0:00:00.814,0:00:04.830
It was the spring of 1988

0:00:04.830,0:00:07.961
when I had the "a-ha" moment.

0:00:07.961,0:00:10.615
I was at my first roundtable,

0:00:10.615,0:00:13.893
and for those of you who don't know,

0:00:13.893,0:00:17.083
the roundtable was a very[br]commonly used phrase on Wall Street

0:00:17.083,0:00:19.596
to describe the year end[br]evaluative process

0:00:19.596,0:00:22.834
for analysts, associates, vice presidents,[br]all the way up to managing directors.

0:00:22.834,0:00:28.545
That was the process where they[br]were discussed behind closed doors

0:00:28.545,0:00:31.432
around a table, ie. the round table,

0:00:31.432,0:00:33.928
and everyone was put into a category --

0:00:33.928,0:00:37.460
the top bucket, the middle bucket,[br]the lower bucket --

0:00:37.460,0:00:40.622
and then that was translated[br]into a bonus range

0:00:40.622,0:00:43.365
that would be assigned[br]to each professional.

0:00:43.365,0:00:46.773
This was my first time there,[br]and as I observed,

0:00:46.773,0:00:50.174
I saw that there was one person[br]that was responsible

0:00:50.174,0:00:53.541
for recording the outcome[br]of a conversation.

0:00:53.541,0:00:57.173
There were other people in the room[br]that had the responsibility

0:00:57.173,0:00:58.808
of presenting the cases[br]of all the candidates.

0:00:58.808,0:01:02.982
And there were other invited guests[br]who were supposed to comment

0:01:02.982,0:01:06.582
as a candidate's position was presented.

0:01:06.752,0:01:10.223
It was interesting to me[br]that those other people

0:01:10.223,0:01:13.888
were folks who were more senior[br]than the folks that were being discussed

0:01:13.888,0:01:18.448
and they theoretically had had[br]some interaction with those candidates.

0:01:18.448,0:01:22.321
Now, I was really excited to be[br]at this roundtable for the first time,

0:01:22.321,0:01:25.895
because I knew that my own process[br]would go through this same way,

0:01:25.895,0:01:28.911
and that my bonus would be[br]decided in the same way,

0:01:28.911,0:01:30.722
so I wanted to know how it worked,

0:01:30.722,0:01:32.352
but more importantly,

0:01:32.352,0:01:35.997
I wanted to understand[br]how this concept of a meritocracy

0:01:35.997,0:01:39.270
that every company that I talked to[br]walking out of business school

0:01:39.270,0:01:40.442
was selling.

0:01:40.442,0:01:42.327
Every time I talked to a company,

0:01:42.327,0:01:46.534
they would say, "Our culture,[br]our process, is a meritocracy.

0:01:46.534,0:01:49.397
The way you get ahead in this organization[br]is that you're smart,

0:01:49.397,0:01:51.746
you put your head down[br]and you work really hard,

0:01:51.746,0:01:53.656
and you'll go right to the top.

0:01:53.656,0:01:56.797
So here was my opportunity to see[br]exactly how that worked.

0:01:56.797,0:01:58.794
So as the process began,

0:01:58.794,0:02:02.104
I heard the recorder[br]call the first person's name.

0:02:02.104,0:02:03.929
"Joe Smith."

0:02:03.929,0:02:08.337
The person responsible[br]for presenting Joe's case did just that.

0:02:08.337,0:02:10.821
Three quarters of the way through,[br]someone interrupted and said,

0:02:10.821,0:02:13.336
"This is a great candidate, outstanding,

0:02:13.336,0:02:16.520
has great analytical[br]and quantitative skills.

0:02:16.520,0:02:18.302
This is a superstar."

0:02:18.302,0:02:19.849
The recorder then said,

0:02:19.849,0:02:23.549
"Sounds like Joe should go[br]in the top bucket."

0:02:23.549,0:02:25.848
Second person, Mary Smith.

