0:00:00.520,0:00:04.576
It was the spring of 1988

0:00:04.600,0:00:07.776
when I had the aha moment.

0:00:07.800,0:00:10.336
I was at my first roundtable,

0:00:10.360,0:00:12.216
and for those of you who don't know,

0:00:12.240,0:00:16.175
the roundtable was a very[br]commonly used phrase on Wall Street

0:00:16.200,0:00:19.416
to describe the year-end[br]evaluative process

0:00:19.440,0:00:23.896
for analysts, associates, vice presidents,[br]all the way up to managing directors.

0:00:23.920,0:00:28.176
That was the process where they[br]were discussed behind closed doors

0:00:28.200,0:00:31.176
around a table, i.e. the round table,

0:00:31.200,0:00:33.696
and everyone was put into a category --

0:00:33.720,0:00:37.376
the top bucket, the middle bucket,[br]the lower bucket --

0:00:37.400,0:00:40.336
and then that was translated[br]into a bonus range

0:00:40.360,0:00:43.256
that would be assigned[br]to each professional.

0:00:43.280,0:00:46.696
This was my first time there,[br]and as I observed,

0:00:46.720,0:00:50.016
I saw that there was one person[br]that was responsible

0:00:50.040,0:00:53.296
for recording the outcome[br]of a conversation.

0:00:53.320,0:00:56.296
There were other people in the room[br]that had the responsibility

0:00:56.320,0:00:58.536
of presenting the cases[br]of all the candidates.

0:00:58.560,0:01:02.696
And there were other invited guests[br]who were supposed to comment

0:01:02.720,0:01:05.720
as a candidate's position was presented.

0:01:06.440,0:01:10.096
It was interesting to me[br]that those other people

0:01:10.120,0:01:13.856
were folks who were more senior[br]than the folks that were being discussed

0:01:13.880,0:01:18.216
and they theoretically had had[br]some interaction with those candidates.

0:01:18.240,0:01:22.056
Now, I was really excited to be[br]at this roundtable for the first time,

0:01:22.080,0:01:25.656
because I knew that my own process[br]would go through this same way,

0:01:25.680,0:01:28.736
and that my bonus would be[br]decided in the same way,

0:01:28.760,0:01:30.576
so I wanted to know how it worked,

0:01:30.600,0:01:32.136
but more importantly,

0:01:32.160,0:01:35.776
I wanted to understand[br]how this concept of a meritocracy

0:01:35.800,0:01:39.216
that every company that I talked to[br]walking out of business school

0:01:39.240,0:01:40.456
was selling.

0:01:40.480,0:01:42.096
Every time I talked to a company,

0:01:42.120,0:01:46.296
they would say, "Our culture,[br]our process, is a meritocracy.

0:01:46.320,0:01:49.336
The way you get ahead in this organization[br]is that you're smart,

0:01:49.360,0:01:51.616
you put your head down[br]and you work really hard,

0:01:51.640,0:01:53.256
and you'll go right to the top.

0:01:53.280,0:01:56.616
So here was my opportunity to see[br]exactly how that worked.

0:01:56.640,0:01:58.776
So as the process began,

0:01:58.800,0:02:02.096
I heard the recorder[br]call the first person's name.

0:02:02.120,0:02:03.816
"Joe Smith."

0:02:03.840,0:02:08.136
The person responsible[br]for presenting Joe's case did just that.

0:02:08.160,0:02:11.176
Three quarters of the way through,[br]someone interrupted and said,

0:02:11.200,0:02:13.456
"This is a great candidate, outstanding,

0:02:13.480,0:02:16.296
has great analytical[br]and quantitative skills.

0:02:16.320,0:02:18.136
This is a superstar."

0:02:18.160,0:02:19.656
The recorder then said,

0:02:19.680,0:02:22.760
"Sounds like Joe[br]should go in the top bucket."

0:02:23.440,0:02:25.536
Second person, Mary Smith.

0:02:25.560,0:02:29.376
Halfway through that presentation,[br]someone said, "Solid candidate.

