basic things that an analyst can do, but often fails to do, forget to do, or just doesn’t pay any attention to – knowing the deals, the calendar, and the team’s products. As an analyst it is very easy to become an Excel machine, a PowerPoint zombie, or something just as mechanical. While you are certainly expected to know these programs in your sleep and be ready to reformat a pitch or crunch a model at the drop of a hat, you also need to see the bigger picture. By knowing the team’s calendar, knowing which deals are hot and cool and knowing which products work best on various types of transactions you are showing that you are more than just a typical analyst – you are showing an interest in the team and the profession. You are showing that you are capable of seeing more than just formulas and slides and that you understand the bigger picture, the greater importance in the system. Furthermore, harnessing and using this knowledge will allow you to play a more valuable role in your team – you will be able to anticipate some requests and be able to offer insight during meetings – you will not have to wait to be told do something all of the time – and those tools not only showcase you as a talented analyst, but also allow you to take more initiative. Know what’s going on around you and get out of that analyst assembly-line type of mentality.

Finally, we come to the last, but certainly not least big point – one that belongs in both the luck of it and the work of it – your personality and connecting with your team. I know that I’ve said it before and I hate to run the risk of beating a dead horse, but I need to say it again – personality counts big. Fitting in with your team and being a part of the group is definitely a great way to improve your rank. Yes, rank should be based on work and talent, not how much someone likes you – but let’s be honest and cut the crap – this is banking – yes your work and talent of course count for a lot, but if you think you are going to land a 4 or 5 without being liked by anyone or worse, being a bit of an ass, you are usually quite mistaken. Now I’m not saying that you want to completely follow the herd, but you certainly want to get along with your team and show an interest in what they do (at least when they talk to you about it) – especially senior bankers. It doesn’t require much work to have a conversation of a few minutes and chat about something of interest to another party – so do it. You want to be the analyst who gets along with the majority if not the whole team – you want to be the analyst that people enjoy talking to on walks to get lunch, during dinner, when grabbing a drink occasionally, etc. At the end of the day, banking is a networking business, a social business, and a people business – isolating yourself might be fine in some professions, but banking is definitely not anywhere near the top of that list. In short, be a social butterfly both in terms of networking and carrying yourself (don’t be annoying or tactless) – it might not get you a 5, but it will definitely help you to stay in the good graces of senior bankers and probably land you a deal opportunity or two as well (especially if you work in a smaller group).

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