Sallie Krawcheck – Chief Financial Officer and Head of Strategy for Citigroup (2005.03.16)

It was quite a treat to attend a talk given by Sallie Krawcheck, CFO of Citigroup. She was energetic, witty, and had much advice. To top it off, she attended UNC on a Morehead Scholarship. She mentioned that she attended the recent Carolina/Duke basketball game and enjoyed watching Carolina kick Duke's butt! After Carolina, she received an MBA from Columbia University.

Sallie was warmly received by the students (the classroom was overflowing) and I took copious notes. She's obviously done something right to be named Citigroup's CFO at age 39.

Bio:
Ms. Sallie Krawcheck is Chief Financial Officer and Head of Strategy for Citigroup. Ms. Krawcheck is clearly one of the most influential women on Wall Street and in the business community at large. For three straight years, from 2002 to 2004, Fortune Magazine has recognized Ms. Krawcheck as one of the "Most Powerful Women" in business. She was also named the "Most Influential Person Under the Age of 40" by Fortune Magazine in 2003. In 2002, Ms. Krawcheck was recognized as one of Time Magazine's "Global Business Influentials."

As CFO, Ms. Krawcheck is responsible for Financial Reporting, Treasury, Tax, Investor Relations, Mergers and Acquisitions and Strategic Planning. She joined Citigroup in October 2002 as Chairman and Chief Executive Officer of Smith Barney, where she oversaw the global management of both its Global Private Client and Global Equity Research businesses. She was named CFO and Head of Strategy of Citigroup, Inc. at age 39 in November, 2004.

Notes:

Thinks she's had a great background to become a leader

She believe everyone has 1 false start after business school

After her false start, she became a sell-side analyst, which was great training

Finds it useful to start every new job with an analyst mindset

As an analyst, she learned:
- To handle criticism
- To fail gracefully
- To make judgments based on imperfect information
- To constantly re-evaluate her decisions (but not be wishy washy)
- The art of persuasion

The one negative related to leadership about being an analyst is you have to be completely self-absorbed

Moved on to become Director of Research at Bernstein

There she learned how to manage small groups of people

She said it was the hardest job she ever had

Word of warning: Nothing good happens when an employee wants to "talk" after 3pm on Friday

She said it is much harder to manage 15 people than 25,000 people. With 15 people you have to learn everyone's personality, what motivates them, what ticks them off, etc.

"Catch more flies with honey than vinegar" – don't yell at the office

She learned how to read, manage and motivate people

She learned about herself – e.g. she thinks she has good people instinct (whereas her husband doesn't)

You need to figure out what skills you have – important to recognize what you are good at and bad at

She struggles with the work life balance (what balance?)

One day she got a call from Sandy Weill, Chairman of Citigroup, to work for him at Smith Barney

At SB she had to lead big (instead of lead small as with previous job)

It is nice to have a good idea, but you must execute on the idea or it isn't that good

Worst mistake when joining a new high pressure situation is to Ready, Fire, Aim

Her rule is to give herself 3 months to listen and learn, then she has to do something (or people will think you are indecisive)

In stressful situations, try to simplify

Thought she could accomplish two or three things at SB

Communicating simple ideas is much easier than communicating complicated ideas

Overcommunicate during times of stress

Being a leader is sometimes like being a parent – everyone wants to know how mom is doing

Never let them see you sweat!

Important to know your weaknesses and overcome them (she can get blotches on her neck when she gets nervous, so she invested in some turtleneck sweaters)

In times of stress, people look for a leader so you can't waiver

You need some someone you can be weak with (for her, it is her husband)

You can't be upset all the time; you can't let everything get to you or you'll never have any sanity

You have do something you love

Most people mess this up coming of business school

She was turned down by virtually every Wall St firm

It is ok to make career mistakes

Keep knocking on the door if you have to – be tenacious

You have to be proud of the company you work for

She got pregnant and quite her job. It took her 9 months to find a new job. No one wanted a pregnant analyst.

It is a small world. Act professionally at all times. Never act emotionally. Walk away and calm down

One time it took her a full week after her budget got cut to face her boss

Take care of your skills, ethics and reputation as you would your kids

Have to be comfortable being uncomfortable

Watch out for creeping incrementalism ("frog in boiling water" analogy)

If you have a boss that doesn't support you or takes credit for your work, GET OUT

Don't fight if you don't think you can be successful in your position, get out

First thing you should do in any new job is evaluate your team

Pick your team before you pick your strategy

Doesn't remember many of her business school classes, but she learned how to communicate

It is so important to be able to communicate effectively to small and large groups of people. Practice every chance you get.