0:02:25.848,0:02:29.526
Halfway through that presentation,[br]someone said, "Solid candidate.

0:02:29.526,0:02:32.569
Nothing really special,[br]but a good pair of hands."

0:02:32.569,0:02:33.894
The recorder said,

0:02:33.894,0:02:36.540
"Sounds like Mary should go[br]in the middle bucket."

0:02:36.540,0:02:39.405
And then someone said, "Arnold Smith."

0:02:39.405,0:02:42.468
Before the person[br]could present Arnold's case,

0:02:42.468,0:02:46.545
somebody said, "Disaster. Disaster.[br]This kid doesn't have a clue.

0:02:46.545,0:02:47.928
Can't do a model."

0:02:47.928,0:02:50.159
And before the case was presented,

0:02:50.159,0:02:51.693
the recorder said,

0:02:51.693,0:02:54.992
"Sounds like Arnold should go[br]in the bottom bucket."

0:02:54.992,0:02:58.508
It was at that moment[br]that I clutched my pearls

0:02:58.508,0:03:01.813
(Laughter)

0:03:01.813,0:03:06.133
and said, "Who is going to speak for me?"

0:03:06.133,0:03:08.794
Who is going to speak for me?

0:03:08.794,0:03:12.946
It was that moment that I realized[br]that this idea of a meritocracy

0:03:12.946,0:03:17.750
that every organizations sells[br]is really just a myth.

0:03:17.750,0:03:22.457
You cannot have a 100 percent[br]meritocratic environment

0:03:22.457,0:03:26.910
when there is a human element[br]involved in the evaluative equation,

0:03:26.910,0:03:28.814
because by definition,

0:03:28.814,0:03:31.644
that makes it subjective.

0:03:31.644,0:03:36.668
I knew at that moment that somebody[br]would have to be behind closed doors

0:03:36.668,0:03:39.679
arguing on my behalf,

0:03:39.679,0:03:46.192
presenting content in such a way that[br]other decision makers around that table

0:03:46.192,0:03:49.207
would answer in my best favor.

0:03:49.207,0:03:52.443
That was a really interesting lesson,

0:03:52.443,0:03:55.399
and then I said to myself,[br]"Well who is that person?

0:03:55.399,0:03:57.309
What do you call this person?"

0:03:57.309,0:04:01.121
And as I thought about the popular[br]business terms at the time,

0:04:01.121,0:04:04.528
I said, wow, this person[br]can't be a mentor,

0:04:04.528,0:04:09.220
because a mentor's job[br]is to give you tailored advice,

0:04:09.220,0:04:12.919
tailored specifically to you[br]and to your career aspirations.

0:04:12.919,0:04:16.025
They're the ones who give you[br]the good, the bad, and the ugly

0:04:16.025,0:04:19.097
in a no-holds-barred way.

0:04:19.097,0:04:23.042
Okay. Person can't be[br]a champion or an advocate,

0:04:23.042,0:04:26.851
because you don't necessarily[br]have to spend any currency

0:04:26.851,0:04:28.442
to be someone's champion.

0:04:28.442,0:04:31.202
You don't necessarily[br]get invited to the room

0:04:31.202,0:04:33.801
behind closed doors if you're an advocate.

0:04:33.801,0:04:37.238
It was almost two years later

0:04:37.238,0:04:37.488
when I realized what[br]this person should be called.

0:04:39.851,0:04:42.756
I was speaking at[br]the University of Michigan

0:04:42.756,0:04:44.824
to the MBA candidates

0:04:44.824,0:04:46.902
talking about the lessons[br]that I had learned

0:04:46.902,0:04:48.762
after my three short years on Wall Street,

0:04:48.762,0:04:50.302
and then it came to me.

0:04:50.302,0:04:54.116
I said, oh, this person[br]that is carrying your interest,

0:04:54.116,0:04:57.089
or as I like to say, carrying[br]your paper into the room,

0:04:57.089,0:05:00.545
this person who is spending[br]their valuable political

0:05:00.545,0:05:02.150
and social capital on you,

0:05:02.150,0:05:06.339
this person who is going[br]to pound the table on your behalf,

0:05:06.339,0:05:09.678
this is a sponsor.

