At Goldman it’s called the Junior Banker Problem.
Specifically, junior bankers lives get destroyed.
Banks have tried plenty things to solve it.
It’s all pig lipstick…
Because the root cause of the Junior Banker Problem is…
The Senior Banker Problem
Because few senior bankers get their job is selling.
They fail to build winning processes and skills.
The best they know is to wind up the printing press producing those awfully big, boring banker books.
Burning down forests and junior banker lives…
They run around having “Great Meetings.”
Mostly failing to drive results.
They produce too little value for the firm.
Too little success for themselves.
And after all those years in the business, still fail to succeed.
Causes The Junior Banker Problem
Seeing their older and tireder bosses still losing in the business…
Still burning the midnight oil fussing over bullet points…
Junior bankers of course think, why on earth would I do this for another 20 years?
Massive Cost To Bankers
Done well, banking can be incredibly lucrative, and fun.
But done poorly, well, you see many of those burnouts running around The Street.
Lives wasted on useless tasks.
All that grinding driving little success means many bankers fail at the worst time…
Once they’ve already put in all those hard-working years.
Burning down junior banker lives not only costs them precious years…
But led by terrible example many junior bankers run away from an amazing career.
Massive Cost To Firms
The cost to firms are massive too.
Carrying all those non-performing aging assets on the balance sheet.
Having to let go of bankers who have deep institutional knowledge.
Failing to attract and keep the best junior talent.
It’s a massive shame.
Especially when the solutions are so simple.
Train bankers to make it rain!
Here’s 7:21 mins on the massive costs of these problems from the Rainmaking Bankers Masterclass: