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It was the spring of 1988
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when I had the "a-ha" moment.
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I was at my first roundtable,
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and for those of you who don't know,
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the roundtable was a very
commonly used phrase on Wall Street
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to describe the year end
evaluative process
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for analysts, associates, vice presidents,
all the way up to managing directors.
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That was the process where they
were discussed behind closed doors
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around a table, ie. the round table,
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and everyone was put into a category --
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the top bucket, the middle bucket,
the lower bucket --
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and then that was translated
into a bonus range
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that would be assigned
to each professional.
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This was my first time there,
and as I observed,
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I saw that there was one person
that was responsible
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for recording the outcome
of a conversation.
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There were other people in the room
that had the responsibility
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of presenting the cases
of all the candidates.
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And there were other invited guests
who were supposed to comment
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as a candidate's position was presented.
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It was interesting to me
that those other people
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were folks who were more senior
than the folks that were being discussed
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and they theoretically had had
some interaction with those candidates.
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Now, I was really excited to be
at this roundtable for the first time,
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because I knew that my own process
would go through this same way,
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and that my bonus would be
decided in the same way,
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so I wanted to know how it worked,
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but more importantly,
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I wanted to understand
how this concept of a meritocracy
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that every company that I talked to
walking out of business school
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was selling.
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Every time I talked to a company,
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they would say, "Our culture,
our process, is a meritocracy.
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The way you get ahead in this organization
is that you're smart,
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you put your head down
and you work really hard,
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and you'll go right to the top.
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So here was my opportunity to see
exactly how that worked.
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So as the process began,
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I heard the recorder
call the first person's name.
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"Joe Smith."
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The person responsible
for presenting Joe's case did just that.
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Three quarters of the way through,
someone interrupted and said,
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"This is a great candidate, outstanding,
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has great analytical
and quantitative skills.
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This is a superstar."
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The recorder then said,
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"Sounds like Joe should go
in the top bucket."
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Second person, Mary Smith.
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Halfway through that presentation,
someone said, "Solid candidate.
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Nothing really special,
but a good pair of hands."
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The recorder said,
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"Sounds like Mary should go
in the middle bucket."
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And then someone said, "Arnold Smith."
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Before the person
could present Arnold's case,
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somebody said, "Disaster. Disaster.
This kid doesn't have a clue.
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Can't do a model."
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And before the case was presented,
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the recorder said,
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"Sounds like Arnold should go
in the bottom bucket."
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It was at that moment
that I clutched my pearls
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(Laughter)
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and said, "Who is going to speak for me?"
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Who is going to speak for me?
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It was that moment that I realized
that this idea of a meritocracy
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that every organizations sells
is really just a myth.
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You cannot have a 100 percent
meritocratic environment
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when there is a human element
involved in the evaluative equation,
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because by definition,
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that makes it subjective.
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I knew at that moment that somebody
would have to be behind closed doors
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arguing on my behalf,
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presenting content in such a way that
other decision makers around that table
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would answer in my best favor.
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That was a really interesting lesson,
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and then I said to myself,
"Well who is that person?
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What do you call this person?"
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And as I thought about the popular
business terms at the time,
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I said, wow, this person
can't be a mentor,
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because a mentor's job
is to give you tailored advice,
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tailored specifically to you
and to your career aspirations.
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They're the ones who give you
the good, the bad, and the ugly
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in a no-holds-barred way.
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Okay. Person can't be
a champion or an advocate,
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because you don't necessarily
have to spend any currency
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to be someone's champion.
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You don't necessarily
get invited to the room
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behind closed doors if you're an advocate.
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It was almost two years later
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when I realized what
this person should be called.
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I was speaking at
the University of Michigan
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to the MBA candidates
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talking about the lessons
that I had learned
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after my three short years on Wall Street,
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and then it came to me.
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I said, oh, this person
that is carrying your interest,
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or as I like to say, carrying
your paper into the room,
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this person who is spending
their valuable political
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and social capital on you,
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this person who is going
to pound the table on your behalf,
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this is a sponsor.
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This is a sponsor.
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And then I said to myself,
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well, how do you get a sponsor?
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And frankly, why do you need one?
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Well, you need a sponsor, frankly,
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because as you can see,
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there's not one evaluative process
that I can think of,
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whether it's in academia,
health care, financial services,
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not one that does not have
a human element.
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So that means it has
that measure of subjectivity.
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There is a measure of subjectivity
in who is presenting your case.
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There is a measure of subjectivity
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in what they say
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and how they interpret any
objective data that you might have.
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There is a measure of subjectivity
in how they say what they're going to say
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to influence the outcome.
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So therefore, you need to make sure
that that person who is speaking,
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that sponsor,
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has your best interests at heart
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and has the power to get it,
whatever it is for you,
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to get it done behind closed doors.
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Now I'm asked all the time,
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how do you get one?
