By Nicki Gilmour
Last month, theglasshammer reconvened for the ninth year to assemble senior women for breakfast where we discussed the outlook and current trends in the investment management industry. The panel consisted of Barbara Reinhard, Managing Director, Senior Portfolio Manager & Head of Asset Allocation of Voya Investment Management, Donna Parisi, Partner, Global Co-Head of Finance and Global Co-Head of Financial Institutions Industry Initiative at Shearman and Sterling, Kathleen Kelley, Founder and CEO of Queen Anne’s Gate Capital Management, Shaiza Rizavi, Partner and Portfolio Manager at Gilder, Gagnon, Howe & Co., and Jitania Kandhari, Head of Macroeconomic Research, Emerging Markets at Morgan Stanley Investment Management. The panelists dynamically addressed questions that were asked by this year’s moderator Amanda Tepper, CEO of Chestnut Advisory Group.
Populism and Protectionism is not good for prosperity
The discussion kicked off with the topic of populism with Jitania Kandhari reminding us this period parallels times in the 20th century specifically, the inter- war period from 1914 to 1945) when periods of boom proceeded busts with the dissatisfaction from those who felt left behind turning to populism. She comments,
“Globalization does bring a lot of prosperity but the elite gain the most. Populists are exclusive not inclusive. They are confrontational not collaborative, and so with reduced commerce and closed borders the results are going to be lowered growth and raised inflation.”
Our panel had varying levels of concern about political risk when it comes to investing but there was an overall agreement on the sentiment that populism and protectionism does not bode overly well for prosperity.
Shaiza Rizavi brought an interesting viewpoint around finding opportunity in the most turbulent of times when she mentioned that many people told her not to go to Kenya in 2008 due to the danger surrounding the dynamics of the election. At the same time, a company she was interested in, Safaricom introduced a new mobile payment platform in Kenya called Mpesa. They had approximately 19,000 subscribers then and now have 26 million subscribers. Payments are made through the platform with many of the poorest being early adopters. Now, 30-40% of Kenya’s GDP now flows via this network. She comments,
“There are growth opportunities even in the most perilous moments if you are willing to take out the fire extinguisher and run into the fire. With the internet and people connected on a second by second basis, you see ideas and flows that were never expected.”
Kathleen Kelley thinks in Europe that we will see higher volatility going forward. She shared an anecdote,
“I did a scientific survey” she says with humor,” of 10 of my male hedge fund friends in London who wanted to vote leave in Brexit and all of them just repeatedly stated that England is the 6th largest economy and that things will be fine. It is interesting how mindsets are built”.
Barbara Reinhard commented on the fact that this is the first time we are truly having a global acceleration since the financial crisis. She stated,
“Europe is making a recovery. We look at earnings growth and earnings revenue and they are going up, yet the sentiment is still nervous and we are still seeing inexplicably more flows into bond funds than equity funds. Economic expansions die of excess, euphoria and leverage. I don’t see any of these things happening right now.”
Inflation: a reality in the making
The moderator Amanda identified that inflation was a topic that everyone had touched on and asked Kathleen about what is happening in the oil markets.
Kathleen gave an outlook continued OPEC cuts and how the surplus we have in storage is not ending as quickly as we would have hoped. She stated,
“In the 3rd quarter, we might feel the effects of the production cuts and start to draw inventory and that would be a better place for the world to be and not feel like we have so much. If cuts do not continue the price per barrel might be back around the $40’s mark.”
Jitania commented that from a macro perspective, suggesting a period of inflation in the next 2-3 years. She commented,
“China has been exporting deflation and we saw the benefits of that but protectionism and the push to produce locally in the US along with breakdown of trade agreements could definitely create changes.”
Shaiza, often dissenting and providing a different angle, focused on how technological innovation is a deflationary force.
“You start to think about the future differently as many of the historic models wont work for future predictions. The power of connecting people who have never before been connected, and the unleashing of their capability is immense.”
She told the audience how she saw this first hand how lanterns sold to people in Africa and India that previously had no access to light after dark, changed how people interacted and ultimately increased their productivity.
She also mentioned that China’s building a new Silk Road which will allow countries around China to be connected to China and the global economy in an entirely new way. 80% of the China’s oil is currently transported from Strait of Malacca to Shanghai, a journey that took 2-3 months, but with a new port in Pakistan and the 16,000 kilometers delivery journey is reduced to 5,000 kilometers. How will that affect things? She implored the audience to consider the power of change and the power of disruption.
Active versus passive trends
Donna updated the audience with some Citi data on how passive investing has grown to 30% of assets under management by the end of 2015 and how the projection sits at $19.2 trillion of asset flows by 2021. When talking about why has there been a shift, she comments,
“It all comes out of the financial crisis, factor in a lower return environment with lower costs of passive investing and that the banks are not holding risk or warehousing like before the crisis. Also, with improved portfolio risk analysis which is tied to fintech and big data, the way people invest is changing.”
Donna talked about how hedge funds are a maturing market and hedge fund growth is going to be there albeit modest and will hit record levels by 2021. Trends within that sector include liquid alternatives, private debt and private equity so hedge funds are looking to asset classes that are not as easy to access as a headline.
Voya’s Reinhard who has a hybrid of both active and passive commented that as macro driven professionals, she does hunt bubbles and predicts that the tide towards passive has some bubble like qualities that could be worrying for some who just rely on it exclusively. She stated,
“Low cost provider doesn’t always mean highest quality product. In fact, you could argue that passive investing is causing opportunities for active managers. Passive investing, will have at some point unintended consequences.”
