March 2011 Newsletter

Impact of Monetary Easing on the U.S. and Global Economies

Social Media: Viable Business Opportunity or Passing Fad?

Cultivating Advocates: The Art of Credible Networking

Diversity Round Table: Driving Diversity Without Borders

Motivational Tips for 2011

February 2011

Impact of Monetary Easing on the U.S. and Global Economies

On February 3, 2011 Nomura and the Japan Society sponsored a Women's Bond Club event to discuss how monetary easing is expected to affect the U.S. and global economies. The session began with a summary of recent monetary easing events: Faced with a disappointingly slow recovery and a painfully high unemployment rate, the U.S. Federal Reserve recently embarked on a second round of "quantitative easing" (QE) -an expression that originates from Japan's efforts to fight deflation and stagnation a decade ago. With short-term interest rates essentially at zero, QE becomes the primary tool of monetary policy. In the U.S. version of this unconventional monetary policy, the Fed directs its open market operations to managing the size of its balance sheet - specifically, the size of its securities portfolio. In launching "QE2," the Fed announced its intention to purchase $600 billion in Treasury bills by mid-2011. The Fed's decision has proved controversial as some analysts doubt that QE ever helped the Japanese economy years ago while others say it doesn't go far enough. Perceived risks from this policy include rising inflation and a weaker dollar. Our panelists, drawing on their expertise in both the U.S. and Japanese financial sectors, will explain why the Fed has chosen this policy instrument, what impact it will have on the U.S. economy, and whether it will finally bring about a robust global recovery

The event was held as a panel of well respected thought leaders. Sara Eisen, Reporter and co-host of "Bloomberg on the Economy" on Bloomberg Radio, moderated the session and fielded questions and answers. The engaging panelists included Brian Foran, Managing Director, Equity Research Sector Head covering Banks, Nomura Securities International, Inc.; Alicia Ogawa, Senior Advisor, Center on Japanese Economy and Business, Columbia Business School, Adjunct Associate Professor, School of International and Public Affairs, Columbia University; David Resler, Managing Director, Chief Economist U.S., Nomura Securities International, Inc.; and, Gillian Tett, U.S. Managing Editor for The Financial Times.

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January 2011

Social Media: Viable Business Opportunity or Passing Fad?

"The business proposition of every firm represented in this room will disappear in the next 10 years." This was the opening statement of Ken Landis, Principal, Strategy at Deloitte Consulting LLP at the January 22nd Women's Bond Club event sponsored and hosted by Deloitte Consulting. What followed was a provocative and energetic discussion on how financial services companies need to rethink and take seriously their social media strategies in order to tap into one the most important shifts in consumer behavior of the 21st century.

Why do we need brick and mortar banks, insurance companies or brokers anymore? When we want information, we Google it. There is disintermediation in cloud computing, giving you the capability to access these services anywhere anytime and it's changing the way businesses make money. Landis suggests a brokerage firm might make more money from selling advertising space on their website, than from trading commissions. In today's world where Google is the richest cash flow company and Facebook is valued higher than GE, we can see how traditional business values are being turned upside down.

Social networking is the accelerant. Consumers believe 92% of peer recommendations and only 14% of advertising. It's still all about relationships, but the relationships are virtual and it doesn't matter where the actual service provider is located. This will carry over into the B2B environment as well.

In a group discussion led by Diane Sinti of Deloitte Consulting, the panel delved deeper into the challenges and opportunities associated with social media. The panel included Zachary Aron from the banking and technology practice, Arun Prasad from the technology practice and Anne Weisberg a talent director at Deloitte.

The audience wondered how traditional bulge bracket firms could make money from social media? It will be more difficult for them, explained the panel, and will require a shift in thinking and practice. Non-traditional firms are savvy. The use of social media is a new discipline for financial services firms. If a social media policy is not endemic within the organization, then there really is no social media strategy. It's a totally new way to connect with the customer that remains untapped and unexplored at most traditional companies.

