NEW RECRUITSHarvard Business School

Case StudyBy

Yusuf HassanI.I.T Patna

BackgroundAbout the organization

•Societe generale, a France based international bank acquired Cowen and company in 1998

•The New SG Cowen went from operating loss of $75 million in 1999 to an operating profit of $34million the following year.

•Initially Cowen was bond brokerage boutique org.

•It gradually started its work on investment banking and M&A advisory services.•It now have good presence in other places apart from Boston. Thus diversity.

•After the take over, SG Cowen’s focus area was 2 volatile but highly profitable sector:1. Health care2. Technology

Investment banking in Year 2001

•Consolidation was widespread

•Merger & Acquisition and equity remained the highest-margin businesses but on the same time it was highly volatile.

•Integrated banking groups were able to survive .

•Several investment banks reported decline in profit

•Some laid off staffs to cut costs.

•Increased scrutiny from regulators who were concerned about conflict of interest.

•Firms stated developing better guidelines for keeping research teams independent from bankers and their clients.•Recruitment yield had abruptly increased many folds and thus causing issues regarding handling workforce.

The Hiring Process

•Twice a year: 1. Early winter 2. Spring to join in Summer.

•Category of recruits: 1. internal 2. External.

• Internal: employees promoted from within.

•External: interns offered PPOs, Campus recruitment.

•Core business school on list for campus recruitment: NYU, Chicago, Columbia, Cornell, Washington univ. , Norte Dame & Berkeley.

•It also accepts resumes from Non core schools.

•shortlisting: 1. Closed 2. Open.

StrategyGeneral

Stages of selection1. Assigning Team Captains to every school- Team captains are alumni working

in SG CowenObjective: to ensure that students had a constant and familiar point of contact.Precaution: Ideally these team captains are from banking profession and not HR.2. Informal Interviews: it takes place before the first round of formal interviews

for selection.Objective: to gauge their level of enthusiasms and seriousness. 3. First round of interviews by associates or senior associates for further short

listing.Process: generally it has 2 schedules with 24 candidates.4. The No of candidates are narrowed to 6 out of 24 for the next round.5. The sex candidates are further narrowed down to 3.P.S: Both the second and third round takes place on the same day.6.A general ratio of 3:4 is maintained for selection and offer( based on previous

year data)7. Out of the 24 candidates only 3 would make it to the Super Saturday-

Reference.

SpecificRae ‘s strategy

• Top schools can be a disadvantage as they might end up getting some one in the middle of the class.

• At each core school a company presentation is done in advance.

• Team captains are instructed to devote maximum time on discussions rather than just presentation.

• 4 questions to be strictly addressed by team captains during the presentation namely:

1. Who we are?2. What we do?3. What distinguishes us from our competitors?4. What are the next steps?

• In schools like Cornell, the MD also presides the interactive sessions including the presentation.

Precaution: Alumni and HR/Banking personnels will only facilitate the process of selection in terms of guidance, exp sharing etc but no undue advantage.

Why Cornell and other Non-core university should be opted for campus?• Students in Non core schools are more focused and shows more

initiatives.

• Current employees from Non-core schools have been giving wonderful results in terms of performance and adaptability.

• At Non-Core schools/other than Top colleges, S.G Cowen would be relatively bigger player and hence attracting the attentions of best students.

Objectives

1. Recruitment for position in banking2. No of candidates to be selected: 303. No of candidates already selected: 15(7+8)4. No of candidates whose name are to be

finalized: 25. No of shortlisted candidate for remaining 2

posts: 4

Hiring Criteria

Points from S.G Cowen Evaluation form

1. Commitment to firm

2. Judgment/maturity

3. Interpersonal skills- impact/presence & communication skills

4. Leadership- initiative & motivation

5. Technical skills- creativity, modelling, accounting/finance & prioritizing.6. 7. Work ethics- team player, flexibility/versatility & motivation

Qualities/factors as marked/flagged by the selection team

•Self starter•Too salasy•Background•Salesmanship•Attitude•Commitment•Hardwork•Original thinking •Accounting skills.