Jitania commented on recent research that finding Alpha in investing is cyclical (referencing trends as 1990-94 good for active management, 1995-2000 bad, 200-2009 good and 2010 to current bad). For her business of emerging markets, 40% of returns come from currencies, and she reminded us that is something that you cannot harness with passive investing.
Shaiza again provided interesting insight into the power of disruption and how the private sector can take on roles that the government used to own. She relayed,
“ Amazon for example is now fully capable of handling the logistics of packaging and mail. How will that affect the traditional mail system? Disruptive forces provide opportunity and active investing allows you to be nimble enough to take advantage of that opportunity. “
Outlook and advice
Barbara counseled to watch wage growth carefully for risk mitigation. Kathleen agreed with Barbara with both of them agreeing that US growth is going to disappoint this year and that reforms are not going to be passed in 2017.
Kathleen commented further,
“We are seeing wages starting to pick up and consumer sentiment is high – but they have been behaving different and are stepping back as they see price inflation going up. The stronger dollar is hurting both growth and inflation and keep companies from investing and repatriating “
Jitania offered that China is something that should be watched very closely as China has experienced 82% debt growth over last 5 years. She stated,
“China has added money to its system with many unproductive projects. In 2011, $2 of debt was used to create $1 of GDP and now $5 of debt is used to create 1 dollar of GDP. From a macro perspective, it is definitely something to affect the world since China contributes to a third of world economic growth. “
Jitania added insight into deglobalization and the lingering effects of it on strategy.
“We like countries that have domestic drivers of growth that aren’t relying on external capital flows; countries like Indonesia and even some of the Eastern European countries. From a developed market perspective, we prefer Europe to US. I can buy the top 10 European banks for the market cap of Apple in the US and when something like that pops up on my screen, it feels like distortion.”
Amanda Tepper offered that investor relations is an area that has a positive impact on acquiring assets stating her study which shows that firms with good investor relations result in raising four times more capital than the top performers.
What makes investors choose managers? Performance is not in the top five reasons stated Amanda.
“They want to know what you are doing with their money. Invest in your efforts to explain what you are doing to your investors.”
Donna highlighted fintech as an area to watch starting
“With the existing regulatory schemes, the banking sector has the upper hand when it comes to fintech. We do have a regulatory sandboxes – such as exists in the UK but by and large regulation is a barrier to entry for FinTech startups. Asset management has embraced fintech in the area of data analytics. I think we have seen this most in the retail space with robo-advising and partnerships like Betterment and Goldman Sachs and it is an area to follow.”
Shaiza urged us to rethink the vocabulary we use. Rethinking how we define borders and how we bucket ideas and opportunities. It is an interesting moment to think about the permeability of borders and how technology has changed the ways things get done. She added,
“It might not be possible to even have borders and the protectionism that the populism trend is advocating given technology.”
Barbara added a last piece of advice for all of us in the audience.
“My advice is pay attention to your target date funds – think about yourself for 5 minutes and go check your own retirement funds and apply the advice you give to others when investing money to yourself.”
And, she is right.
Should You Say No to Networking?
Career Advice, Guest Contribution, NetworkingGuest Contributed by Kelly Hoey
Image via Shutterstock
From Populism to Passive Investing: Theglasshammer.com’s 9th Annual Top Women on the Buyside event
Past Events, Women on the Buy-SideBy Nicki Gilmour
Last month, theglasshammer reconvened for the ninth year to assemble senior women for breakfast where we discussed the outlook and current trends in the investment management industry. The panel consisted of Barbara Reinhard, Managing Director, Senior Portfolio Manager & Head of Asset Allocation of Voya Investment Management, Donna Parisi, Partner, Global Co-Head of Finance and Global Co-Head of Financial Institutions Industry Initiative at Shearman and Sterling, Kathleen Kelley, Founder and CEO of Queen Anne’s Gate Capital Management, Shaiza Rizavi, Partner and Portfolio Manager at Gilder, Gagnon, Howe & Co., and Jitania Kandhari, Head of Macroeconomic Research, Emerging Markets at Morgan Stanley Investment Management. The panelists dynamically addressed questions that were asked by this year’s moderator Amanda Tepper, CEO of Chestnut Advisory Group.
Populism and Protectionism is not good for prosperity
The discussion kicked off with the topic of populism with Jitania Kandhari reminding us this period parallels times in the 20th century specifically, the inter- war period from 1914 to 1945) when periods of boom proceeded busts with the dissatisfaction from those who felt left behind turning to populism. She comments,
Our panel had varying levels of concern about political risk when it comes to investing but there was an overall agreement on the sentiment that populism and protectionism does not bode overly well for prosperity.
Shaiza Rizavi brought an interesting viewpoint around finding opportunity in the most turbulent of times when she mentioned that many people told her not to go to Kenya in 2008 due to the danger surrounding the dynamics of the election. At the same time, a company she was interested in, Safaricom introduced a new mobile payment platform in Kenya called Mpesa. They had approximately 19,000 subscribers then and now have 26 million subscribers. Payments are made through the platform with many of the poorest being early adopters. Now, 30-40% of Kenya’s GDP now flows via this network. She comments,
“There are growth opportunities even in the most perilous moments if you are willing to take out the fire extinguisher and run into the fire. With the internet and people connected on a second by second basis, you see ideas and flows that were never expected.”
Kathleen Kelley thinks in Europe that we will see higher volatility going forward. She shared an anecdote,
“I did a scientific survey” she says with humor,” of 10 of my male hedge fund friends in London who wanted to vote leave in Brexit and all of them just repeatedly stated that England is the 6th largest economy and that things will be fine. It is interesting how mindsets are built”.