0:05:09.678,0:05:13.105
This is a sponsor.

0:05:13.105,0:05:15.221
And then I said to myself,

0:05:15.221,0:05:17.858
well, how do you get a sponsor?

0:05:17.858,0:05:20.163
And frankly, why do you need one?

0:05:20.163,0:05:22.151
Well, you need a sponsor, frankly,

0:05:22.151,0:05:23.668
because as you can see,

0:05:23.668,0:05:27.269
there's not one evaluative process[br]that I can think of,

0:05:27.269,0:05:29.913
whether it's in academia,[br]health care, financial services,

0:05:29.913,0:05:33.817
not one that does not have[br]a human element.

0:05:35.001,0:05:37.371
So that means it has[br]that measure of subjectivity.

0:05:37.371,0:05:42.968
There is a measure of subjectivity[br]in who is presenting your case.

0:05:42.968,0:05:45.076
There is a measure of subjectivity

0:05:45.076,0:05:47.158
in what they say

0:05:47.158,0:05:50.946
and how they interpret any[br]objective data that you might have.

0:05:50.946,0:05:55.163
There is a measure of subjectivity[br]in how they say what they're going to say

0:05:55.163,0:05:59.152
to influence the outcome.

0:05:59.152,0:06:03.342
So therefore, you need to make sure[br]that that person who is speaking,

0:06:03.342,0:06:04.844
that sponsor,

0:06:04.844,0:06:07.136
has your best interests at heart

0:06:07.136,0:06:10.959
and has the power to get it,[br]whatever it is for you,

0:06:10.959,0:06:13.494
to get it done behind closed doors.

0:06:13.494,0:06:15.784
Now I'm asked all the time,

0:06:15.784,0:06:18.518
how do you get one?

0:06:18.518,0:06:24.391
Well, frankly, nirvana is when[br]someone sees you in an environment

0:06:24.391,0:06:27.905
and decides, "I'm going[br]to make it happen for you.

0:06:27.905,0:06:30.299
I'm going to make sure[br]that you are successful."

0:06:30.299,0:06:34.129
But for many of us in the room, we know[br]it doesn't really happen that way.

0:06:34.129,0:06:37.343
So let me introduce[br]this concept of currency,

0:06:37.343,0:06:42.321
and talk to you about how it impacts[br]your ability to get a sponsor.

0:06:42.321,0:06:46.633
There are two types of currency[br]in any environment:

0:06:46.633,0:06:50.800
performance currency[br]and relationship currency.

0:06:50.800,0:06:54.281
And performance currency[br]is the currency that is generated

0:06:54.281,0:06:57.753
by your delivering that[br]which was asked of you

0:06:57.753,0:06:59.991
and a little bit extra.

0:06:59.991,0:07:04.549
Every time you deliver upon the assignment[br]above people's expectations,

0:07:04.549,0:07:06.926
you generate performance currency.

0:07:06.926,0:07:09.626
It works exactly like the stock market.

0:07:09.626,0:07:12.043
Any time a company says to the street

0:07:12.043,0:07:14.218
that they will deliver 25 cents a share

0:07:14.218,0:07:16.231
and that company delivers[br]40 cents a share,

0:07:16.231,0:07:19.074
that stock goes up, and so will yours.

0:07:19.074,0:07:22.481
Performance currency is valuable[br]for three reasons.

0:07:22.481,0:07:25.724
Number one, it will get you noticed.

0:07:25.724,0:07:28.245
It will create a reputation for you.

0:07:28.245,0:07:32.375
Number two, it will also[br]get you paid and promoted

0:07:32.375,0:07:35.027
very early on in your career

0:07:35.027,0:07:38.156
and very early on in any environment.

0:07:38.156,0:07:41.014
And number three,[br]it may attract a sponsor.

