First few days in a new job

What do you do when you start working at a new place or in a new role? Do you start slow and wait to see what confronts you? Instead of adopting a reactive approach, I would recommend the following:

1. Network: Networking matters. Try to get to know your superiors, peers and subordinates. Find out not only what they are working on but also what their communication styles are, their personalities and influence within the organization.


2. Organizational Knowledge: No one is going to come and tell you about how to get things done. You need to find out yourself. You need to do this in the initial few weeks when people don't expect you to know this stuff. You also need to find out organizational history - what happened to the person who you are replacing, how have people grown in this organization, what is the best way to communicate, how are people evaluated...


3. Seek Mentors: Don't go and ask someone to be a mentor! That never works. From your efforts to network and get to know the organization, you will find people from whom you can learn. Tell these people that you are new to the organization and would like their advice as you get up to speed. Don't limit yourself to people who you feel comfortable with because they are like you.

I am interested in hearing what suggestions others have. Please add suggestions through comments. I will periodically update this post and try to keep it current.

Cognitive Bias (1)

Wikipedia defines cognitive bias as a 'distortion in the way humans perceive reality'. Let's see if you have a bias in the way you evaluate investment opportunity described below. This was an investment scheme presented to my father.

A wealth management firm has an investment scheme for retirees. The firm says they have investment experts who analyze the markets using proprietary tools and have a great track record. The firm claims that its returns in previous three years have been at least 15%. According to the scheme, the firm will invest your money in different investments. Depending on the blended returns from the investments, the investment firm gets certain commissions according to a three tiered schedule:

Blended return (r)	Commission	Returns to investor
Less than or equal to 10%	0	r
Between 10% and 20%	20% over 10% (=0.2 X (r – 0.1))	10% + 0.8 X (r – 0.1)
Over 20%	2% plus 40% over 20% (= 0.02 + 0.4 X (r – 0.2))	18% + 0.6 X (r – 0.2)

The firm says that the incentives are very clearly if they don't give the investor a return of at least 10% the firm gets nothing. Therefore, the firm will really make sure that the investor gets a great return.

What do you think of this investment opportunity? Click here to see my take.

Let me first state my assumption before I tell you that I would never invest in something like this. I believe that markets are by and large efficient. Unless an investor (in this case the firm) has insider information about an investment, the investor cannot do better than investing randomly. This is the guiding principle of most of the finance professors at the Chicago GSB.

If the above holds true, the firm cannot really pick investments. Let us say that they have 10 investment options. Let us say the investment firm manages investments for 10 retirees. Since the firm has no ability to pick investments, it will invest randomly. Retiree 1's funds go into Investment 1; retiree 2's funds go into Investment 2 and so on.

Let us assume that the general market (think of this as the S&P 500 index) grew at 8% that year and the return on the individual investments look as follows:

Investment 1	-8%
Investment 2	-4%
Investment 3	0%
Investment 4	4%
Investment 5	8%
Investment 6	8%
Investment 7	12%
Investment 8	16%
Investment 9	20%
Investment 10	24%

On average, the investments gave a return of 8%. Four investments did worse than the general market and four did better. Two matched the market performance. Let us see how our retirees did. Keep in mind that in this market, if any investment gets you less than 8%, you are worse off then investing in the broad index.

Investment	Investment return	Firm commission	Retiree return	Retiree
Investment 1	-8%		-8%	Retiree 1
Investment 2	-4%		-4%	Retiree 2
Investment 3	0%		0%	Retiree 3
Investment 4	4%		4%	Retiree 4
Investment 5	8%		8%	Retiree 5
Investment 6	8%		8%	Retiree 6
Investment 7	12%	0%	12%	Retiree 7
Investment 8	16%	1%	15%	Retiree 8
Investment 9	20%	2%	18%	Retiree 9
Investment 10	24%	4%	20%	Retiree 10
Average	8%	2%	7%

On average, the retirees did worse than the market. The investment which looked good upfront turned out to be a bad one. The problem was that the incentives that seemed well aligned were actually not well aligned. For the incentives to be well aligned, the firm should have offered a minimum guaranteed return. The way the scheme was structured, the firm never lost any money.

This is an example of a Confirmation Bias. At first glance, we only try to see how the scheme might work to our advantage. We don't try to imagine how it might work against us. The second effect here is the Base Rate Fallacy. We don't consider that in fact no one can pick stocks or other investments without having insider information. Since this firm does not have insider information, their probability of picking good investments is 0. We still think that since the firm's incentives appear aligned, they must be confident of their ability to pick good investments. Since they appear confident, they must be able to pick good investments.

To read more about such biases, go to the list of cognitive biases on Wikipedia. It is one of the most comprehensive lists on the topic that I have seen. I strongly recommend it to anyone who has any interest in the topic.