Barbara Reinhard commented on the fact that this is the first time we are truly having a global acceleration since the financial crisis. She stated,
“Europe is making a recovery. We look at earnings growth and earnings revenue and they are going up, yet the sentiment is still nervous and we are still seeing inexplicably more flows into bond funds than equity funds. Economic expansions die of excess, euphoria and leverage. I don’t see any of these things happening right now.”
Inflation: a reality in the making
The moderator Amanda identified that inflation was a topic that everyone had touched on and asked Kathleen about what is happening in the oil markets.
Kathleen gave an outlook continued OPEC cuts and how the surplus we have in storage is not ending as quickly as we would have hoped. She stated,
Jitania commented that from a macro perspective, suggesting a period of inflation in the next 2-3 years. She commented,
“China has been exporting deflation and we saw the benefits of that but protectionism and the push to produce locally in the US along with breakdown of trade agreements could definitely create changes.”
Shaiza, often dissenting and providing a different angle, focused on how technological innovation is a deflationary force.
“You start to think about the future differently as many of the historic models wont work for future predictions. The power of connecting people who have never before been connected, and the unleashing of their capability is immense.”
She told the audience how she saw this first hand how lanterns sold to people in Africa and India that previously had no access to light after dark, changed how people interacted and ultimately increased their productivity.
She also mentioned that China’s building a new Silk Road which will allow countries around China to be connected to China and the global economy in an entirely new way. 80% of the China’s oil is currently transported from Strait of Malacca to Shanghai, a journey that took 2-3 months, but with a new port in Pakistan and the 16,000 kilometers delivery journey is reduced to 5,000 kilometers. How will that affect things? She implored the audience to consider the power of change and the power of disruption.
Active versus passive trends
Donna updated the audience with some Citi data on how passive investing has grown to 30% of assets under management by the end of 2015 and how the projection sits at $19.2 trillion of asset flows by 2021. When talking about why has there been a shift, she comments,
“It all comes out of the financial crisis, factor in a lower return environment with lower costs of passive investing and that the banks are not holding risk or warehousing like before the crisis. Also, with improved portfolio risk analysis which is tied to fintech and big data, the way people invest is changing.”
Donna talked about how hedge funds are a maturing market and hedge fund growth is going to be there albeit modest and will hit record levels by 2021. Trends within that sector include liquid alternatives, private debt and private equity so hedge funds are looking to asset classes that are not as easy to access as a headline.
Voya’s Reinhard who has a hybrid of both active and passive commented that as macro driven professionals, she does hunt bubbles and predicts that the tide towards passive has some bubble like qualities that could be worrying for some who just rely on it exclusively. She stated,
Jitania commented on recent research that finding Alpha in investing is cyclical (referencing trends as 1990-94 good for active management, 1995-2000 bad, 200-2009 good and 2010 to current bad). For her business of emerging markets, 40% of returns come from currencies, and she reminded us that is something that you cannot harness with passive investing.
Shaiza again provided interesting insight into the power of disruption and how the private sector can take on roles that the government used to own. She relayed,
“ Amazon for example is now fully capable of handling the logistics of packaging and mail. How will that affect the traditional mail system? Disruptive forces provide opportunity and active investing allows you to be nimble enough to take advantage of that opportunity. “
Outlook and advice
Barbara counseled to watch wage growth carefully for risk mitigation. Kathleen agreed with Barbara with both of them agreeing that US growth is going to disappoint this year and that reforms are not going to be passed in 2017.
Kathleen commented further,
“We are seeing wages starting to pick up and consumer sentiment is high – but they have been behaving different and are stepping back as they see price inflation going up. The stronger dollar is hurting both growth and inflation and keep companies from investing and repatriating “
Jitania offered that China is something that should be watched very closely as China has experienced 82% debt growth over last 5 years. She stated,
“China has added money to its system with many unproductive projects. In 2011, $2 of debt was used to create $1 of GDP and now $5 of debt is used to create 1 dollar of GDP. From a macro perspective, it is definitely something to affect the world since China contributes to a third of world economic growth. “
Jitania added insight into deglobalization and the lingering effects of it on strategy.
“We like countries that have domestic drivers of growth that aren’t relying on external capital flows; countries like Indonesia and even some of the Eastern European countries. From a developed market perspective, we prefer Europe to US. I can buy the top 10 European banks for the market cap of Apple in the US and when something like that pops up on my screen, it feels like distortion.”
Amanda Tepper offered that investor relations is an area that has a positive impact on acquiring assets stating her study which shows that firms with good investor relations result in raising four times more capital than the top performers.
What makes investors choose managers? Performance is not in the top five reasons stated Amanda.
“They want to know what you are doing with their money. Invest in your efforts to explain what you are doing to your investors.”
Donna highlighted fintech as an area to watch starting
“With the existing regulatory schemes, the banking sector has the upper hand when it comes to fintech. We do have a regulatory sandboxes – such as exists in the UK but by and large regulation is a barrier to entry for FinTech startups. Asset management has embraced fintech in the area of data analytics. I think we have seen this most in the retail space with robo-advising and partnerships like Betterment and Goldman Sachs and it is an area to follow.”
Shaiza urged us to rethink the vocabulary we use. Rethinking how we define borders and how we bucket ideas and opportunities. It is an interesting moment to think about the permeability of borders and how technology has changed the ways things get done. She added,
“It might not be possible to even have borders and the protectionism that the populism trend is advocating given technology.”
Barbara added a last piece of advice for all of us in the audience.