0:07:41.014,0:07:43.806
Why? Because strong performance currency

0:07:43.806,0:07:45.968
raises your level of visibility[br]in the environment, as I said earlier,

0:07:45.968,0:07:51.694
such that a sponsor may[br]be attracted to you.

0:07:51.694,0:07:55.741
Why? Because everybody loves a star.

0:07:55.741,0:07:59.715
But if you find yourself in a situation

0:07:59.715,0:08:02.312
where you don't have a sponsor,

0:08:02.312,0:08:03.550
here's the good news.

0:08:03.550,0:08:06.352
Remember that you can exercise[br]your power and ask for one.

0:08:06.352,0:08:13.771
But here's where the other currency[br]is now most important.

0:08:13.771,0:08:16.753
That is the relationship currency,

0:08:16.753,0:08:19.944
and relationship currency[br]is the currency that is generated

0:08:19.944,0:08:24.808
by the investments that you make[br]in the people in your environment,

0:08:24.808,0:08:29.892
the investments that you make[br]in the people in your environment.

0:08:29.892,0:08:33.615
You cannot ask someone[br]to use their hard-earned

0:08:33.615,0:08:36.961
personal influential[br]currency on your behalf

0:08:36.961,0:08:39.533
if you've never had[br]any interaction with them.

0:08:39.533,0:08:41.906
It is not going to happen.

0:08:41.906,0:08:47.260
So it is important that you invest[br]the time to connect, to engage,

0:08:47.260,0:08:50.738
and to get to know the people[br]that are in your environment,

0:08:50.738,0:08:55.058
and more importantly to give them[br]the opportunity to know you.

0:08:55.058,0:08:57.554
Because once they know you,

0:08:57.554,0:09:00.626
there's a higher probability[br]that when you approach them

0:09:00.626,0:09:02.977
to ask them to be your sponsor,

0:09:02.977,0:09:06.737
they will in fact answer[br]in the affirmative.

0:09:06.737,0:09:10.300
Now, if you're with me and you agree[br]that you have to have a sponsor,

0:09:10.300,0:09:14.861
let's talk about how[br]you identify a sponsor.

0:09:14.861,0:09:17.230
Well, if you're looking for a sponsor,

0:09:17.230,0:09:20.409
they need to have three[br]primary characteristics.

0:09:20.409,0:09:22.091
Number one, they need to have[br]a seat at the decision making table,

0:09:22.091,0:09:29.226
they need to have exposure to your work

0:09:29.226,0:09:32.329
in order to have credibility[br]behind closed doors,

0:09:32.329,0:09:34.147
and they need to have some juice,

0:09:34.147,0:09:36.835
or let me say it differently,[br]they'd better have some power.

0:09:36.835,0:09:40.391
It's really important that[br]they have those three things.

0:09:40.391,0:09:43.391
And then once you have[br]identified the person,

0:09:43.391,0:09:45.620
how do you ask for one?

0:09:45.620,0:09:47.118
The script goes like this.

0:09:47.118,0:09:52.055
"Jim, I'm really interested[br]in getting promoted this year.

0:09:52.055,0:09:54.516
I've had an amazing year,

0:09:54.516,0:10:00.093
and I cannot show this organization[br]anything else to prove my worthiness

0:10:00.093,0:10:03.850
or my readiness for this promotion,

0:10:03.850,0:10:08.363
but I am aware that somebody[br]has to be behind closed doors

0:10:08.363,0:10:09.641
arguing on my behalf[br]and pounding the table.

0:10:09.641,0:10:13.432
You know me, you know my work,[br]and you are aware of the client feedback,

0:10:13.432,0:10:17.613
and I hope that you will feel comfortable[br]arguing on my behalf."

0:10:17.613,0:10:19.094
If Jim knows you,

0:10:19.094,0:10:21.459
and you have any kind of a relationship,

0:10:21.459,0:10:25.102
there's a very high probability[br]that he will answer yes,

0:10:25.102,0:10:26.479
and if he says yes,

0:10:26.479,0:10:28.983
he will endeavor to get it done for you.

