My Unsolicited Advice To Anyone Entering (or soon entering) The Work Force

The world out there is tough and it is only going to get tougher. Globalization is a reality and despite the oft good yet maligned intent of our President and Congress, globalization is here to stay. As Thomas Friedman would say, the world is flat and there is no going back.

The U.S. once heralded the advent of globalization. There would be new demands for our products, more capital to invest in our markets, and many more places to bring in the cheap goods for our consumption. We learnt instead that globalization also brought more competition (from nations with often less stringent regulations), an influx of imported goods that could spell the demise of their respective domestic industry, an increased demand for limited commodities such as food, oil, and natural resources (driving up their prices), and more importantly (for you and me) an increase in the supply of labor which saw everyone, everywhere competing for the jobs Americans once took for granted.

If you are looking for a job now or in the coming years, or just started your career directly post-graduation, I have four simple suggestions that might help you navigate the world you find yourself in.

1. Forget job security: That idea that you need to go into a stable field and work for one employer for 50 years and retire on a pension plan is over. Likewise, the other prevailing idea that you need to only enter industries that have stupendous job security and stay within such industry is erroneous. In this contemporary time of uncertainty, everything is dynamic and old industries will die out if and when they fail to adapt. What will be required to succeed in this new age is not the search for security but rather the relentless pursuit of skills and talents that can be adapted and customized to allow one to compete on a dynamic global marketplace.
2. Take risks: Since we were children, we have been told that risk taking was dangerous and it is best to avoid risk. There is even a field named risk management whose moniker implies that risks is so passé that we would do best to remove it from all activities. The truth is that the old conceptions (or at least the conception we were taught growing up) were wrong in their definition of risk. Risk isn’t necessarily exposing oneself to adverse effects but rather it is proceeding when the definitive outcome is not yet known. In order to succeed, one needs to be able to learn to identify, choose, and live with acceptable risk. One that stays inside the comfort zone that has been given will not bear forth much fruit in this brave new world. Only by daring to venture outside of convention can only hope to avoid becoming obsolete and caught with outdated ideas. Ask yourself; What’s the worst that can happen? What is the best that can happen? Take risks that can expose you to differential outcomes, learn from your experience and prosper from the exploration.
3. Collaborate but watch your back: If there is one thing that is becoming apparent, it is the need to collaborate and work as a member of a diverse team to solve the new and challenging problems that affect mankind. With the flattening of the world, the US can no longer pretend that our isolationist techniques can solve the problem of the multitude without the need to sit at the table and collaborate with others. In saying this, cooperation should only go so far. At the end of the day, one needs to make sure that one’s demands are being met even if achieving those goals takes one away from the table. As a mentor once told me, “If you cannot find someone to watch your back, it is time to move.”
4. Keep learning. Never stop learning: This is perhaps the most important advice of them all. It is the diversity of knowledge that will bring the greatest chance of survival. As industry, life and communication matures, it becomes easy to get lost behind the constant changes that occur while watching one’s livelihood disappear. Education, and not always necessarily in the formal sense, will help one adapt as the essence of success changes. Education will bring new skills, knowledge and talents that allows for seamless integration across numerous field in various capacities. For this reason, it is crucial to never stop learning. If you find that the constant repetition of tasks is stifling your quest for knowledge, find a new job, learn a new trade, or even better yet, find a way to do the job faster, quicker and/or cheaper.

Some may complain that this new world is not fair but I tell you that it is the fairest that the world has ever been. We are watching as success is no longer determined by your family name, or your skin tone, or which country you were born. The American dream of rags-to-riches is catching on and billions of people are looking for that chance their ancestors never had. They are looking to compete; make sure you are also.

Recruiting In A Down Market

I was a bit shocked when I received the e-mail informing me of the seminar at Wharton given by Brian of Mergers & Inquisitions and Kevin of Management Consulted. I frequent their blogs to gain an insider’s insight into the investment banking and management consulting careers, and so when this opportunity presented itself, I knew I had to be present at this seminar.