And, she is right.
Voice of Experience: Tiffany Wirth, Vice President of Healthcare Marketing, WEX
People, Voices of ExperienceSuccess is not defined by the company you work for; rather, it is defined by your own personality and the opportunities you create for your team and
yourself, says WEX Health’s Vice President of Healthcare Marketing Tiffany Wirth.
Wirth has a pinnacle of expertise, with a career that started at the “biggest of the big” companies and then pivoted to a startup.
Directly after earning her bachelor’s degree in marketing, Wirth landed a job at Microsoft. “Gaining a background in a several areas at one of the best brands in the world had a huge impact on my career,” she says. Among the areas where she learned the ropes were product marketing, marketing strategy; and segmenting strategy.
Twelve years later, a core team Wirth worked with at Microsoft replicated the brand’s best practices on a much smaller level at a startup. They successfully built a healthcare benefits technology platform organization, which was acquired by WEX, Inc. two years ago. Although there were challenges in moving from one of the world’s biggest companies to a startup, Wirth found that a key component was a focus on partnerships and relationships. “It’s one thing throughout my career path that has been a constant — helping partners grow their businesses and helping teammates grow in their skillsets.”
And that is the professional achievement she is most proud of to date – building a brand and marketing team from the ground up. “I’ve built my team by focusing on each person’s unique skill set and how collectively we can deliver tremendous results and a positive ROI to WEX Health and our partners,” she says.
A Network as One of the Building Blocks to Career Success
When Wirth first started her career, she assumed that working hard was what mattered most, and that if she succeeded, she would stay in one place for her entire career, if she chose. While that can be true for some, Wirth soon found out there were so many other measures of success.
Wirth says that having a mentor has played a significant role in her successful career. “A mentor can help you so much with challenging yourself to do and achieve more for yourself, your team, and ultimately, your company.”
Additionally, she says, a mentor can help you believe in yourself and build your confidence to excel at stretch assignments and ask for promotions and/or pay increases.
Over the years, Wirth has found the significance of an adage to ring true: Don’t burn your bridges.
As a woman, she says that it’s natural to gravitate to other successful women, such as Sheryl Sandberg and Arianna Huffington, two people she follows closely. She has found their views to be crucial in understanding work/life balance, particularly Huffington’s current focus on the importance of adequate sleep.
Always Achieving Lessons in Leadership
As a leader, Wirth says it’s important to make sure you’re doing the share of work that makes you credible to the team, and that you are quick to share what went well and what can be improved on. However, she feels strongly that it’s not a female leader’s job to be “likeable. but that being authentic and worthy of respect are more important. She points out that one of the most critical components of leadership is “EQ,” or emotional intelligence, part of which is to hire people smarter than you, and then give them due credit and celebrat their successes.
Wirth is actively working on a mentorship program at WEX Health and finds that one of the biggest learnings has been to encourage mentors and mentees to do things that make them feel uncomfortable: Although that is naturally hard, showing initiative – even if you’re not 100% prepared – will earn opportunities that could otherwise pass a person by if she didn’t jump in. A huge component is listening, which can be much more valuable than always talking.
She appreciates being part of an organization that invests in her leadership: At WEX Health, she finds that the company invests time and resources to ensure directors are successful in their positions, including offering sessions with an executive coach to build their leadership skills for current and future roles.
Personal Time Means Family Time and Focusing on Health
Married with two children, ages 5 and 11, Wirth finds that the most important thing to do in her free time is to spend it with her family, be present and create memories. When she is not spending time with her family, Wirth enjoys running and working out for both mental and physical health, and she focuses on always getting ample sleep.
Motivating Millennial Lawyers: More About Possibility Than Precedent
Career AdviceBy Aimee Hansen
Image via Shutterstock
“Millennials bring new ideas and expectations to the workplace, as did the generations before them,” states a 2016 Thomson-Reuters report on The Generational Shift in Legal Departments. But, as the story goes, senior lawyers are resisting those changes.
By 2025, Millennials will comprise 75% of the workforce. The real question is not if change will happen, but how it will unfold.
What Do Millennials Want?
Millennials work preferences are characterized as valuing mentorship (vs bossing) and collaboration (vs hierarchy), wishing to be involved in processes and decision-making, receiving regular feedback, having opportunities for growth, working for a firm that aligns to their values, and desiring work/life flexibility.
According to an article in the National Law Review, managing Millennials “means an almost 180-degree change in the way associates have been managed in the past.”
With Millennials, It’s Not About Precedent
Acknowledging the resistance of those who have paid their dues, “Old Lady Lawyer” Jill Switzer notes “The problem with the philosophy of ‘suck it up, this is the way it’s always been’ is that it doesn’t seem to really work with millennials.”
The Thomson-Reuters report agrees, “…in-house leaders must prepare to oversee junior lawyers who will not accept doing things a certain way simply because that’s what has been done before, whether it’s the billable hour or using a more formal tone in communications.”
So what can senior lawyers do to motivate Millennial associates?
Make Mentorship Your Management Style
The first step is to meet the individual in front of you.
“I think we all ought to be sensitive to the concept that stereotypes don’t always play out in individual people, and individual people are where it’s at,” Co-chair of the American Bar Association Business Law Fellows Committee and King & Spalding partner Dixie Johnson told theglasshammer. “I personally don’t ever start out a relationship thinking okay, you’re a millennial – here’s how I should relate to you. And I don’t think it’s healthy to do that.”
A Deloitte study found that Millennials who intended to stay with their current organization were more than twice as likely to have a mentor (68 percent) than not (32 percent), but only six percent of corporate legal departments have a formal mentoring program.
