Investment Bank Analyst “Angst” – Bootcamp It Takes a Team (Preferably in Person)

Borstal Investment Bank UK
Had Greater Success with More Cohesive Teams

Having called out those who offered theories why IB analysts were experiencing angst, today I’m here to offer my own theory. Kettle meet pot.

In an earlier post, I described the employment “life” of IB analysts as composed of three elements: audition, apprenticeship, and bootcamp.

A military bootcamp is designed to break old individual “molds” and create a new communal one.

What does this mean?

The prioritization of a single shared mission over personal identity, individual goals, ways of thinking, whatever.

In the military “national defense” is the replacement priority mission.

The civilian is turned into a soldier whose primary goal is to fight and perhaps die for the country.

Bootcamps are generally grueling. Not particularly attractive experiences.

50 for 50. Fifty pound backpacks for 50 mile hikes. Physical and military arts training.

Some of this well required by the needs of the apprenticeship – developing the aptitude and attitude to “do the job”.

But if you look closely, much of it is of doubtful direct use in a military situation. 

Soldiers who can make their beds so tight that a quarter will bounce when dropped on them are not generally more effective than others.

Soldiers whose boots are polished to a blinding shine and whose uniforms are crisply ironed don’t necessarily do better in war than those clad in black pyjamas or wearing flip flops.

The goal of these practices is psychological.

To “break” the civilian and once “broken” turn him into soldier.

An important element in this is making the individual part of a team.

Mission first, the team a close second, individuals third,

There’s a similar process in Investment Banking.

With similar “character redevelopment” going via the process. Long hours, face time, etc.

Here the communal mission is the priority of the deal. It takes precedence over everything else.

The team is created “We are Morgan Stanley”.

This poster approved by HMG.

As in the military, there is another function to the team.  To lessen the strains of bootcamp.  To make team bonding stronger.

First, misery loves company.

When you’re working long hours, it’s comforting to see someone beside you slogging away as well. Or to hear that another team worked 36 hours straight without a break. Someone has it worse than you!

Second, hardships become badges of honor and rites of passage.

Team B may have worked 36 hours in a row, but your team has worked 37. 51 for 51.

Third, the team offers a sympathetic ear to release one’s frustrations.

They say there is grumbling in the sergeants’ mess about more senior officers.

No doubt the O-1s and the O-2s grumble about those whose O’s have higher numbers.

In the IB world one can complain to one’s peers about the behaviour of one’s team leader, the more senior chap whose dithering or change of mind caused work to be delayed or redone, the last minute “Richard” (more familiarly known as “Dick” to analysts with a few months under their belts) who came up with apparently meaningless revisions to the pitchbook extending the time to completion.  

It's "us" against the "world".

Fourth, at times the unit may be rewarded or individual team members’ distinctive services reognized and honored. 

A timely “pass”. A bump up in rank. Recognition!

In the IB world, in-house dinners are usually provided for evening work. Some times the “usual” pizza. Sometimes, depending on the team leader, more elegant fare.

It is claimed that at some firms some team leaders have non-official “bottles” from which team members would take a libation after the slide deck was finished to “seal the deal”.

A “black car” to take one home – an indication to one and to all those who might see about the importance of one’s position as well as generally being more convenient.

A team leader mentioning your name in front of your fellows. “Nice work on the slide deck. The MD making the pitch mentioned that he especially liked the graphic on the transaction structure. Kudos to you, Rupert, for the suggestion.”

A liquidity preference function – ideally the day before one of those rare off-days.  Either team member organized.  Or hosted by the team leader.

An off-campus off-day celebratory meal -- “somewhere nice” when a particularly big fish was landed. Billed (or attempted to be billed) as team development: “Lessons learned from the [Name] Pitchbook.” (Let's chip in and buy "Dick" a trip to Bosworth Field).

When there aren’t opportunities for these sorts of in-person interactions, bootcamp is even more difficult.

It's also harder to develop the sort of camaraderie among one's fellow rookies over Zoom as one would in person together in the trenches.    

Additionally, unlike a military bootcamp where one's team is all rookies, at an IB the rookie joins an existing team members of which have existing relationships with one another and the shared history of "past battles".  

Over Zoom one is on one's own among the other rookies and the veterans. 

I think that explains a good deal of the angst. 

As well, there is the human factor.

Some bosses don’t know when to lighten the pressure.

Some folks aren’t a “fit” for the demands of IB. That’s nothing against them or AA.

A note on terminology. 

“Slide deck” always sounded to me like the cruise ship deck for kids. Perhaps, it was as well that it carries the connotation of three card monte. 

“Pitchbook” sounds more congenial and substantial.  It's not a collection of slides, but a book.  

With a bit of athletics involved.  Sports is a beloved business metaphor.

And, if one had a particular rough experience preparing one, one could always “pitch” it against a convenient wall.