After attending the seminar, Recruiting In A Down Market, I highly recommend it to anyone currently seeking employment in this market. Using a combination of anecdotal tales and tried-and-true methods, Brian and Kevin conveyed the excellent yet overlooked strategies for obtaining a job in the financial industry during this tumultuous time. The basic takeaway – do not rest on your laurels (or your school’s laurels for that matter) and instead, proactively pursue that job.

For anyone, and everyone, currently looking to obtain an internship or a full time position in the financial industry in this current economy, I would suggest you reach out to either gentleman, as they would provide insights that you might find pivotal.

Maybe A Silver Lining

When I stop by for a brief visit with my friends and family, the questions as to what I am currently doing always arise. While I usually attempt to feign interest towards unnecessary drivels like this, I have somewhat developed a disdain for this question in particular. Since almost everyone I know is either apathetic or ignorant of investment banking, this conversation usually ends in frustration on my part as the conversations usually follow the below sequence:

F&F: I haven’t seen you in a while, what are you up to now?

Shane: I am completing a bachelors program at Penn and hopefully after that, I can secure a great job on Wall Street working for a bank.

F&F: You want to be a teller at a bank?

Shane: No, this is not for a teller. This is for a position at the bank headquarters, usually on Wall Street, where the actual profits are being generated for the bank.

F&F: So you want to be a loan officer?

Shane: No, those are examples of job opportunities in commercial banks. I am aiming for an investment bank.

Person: An investor?

Shane: No, not an investor. These banks work with stocks and are more concerned with asset valuations of various companies. They provide services to corporation on numerous activities such as mergers and acquisitions, helping firms raise cash to conduct business, selling corporate securities to the public and advising on financial strategies.

Person: So a stockbroker?

Shane (in frustration): Yes, a stockbroker…that is exactly what I am hoping to do.

 

Now with the current credit crisis and the press that these banks are receiving, my latest conversation departed from the standard convention. It seems there is no more layman confusion (or at least reduced confusion – at least they’re in the ballpark now) as what constitutes an investment bank.

 

F&F: I haven’t seen you in a while, what are you up to now?

Shane: I am completing a bachelors program at Penn and hopefully after that, I can secure a great job on Wall Street working for a bank.

Person: Oh, you want to be like those assholes that ruined our economy.

Shane (in relief): Thank you, you saved me from seven minutes of excruciating and agonizing explanation.

Person: Of what?

Shane: Just be happy we skipped it, I am.

 

Maybe a silver lining indeed.

Broker-Banking Model No More

With Morgan Stanley’s decision to re-file as a holding company and Goldman Sach’s compelled decision to follow suit, the end of the large independent broker-banking model of investment banking is finally over. With this switch in designation to holding companies, these banks now have access to the Federal Reserve’s vault to secure their balance sheets but this also places these banks under the regulatory arm, scrutiny and restrictions of the Federal Government. As it follows, the more regulated an industry, the lower the profit margin of that industry. The newly enacted federal oversight will mean that these banks can no longer highly leverage their positions as they had operated in the past (it was rumored that Goldman was 36X levered, compared to the ailing insurance giant AIG at 11X and commercial banks at 10X)*.

It was the highly leverage balance sheets of the banks such as Lehman and Bear Stearns coupled with the bad positions of their bets on the subprime mortgage loans that contributed to their demise. So with federal regulation, there will be some much needed risk management injected into these banks at the opportunity cost of reducing overall industry margin (profits).

What should the future hold for students looking to enter into the industry in the upcoming years?