0:02:29.400,0:02:32.416
Nothing really special,[br]but a good pair of hands."

0:02:32.440,0:02:33.776
The recorder said,

0:02:33.800,0:02:36.416
"Sounds like Mary[br]should go in the middle bucket."

0:02:36.440,0:02:39.176
And then someone said, "Arnold Smith."

0:02:39.200,0:02:42.456
Before the person[br]could present Arnold's case,

0:02:42.480,0:02:46.296
somebody said, "Disaster. Disaster.[br]This kid doesn't have a clue.

0:02:46.320,0:02:47.656
Can't do a model."

0:02:47.680,0:02:50.176
And before the case was presented,

0:02:50.200,0:02:51.496
the recorder said,

0:02:51.520,0:02:54.736
"Sounds like Arnold[br]should go in the bottom bucket."

0:02:54.760,0:02:58.176
It was at that moment[br]that I clutched my pearls --

0:02:58.200,0:03:01.496
(Laughter)

0:03:01.520,0:03:05.000
and said, "Who is going to speak for me?"

0:03:06.320,0:03:08.496
Who is going to speak for me?

0:03:08.520,0:03:12.896
It was that moment that I realized[br]that this idea of a meritocracy

0:03:12.920,0:03:17.456
that every organizations sells[br]is really just a myth.

0:03:17.480,0:03:22.536
You cannot have a 100 percent[br]meritocratic environment

0:03:22.560,0:03:26.936
when there is a human element[br]involved in the evaluative equation,

0:03:26.960,0:03:28.816
because by definition,

0:03:28.840,0:03:31.336
that makes it subjective.

0:03:31.360,0:03:36.816
I knew at that moment that somebody[br]would have to be behind closed doors

0:03:36.840,0:03:39.536
arguing on my behalf,

0:03:39.560,0:03:42.536
presenting content in such a way

0:03:42.560,0:03:45.936
that other decision makers[br]around that table

0:03:45.960,0:03:48.240
would answer in my best favor.

0:03:49.040,0:03:51.936
That was a really interesting lesson,

0:03:51.960,0:03:55.136
and then I said to myself,[br]"Well, who is that person?

0:03:55.160,0:03:57.016
What do you call this person?"

0:03:57.040,0:04:00.776
And as I thought about[br]the popular business terms at the time,

0:04:00.800,0:04:04.256
I said, wow, this person[br]can't be a mentor,

0:04:04.280,0:04:08.896
because a mentor's job[br]is to give you tailored advice,

0:04:08.920,0:04:12.736
tailored specifically to you[br]and to your career aspirations.

0:04:12.760,0:04:16.055
They're the ones who give you[br]the good, the bad and the ugly

0:04:16.079,0:04:17.839
in a no-holds-barred way.

0:04:18.839,0:04:23.016
OK. Person can't be[br]a champion or an advocate,

0:04:23.040,0:04:26.616
because you don't necessarily[br]have to spend any currency

0:04:26.640,0:04:28.296
to be someone's champion.

0:04:28.320,0:04:30.896
You don't necessarily[br]get invited to the room

0:04:30.920,0:04:33.976
behind closed doors if you're an advocate.

0:04:34.000,0:04:36.096
It was almost two years later

0:04:36.120,0:04:39.816
when I realized what[br]this person should be called.

0:04:39.840,0:04:42.336
I was speaking[br]at the University of Michigan

0:04:42.360,0:04:44.256
to the MBA candidates,

0:04:44.280,0:04:46.376
talking about the lessons[br]that I had learned

0:04:46.400,0:04:48.456
after my three short years on Wall Street,

0:04:48.480,0:04:50.056
and then it came to me.

0:04:50.080,0:04:53.816
I said, "Oh, this person[br]that is carrying your interest,

0:04:53.840,0:04:57.016
or as I like to say,[br]carrying your paper into the room,

0:04:57.040,0:04:58.576
this person who is spending

0:04:58.600,0:05:01.976
their valuable political[br]and social capital on you,

0:05:02.000,0:05:06.056
this person who is going[br]to pound the table on your behalf,

0:05:06.080,0:05:08.560
this is a sponsor.