Getting to the CEO for customer service

I was recently involved in a situation where I had problems with the service I received from this company. I was calling the company's customer service department almost every week. Every time I called I was assured that my problem will be taken care of in the next 15 days. Much to my annoyance, nothing happened for months. I was at my wits end and did not know what to do. I entertained thoughts of suing the company. Of course there was no guarantee that I would have been successful, especially because this was a large company.

Luckily for me, I came in touch with this person who helped me solve the problem. He asked me to call up the CEO and tell him the problem that I was facing. Initially, I was very skeptical. Why would a CEO help me solve this tiny problem? But guess what, it worked! And it is much more effective than trying to sue the company

Here is how I was able to solve my problem:

1. I found out the name of the CEO of the company. If this is a public company, you can easily do this by going to the company's website or Yahoo Finance. If the company is private, it is going to be harder. Try to use Google to find this information.
   
2. Once I had the name of the CEO, I tried to look for the phone number of the CEO. I found that this was next to impossible. It is almost impossible to find the phone number for the CEO. Instead, I found the corporate number. Once again you may find this on company's website or Yahoo Finance.
   
3. I called up the corporate number and asked for the CEO by name. The operator was taken aback a little and asked me if I was sure I wanted to talk to him. I said that I was sure and that I was a customer who wanted to talk to him.
   
4. The operator transferred me to the CEO's office. The call was handled by someone in the CEO's office. I told this person that I wanted to talk to the CEO because I was having trouble with customer service and I wanted my problem to be resolved. She gave me the number of the point person who deals with all complaints that come from the CEO's office.
   
5. I then talked to the point person and told him that I was forwarded to him by the CEO's office. I explained my problem to him. He promised to contact the relevant departments and assured me that there will be action within a week. It worked. My problem was solved by the following week.
   

Here is what I concluded from this experience:

Customer service departments are overworked and have little authority. If you have been struggling to get your problems resolved through customer service, do what I did and talk to someone in the CEO's office. CEO's of large companies have people whose only job is to handle complaints that have reached the CEO's office.

Writing a great resume (2)

In my previous post, I wrote about the general aspects of writing a resume. In this post, I will talk about how you should go about writing a resume for your specific situation.

What do I want to convey in the resume?

• Skills: Make a list of the skills that you want your resume to convey. As explained in the previous post, these should be skills that are relevant for the position. Once you have this list, think of examples in your experience that would prove that you indeed have these skills. Creating this inventory of examples is not a quick or an easy task. Plan to spend several days doing this activity.

• Career progression: You should definitely think about how you want to convey career progression. It is important to come across as being accomplished without sounding arrogant.

• Summary: If you have a lot of experience it might make sense to have a summary of your experience. This summary should not be more than three bullets and should help the recruiter form a mental image about your experience.
  

• Interests: For any position, it is likely that there are multiple candidates who are suitable for the position. To stand out from the rest of the crowd and attract (positive) attention, consider putting some interesting facts about yourself. For example, you could mention your recent attempt to climb Mount Shasta. Be careful with this information though. If you put something controversial in the Interests section, it may backfire.
  

How should I write my bullets?

By now you should have the content ready. It is now time to put this content into bullets. Here is how you do it:

• STAR: Try to structure each bullet in the STAR format. What in the world is the STAR format? STAR stands for situation, task, action and result. What was the situation? What was your role or task? What actions did you take? What was the result?
  

• Succinct: While you want to provide a complete picture in a bullet, be sure that each bullet is succinct. If a word or a phrase is not adding any value, remove it. If a phrase can be substituted by a single word, do it.
  

• One bullet, one message: Each bullet should only have one idea otherwise the message gets diluted.
  

• No lingo: I cannot emphasize this enough. The recruiter may be unfamiliar with the jargon used in your previous job, company or career. Please do yourself a favor and make your resume accessible. No one will be impressed by your accomplishments if they cannot even understand what they mean.
  

How should I format my resume?

• Good visual layout: How your resume looks does matter. It is easy to find formats that look good without being excessively flashy. Make sure your fonts are readable and familiar (I recommend Times New Roman). The font size should not be too small or too large (I recommend 10 or 11). Bullets and sections should be well aligned and easy to read.
  

• One page: Often people claim that they have so much experience that it is impossible to keep the resume to a single page. It may be true in some cases. However, I often see resumes where every single detail or a position that was held 10 years ago is listed. If any detail is not essential for the current position, remove it. If you are sure that your resume cannot be trimmed further without losing effectiveness you may go over a page.
  

I have done all of the above, am I done?

No. Writing a good resume is an iterative process. Get feedback from friends and family members who are familiar with your background. They may provide suggestions about content and formatting that are valuable. They may also help you uncover uses of jargon or point out situations where something is not clear.

In addition, try to get feedback from someone who works in your target industry. You may find that you can tailor your resume to what is expected in that industry.