While no one is able to predict (accurately) how the industry will react or adapt to this recent crisis, it is clear that the notion of the broker-bank model will undergo a metamorphoses – the future of the giant broker-bank seem unsustainable. As investment banks rush to sell themselves to commercial banks or develop commercial banking arms, we can assume the financial industry will somewhat reflect the state of the industry before the existence of the Glass -Steagel Act. With the past success of banks such as JP Morgan Chase and UBS (commercial bank and wealth management firm respectively with substantial investment banking division), the future is not as gloom as Main Street anticipates, although still unpredictable. The job market will be tight as the overall available positions have suddenly contracted, but the future of investment banking is not doomed. There will still be roles and functions for these banks, as long as they are willing to adapt to the direction that the market is now leading them.

As for me, I will continue down my set path. I can hope that the four years that I will spend in school will be adequate time for the market to rid itself of the toxic assets out there, free up credits for transactions and allow deal making to resume. Until then, I will keep my eyes on that prize and keep on chugging along.

 

 

* These numbers are estimates that come form word-of-mouth information. These numbers are not backed by any data.

Where am I now

The last memory my readers will have about my life was my resignation from my full time job as a paralegal. Since then, much has changed as I chose to steer my life in a new direction. I had already predicted 2008 to be the year where I would take concrete steps towards obtaining a job in the financial industry and over the past month, I cannot help but feel like I have finally taken the road less traveled.

I decided to return to undergraduate and focus my studies and my experiences on obtaining a job in Wall Street, something I had overlooked during my previous undergraduate study. To accomplish this, I chose to submit an application to the University of Pennsylvania and to my amazement; I was granted admission into their undergraduate division with the chance to earn a second baccalaureate degree. I am currently enrolled at the university and I plan on a curriculum with studies in Philosophy, Politics,  & Economics (PPE) supplemented by financial courses at Wharton undergrad. With the assistance of the Penn and Wharton community, I am in a better position to obtain summer internships and ultimately a job at the end of four years.

So far, life at Penn has been predictable. There is not much news to report, and ignoring the occasion of having to take out new sets of loans to finance this education, much of the old life remains unchanged. I do recognize that this marks the beginning of a new chapter in my life – a tabula rasa if you can imagine it – and I take each step of each day knowing that I have placed myself in a better position to achieve my career goals than the day before.

With All Apologies To The Writers Of Traffic

As Bill Shakespeare tells us, “All’s well that ends well.” Tomorrow, the conclusion of the dog days of July, my official resignation will become effective and I will quit my position in hopes for a new direction in life. By resigning from my post, I am hoping this is the first yet necessary step towards that transformation – that metamorphoses – of my vision of work and my underlying expectation of it. Alas, the disclosure of my need for a change in scenery is not the intent of this post but instead, I wish to divulge my coup de grâce, with all apologies to the writers of Traffic (the movie).

I have made no effort in the past to hide the fact that I am disappointed with the direction my career had headed during these last two years. I held high expectations of the legal field in general and the paralegal position in particular, but after my two year sabbatical in the field, I have been persuaded to flee.

So for my coup de grâce, I have drafted two letter (and a note) that I will leave to my successor before I depart tomorrow. The story is below.

 

[Paralegal] <– Name withheld

Please take this as my apologies for what probably seems as a terrible way to transition the responsibilities of maintaining the liquor licenses of the 180+ hotels to your watch. It has been the company’s methodology to handle the transition in this manner and I can only wish you the best of luck in my absence. The examples of my prior work might prove to be an exceptional guide, but its usefulness will be only as effective as you make it.

While you will strive to learn the nuances of liquor license laws and regulations across the continental United States in hopes of applying your knowledge in preventing a disaster in one of the numerous hotels, I can tell you that there will come a day when your best efforts will fail. On such a day when your best of intentions ultimately fail, you will no likely feel like you have been scapegoated and thrown under the proverbial ‘bus’ as you will now experience the wrath of the bigwigs from Finance, Operations, Development, and the Legal Department who had stood idly by before when you successes had first been evident without taking note. 