0:05:09.600,0:05:12.040
This is a sponsor."

0:05:12.800,0:05:14.936
And then I said to myself,

0:05:14.960,0:05:17.496
"Well, how do you get a sponsor?

0:05:17.520,0:05:20.136
And frankly, why do you need one?"

0:05:20.160,0:05:21.936
Well, you need a sponsor, frankly,

0:05:21.960,0:05:23.336
because as you can see,

0:05:23.360,0:05:26.656
there's not one evaluative process[br]that I can think of,

0:05:26.680,0:05:30.296
whether it's in academia,[br]health care, financial services,

0:05:30.320,0:05:33.640
not one that does not have[br]a human element.

0:05:34.120,0:05:37.096
So that means it has[br]that measure of subjectivity.

0:05:37.120,0:05:42.696
There is a measure of subjectivity[br]in who is presenting your case.

0:05:42.720,0:05:44.776
There is a measure of subjectivity

0:05:44.800,0:05:46.856
in what they say

0:05:46.880,0:05:50.656
and how they interpret[br]any objective data that you might have.

0:05:50.680,0:05:56.376
There is a measure of subjectivity[br]in how they say what they're going to say

0:05:56.400,0:05:58.656
to influence the outcome.

0:05:58.680,0:06:02.936
So therefore, you need to make sure[br]that that person who is speaking,

0:06:02.960,0:06:04.416
that sponsor,

0:06:04.440,0:06:06.696
has your best interests at heart

0:06:06.720,0:06:10.776
and has the power to get it,[br]whatever it is for you,

0:06:10.800,0:06:13.216
to get it done behind closed doors.

0:06:13.240,0:06:15.896
Now, I'm asked all the time,

0:06:15.920,0:06:17.976
"How do you get one?"

0:06:18.000,0:06:24.136
Well, frankly, nirvana is when[br]someone sees you in an environment

0:06:24.160,0:06:27.216
and decides, "I'm going[br]to make it happen for you.

0:06:27.240,0:06:30.016
I'm going to make sure[br]that you are successful."

0:06:30.040,0:06:33.856
But for many of us in this room,[br]we know it doesn't really happen that way.

0:06:33.880,0:06:37.256
So let me introduce[br]this concept of currency

0:06:37.280,0:06:42.256
and talk to you about how it impacts[br]your ability to get a sponsor.

0:06:42.280,0:06:46.736
There are two types of currency[br]in any environment:

0:06:46.760,0:06:50.416
performance currency[br]and relationship currency.

0:06:50.440,0:06:54.056
And performance currency[br]is the currency that is generated

0:06:54.080,0:06:57.736
by your delivering that[br]which was asked of you

0:06:57.760,0:06:59.696
and a little bit extra.

0:06:59.720,0:07:04.376
Every time you deliver upon an assignment[br]above people's expectations,

0:07:04.400,0:07:06.496
you generate performance currency.

0:07:06.520,0:07:09.376
It works exactly like the stock market.

0:07:09.400,0:07:11.576
Any time a company says to the street

0:07:11.600,0:07:13.776
that they will deliver 25 cents a share

0:07:13.800,0:07:16.056
and that company delivers[br]40 cents a share,

0:07:16.080,0:07:18.520
that stock goes up, and so will yours.

0:07:19.080,0:07:22.056
Performance currency[br]is valuable for three reasons.

0:07:22.080,0:07:25.456
Number one, it will get you noticed.

0:07:25.480,0:07:27.936
It will create a reputation for you.

0:07:27.960,0:07:32.096
Number two, it will also[br]get you paid and promoted

0:07:32.120,0:07:34.536
very early on in your career

0:07:34.560,0:07:37.576
and very early on in any environment.

0:07:37.600,0:07:40.576
And number three,[br]it may attract a sponsor.