Good luck with writing your resume. I will try to post some examples in a future post.

Writing a great resume (1)

A resume is often described as a marketing document. People who are not familiar with elements of a good resume often get intimidated by this description. In this post, I am going to talk about how to think about a resume and how to improve your current resume.

What should a resume not be?

As a MBA student, I have found myself reviewing hundreds of resumes. I often find myself seeing the same mistakes being repeated. Often a resume is thought of as a chronological listing of all education and work experience. Each position has an elaborate description of job responsibilities.

What should a resume be?

A resume is a trailer; it is not the entire movie. It should highlight your relevant experience for the position that you are applying for. It should not recap everything you have done in your life simply because a lot of your previous experience will bring nothing to the position.

What do employers look for in a resume?

Often people only look at their accomplishments from their own perspective when they write a resume. It is useful to view your experience from the perspective of a potential employer. When employers look at a resume, they are looking for answers to certain questions. Your resume should be written to anticipate and address those questions. Here are some questions that employers have and suggestions about how you can address them:

• Does this person know what this job involves?
  

  As I mentioned earlier, you need to highlight relevant skils and experience – the ones that are important to the employer! I know what you are thinking. The very complex assembly language code that I wrote three years ago is really important to me. I was under so much pressure at the time. My boss was really happy when I did the job well. I got an email from my VP saying he was really impressed by my dedication to the firm. So what if the job I am applying for is a management consulting position.
  

  If you fail to highlight what is relevant, it makes the employer wonder if you even know what the job is about. If you don't even know the basics of the job that you are applying for, that cannot be a good thing.
  

• Does this person have the basic skills to do the job?
  

  This is of course the most important question that the employer wants answered. Skills that employers look for could span a number of areas. These could include analytical skills, working well in teams, experience dealing with customers, written communication… I could go on and on, but I think you get the picture. It is important to cover in your resume all, or at least as many as possible, the skills that are required to do the job.
  

• Can I trust this person to do this job well?
  

  The employer wants to know how you would perform on the job. The best way to address this question is to demonstrate positive results in a previous role. This means that not only do you have to write about what you did, you also need to show the results.
  

• Can I promote this person?
  

  A good employer is interested in your career growth. If the employer just want you to stay in the job you get hired for, you better think twice about joining that firm. Career progression is important to employers. They want to know if you were promoted. Even if you did not get a promotion, you should highlight that you took on additional responsibilities.
  

Great! Now that I know what a resume should include, how should I write one?

I know, I still haven't addressed the details of writing the resume. That is going to be the subject of my next few posts. I will write about specific guidelines and tools that you can use to write a compelling resume.

Getting into a top 10 business school

I am often asked by business school aspirants about how they can get into a top 10 business school. Here is a summary of the advice I often give people.

Is an MBA for me?

The very first thing that one needs to do is to figure out why he or she wants to go to business school. Think about what your goals are. What would be your ideal career? What would be your ideal job (note that a job is different from a career). Think about why you need to go to business school to get the ideal job and establish yourself in the desired career. Can you get to that position without going to business school? Applying to business schools is a long and arduous process that can lead to a lot of stress. Unless you are convinced that you definitely need to go to business school to advance your career don't apply to business schools.

Business school is also not for everyone. Some bad reasons to go to business school are:

1. You don't like your current job: If you don't like your current job you need to understand why you don't like it. Try to figure out what you would like to do. Maybe you can find a job that you like without going to business school. If you don't do this exercise maybe you won't like your work after business school either.
   
2. All your friends are doing it: What may be good for others may not be good for you.
   
3. You want to make money: In my view, money should not be the sole reason to do something. If what you do doesn't make you happy, there is no reason to do it.
   

If you are still reading this post, I guess you have found a good reason to go to business school and you want to know what you should do to get in.

Do I have the right profile?

There is no 'right' profile. Business schools are looking for a diverse class so there is no right or wrong profile. No matter what your profile is, you will have to work hard in your application to prove that you belong to the school.

The thing that business schools do care about is how the alumni will increase the brand value of the school. The right candidate is the one who will show promise to do so. Thus business schools look for patterns of success. If someone has had successes in the past, they are likely to have success in the future as well. What have you achieved so far given the opportunities that you have received? If you think you will be able to answer this question reasonably well, you should be a competitive candidate at any of the top schools.

Which schools should I apply to?

This is a really difficult question to answer and yet it is one of the most important questions that one faces when applying to business schools. Because the application process is so rigorous you cannot apply to too many schools and yet you don't want to apply to too few schools that you don't get into any. You want to apply to schools where you would like to go and where you stand a reasonable chance of being admitted. Last year I applied to too few schools (only 3), was able to put in a good application only in one and was denied admission to all three. Trust me it was not a nice feeling - putting in all this effort without any admit. Note that I didn't say 'any results', because the introspection process is valuable by itself. I was able to recognize my weaknesses and strengths. I also got used to the idea of writing about myself in essays and as a result I had an easier time this year.