If yours doesn’t yet, then consider making mentorship your management style.
“I don’t think of ‘inclusive mentorship’ as a new thing that is needed by Millennials in a way that was not needed by prior generations,” says Johnson. “I just think that my job is to be a mentor and I should look for opportunities to help people who work with me. Part of my job as a senior lawyer is to train younger lawyers about what they need to do really well as lawyers…in the middle of all the work we do.”
Motivate with Context
As stated in The National Law Review, Millennials “are not content to receive a directive such as, ‘Research a particular point of law and prepare an annotated brief on the subject.’ Instead, they want to know about the case, why the research is important for the case and how it will be used to benefit the case.”
Millennials wish to learn and grow through the experience of doing the work, as opposed to just get the job done. They are “Generation Why.” The value in whatever they are being asked to contribute needs to be explicitly connected to the whole, both to the overall project and their personal growth.
Make Feedback Work For You, Too
Growing up in a digital world where everything is “available at their fingertips”, Millennials desire (and expect) regular feedback (not just performance reviews). Iterative feedback may take more time, but it may also deliver more fluid performance improvements while building more mutual respect.
“I do think that we are more successful as managers when we give more feedback.” says Johnson. “I find that when I label a conversation with ‘I want to give you some feedback’ (eg. on relating to clients, on speech patterns) young lawyers are hungry to hear it, and they do take it well. They want to go back and think about it.”
Lead the One You’re With
Thomson-Reuters found that other generations see Millennials more so as “hoppers” and “disloyal” than they see themselves. 76% of Gen X and Boomers thought Millennials would stay at their current job for less than 5 years. 38% of Millennials intended to leave while 47% intended to stay. Still, a longitudinal study found a third of lawyers had changed jobs once only three years out of law school.
Resisting the assertion that job-jumping is a new trend among associate lawyers, Johnson states, “It’s important for more senior lawyers to recognize that part of the cost structure that is built into their firm is that they will spend a lot of time training somebody who then will go off to do other things. And I think that’s a good thing, frankly. At one point I counted up 40 people (that I helped train) that were in different spots in the federal government, and that makes me feel great.”
“I think approaching a work relationship with the reality that you’re both there by choice, and it may not last forever, is just the reality of it,” says Johnson. ”And it has been for a long time.”
Embrace Change
Millennials bring technology into firms, as a lens through which they’ve always interacted with the world. They are also more globally minded and gender equal in their outlook, and will offer that to the workplace.
“That’s a really exciting thing about having young people who have really not known anything other than technology joining our teams,” says Johnson. ”They will bring to the teams technical advances and a way of thinking about projects that can helps us do a better job.”
This will also change how lawyers work, in a way that brings greater gender equality. The number of legal employees working remotely is rising. The FT points out that the firm Mr. Beedle now employs lawyers on a “consultancy basis”, meaning “full control over hours they work in exchange for a fluctuating salary.”
In order to stay, Millennials need to feel as though they are being valued and developed as leaders, and making a difference at work. In order for managers to motivate the next generation of lawyers, it will require a perspective less bent on precedent and more open to possibility.
Are After-Work Drinks Sexist in the UK?
Career Advice, Guest Contribution, Office PoliticsGuest Contributed by Beth Leslie
Jeremy Corbyn, the leader of the UK’s Labour Party, recently sparked outrage by labelling after-work socialising as sexist because it “benefits men who don’t feel the need to be at home looking after their children and it discriminates against women who will want to, obviously, look after the children”.
In one fell swoop, he offended everyone. Single women railed at the anachronistic association of all women with housewifery. Mothers were furious by the stereotyped assumption that they are automatically the primary caregivers. Men were offended by the outdated notion that they don’t want to spend time with their children. The British as a nation became hysterical that this left-winged bearded fellow might be trying to take their Thursday night drink away from them.
But then someone pointed out that Carolyn Fairbairn, the first female head of the Confederation of British Industry, had made similar criticisms about after-work culture. Female journalists at the New Yorker and The Independent voiced their agreement too. So is Corbyn actually correct? Are after-work events discriminatory against women?
The Activity vs. The Hour
The debate is particularly problematic because “after-work socialising” means different things to different people. It could be a formal networking event. It could be a casual cocktail with colleagues. Or, as the corporate packages offered by 41% of lap-dancing clubs attest; it could be a client meeting in a strip club.
So while Corbyn’s comments focused on the discriminatory timing of after-work events, many feminist campaigners are more concerned with the nature of these activities. Donald Trump’s recently leaked boasts about sexually harassing women indicates how heartbreakingly common workplace harassment is. 52% of women in the UK say they’ve experienced it, and such harassment is often exacerbated by after-work socialising because it usually involves alcohol and a blurring of the lines between professional and personal life. This problem can exist even within formal networking events, where women complain that many men respond to their networking with flirtation, and where even companies as prominent as Microsoft are curating an environment of objectification by hiring ‘booth babes’.
At the same time, opting out of after-work sessions comes at a cost. Clients are discovered and deals are made at networking events. Bosses give praise and promotions to subordinates they’ve become pally with after a few pints. And co-workers who socialise together build bonds and friendships that drop-outs can feel excluded from.
So yes, there are many aspects of after-work socialising that can be seen as inherently sexist. But the answer cannot be banning all after-work events. Not only would it be impossible to enforce, it is worryingly illiberal. Women-only networking events, meanwhile, seem to partition off the problem more than they solve it.