YESNOYES in case if its bankingYESNOYESYESYESYES

Candidates

NatalyaEducation and experience•Undergrad degree in finance- Eastern European university-(Non-Core School)•Highest grade point in finance department-(Technical skills rating)•Served as graduate teaching assistant in Cornell-(Technical skills/leadership/interpersonal)•4 year work experience a company that developed M&A Modelling software-(Commitment to firm/technical skills)

Cultural connect•Went to the SG Cowen presentation at Cornell-Even though she passed out( Commitment to firm)•Called the banker, attended informal interviews.•Was one of the top candidates from Cornell sent for super Saturday.

Other•Her previous supervisor had responded positively on her skills. Shared that she is determined, ambitious and ready to work.•She is fluent in Russian, Polish & German. She also speaks French but avg English.

Issues sighted

•1 manager director and 1 associate had strong reservation against her.

•Associate felt that she is not good culture fit.

•She had seemed stiff & uncomfortable during small talks at the opening of interviews.

•The M.D felt that some bankers might loose with Natalya’s less perfect English.

Pros ConsQualification in finance with top grading Senior Management(MD) has a strong

reservation against her selection.

Training in finance-TA Less than perfect English

4 year work exp in M&A business. Seemed uncomfortable during small talks in interview.

Work exp in coherence with the exiting pattern as the software of her previous employer is widely used in wall street.

Possibility of her being impatient

Know different languages.

From Poland she has settled down in New York so familiar with different culture

Have attended informal sessions

Have been a top candidate during the selection process.

References have confirmed positively on her capabilities and skills.

MartinEducation and experience

• second year Warton MBA student.

•Served 4 years in military- substantial leadership exp.

•Lead rescue teams.

•No business experience.

•President of his section at Warton.

Concerns

•No business experience.•S.G Cowen came to Warton in the middle of recruiting period.•He has been found involved in recruitment process of other firms too.•There was a doubt wither he would accept the offer –asking for more time thus delaying the process of selection.•Leadership qualities gained in military might prove to be over dominating in terms of accepting orders of seniors.

Pros Cons

Leadership roles in military

No exp in business

Cooperative and helpful nature-Rescue missions etc

Applying in other org. as well.

Degree from Core B school

His grades are not known so academic performance cannot be analyzed.

Expressed his liking for S.G Cowen and its area of specilization

Military roles might prove to be over dominating in terms of acceptance of orders from seniors etc.

Ken Goldstein

Educational qualification and experience•Second Year MBA at Barkley.•Prior work experience in Pwc for 5 years.•Was handling multiple projects and teams and quickly rose in position at Pwc.

Others• Married with 2 sons- 2 years and new born.•Pwc confirmed his performance to be among top 5% in the firm.

Pros ConsMBA from Core B school Might belong to the

middle of the class5 year work exp in Banking/audit.

Has new born kids so liability issues can be a concern.

Had simultaneously handled different roles and rose quickly.Previous employer ranked him as among the top 5% in the firm.Has shown his confidence in handling both work and family together.

Andy Sanchez

Educational qualification and experience•Second year MBA from university of South California.•Undergraduate degree in economics at UCLA•Started his own business during his first year of college and earned huge margin of profit- worked for 3 years.

Other•Familiar with English and French•High aptitude level-GMAT/SAT•Stayed in contact with the SG Cowen team-regular meetings and interviews, followups etc.He has been observed reading more on banking as he was quite updated

Concerns

•Low score in undergrad and MBA.

•No experience in Banking but limited to Exam preparation/education.

•Already in well-established business earning good profit, devoting time for 24x7 job might be difficult.

Pros consGood academic qualification-Top college

Grades are consistently below average even when B schools are lenient in marking.

Participated in all informal interviews and meetings.

No banking experience.

Was cheerful/friendly with fellow candidates during the interview sessions.

Might be difficult to quit profit making business established by him

Business venture-successful in selling products.

Can prove way too ambitious in terms of money making/package

Contacted alumni and others. Seems to be enthusiastic about working with Cowen

Might be difficult for him to obey orders from seniors as he has been working independently.