Have no worries. During this, your first liquor license disaster, you would probably realize that there are no quick fixes to liquor license problems and you’ll be forced to issues a cease and desist order of all liquor operations at the hotel in question. It is at this time of duress, I want you to do only one thing and that is to open this letter.

The second time another issue arises in one of those states with inane liquor laws you tried to so hard to master (think Texas, California, Pennsylvania, New Jersey, and Illinois) and yet another hotel is forced to shut down liquor operations and severely disrupt the hotel’s profitability, you will no doubt experience the barrage of bigwigs yet again. You’ll be forced to relive the work conditions that you spent the last six months trying to avoid (and trust me, it will be in exactly six months) and your first intention will probably be to stress the success you have had over the last six months and how you have tireless and successfully worked to prevent similar disaster in the past with little to no fanfare. While this might be your first thought of action, I want you to quick dismiss that impractical action and remember the second letter. Open it.

Do Not Become A Paralegal

It is with the utmost respect for the profession and the professionals that I’ve met along the way as well as with the strictest reservation that I utter the following recommendation: Do not become a paralegal. Even as I write this, I am still a bit wary of actually putting down in words the feelings that I’ve possessed during my final months on the job. It is not from the fear of retribution (though I still have this job and retribution is quite plausible), but rather, it is from the fear that I actually would cause more harm that good by the below piece; after all, how can I even begin to imagine that I can do justice to the paralegal position in such few words. One thing is quite evident though, in the two years that I have spent working full-time in the capacity of a paralegal, I have acquired and developed numerous skills but even after all the accolades I can deliver about the profession, it still is never enough to persuade from me a positive recommendation for a career as a paralegal, even if just for the interim.

I accepted this career, as did a few of my peers, right after completing my undergraduate degree because I was unsure of what was to be my next step after receiving that degree. At the time, I had contemplated submitting an application for matriculation at medical schools but I ultimately decided to hold off on the application and instead chose to pursue other budding interests for a year or two. While working as a paralegal was the furthest job from my mind at the time, somehow between the ineptitude of my undergraduate career center and my hastiness to turn from the field I had spent all my collegiate years preparing for, I ended up accepting a job to work as a corporate paralegal in the legal department of a publicly traded hospitality company. There lies the story that shaped my view of the industry.

Like many new experience, the first few months provided some exciting challenges that kept me entertained. There existed a steep learning curve and the first few months found me trying to adjust to life as a paralegal. So much was unfamiliar that it was quite unimaginable to see how I could possibly accumulate all this working knowledge in time to be able to add some value to the position and the team that surrounded me. Yet, even as tedious as the learning curve was, it all started to fall into place sooner or later. I found myself adjusting to my new role within the company and it was then that I felt exposed to the true nature of the paralegal position. Within months of this revelation, I knew I wanted out, but the more I tried, the harder it became to actually leave. There is a saying that if you ever find yourself in a hole, the first thing you should do is to stop digging. Well, sometimes convincing yourself that it can be quicker to climb out than to continue digging to the other side is harder than it seems. For me, it took almost a year and a half before I threw down the shovel.

I’ve tried to list below four reasons that compelled me to switch out of my current role as a paralegal. While these are by no means the only four reasons that sent me packing, they are four important reasons that stick out in my memory. Before I begin, I would add that I in no means plan to convince anyone to stay clear of the paralegal position. The four reasons below do not have a clear unifying them except that they are sharp rationales I found to turn from the position. Beside, the truly wise will read the following posts and make do of it as they see best.

1. No Transferable Skills: One of the things that I regretted most about the paralegal is the specialization that it requires, but the lack of certification it provides. While working as a paralegal teaches a few soft skills that can be transferred across field, there is actually not a single hard skill that I have come across that can be applied across to a different field. As a paralegal, you are taught to act as a lawyer without actually fulfilling the duties of one. By that, I mean that you are taught to predict the response of a counsel without actually making the decision, or at least seeking the approval of a counsel before making such a decision. This leads to a specialized worker that lacks the legal authority to act without a supervisor and at the end of the day, all a paralegal can do, and do really well, is predict the action of a lawyer. No other job can appreciate such a skill except those that exist within legal field. The problem arises if one seeks to transfer out of the legal field. There is no certification that grants the authority to market these skills that have been honed over time. It is essentially illegal for a paralegal to market their knowledge or their expertise without being associated with a lawyer. Besides, will a employer outside of the legal realm care that I know what a promissory estoppel is?
2. The Proverbial Black hole: Going off a bit from point number one, the very nature of the paralegal position creates a proverbial black hole. Once one starts working as a paralegal, it is quite possible to acquire numerous skills through on the job training that can also be acquired in a formal classroom. Yet, since there is no formal advancement in the paralegal position, once you are a paralegal, you remain perpetually a paralegal. It is not as if one can work a certain number of years and acquire a certain number of skills and knowledge and find that they have suddenly become a lawyer. The paralegal position has no real advancement through the ranks; you are a paralegal the first day you enter the position and a paralegal for as long as you stay in that capacity. The better you become at being a paralegal, the longer the chain that binds you to the position become. Over the years, you find that you have become such a good, if not great, paralegal and can do nothing else but this.
3. Not actually a prerequisite: One familiar tie that binds a lot of my colleagues within this profession is an interest to matriculate at law school at some point in their lives. Many chose to become paralegals first and they willingly put up with the grunt work because they were falsely led into believing that working as a paralegal will either (1) act as a gateway into law school, or (2) assist them in making the decision whether working a lawyer is the right career choice for them. After a few months, even I was able to see the futility of this approach. First, law schools could actually care less whether you worked as a paralegal for a few years or not. There is no work experience pre-requisite for law school and those that work for a few years beforehand find that they gain no relevant advantage except for a few dollars in their pockets. Second, the role of a paralegal does not shed insight into the lives of the lawyers you work under. As a paralegal, you are there to support the lawyers, and all you can really gain insight into is how to support a lawyer rise in their career. There are multiples ways to learn what life as a lawyer, or even learn the experience of law school, but becoming a paralegal is perhaps the hyperbolic worst way of them all.
4. Middle / Back Office: For some who may not understand the nuance of Front/Middle/Back office roles, this fourth point may be a bit unfamiliar. I admit to be clueless to the nuances until a few months into my career as a paralegal. You see, there are really two roles in every company: Front Office and everything else. A front office role is a role that brings in money, meets with client and brings in business. Everything else is classified under roles that support the front office, assist the front office, or fixes the front office’s computers and equipments. Since non-front office roles do not generate the business of the firm, they are treated as second class citizens. If you truly believe prejudice and discrimination has been eradicated from corporate America, wait till you work at a middle to back office position. Well, you’ve probably guessed it, the paralegal position is a back office as it gets.

So there you have four of the reasons I choose to run as far away from the paralegal position. My greatest disappointment during these past two years was that I truly believed that the years I spent working as a paralegal might actually lead to wonderful exit opportunities. Upon learning the truth, I threw down the shovel and realized that the only way for me to ever escape from the hole I found myself was to climb out. Trying to dig my way into better fortunes will only create a bigger hole.

Shane as an Employee

Yesterday, I received written commentary on my first ever performance review and I must say that I am quite disappointed at the result. Although I have not had the chance to meet with my supervisor to clarify the context of the evaluation (that meeting is scheduled for later on today), the written commentary on this review does allude to one undeniable fact: I am in fact not God’s greatest gift to mankind. Okay, I jest a bit, that is not actually the revelation. The written commentary on my performance evaluation revealed to me that there is indeed a disconnect between what I believe I present to the company and what the company perceives that I have to offer; that is, what I consider an honest assessment of my strengths and weaknesses differ from what was revealed through this performance review.

In the performance evaluation, the rating system is broken down into five distinct rating scales although an individual’s score can fall within the ranges. The scales are also assigned brief descriptions for clarification.