0:10:28.983,0:10:31.605
But there's also a shot[br]that Jim might say no,

0:10:31.605,0:10:33.892
and if he says no, in my opinion,

0:10:33.892,0:10:36.704
there's only three reasons[br]that he would tell you no.

0:10:36.704,0:10:41.054
The first is he doesn't think that[br]he has enough exposure to your work

0:10:41.054,0:10:44.250
to have real credibility[br]behind closed doors

0:10:44.250,0:10:47.995
to be impactful and effective[br]on your behalf.

0:10:47.995,0:10:49.994
The second reason he may tell you no

0:10:49.994,0:10:53.245
is that you think he has[br]the juice to get it done,

0:10:53.245,0:10:56.612
but he knows that he does not[br]have the power to do it,

0:10:56.612,0:11:00.042
and is not going to admit that[br]in that conversation with you.

0:11:00.042,0:11:01.213
(Laughter)

0:11:01.213,0:11:03.960
And the third reason[br]that he would tell you no,

0:11:03.960,0:11:05.282
he doesn't like you.

0:11:05.282,0:11:06.534
He doesn't like you.

0:11:06.534,0:11:07.206
(Laughter)

0:11:07.206,0:11:10.063
And that's something that could happen.

0:11:10.063,0:11:13.703
But even that will be[br]valuable information for you

0:11:13.703,0:11:18.216
that will help to inform your next[br]conversation with a sponsor

0:11:18.216,0:11:22.149
that might make it[br]a little bit more impactful.

0:11:22.149,0:11:25.686
I cannot tell you how important[br]it is to have a sponsor.

0:11:25.686,0:11:30.475
It is the critical[br]relationship in your career.

0:11:30.475,0:11:32.010
A mentor, frankly, is a nice to have,

0:11:32.010,0:11:37.161
but you can survive a long time[br]in your career without a mentor,

0:11:37.161,0:11:43.149
but you are not going to ascend[br]in any organization without a sponsor.

0:11:43.149,0:11:47.115
It is so critical that you[br]should ask yourself regularly,

0:11:47.115,0:11:49.928
who's carrying my paper into the room?

0:11:49.928,0:11:51.959
Who is carrying my paper into the room?

0:11:51.959,0:11:55.831
And if you can't answer who is[br]carrying your paper into the room,

0:11:55.831,0:11:59.942
then I will tell you to divert[br]some of your hardworking energies

0:11:59.942,0:12:02.632
into investing in a sponsor relationship,

0:12:02.632,0:12:05.918
because it will be critical[br]to your success.

0:12:05.918,0:12:10.393
And as I close, let me give a word[br]to the would-be sponsors

0:12:10.393,0:12:12.063
that are in the room.

0:12:12.063,0:12:14.964
If you have been invited into the room,

0:12:14.964,0:12:18.176
know that you have a seat at that table,

0:12:18.176,0:12:20.440
and if you have a seat at the table,

0:12:20.440,0:12:23.123
you have a responsibility to speak.

0:12:23.123,0:12:28.464
Don't waste your power worrying[br]about what people are going to say

0:12:28.464,0:12:31.149
and whether or not they think[br]you might be supporting someone

0:12:31.149,0:12:33.859
just because they look like you.

0:12:33.859,0:12:37.461
If somebody is worthy of your currency,

0:12:37.461,0:12:39.732
spend it.

0:12:39.732,0:12:43.024
One thing I have learned after[br]several decades on Wall Street

0:12:43.024,0:12:46.313
is the way to grow your power[br]is to give it away,

0:12:46.313,0:12:48.535
and your voice is at the heart.

0:12:48.535,0:12:53.353
(Applause)

0:12:54.689,0:12:59.954
And your voice is at[br]the heart of your power.

0:12:59.954,0:13:01.396
Use it.

0:13:01.396,0:13:02.855
Thank you very much.

0:13:02.855,0:13:08.394
(Applause)