Archive for ◊ November, 2009 ◊

Author: admin
• Monday, November 30th, 2009

Financial investments are measured through metrics for investment banking performance. This is a way of gauging if a financial undertaking is worth the risk and the effort. There is no point of providing inputs if the output is not satisfactory and if it does not meet certain specifications of what needs to be achieved.

Depending on the investment, there are several Key Performance Indicators that one may look at before arriving to a conclusion whether the financial investment is earning or losing money. One of these things is the return of investment of ROI. To compute this, the total amount of investment should be subtracted from the incremental earnings or profits. The difference will then be divided by the investment to get the percentage. To be more accurate in the calculation, data analysis must also be used. Numbers that will show sales, outgoing funds, expenses, and such will give an analyst a clearer view on whether there is substantial return on investment or not.

Another metric used is the years the investment was active. This will help individuals or businesses know what return they want to calculate. It is not wise to make judgment for the feasibility of an investment if it was just active for one month. Therefore, there should be a substantial amount of data to be studied. The ideal number of data points to be compared or used in an analysis is 20 data points. This means that the results of an investment should be measure for a minimum of 20 weeks, or 20 months, or even 20 years. Only then will an analyst see the causal effects of actions taken and how these things can be corrected in an objective way.

Always take note that measuring the financial performance of a company should be data driven. Just because the company did not earn does not mean it should be closed. Action plans and decisions should never be based on assumptions. All of them should be backed up by numbers and data since numbers do not lie. With this, people will not be fired or blamed because of poor logic and unwarranted assumptions and politically motivated intentions.

Another performance indicator of an investment is yield. The yield should be calculated in percentage and this will show an investor how much his investment has made in profit. If the investor has a certain target in mind, what he has to do is to divide target by the yield percentage, to find out how much he needs to add to his investment. For example, an investor has $1,000,000 in investment to the bank and he wants to measure its performance. After a month, he received a profit of $100,000. His yield percentage is 10%. If his target profit is $150,000, this means he is short of $50,000.

To determine how much investment should be added, he should divide by $150,000 by 10. The result is $150,000. This means he has to invest $150,000 to get the profit he wants, in order to get a substantial result of his metrics for investment banking performance.

Labels:

key performance metrics in investment banking, how to does finance impact investment banking, investment banking for impact businesses, Investment Banking performance, investment banking performance indicators, metrics investment banking
Author: admin
• Sunday, November 29th, 2009

An essential skill to master, effective time management will help you manage your priorities and accomplish more with limited amount of time. The success and failure of a business also lies in the ability of employees to manage their time well.

The regular demands of work, relationship and leisure each calls for personal attention. These areas require personal management oversight in order to prevent unnecessary stress and increase productivity.

At work, it is likely that you have to juggle with multiple responsibilities. These include the multiple deadlines that you have to adhere to. The key to learning time management in the workplace lies in the following 4 key points.

(1) Understand roles and job scope

You must always understand your own job scope. When you are handed a task, make sure that you fully understand what is expected of you and your colleagues.

If any doubt arises, clarify them with your employer. Roles have to be defined to prevent time wasted on completing someone else’s job.

(2) Prioritize

You need to focus your energy on one task at a given time. This gives you the maximum concentration and working capacity to produce a better job.

Sometimes, you may end up with unexpected workload when your colleague or superior needs a last minute favor. Arrange your workload in line with the expected deadline and complexity of task. You will find yourself less overwhelmed as you work on one task at a time.

(3) Time Frame

You may have multiples tasks awaiting you to work on but do set a time frame to gauge time needed for each task. Try your best not to exceed the intended period.

To do so you will need a high level of self discipline because very often, all your superior expect is for you to submit your work according to the deadline. Try to construct your own schedule for every on-going project with its target date of completion.

Cut down on time spent chatting with colleagues if necessary to ensure no time is wasted.

(4) Get it right the first time

While you work on multiple deadlines, ensure that you produce quality work so that you won’t need to execute a correction on the completed task. This wastes precious time and energy.

As Helene Malmsio from Time Management in the Workplace website says “Ensure that you have a clear idea of what you need to accomplish in your working day and be realistic!

You will do yourself no favours by trying to complete a week’s worth of work in one day. All you will accomplish if you try this technique is a big ball of stress in your stomach and a head ache to go with it.”

Learning time management in the workplace is actually not difficult. It may take time but once you’ve mastered the necessary skills, you will feel less pressured and be able to work better.

Category: Personal Money Management  | Tags: , , , ,  | Comments off
Author: admin
• Sunday, November 29th, 2009

As we move further into summer internship season, many have asked me why they can get interviews but can never seem to get actual offers.


Usually, they lack a hook. To get an investment banking job, it’s not enough to show you can do the job well and have a serious interest in it.


You have to show them that they need you more than you need them.


Of course, this is never really true. You’re just a resource. They’re a $100 billion firm. But a hook makes them think differently, at least temporarily.


What’s A Hook?


A hook makes you stand out from everyone else. It can be your extreme enthusiasm over the job that caused you to email them 59 days in a row. It can be the experience you had working at a Chinese Private Equity firm last summer. It might even be how you were a Varsity Athlete in that sport they’ve never heard of.


But it can’t be, “I really want to do banking so I can learn!” or, “I like the fast-paced environment!”


Those are just standard reasons to say you want to do the job.


When bankers interview you, they try to check off 3 boxes – 1) smart 2) can do the job 3) like him. A hook makes sure #3 is a “check.”


But I’m Just A Normal Person, How Can I Get A Hook?


One good tactic is to make a connection with your interviewer by having similar interests, asking questions about some topic he or she likes, or having friends/alumni in common.


This requires upfront research and isn’t always possible. But when you can do it, it works well.


Was your interviewer in the Marines? Maybe your brother/cousin/uncle was too. Was he in the industry where your dad/cousin/uncle works? Same undergraduate schools?


No One Wants You Until Someone Wants You (Then Everyone Wants You)


Everything is just high school all over again.


Another “hook”: Convince the firm that you have offers with other investment banks. When they find out others want you, they’ll be afraid they’re missing something and want you more.


The correct answer to, “Are you interviewing with other firms?” is NEVER, “No.” Even if you’re not, never say, “no.” Just be vague and say you are interviewing and considering several options.


If you are indeed interviewing successfully with other firms, mention the names – this works especially well if they are competitors. Naming any of the bulge brackets when interviewing with a bulge bracket, for example, would give you a boost.


Worst Case Scenario


Sometimes none of these tactics above actually works. This is why you spread your net wide and interview at many different banks – because eventually your hook will work and you will land that investment banking job.