5 = Mastery                 Exceptional work standards

4 = Strength                 Significantly exceeds the standard, minimal need for development

3 = Skilled                    Consistently meets the standard, room for development

2 = Needs Focus          Below standard, improvement is needed

1 – Insufficient            Significantly below the standard, immediate improvement  is needed

I received an average of 3.6 with the lowest score of 3.2 given in “Dependability” (Follows instructions and completes work in a timely manner) and the highest score of 4.0 being a tie between “Quality of Work” (Amount of work completed in relation to the standard) and “Reliability” (Punctual, high attendance level). What concerns me most is that if I were to give an honest evaluation of my strengths, I would have highly ranked Dependability as high among that list.

The problem arises in that when I am presented with an ever increasing workload, I try never to turn work down. Instead I find ways to fit it into my schedule and complete the assigned tasks no matter how strained my schedule already is. I actually considered this to be one of my greatest strength in that when there is work to be done; I am first in line to take the reins to attempt to complete it. As such, I usually find myself pressed for time and I try to complete all the work in the most efficient way that I know how; assigning a level of perceived urgency to each matter and I proceed to work first on the tasks that require the earliest deadline and/or turnaround time.

I had always thought this worked perfectly, but as evident from the evaluation, the reality is far from the case. Rather than what I believe I exude, a can-do attitude, what is seen by my superiors is a constant oversight in completing ‘lower priority assignments’. While I do not deny this is the case, I always presumed that there was an understanding that the lower assignments would be shifted in order to make room for the emergencies that are currently my main focus. After all, would it not be a great hindrance to ignore the larger more priority assignment in order to take the time to complete lower (and always plentiful) lower priority assignment.

It is obvious that if I need to resolve this disconnect, I will need to delve deeper into its underlying cause. This evaluation meeting will provide an excellent opportunity to hear the basis of this evaluation and try to find a mutual ground between my perception and reality. I would have appreciated this conversation a while ago rather than eighteen months after my initial hire date, but it is better late than never. If this was indeed an on-going problem as the evaluation has led me to believe, it would have been prudent to have been made aware of it early and act of correct it early rather than eighteen month later. At the very least though, I do appreciate that I am now given a chance to improve my perception around the office and I plan to take the lessons of the evaluation to heart.

Another interesting point that I hope to receive clarification on during the meeting with my supervisor is this comment that was left in the “Work Demeanor” section. Occasionally, however, Shane fails to discern the nuances of maintaining an appropriate deferential yet collegial working relationship with his immediate supervisor. Rather than let my mind wonder as to how and why my supervisor could have derived this conclusion, I will keep an open mind as I have already been made aware that my actions are not always as received as I had intended.

Letter from the CEO

Dear Fellow Corporate Associate:

We have just closed out our third consecutive year of great achievement and accomplishment, putting our company on much more solid ground with a total of 220 contracts including seven wholly owned hotels and 47 joint venture properties. This is a long way from where we were back at the beginning 2005. There is real momentum within the company today as a result of your hard work and dedication to our strategy and goals.

Unfortunately, the economic environment we find ourselves in today is one of huge challenge and uncertainty. Who would have ever thought six months ago that a great organization like Bear Stearns would experience such a dramatic meltdown in a matter of days? Who would have predicted the headwinds all major banks and financial institutions are currently facing or the upheaval of the credit markets? I certainly did not anticipate this and I suspect you didn’t either. Some predict we will be in a recession very shortly if, in fact, we are not already there. I have no idea what lies beneath the surface, but I do know that we, all of us at [redacted], should assume the worst while hoping for the best.

