eFinancialCareers

Barclays Plc president Bob Diamond discussed his career and gave advice on a wide range of topics to aspiring bankers at Cass Business School on October 5th. The event was hosted by the Guild of International Bankers and sponsored by eFinancialCareers.com.

It was a rare opportunity to gain insight into the motivation and attitudes of one of banking’s global heavyweights. Diamond took off his jacket, leaned against a table and spoke at length to MBA students, bankers and recruiters. Here’s a (distilled) version of what he said:

Work culture:

Diamond defines culture as: “How people act when they aren’t being told what to do.”

“Be completely honest about who you are and where you want to be. Have a clear idea of where you think you are going. Find an organisation where the culture and your values are compatible.”

Researching a potential employer so you can be completely certain that it will be the right environment for you; if you don’t like the culture and you don’t think the organisation’s on the right track, leave.

“Go with a winner – at the beginning of your career try not to get stuck with an organisation which is restructuring or cutting back, you could be a casualty. Be conscious that if you see a firm growing, your chances of success are much bigger.”

Take risks:

“Don’t feel like a failure if you try something new and it doesn’t work out. If you don’t take chances you won’t get anywhere. If you don’t make mistakes it shows that you are too conservative. You won’t learn anything if you don’t take chances.”

Diamond described his career path as being largely unplanned. Having already established himself at Morgan Stanley early in his career, he took a big risk by then joining the Bond department as a trainee trader, spending a year as the ‘bottom person on the totem pole’ because he wanted to understand all aspects of the business.

Qualifications:

“Academics are important, but don’t go get a PhD because you think it will get you a job. Get a PhD if you really want a PhD, and believe it will help you do your job better after. Education is not about what job it can get you.”

Diamond started out as an academic. While doing his Masters degree he decided that if he wanted to attain success as a university professor he needed relevant work experience. He looked for an opportunity in a small, fast-growing company to gain as much experience as quickly as possible. He moved from that position to Morgan Stanley at a time when it was experiencing explosive growth.

One for the money?

“I’ve never taken a job or role based on the compensation.”

(In May 2005 Barclays Bank admitted Diamond could earn as much as £15m a year, with the possibility of a £14.8m bonus on top of that in 2008. He also has shares in the bank worth £49m).

The importance of integrity:

“There’s zero tolerance around integrity and regulatory requirements. You don’t take risks with those.”

“Integrity isn’t just about feeling good about yourself. It’s vital for business. If we don’t keep the compliance and regulatory issues completely in order, our clients will not trust us.”

No Jerk policy:

“Managers were complaining about a trader who was great at the business of bringing in revenue and a total jerk to work with. We realised that it was up to us to deal with the situation – and decided that it’s not OK to work well with clients and markets if you can’t perform as part of a team, so the ‘No Jerk’ policy was born.”

On firing:

“I’ve never forgotten the first time I had to sack someone. I was running a team and determined to be the best team manager ever, but this guy consistently failed to perform. Instead of dealing with the situation promptly, I took over three months to call him in, by which time his marriage was falling apart and he was heading for a nervous breakdown. I should have had this tough conversation earlier.”

“You have to hold everyone to the same tough standards. You need people who can perform in the top 20% of anyone qualified for that role.”

Banking’s aggressive image:

“Are we very clear about expectations? Yes. If being aggressive means being serious and being clear about objectives, then yes, it’s aggressive. We have no sacred cows. But it doesn’t have to be nasty. Some investment banks seem to relish messy stuff all over the papers. I have no time for that.”

Questions from the audience of over 200 rounded off Diamond’s career discourse, after which he was warmly applauded. A panel of headhunters then responded to further questions.

Diamond’s performance at the event was later described as ‘very approachable and assured’, ‘informative’ and – perhaps inevitably – ‘flawless’.