0:07:40.600,0:07:43.576
Why? Because strong performance currency

0:07:43.600,0:07:47.696
raises your level of visibility[br]in the environment, as I said earlier,

0:07:47.720,0:07:51.216
such that a sponsor[br]may be attracted to you.

0:07:51.240,0:07:54.600
Why? Because everybody loves a star.

0:07:55.360,0:07:59.456
But if you find yourself in a situation

0:07:59.480,0:08:01.696
where you don't have a sponsor,

0:08:01.720,0:08:03.216
here's the good news.

0:08:03.240,0:08:07.120
Remember that you can exercise[br]your power and ask for one.

0:08:08.280,0:08:13.296
But here's where the other currency[br]is now most important.

0:08:13.320,0:08:15.976
That is the relationship currency,

0:08:16.000,0:08:19.736
and relationship currency[br]is the currency that is generated

0:08:19.760,0:08:24.936
by the investments that you make[br]in the people in your environment,

0:08:24.960,0:08:29.456
the investments that you make[br]in the people in your environment.

0:08:29.480,0:08:33.416
You cannot ask someone[br]to use their hard-earned

0:08:33.440,0:08:36.496
personal influential[br]currency on your behalf

0:08:36.520,0:08:39.216
if you've never had[br]any interaction with them.

0:08:39.240,0:08:41.039
It is not going to happen.

0:08:41.559,0:08:47.016
So it is important that you invest[br]the time to connect, to engage

0:08:47.040,0:08:50.096
and to get to know the people[br]that are in your environment,

0:08:50.120,0:08:54.776
and more importantly to give them[br]the opportunity to know you.

0:08:54.800,0:08:56.816
Because once they know you,

0:08:56.840,0:09:00.256
there's a higher probability[br]that when you approach them

0:09:00.280,0:09:02.616
to ask them to be your sponsor,

0:09:02.640,0:09:06.376
they will in fact answer[br]in the affirmative.

0:09:06.400,0:09:10.256
Now, if you're with me and you agree[br]that you have to have a sponsor,

0:09:10.280,0:09:14.200
let's talk about how[br]you identify a sponsor.

0:09:15.040,0:09:16.976
Well, if you're looking for a sponsor,

0:09:17.000,0:09:20.136
they need to have[br]three primary characteristics.

0:09:20.160,0:09:25.416
Number one, they need to have[br]a seat at the decision making table,

0:09:25.440,0:09:28.496
they need to have exposure to your work

0:09:28.520,0:09:32.136
in order to have credibility[br]behind closed doors,

0:09:32.160,0:09:33.856
and they need to have some juice,

0:09:33.880,0:09:36.736
or let me say it differently,[br]they'd better have some power.

0:09:36.760,0:09:40.216
It's really important[br]that they have those three things.

0:09:40.240,0:09:42.976
And then once you have[br]identified the person,

0:09:43.000,0:09:45.056
how do you ask for one?

0:09:45.080,0:09:46.736
The script goes like this.

0:09:46.760,0:09:51.616
"Jim, I'm really interested[br]in getting promoted this year.

0:09:51.640,0:09:54.176
I've had an amazing year

0:09:54.200,0:09:59.736
and I cannot show this organization[br]anything else to prove my worthiness

0:09:59.760,0:10:01.976
or my readiness for this promotion,

0:10:02.000,0:10:06.216
but I am aware that somebody[br]has to be behind closed doors

0:10:06.240,0:10:09.256
arguing on my behalf[br]and pounding the table.

0:10:09.280,0:10:13.216
You know me, you know my work[br]and you are aware of the client feedback,

0:10:13.240,0:10:17.336
and I hope that you will feel comfortable[br]arguing on my behalf."

0:10:17.360,0:10:18.976
If Jim knows you

0:10:19.000,0:10:21.496
and you have any kind of a relationship,

0:10:21.520,0:10:24.936
there's a very high probability[br]that he will answer yes,

0:10:24.960,0:10:26.296
and if he says yes,

0:10:26.320,0:10:28.696
he will endeavor to get it done for you.