The first two months of the year were in line with budget; however, March has softened rather dramatically and we remain concerned about future periods given the economic uncertainty. History tells us that our industry usually feels the real impact of an economic slowdown a few months after most other industries. I do not want to wait until the “horse is out of the barn” before we take prudent measures to mitigate a possible serious downturn. We have all worked too hard to let the progress we have made and credibility we have earned slip away. It is far better to err on the conservative side than to wait until our opportunity to prepare is gone.With this in mind, I have asked the Executive Committee to take certain actions to freeze or reduce expenses over the next few months. Effective immediately, we will freeze hiring unless approved by me, reduce travel expenses, delay some purchases, and implement other steps to ensure that we will be in a position to meet our commitment to our shareholders. As part of this program, I am delaying the implementation of corporate merit increases that are normally effective the 1st of April. We will look at our business levels and the direction of the general economy as we get further into the second quarter in order to evaluate when and if we will be able to implement this year’s annual merit increases. The manager level and below will be the first group to receive their increase while director level and above will be asked to wait longer. I fully understand that this is a serious measure to take, but I also believe that all our associates are committed to the long term success of [redacted] and this action, in my opinion, is a key element to the continuation of this success during these uncertain economic times. We all read the same newspapers, listen to the same news programs, and we all have witnessed first hand the changing economic environment, so I ask you to support this decision.

You have my word that we will revert back to a more normal operating mode as soon as we see positive signs in the economy and our business. In the meantime, I appreciate your continued hard work, loyalty, and dedication to [redacted] mission and goals.

[Redacted]

Chief Executive Officer

[Redacted]

My comments

1. As the company is in an industry (hospitality) which is a lagging indicator of the economy, this move is a bit premature and unnecessary (if you ask me). The entire reason for working in the hospitality industry is that it does not wildly fluctuate with the economy. If you were assign the hospitality industry a beta, it would hover somewhere around 0.30. When the company released its earnings earlier this month, the company actually beat forecasts for the 1st quarter of 2008, yet the CEO calls this drastic action necessary. Necessary to what? Necessary for what? It is clear that the company is in a healthy state: with sufficient cash flow and EBIDTA (take my word for it). Why the entire executive committee believes this is a necessary solution is short-sighted?

2. People are reactionary, and people react to the news they see and/or hear. This statement from the CEO sends exactly the wrong message. Everyone knows the general state that the economy is in right now, but when the company start to revise its forecast, then the workers start to believe the company is trying to hide some skeleton or delay some inevitable disastrous news. (Images of Enron shredding corporate documents quickly flash across my mind). I don’t believe that is the case with the company, but sending a message like this company wide proclaims a signal of the doom and gloom to come. A publicly traded version of the boy who cried wolf?

3. The company is doing quite well. The company was among the biggest price gainer on 3/25/08. Therefore, we, the associates are only left to feel that the company is more interested in shareholder equity than its associates. While a company that focuses on shareholder equity is not discouraged (it’s actually encouraged), it would be a bit pollyannaish for a company to focus on maximizing equity at the cost of its associate. Let’s face it, in the hospitality industry, people (workers) matter, and if the workers stop believing in the services they offer, profits will be sure to decline.

(I will look into providing the stock chart for the company. I will have to work to redact certain portions to keep the identity of the company confidential)

4. This destroys moral. I don’t even think this needs any special explanation. I personally know of lots of understaffed department (mine included) that cannot possible take kindly to the message. A hiring freeze and a postponement of annual merit increase: a double whammy.

I could think of more comments, but I’ll stop here. I don’t think there’s any need to continue. While I’m sure the executive committee had their reasons for their decision, I do feel it to be the incorrect one.

Then, Now, Later

This is my first blog post in the 2008 year. As such, I’ll try to fit multiple items into one blog post that I have entitled; Then, Now, Later.