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Well, frankly, nirvana is when
someone sees you in an environment
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and decides, "I'm going
to make it happen for you.
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I'm going to make sure
that you are successful."
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But for many of us in the room, we know
it doesn't really happen that way.
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So let me introduce
this concept of currency,
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and talk to you about how it impacts
your ability to get a sponsor.
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There are two types of currency
in any environment:
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performance currency
and relationship currency.
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And performance currency
is the currency that is generated
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by your delivering that
which was asked of you
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and a little bit extra.
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Every time you deliver upon the assignment
above people's expectations,
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you generate performance currency.
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It works exactly like the stock market.
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Any time a company says to the street
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that they will deliver 25 cents a share
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and that company delivers
40 cents a share,
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that stock goes up, and so will yours.
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Performance currency is valuable
for three reasons.
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Number one, it will get you noticed.
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It will create a reputation for you.
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Number two, it will also
get you paid and promoted
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very early on in your career
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and very early on in any environment.
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And number three,
it may attract a sponsor.
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Why? Because strong performance currency
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raises your level of visibility
in the environment, as I said earlier,
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such that a sponsor may
be attracted to you.
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Why? Because everybody loves a star.
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But if you find yourself in a situation
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where you don't have a sponsor,
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here's the good news.
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Remember that you can exercise
your power and ask for one.
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But here's where the other currency
is now most important.
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That is the relationship currency,
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and relationship currency
is the currency that is generated
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by the investments that you make
in the people in your environment,
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the investments that you make
in the people in your environment.
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You cannot ask someone
to use their hard-earned
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personal influential
currency on your behalf
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if you've never had
any interaction with them.
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It is not going to happen.
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So it is important that you invest
the time to connect, to engage,
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and to get to know the people
that are in your environment,
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and more importantly to give them
the opportunity to know you.
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Because once they know you,
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there's a higher probability
that when you approach them
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to ask them to be your sponsor,
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they will in fact answer
in the affirmative.
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Now, if you're with me and you agree
that you have to have a sponsor,
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let's talk about how
you identify a sponsor.
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Well, if you're looking for a sponsor,
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they need to have three
primary characteristics.
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Number one, they need to have
a seat at the decision making table,
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they need to have exposure to your work
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in order to have credibility
behind closed doors,
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and they need to have some juice,
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or let me say it differently,
they'd better have some power.
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It's really important that
they have those three things.
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And then once you have
identified the person,
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how do you ask for one?
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The script goes like this.
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"Jim, I'm really interested
in getting promoted this year.
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I've had an amazing year,
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and I cannot show this organization
anything else to prove my worthiness
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or my readiness for this promotion,
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but I am aware that somebody
has to be behind closed doors
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arguing on my behalf
and pounding the table.
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You know me, you know my work,
and you are aware of the client feedback,
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and I hope that you will feel comfortable
arguing on my behalf."
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If Jim knows you,
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and you have any kind of a relationship,
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there's a very high probability
that he will answer yes,
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and if he says yes,
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he will endeavor to get it done for you.
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But there's also a shot
that Jim might say no,
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and if he says no, in my opinion,
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there's only three reasons
that he would tell you no.
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The first is he doesn't think that
he has enough exposure to your work
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to have real credibility
behind closed doors
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to be impactful and effective
on your behalf.
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The second reason he may tell you no
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is that you think he has
the juice to get it done,
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but he knows that he does not
have the power to do it,
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and is not going to admit that
in that conversation with you.
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(Laughter)
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And the third reason
that he would tell you no,
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he doesn't like you.
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He doesn't like you.
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(Laughter)
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And that's something that could happen.
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But even that will be
valuable information for you
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that will help to inform your next
conversation with a sponsor
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that might make it
a little bit more impactful.
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I cannot tell you how important
it is to have a sponsor.
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It is the critical
relationship in your career.
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A mentor, frankly, is a nice to have,
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but you can survive a long time
in your career without a mentor,
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but you are not going to ascend
in any organization without a sponsor.
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It is so critical that you
should ask yourself regularly,
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who's carrying my paper into the room?
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Who is carrying my paper into the room?
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And if you can't answer who is
carrying your paper into the room,
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then I will tell you to divert
some of your hardworking energies
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into investing in a sponsor relationship,
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because it will be critical
to your success.
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And as I close, let me give a word
to the would-be sponsors
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that are in the room.
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If you have been invited into the room,
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know that you have a seat at that table,
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and if you have a seat at the table,
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you have a responsibility to speak.
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Don't waste your power worrying
about what people are going to say
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and whether or not they think
you might be supporting someone
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just because they look like you.
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If somebody is worthy of your currency,
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spend it.
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One thing I have learned after
several decades on Wall Street
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is the way to grow your power
is to give it away,
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and your voice is at the heart.
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(Applause)
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And your voice is at
the heart of your power.
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Use it.
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Thank you very much.
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(Applause)