It's a matter of trust, stressed all members of the panel. Both internal and external. Customer experiences are shared within minutes if not seconds now. You need to get involved in and manage the social conversation around your company. You can't artificially create a mood or sense of trust that is not actually there. A good place to start is to try not to focus solely on the 5% of the audience who make negative comments, but cultivate the 95% good and positive feedback. This is a way to influence the influencers, who will recommend you to their friends. And they'll tell two friends, and they'll tell two friends, and so on and so on...

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November 2010

Cultivating Advocates: The Art of Credible Networking

Networking, leadership and communication were the topics covered in a recent Women's Bond Club event, entitled "Cultivating Advocates: The Art of Credible Networking" . The NASDAQ OMX Group, Inc. hosted the November 30th event in the fantastic NASDAQ MarketSite venue overlooking Times Square. A networking reception after the presentation gave the 140 attendees a chance to practice their networking skills, while admiring the view.

Robin Abramson, partner at CRA Inc., co-head of the firm's leadership practice, and a long-time associate of the BC, gave the keynote speech. Robin introduced us to the behaviors of "Admired Leaders", those rare leaders who get results while building followership and creating loyalty. The 180 audience members all agreed to pick one or two behaviors from the comprehensive list given during the presentation, and make them their own.

Robin's presentation covered a surprising amount of practical networking, leadership and communication behaviors. One was a relationship-building process called "dripping". Frequency of contact is what builds relationships and keeps them relevant; like a leaky tap, you need to continue to "drip" to the people in your network. Even those who did not attend the session can do the homework: holiday card time is a perfect excuse to jot down your "drip list", the key personal and professional contacts you want to be part of your network, and start "dripping".

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November 2010

Diversity Round Table: Driving Diversity Without Borders

2010 marked the fourth consecutive year the Women's Bond Club, in partnership with the NYSE Euronext (NYX), hosted the Diversity Roundtable. As over 100 financial services executives gathered in the NYX boardroom on November 15, 2010, the day's theme - Driving Diversity Without Borders - took many forms.

Leading a seasoned panel of experts, who later led small workshops with attendees, NYSE's Chief Operating Officer Larry Leibowitz gave opening remarks, starting with the diversity of diversity - global corporate culture versus cultural commonality and the celebration of diversity. He illustrated that diversity and inclusion is not discretionary funding if we are building our long term strategic capital. Mr. Leibowitz then introduced the event's keynote speaker, Jocelyn Cunningham of Deloitte, as a true believer in networking who understands the value of strategic vision and inclusiveness.

A member of the Women's Bond Club since 1992, and with a long and distinguished career at Deloitte, Ms. Cunningham emphasized that we must 'walk the talk' at all levels. If we genuinely care about the success of the business, we must be more accountable for diversity and inclusion as well as the advancement of our professionals. Citing some alarming financial services industry statistics, Ms. Cunningham stressed the importance of networking and making a difference. Although women represent 40% of all financial services employees, only 17% are senior executive leadership. Since 2000, women in the workforce have decreased and women working in financial services have decreased even more. To avoid moving backwards, we need more focus on diversity as we look to the next 10 years and must provide women with additional paths to advancement.

Gaining the perspective of our thought leaders:

• Diversity is different things to different people.
• Make diversity a high priority in your organization.
• Be open - don't let diversity be a taboo subject.
• Accountability is necessary at all levels.
• Invest in Human Capital to break "group think".
• Make diversity and inclusion about recognizing and valuing differences.
• Fund regional councils and affinity groups and give them leeway to be creative.
• Grassroots ownership is important; only define goals at the corporate level.
• Diversity programs can fail without commitment and succeed with dedication.

In the workshop sessions, discussions targeted key areas for global diversity programs: Building a Business Case, Creating Best Practices and Governance Structures, Leading Diversity Across Corporate and Local Cultures, Helping Expatriates and Their Families Navigate Cultural and Organizational Changes, Managing the Role of Local Government and Employment Laws, and Sourcing the Best Talent.