Use rankings only as a general indicator about the reputation of the schools. Do not base your choice of schools to apply to only on the rankings. Try and visit the schools if possible. If this is even remotely feasible you should definitely do it. This will help you immensely in your application. Most schools say that they don't consider if anyone has visited the school or not. I tend to think otherwise - visiting schools can only improve your chances. Visiting schools also allows you to attend classes and meet current students. You will be able to evaluate how that school will be able to help you accomplish your objective. This provides a lot of useful material for your 'Why this school' essay. The next best alternative (which in my opinion is a distant second) is to attend information sessions of these schools.

Check the placement statistics of the schools. Did companies that you may want to work for recruit on campus? If you are an international student, you may want to contact the schools to find out the recruitment statistics for international students. For example, I did not apply to INSEAD after looking at their placement statistics in the United States.

Try and find out what the schools are looking for while admitting applicants. All schools have their admission criteria listed on the admission websites. See how you fit into their evaluation criteria. See what the profile of the class is. If you think you have any major weakness which will prevent you from getting admitted, start work on removing it. Whether it is poor grades or lack of extracurricular activities - it is never too late to show your commitment to addressing the weakness. Think if it may be better to apply the following year so that you get more time to address the weakness.

Narrow your choice of schools to 5 at this point. Any less will be risky and any more will mean that you cannot put in your best in all the applications. Also look at the deadlines and decide which round you will apply in at each of these schools. Try to stagger the applications so that you apply to some in the first round and the others in the second.

Ultimately I found that the entire process was a bit of a gamble. It was almost impossible to predict which schools I would get into. After all, the admissions process is quite subjective. However at this point all you can do is to put in your best effort and pray for the best.

How should I approach the application?

Here are the different components that go into a business school application:

• GMAT: Try and get it out of the way as soon as possible. I had given GMAT more than an year in advance (when I first applied last year). I gave a sample test first to familiarize myself with the structure of the test. I determined what were the areas which I needed to improve and what were the areas which I really did not need to put in much work. In my case for example, I knew I needed to put in more effort in sentence correction while but not the quantitative section. I used the The Official Guide for GMAT Review to practice. I tried to do as many problems from the sections where I needed to improve. Finally I gave another full length test to see where I stood. I am really good at standardized tests and did not need to put in more than a month to prepare. You need to assess yourself how much time you will need to prepare for the test.
  
• Essays: This was by far the hardest part of the application for me. Do not underestimate the time it will take to write the essays. More over most schools have essays that have different topics and word limits. While you may be able to modify a few essays to fit another schools application, you will need to write most from scratch. Your first drafts will be far from perfect. Be prepared to write, rewrite, rewrite, rewrite... You get the picture! Some of the things you need to keep in mind are:
  
  • Present a coherent story (no contradictory messages)
    
  • Make sure that you explain clearly but briefly what you did, why you did it, what you want to do and why you want to do it. How do your past actions lead to your future goals? What have you done to prepare yourself (other than business school) to achieve future goals?
    
  • Keep goals realistic and achievable. If you write something that doesn't seem feasible, admissions committee will think that you do not know how to distinguish between what is achievable and what is not.
    
  • Never be negative. For example in an essay that talks about a failure or a conflict, don't just say that the other person(s) were wrong.
    
  • Never make anything up. People in admissions committee can tell when something is fake.
    

  Make sure that you have someone who knows you well (spouse, close friend) as a sounding board for ideas and feedback. Be prepared to listen to criticisms and accept suggestions for improvements.
  

• Recommendations: You need to get recommendations from people who know you well and who will be willing to spend time on your writing a recommendation for you. Do not think you need to get a recommendation from the CEO or the Director. What matters is that your recommenders are able to give examples from your work which illustrate certain qualities in you. Give your recommenders plenty of time to write a recommendation - it takes a long time to write a good recommendation.
  

What books will be useful during the application process?

Before starting the admissions process make sure that you have the following two books:

How to Get Into the Top MBA Programs
by J.D., Richard Montauk

ABC of Getting the MBA Admissions Edge
by Matt Symonds, Alan Mendonca

These books were very useful to me in my essay and interview preparation.

What if I don't get in?

Finally the results come out. Either you are in, in which case it is time to celebrate and embark on to the next stage of your life. Or you are denied admission. Don't be disheartened, there is always the next year to re-apply (certain schools are quite re-applicant friendly). Take feedbacks if any of the schools you applied to gives feedback. Talk to successful candidates - the number of people you can talk to is never enough. See if anyone is willing to look at your essays and give their opinions on what you could do better.

Finally good luck on the application process.