To view this article in digital format, click here.
“Don’t ever let your organization think it’s simply a stepping-stone. Of course, a lot of times clients will say, ‘We’re okay being used as a stopover for three to five years. We’d rather be a stop along the way for a great candidate than a final resting place for a mediocre one.’ But beyond that, CIOs and people wanting to become CIOs need to be seen to be focused on helping the institution they’re at, not just their own careers. I have seen investment professionals spending a lot of time promoting themselves, or looking to start a new business at the expense of their current employer—outsourced-CIO businesses being the common example—and that’s not what I recommend. Of course, there are smart ways to highlight your abilities without being nakedly self-promotional: Being highlighted in publications, being helpful resources to recruiters in the space, receiving industry awards, writing thought pieces, authoring articles, and speaking on panels are all ways to get on the radar in an understated and sophisticated way.
Don’t be a job-hopper. I wouldn’t point to it as a hard rule, but I would say that while you probably don’t want to work for one employer your entire career, you also don’t want to move every three years. Too much movement will scare prospective employers; they may wonder why you’d ever stay with their organization. Over the course of a 20-year career, three or four roles seem fine. You want to stay long enough to be able to show you’ve had an impact; you want to really put down some roots and demonstrate success. Of course, measured success can take years to unfold, and sometimes it is hard to point to a performance record and say, ‘That’s mine, I did that’—especially if you’re not yet the CIO. One way to overcome this, especially for younger professionals, is to also focus on the qualitative. Make up for your CIOs drawbacks, put processes in place, bridge silos, plug holes.
Be a specialist and a generalist. This is really important: The most appealing CIO candidate has a holistic view, and isn’t just focused on one area or asset class. Aspiring CIOs should get this generalist experience, whether by getting involved in an asset-allocation study, participating in board meetings, or serving as the CIO’s sidekick. They shouldn’t just become the private equity guy or gal. With the increasing creation of roles with titles like ‘Head of Asset Allocation and Risk Management’, the pendulum might be swinging back towards favoring generalists, but I don’t know whether the pendulum has swung enough yet.
The public sphere is interesting, yet there are cautionary tales. Serving a public pension is a phenomenal thing to do—almost a tour of duty—but there is a danger of spending too long in the public domain without getting some private sector experience. With few exceptions—especially if you’re not the CIO—there is a risk associated with spending too long in public pensions, especially ones that are heavily bureaucratic and don’t pay all that well.
This idea of public service also applies to those wanting to move from the for-profit asset management side. I hesitate to call it a lifestyle choice, because that implies that CIOs at asset owners don’t work as hard or travel as much—and they do. It’s more appropriate to label it a ‘calling’ to go work for your alma mater or an appealing institution with a mission. Also, the asset-owning world is incredibly interesting. Some asset management roles that are multi-asset class—for example, many ‘Solutions Groups’—are similar, but there are really few places where you get to look holistically at a portfolio over the long term without being judged by one quarter.
Like so many things in life, it’s all about balance—in this case, balancing a number of competing factors, pinpointing tensions, and finding the right place along the spectrum. You want to be known, but not known for self-promotion. You want to have a specific area of expertise, but you need to know asset allocation and risk management. You want to demonstrate near-term impact, yet focus on long-term results. You want a mix of public and private experience, although the former doesn’t necessarily mean working within a public pension. But always, always stay focused on your current organization.”