Businesses Need to Lead a Culture Change
Eliminating sexism from business requires the elevation of the idea that it is not only immoral, but unprofitable. The spate of lawsuits by female professionals who consider a corporate insistence on conducting business in strip clubs detrimental to their career prospects should be encouraged. Companies which engage in sexist practices should be named and shamed on regular and social media. Managers should take complaints of sexual harassment seriously and punish offenders severely. Individuals should be encouraged to speak up when they witness or experience misogyny in the workplace.
It may seem quixotic at first glance, but each hardened opinion contributes to the snowball of social change. After all, most businesses can’t afford to turn off female talent, and even fewer can afford to lose female customers.
The After-Hours Element
Corbyn and his backers, however, appeared to suggest that even the most progressive event is discriminatory if it takes place outside of work hours because of childcare commitments. The problem with this is that it muddles two distinct concepts. Holding an event after hours is not anti-women but anti-parent. However, because of gender stereotypes, working mothers do end up carrying more of the burden than working fathers.
It is the second concept which society and businesses have a duty to eliminate. For companies, this should take the form of implementing and encouraging parental equality policies, such as shared parental leave. Similarly, more work should be done on a social level to equalise the attitudes towards working fathers and working mothers.
Yet turning the plight of an ambitious parent who also wants to spend the evening with their kids into a feminist issue is a mistake, because it further entrenches gender stereotypes about women as homemakers. Ultimately, having children is a choice in the way your gender is not, and exclusion from after-work events because you choose to spend time with your children, however frustrating, is morally distinct from being excluded from after-work events because of sexist perceptions or actions against you.
Advocating for a workplace that is more parent-friendly is a worthy fight and it should not be a sexist one.
Beth Leslie writes graduate careers advice for Inspiring Interns, a recruitment agency which specialises in matching candidates to their dream internship. Check out their graduate jobs London listings for roles, or if you’re looking to hire an intern, have a look at their innovative Video CVs.
Disclaimer: The opinions and views of Guest contributors are not necessarily those of theglasshammer
What Are Your Mental Models and How Do They Hold You Back?
Career Advice, Career Tip of the Week!By Nicki Gilmour, Executive Coach and Organizational Psychologist
Image via Shutterstock
When I am coaching within the first 30 mins, I hear mental models and worldviews come out of every client’s mouth. I also hear it in friends and social situations whether I try to or not. Mental models are the paradigms that we walk around with, the inner voice and inner theater that plays inside our heads and is the biggest enhancer or constrainer of our careers and of our lives. This inner voice is built by what we were told as kids by our families, our observations on what we could and could not get away, as well as what society messages us overtly and implicitly.
The point is, if you can understand the phrases that control you and can override the “way it is” and ask yourself why do i believe x, y, z is how it has to be, then great progress can be made.
A typical example of a common mental models that might be standing in your way is:
– Trust is earned. This is obviously a righteous sentence that many of us agree with but at what point are you not trusting your bosses and team and how is that preventing optimal results?
So, how do you begin to change this? It is engrained and hard to shift but entirely possible to do so. Surface it with a coach, understand how it serves you and how it perhaps gets in your way. Does it get you to where you want to go?
I also personally have found reading articles that i agree and entirely disagree with, are entirely helpful to me personally on issues that I know I am drawn to and that are my kryptonite. By opening my mind to seeing things from other people’s angles and viewpoints, I can add to my knowledge on the subject (I tend to go for academic rather than opinion based reading) but also ensure that i am not in an echo chamber of people who believe the same thing as I do.
It is a journey and it does take time, but investigating and exploring what you think and why you think it, can be not only career enhancing as you become a better leader but if you allow it, it can be a gift.
To explore how your mental models are holding you back, book an exploratory coaching call with Nicki at 646 6882318
Voice of Experience: Suzzanne Yao, Managing Director and Associate General Counsel, Goldman Sachs
Asian American Heritage Month, Voices of ExperienceMany people talk about the importance of being a good mentor, but Goldman Sachs’ Suzzanne Yao knows you also have to be a good mentee: “You have to be open to sharing your goals, asking for honest feedback and listening to those who are providing constructive advice. Tough love is just as important as words of encouragement, and you have to be willing to give consideration to the advice of those who have gone through what you’re going through,” she says.
Yao understands that some junior employees may shy away from soliciting such constructive criticism because it’s natural to seek out a pat on the back. “In some ways you’re afraid of hearing what you can improve on, but looking back I can see that the progress I’ve made has been the result of candid feedback from my mentors.”
She recommends that young women consider a mentor who will give “homework assignments” and help them proactively identify career goals.
An Exciting Time To Be An ERISA Lawyer
Yao started her career in private practice at a major New York law firm, specializing in employee benefits and ERISA (Employee Retirement Income Security Act of 1974), a federal statute that covers every aspect of employee benefits, from how to set up an employee benefit plan to how to manage its assets and pay out benefits.
After four years, she jumped at the opportunity to work at Goldman Sachs after having positive experiences advising the firm while working as a law firm associate. As an ERISA attorney at Goldman, Yao works with both internal and external stakeholders, whether it’s supporting the team that covers Goldman’s benefit plans, helping clients understand the services Goldman provides to benefit plan investors or advising on the rules that govern plan investments.
Currently, she’s focused on new regulatory initiatives in the space, including potentially evolving fiduciary rules that could fundamentally change the way products and services are provided to retirement savers.
“It’s an exciting time to be an ERISA lawyer,” she says, highlighting the interesting intersection of law and politics. “It’s rare to have the opportunity to work on something so large and important to the industry and to people saving for retirement. While most people agree on the importance of Americans saving and investing for retirement, the conversations about the fiduciary rules show how incredibly complex it is to facilitate that goal, particularly since decisions about these rules could affect people across the spectrum.”