0:10:28.720,0:10:31.736
But there's also a shot[br]that Jim might say no,

0:10:31.760,0:10:33.656
and if he says no, in my opinion,

0:10:33.680,0:10:36.416
there's only three reasons[br]that he would tell you no.

0:10:36.440,0:10:41.016
The first is he doesn't think[br]that he has enough exposure to your work

0:10:41.040,0:10:44.136
to have real credibility[br]behind closed doors

0:10:44.160,0:10:47.776
to be impactful and effective[br]on your behalf.

0:10:47.800,0:10:49.776
The second reason he may tell you no

0:10:49.800,0:10:53.176
is that you think[br]he has the juice to get it done,

0:10:53.200,0:10:56.416
but he knows that he does not[br]have the power to do it

0:10:56.440,0:10:59.696
and he is not going to admit that[br]in that conversation with you.

0:10:59.720,0:11:00.856
(Laughter)

0:11:00.880,0:11:03.536
And the third reason[br]that he would tell you no,

0:11:03.560,0:11:04.776
he doesn't like you.

0:11:04.800,0:11:06.016
He doesn't like you.

0:11:06.040,0:11:07.176
(Laughter)

0:11:07.200,0:11:09.496
And that's something that could happen.

0:11:09.520,0:11:13.816
But even that will be[br]valuable information for you

0:11:13.840,0:11:17.896
that will help to inform[br]your next conversation with a sponsor

0:11:17.920,0:11:21.360
that might make it[br]a little bit more impactful.

0:11:22.160,0:11:25.656
I cannot tell you how important[br]it is to have a sponsor.

0:11:25.680,0:11:29.976
It is the critical relationship[br]in your career.

0:11:30.000,0:11:32.856
A mentor, frankly, is a nice to have,

0:11:32.880,0:11:36.896
but you can survive a long time[br]in your career without a mentor,

0:11:36.920,0:11:42.496
but you are not going to ascend[br]in any organization without a sponsor.

0:11:42.520,0:11:46.896
It is so critical that you[br]should ask yourself regularly,

0:11:46.920,0:11:49.536
"Who's carrying my paper into the room?

0:11:49.560,0:11:51.936
Who is carrying my paper into the room?"

0:11:51.960,0:11:55.696
And if you can't answer[br]who is carrying your paper into the room,

0:11:55.720,0:11:59.216
then I will tell you to divert[br]some of your hardworking energies

0:11:59.240,0:12:02.496
into investing in a sponsor relationship,

0:12:02.520,0:12:05.696
because it will be critical[br]to your success.

0:12:05.720,0:12:08.536
And as I close, let me give a word

0:12:08.560,0:12:10.720
to the would-be sponsors[br]that are in the room.

0:12:11.680,0:12:14.736
If you have been invited into the room,

0:12:14.760,0:12:18.016
know that you have a seat at that table,

0:12:18.040,0:12:20.496
and if you have a seat at the table,

0:12:20.520,0:12:23.176
you have a responsibility to speak.

0:12:23.200,0:12:28.176
Don't waste your power worrying[br]about what people are going to say

0:12:28.200,0:12:31.296
and whether or not they think[br]you might be supporting someone

0:12:31.320,0:12:33.736
just because they look like you.

0:12:33.760,0:12:36.960
If somebody is worthy of your currency,

0:12:37.880,0:12:39.616
spend it.

0:12:39.640,0:12:42.696
One thing I have learned[br]after several decades on Wall Street

0:12:42.720,0:12:46.136
is the way to grow your power[br]is to give it away,

0:12:46.160,0:12:48.376
and your voice is at the heart.

0:12:48.400,0:12:53.360
(Applause)

0:12:54.360,0:12:59.160
And your voice[br]is at the heart of your power.

0:12:59.960,0:13:01.176
Use it.

0:13:01.200,0:13:02.416
Thank you very much.

0:13:02.440,0:13:08.600
(Applause)