After reconvening as a group the panelists who led the workshops presented the outcomes to an engaged audience. A lively discussion ensued resulting in the formation of a list of diversity best practices.

BEST PRACTICES

• Establish a formal structure.
• Set measurable objectives, monitor progress, communicate results.
• Human Resources should own the program; they access the talent.
• Secure executive support and business sponsorship.
• Create diversity councils and affinity groups with budgets.
• Budget at the program level; not within the business units.
• Share activities across business units and borrow what works.
• The size of diversity function should be relative to the size of the firm.
• Ask your associates if the current program is working .
• Be direct and deliberate.
• Expand the expatriate programs to include re-entry to their home country.
• Create individualized packages for expatriates.
• Interview for cultural curiosity not just global experience.
• Provide international exposure with short-term projects.
• Be very deliberate in creating opportunities for your Top 100 associates.

A major take-away from the afternoon event was that regardless of the maturity of the diversity and inclusion landscape, by breaking down walls within your organization, and growing programs that matter to employees, on a grass roots basis, we can cultivate successful global diversity programs. The event officially concluded with a post-close reception on the New York Stock Exchange trading floor.

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Motivational Tips for 2011

Your employees may be ambitious and motivated, but motivation alone isn't enough if they want to advance-and if you want to help them. When your employees do well, you look good, so offer them this advice for moving upward throughout their careers:

• Show off your strengths. Self-promotion is a skill anyone can learn, and one that your best people should master. Encourage them to take credit for their work. They can do it without bragging as long as they're assertive about what they've accomplished.
• Tell people what your goals are. Top performers shouldn't wait for upper management to offer them a special project or a promotion. They need to let the organization know what they'd like to do and what their career goals are. Advise gifted staffers to share their objectives with high-level managers without being pushy, so their skills and goals don't get overlooked in the course of business.
• Learn to communicate effectively. No matter how good they are at their specific jobs, your best people won't get very far if they can't get their messages across. Teach them how to speak, write, and persuade people in clear, simple language.
• Build a solid professional network. Employees need support from a wide range of professional peers. Encourage them to join professional associations and attend trade shows, and develop contacts for mutual benefit. Remind them to look outside your industry-a good network has depth that extends in many directions.
• Seek out mentors. As a manager, you can only guide your top people so far. Urge employees to find good mentors-not just one, but a "board" that can offer advice on different topics throughout their careers. Mentors shouldn't be mirror images of employees, but advisors with a range of knowledge and styles that will stretch employees as they learn.

-Adapted from The Glass Hammer website

Energize your veterans with targeted coaching

Your up-and-comers can profit from coaching. But don't neglect your seasoned veterans. They need coaching too, as long as it's presented appropriately. Don't offer lessons or advice. Instead, create a partnership that supports the veteran's career by following these tips:

• Take time to build trust. Coaching is based on trust and mutual respect, and that doesn't happen after a single meeting. Give the relationship some time to grow. Don't push ideas and suggestions before experienced employees are ready to listen.
• Respect their experience . . . Seasoned employees have already contributed a lot to your organiza¬tion's success. Keep their experience in mind as you coach them. They've been through a lot of situations and can probably teach you as much as you can teach them.
• . . . But don't expect them to know everything. Their experience may be vast, but that doesn't mean you don't have anything valuable to share. Don't be intimidated. Probe what they want to learn so you can direct them in the right direction.
• Keep it real. A veteran's career goals are likely to be very different from those of a new hire. Provide useful information that addresses the opportunities available to your veteran.
• Don't assume they can't change. Banish what¬ever stereotypes you may have of older employees. Assume they're open to change and learning new things. If they aren't, they wouldn't be open to your coaching.

-Adapted from the Zenger Folkman blog

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