Don’t Be Your Own Worst Critic
Yao cautions against women feeling they have to fundamentally change aspects of their personality to succeed in their careers. She says that while being self-aware is important and making adjustments to your presentation or communication styles can be very helpful, fundamentally altering your personality isn’t necessary or healthy.
She also advises against judging yourself too harshly. “We tend to be our own worst critic and sometimes we need to give ourselves a break,” she says. “Realize that even if you didn’t have a week that went as you would have hoped, the following week is your opportunity to start with a clean slate.”
Serving As a Mentor To Others
Yao has been involved in the Firmwide Asian Professionals Network for several years and currently serves as co-head of the Network. She has also served on the mentoring sub-committee of the firm’s Legal, Compliance, Internal Audit and Executive Office Women’s Network and says she met many of her mentors through these affinity networks.
“There is a good deal of overlap on issues women and Asian professionals face in terms of countering stereotypes and maximizing leadership opportunities. Over the years I’ve been able to take my experiences in the Women’s Network and apply them to the Asian Professionals Network, and vice versa,” she says.
Yao also enjoys spending time with those just beginning their career as part of the Sponsors for Educational Opportunity program, which helps underrepresented students maximize opportunities for career success. As an alumna of the program, she considers it a way to pay it forward after interning at a law firm through the program prior to starting law school. Reflecting upon the experience, Yao recognizes that this initial exposure to the legal world gave her a huge boost of confidence as she entered law school, and connected her with mentors who supported her while she was earning her law degree. “Advising junior people involved in the program gives me energy and serves as a reminder of what it’s like to be just starting out.”
Yao notes that it takes resilience and focus to achieve a long-term career and continue to feel engaged and curious after hitting the 10-year mark with the same company. “Looking back at my career thus far is rewarding because I can see all the great relationships I made along the way and how much I’ve learned and matured as a professional. People invest in you and it’s important to recognize that and do the same for others.”
Voice of Experience: Jitania Kandhari, Head of Global Macroeconomic Research and Portfolio Manager, Morgan Stanley
Voices of ExperienceIn the male-dominated world of finance, Morgan Stanley’s Jitania Kandhari finds that women’s voices can often get muffled in their constant quest for perfection. “Women tend to speak up less as they search for the ideal solution or just the right words, but it’s something they can and should overcome,” she says. “It’s important to have faith in yourself — just join the conversation and own what you say.” An encouraging environment with the right leadership and colleagues can be a big factor in the success of women, and in her case, she says that she is very fortunate to be part of a wonderful team at Morgan Stanley that has a strong culture of open expression.
Carving Out a Valuable Role
Jitania hit the ground running, beginning her career as a trainee at the peak of the Asian crisis at Morgan Stanley in India. With jobs in short supply, she moved to another firm that covered Indian equities and subsequently became a private wealth manager for ultra-high net worth individuals, where the seed of her interest in global economics — the linkages between global macro and asset classes — was sown. She worked at another firm in the United States, consulting on Latin American markets, and then came back to Morgan Stanley where the person with whom she’d done her first-year rotation was head of a team.
She joined them as the sole analyst in an emerging market fund and has since carved out a role and built a team doing what she is most passionate about — heading global macro-economic research and recently co-managing the Breakout Nations fund, which is a highly active country allocation fund that invests in both emerging and frontier markets
“Being named as head of macro-economic research for the team was a huge lift in my career and has produced a steep learning curve, which I love,” she says. “I have learned more than I have ever learned in any role in my career.” For her, one of the most important lessons has been the value of good leadership which goes hand-in-hand with building a high-quality team, along with the more strategic functions of her position.
While active management versus passive management is currently getting a lot of attention, Jitania is confident that active management will reassert its importance. “In my group, we pay a lot of attention to country allocation, as well as stock allocation,” she says, adding that their philosophy is that in the developing world, getting the country call right matters as much as the stocks. “We first identify the best countries and then the portfolio managers buy stocks to reflect that country view,” she explains.
While she has a mentor, Jitania wishes she had had the benefit of one from the start of her career, having seen the valuable role it has played in shaping her career and helping her identify strengths and weaknesses. She also advises women to keep an eye out for a sponsor, noting that women are adept at working horizontally but shouldn’t overlook the need for someone higher up to be guiding and watching out for them.
Advice That Resonates
Jitania has three pieces of advice that ring true at any career stage.
The first is to be a voracious reader, which she says will help you connect the dots in your investment career and better understand the world as one macro environment.
Second, she advises others further along in their career to keep reinventing themselves, as the only constant is change.
And finally she says, “I tell my kids to work harder than anyone else around you, and the rest will follow.”
Through internal workshops and networking, she continues seeking advice on her own career, including a recent series on communication training, which has further bolstered her interactions with clients and peers, as well as her own team.
Threading Her Global Interests To All Areas of her Life
Complementing her work with global and emerging markets at Morgan Stanley, Jitania extends that focus throughout the other facets of her life. In her spare time, she enjoys Indian classical singing and dancing, activities she has pursued since she was a child.
Her husband is on the board of the Afya Foundation, a medical supply recovery organization that collects supplies that would otherwise be wasted in the U.S., and ships them to less-developed countries that are experiencing calamities. She would like to take her children, ages 7 and 5, to their warehouse to participate, as a way to bridge her work and philanthropic interests. “I want to make a difference and extend my knowledge and reach to these countries and help a bigger cause,” she says.
