Six Ways To Think Like An Owner When You Interview Or Start A New Job

June 13, 2021

When many people interview or even start their new job, they are consumed by inward looking common thoughts:

What questions can I ask on the interview that will impress the people I meet?
What knowledge can I memorize to show people I deserve the job?
How do I best impress my direct boss(es) so they know who I am?
How do I get promoted as quickly as possible?
How do I get a raise?

These are all important thoughts that cannot be ignored, but in my experience the people who truly thrive are the ones who can actually step back, reflect upon and embrace the big picture concepts that externally drive an organization. I humbly submit that if you can spend more time mastering an accurate understanding of these outward-looking concepts, you may find the inward-looking priorities above just seem to take care of themselves. This applies if you are going into finance, consulting, an entrepreneurial start-up, or any other job/industry. Even though not one of the items below are in your immediate job description, I bet spending time on them could be a huge determinator of your future success and happiness. I created this list by spending decades interviewing prospective new employees (from super junior to the most senior), talking to random people about their current or anticipated jobs, and learning from the mistakes and smart things that I did throughout my career. If one person finds one smart idea here that helps them better navigate their career, the twenty minutes it took me to prepare this will be well worth it. If you want to save a little time, the bottom line to all of this is: If you can think and act like an owner right from the start in your career, you will more quickly become one. Here is my opinion of what you need to know to make this happen:

Understand Business Model. You need to know the revenues, cost structure, cash flow and earnings of the business you join. This is easier with public companies but to not ask these questions means you really cannot understand how the company, division, department, or trading desk that you are joining really works. You won’t have an appreciation of the scale of revenues that move the dial, which people within your group are truly the leaders, how the business will change throughout various market cycles, how resilient your company (and job) truly are, and where you should aim as you focus on being as productive and meaningful as possible. Your job might just be to crunch numbers or get out reports in time, but if you ever really want to have a chance to become a partner in your enterprise, why not start understanding all of the operating levers and metrics today so you can better understand how your current tasks fit into the bigger puzzle.
Understand Culture. I have seen too many people ask me this question when I interview them because they think it checks the right box and before I start to answer, you can tell in their eyes they are just thinking about the next good question they can ask. This is perhaps the most important question you can truly have properly answered and how complete you ask it (and how many people you ask) can be a huge determinator of finding the right career/job fit. Understanding who gets promoted and why in your company is critical. Is it just production-based or does quality behavior count as well? Who are the culture carriers within the organization and what differentiates them? Is the organization flat, transparent, bureaucratic, diverse, insular, formal, entrepreneurial, or structured? You need to go into each of these and explore examples of each as opposed to just hearing buzz words and nodding your head. Are people throughout the organization giving similar answers? Are you joining one consistent organization or are their fiefdoms throughout? Is senior management aligned and supportive in a team-oriented way, or is there constant politics at the top with resulting continued turnover and changes in business directions? An organization is only people and knowing how they relate to each other will dictate a large part of your success, happiness and longevity.
Understand History of the Company. Most people arrogantly and falsely believe that their company started the day they joined. All that they need to focus on is what they are doing today and tomorrow. Normally I agree that what is past is past and people should not dwell on history. However, if you don’t understand the history you will be at a severe disadvantage. How and when was the company created? Who were the key people and what were their motivations? What were the major historical successful accomplishments and significant setbacks and how did both affect the company? Who were the best (and worst) people who used to work at the company and what caused them to leave? Were there mergers or acquisitions that changed the shape of the company and what drove those deals? In hindsight were they smart or dumb deals? Again, these questions can apply to the overall company, a division, department, or small group. If you don’t understand the history, you will be at a huge disadvantage trying to personally be part of helping to establish the future.
Understand Clients. Clients are the lifeblood of every company. Who are they? How were the relationships first established? How broad or concentrated is the list? Are the clients all dependent upon one or two key people or are they institutionalized across the organization? How do we get new clients? What do the clients depend upon us for? Are we investing in products/services/people that will improve our ability to better serve our clients in the future or are we coasting on our historical successes? Which competitors are making inroads to our clients and why? One of the best things to ask is which clients are so upset with us that they no longer do any business with us? What did we do wrong to them? A junior person with this list of ex-clients has the best secret weapon. Even if your job isn’t to bring in new clients, if you happen to be the person who mends the fences with ex-clients and brings them back to your firm, you may find yourself moving from support to production very quickly.
Understand Capital Structure. Every company is a living breathing organism and how it funds itself is a very large determinator of future performance. Is the company heavily levered with debt and thus has limited capability to withstand market cycles? What is the duration and tenor of the debt? Does this put short-term pressure on the company? If there isn’t a sufficient equity base it might be harder to fully invest in new products, research and development, or added human capital. The makeup of debt and equity in any professional endeavor will have major implications and to think that understanding this is above your pay level means that you are acting like an employee versus an owner. Even if you are super junior and have no equity in the company, you should still think like an owner and understand all of the ramifications of capital structure because your personal career and brand are embedded in the company. Thus, you are an owner.
Understand Ownership Base. Who owns your company? If it is public, it is easy to see holder’s lists and understand what your market capitalization is and who the shareholders are. Understand those shareholders. Are they known to be long-term or short-term? How is that base shifting over time? Are they growth or value-oriented? How much equity does management own? Are they aligned and long-term? If so, they will probably act like owners versus employees. Know the difference. Read the public proxy and all filings and understand the issues the owners are considering. If your company is private, it is harder to find out, but you can still ask similar questions. What is the current valuation of the company and how has it changed over time? Is venture capital or private equity involved? If so, who are the key players? How have they done from a historical investing perspective? What stage is this investment within their fund? Have they been liquidating their portfolio or adding capital to companies that are performing well? Are there deep pockets that can help weather storms and enable your company to play offense when opportunities arise? If you don’t know who the owners are, you certainly cannot think like an owner.

It is never too early to start thinking about each of these fundamental questions. Some of the answers may take time to understand but the sooner you start asking them, the quicker you will become an owner of your career. You may be surprised that the senior people within your company, division, group, or team will begin to look at you and treat you like an owner, as soon as you start acting like one.

Good luck!

Rich

RICH HANDLER
CEO, Jefferies Financial Group
1.212.284.2555
[email protected]
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