Then

The year 2007 was a trying year for me. After I graduated college in 2006, I decided I was going to join the workforce for a few years, gain some experience and apply to medical school when I was ultimately ready. As time went on though, I began to pursue other interest outside of the pursuit of medicine. All throughout undergrad, I had always heard of careers in investment banking and management and strategic consulting, but with my pre-medical blinders on, I chose to ignore those career routes even though I had expressed early interest in them, evident by my ultimate choice to pursue an economic degree. In 2007, I sought to pursue this interest and attempted to transition into a new career in the banking industry. I pulled my application from medical school and sought instead to apply to business school (b-schools). I choose to apply to b-schools because I truly believe that b-schools were the path that would provide me the knowledge and expertise in the most accelerated, rigorous and structured path to allow for a success transition into a new career in the mergers and acquisition advisory at an investment bank. The problem with my hasty decision though, is that business schools search for different qualities in their students than do medical schools (which hitherto, I had been aim to meet medical school requirements) and now I’m struggling to show to the admission committees my story as to why I am a desirable candidate deserving of a seat in their business school.

Other aspects of my life did fall into order in 2007. Due to a renewed determination to better my current lot in life, I became serious about the decisions that affect my life, my finances, and my future. In 2007, I really began talks with my girlfriend in order to coordinate and manage our lives post (her) graduation. She, like I, is very ambitious and this ambition is driving her to medical school (bless her soul). So far, the conversations are going well and we’re working to collaborate and coordinate the directions that our passions are now pulling us towards.

In terms of finances, I started a Roth IRA in 2007 and I plan to continue that trend in the future. I also opened a taxable account to complete my desired asset allocation. My 401(k) at work will soon become available and I look forward to putting more funds in that cash deferred account.

While all my goals and aspirations were not met in 2007, I’m looking forward to pushing ahead in 2008 to try to achieve those goals.

Now

I’m contemplating what contingency plan I’ll engage if I don’t gain admittance to business school during this cycle. I’ve accepted the reality that the possibility exists that this might not be the year for me, but I know I can patiently wait and build up my candidacy for the day when the opportunity to enter into the career I desire arises (whether or not that path leads through business school). I’m currently awaiting the decisions from the schools I applied in the second round. I have decided that this is the last round that I will submit an application to, and if not successful in this round, I’ll accept that I need and can add to application by staying in the workforce and gaining extra work experience. Since I am unsatisfied in my current work position, I’ll seek to lateral into a new position if that is the route I am compelled to take.

For the first time since I carried a credit card, I’m carrying a balance from one month to the next. This is due to the application fees of the business schools I applied to. All of the balance is on a 0% interest card (currently) so I’m not too worried about carrying the balance from month to month. I’m paying down the principal with all available funds so as to avoid paying interest charges when the introductory rate expires. I’m still allocating and dollar cost averaging (DCA) into the market funds I own. The next couple of months will be a strain on my budget allocation as I continue to pay off this credit card debt, pay down my student loans, continuing adding to my Roth and taxable accounts and start a 401(k) plan. I’ve chosen an asset allocation plan (shown below) that I try to DCA into every moth. Hopefully, starting early in life, I can take advantage of compound interest to secure a financially independent future.

AA- 95% Equities, 5% Fixed Income

40% Vanguard Total Stock Market (VTSMX)
30% Vanguard FTSE All-World ex. US (VFWIX)
15% Vanguard Small Cap Value (VISVX)
10% Vanguard REIT (VGSIX)
5% Vanguard Inflation-Protection Securities (VIPSX)

Later

I have to consider what my options are in trying to ultimately end up in career in mergers & acquisition advisory at an investment bank within the next 5 to 10 years. I know if I follow stepwise a diligent plan, I will ultimately end fulfilling this desire.  I just have to find such a plan; that coordinated strategic plan that will make this desire a reality.

I do also have to factor in the fact that heading down this route will lead my life down a narrowly defined path, and I need to make sure that the path allows enough room for one more: my girlfriend. With her aspiration to enter medical school, I need to expect some difficulties that will come with combining both our lives.

So 2008 will be an interesting year. This is the year that I plan to make radical changes, whatever they may be. Here is to a new year, at least a 24 day old one.