And the thread continues in her travel with her family, whom she takes to one emerging market each year. They started with India and will visit Egypt next. She is gratified that her kids have inherited her interest in thinking globally. Recently her daughter’s class completed a New York neighborhood study, and Jitania was delighted that her daughter selected Greenpoint specifically because it was a Polish neighborhood, where her daughter knew she invested and visited.
“My goal is to give them those experiences that I live and breathe,” she says.
Does Hollywood’s failure to pass the Bechdel test have a negative effect on the workplace?
Career Advice, Guest ContributionWhen critiquing the feminist credentials of a film, a good place to start is the Bechdel Test. To pass, a movie must fulfil three simple criteria: It has two named female characters, who talk to each other about something other than a man. Just under half of all films fail.
For comparison, when IMD compiled a list of films that botched the “Reverse-Bechdel Test” they managed to think of four.
Of course, blatant sexism in any aspect of life is distressing in and of itself. But media is influential. How much of an impact does a lack of female investment bankers, superheroes and whip-wielding archaeologists have on the career aspirations of real-life women?
Movies Influence Us
Movies matter. Study after study shows how the film industry can shape and influence politics, constructions of cultural identity and social change. How on-screen women are portrayed, therefore, affects real-life ideas about real-life women.
The Bechdel Test highlights the industry’s shortcomings in this regard: on-screen, women appear half as much as men and speak significantly less than them. They are rarely the lead or even co-lead, and they are over-sexualised and disproportionately young.
Over and over again, therefore, we watch men being dominant and women being marginalised. The idea becomes cemented in our mind, so that when we actually experience men disproportionately directing discussions or taking on positions of responsibility we accept it the norm.
We learn to associate masculinity with leadership and women with “sexy lamps”. When it comes to hiring and promotion decisions, we are already primed to see men as influencers, winners and go-getters. We want our high-fliers to be heroes, so we compare candidates against our established notions of what a hero looks like.
We see quintessential ‘good guys’ – the James Bonds, the Tony Starks – repeatedly sexualise the women they work with and think that such behaviour is acceptable. We search for examples of heroines who are over thirty-five or intellectually superior and, finding none, disparage experience and intellect as valid indicators of a women’s worth.
Women Don’t Work in Films
Work and the workplace is often represented in films, and it is usually depicted as an unrealistically masculine space. Male characters are notably more likely to have an identifiable job than female characters. They are also substantially more likely to occupy senior roles – women make up just 3% of fictional C-Suite executives. Of the 129 influential family films identified by the above study, not one showed a female character at the top of the financial, legal, journalism or political sector. (In contrast, there were 45 depictions of powerful male politicians alone.)
Gender stereotypes are endemic in film. In the hospital wards of Hollywood, 89% of nurses are women but only 10% of doctors are. The number of female engineers, soldiers, and officials is so low as to almost be negligible. The suggestion is therefore that women aren’t workers, and they certainly aren’t successful workers. By associating career progression so strongly with men, the movie industry depicts working itself is a “masculine” trait. Considering we learn about the world through media, this is disturbing.
Of course, women are underrepresented in senior positions and masculine professions, but not to the extent they are on-screen. This suggests that Hollywood is not so much reflecting reality as reflecting a conception of reality where different genders conform to markedly different life paths. By exaggerating existing stereotypes, it amplifies the pressure to conform to said stereotypes.
We Are Limited by Our Expectations
We grow up watching TV, and it influences our dreams and ambitions. Little girls seem particularly susceptible to emulating the actresses they see on screen – one study found that admiring a star whose characters’ smoke vastly increases the risk of becoming a smoker. Such admiration is particularly problematic if many of the characters we identify with are deficient in ambition and career success.
We cannot be what we cannot see, and the lack of professional representations of women, particularly in the boardroom or STEM industries, makes it harder for young women to conceptualise themselves as such figures. Movies show girls a version of happiness which involves playing the sidekick of a successful man, so women who want to be happy learn to copy this formula. Movies show young girls visions of themselves as pretty PAs or charming caregivers, and suggest that this is what women should be.
There is a solution: put more women in the film industry. When women create films, they invariably pass the Bechdel Test (and other measures of gender equality) with flying colours. Unfortunately, sexism has worked its wrecking hand here too: just 7% of directors, 20% of writers and 23% of producers are women.
Beth Leslie writes graduate careers advice for Inspiring Interns, a recruitment agency which specialises in matching candidates to their dream internship. Check out their graduate jobs London listings for roles, or if you’re looking to hire an intern, have a look at their innovative Video CVs.
Disclaimer: The opinions and views of Guest contributors are not necessarily those of theglasshammer.com
Being a Role Model Isn’t Enough, Stop Being Sexist!
Career Advice, Career Tip of the Week!My consistent discovery in my ten years of this work is that women are often serious perpetrators when it comes to sexism against women, albeit quite unconsciously by buying into stereotypes and deferring all authority to any male on most subjects.
Bell Hooks says it best in her excerpt of a book called The Will to Change about why the system of patriarchy is an ugly one that if reinforced by whoever, we will never make progress.
She makes the point which escapes most people which is until we stop denying that we live in an underlying system that stacks the cards against gentle boys in favor of endorsing a tougher, rougher version which as its worst is ‘toxic masculinity’ then we can do whatever we want, but it will be a lose/lose for all concerned.
So what are 3 things you can do today to walk the talk of “Being the change that you want to see in the world?”
What are 3 things that you have to stop doing?
Not everyone has the same appetite to be a change agent and that’s ok. But, please know that if you are colluding then you are part of the problem. Something to think about today!