One of the most common challenges we find in the fund management sector is having good leadership skills present at all levels. In fact, it’s quite rare to find a fund where this is present.
There will always be a spotlight on the fund’s CEO/CIO, which is no doubt key, but the “leadership team” below the CEO/CIO is actually the key to seeing how well a will be run. A poor leadership team will always lead to high turnover regardless of the firm's performance.
If you want to understand better what good leadership should be or are looking to identify a good leader when hiring for a “Head of” position, the following guidance may be helpful:
A successful leader.
They possess a clear and definite vision for their business and set achievable goals for the future. They provide their employees with clarity, increase motivation, drive, and present a clearly defined roadmap to success in the sector. Moreover, a great leader constantly evaluates and refines their vision and goals, considering changes in the market, technological advancements, or unforeseen economic circumstances.
An influential leader.
They possess a natural talent for inspiring, motivating and elevating the morale of their colleagues and staff. Motivated employees develop a more profound interest in their work, increasing productivity, enthusiasm, and commitment. Cultivating an inspired work environment contributes to a positive culture and reduces employee turnover, ultimately leading to cost savings and fewer disruptions. Additionally, motivated and inspired employees are a valuable asset to a fund's reputation, ultimately reflecting better upon a leader's skill in the workplace.
A capable leader.
They act promptly and decisively, emphasising the need to enhance their analytical skills to support them while evaluating complex situations. Leaders can foster collaboration, motivation, inspiration, and teamwork among colleagues and employees within the trust by taking the initiative and addressing difficult choices promptly and efficiently. They prioritise the company's, employees and clients' interests when making business decisions rather than settling for the most straightforward or permissible course of action.
What is effective leadership?
Effective leadership demands a continuous process of adaptation. The sector is subject to constant changes in market conditions, regulations, and investor preferences. Leaders must be willing to pivot and adjust strategies to align with evolving market dynamics, showing flexibility, open-mindedness, and preparedness to navigate positive and negative changes successfully. To maintain a competitive edge, leaders must be willing to take calculated risks, embrace innovation, and exhibit agility in their decision-making. These qualities enable them to position their funds for long-term success.
Effective leaders can acknowledge their errors and assume responsibility for their actions without casting blame. This cultivates an atmosphere prioritising transparency, integrity, and accountability. Additionally, they acknowledge the contributions of their team members and attribute credit where deserved, understanding that a team's success hinges on the C-Suites guidance and the collective effort of all. It is impractical for a leader to accomplish everything independently, and recognising this is imperative for upholding a positive work culture.
When trying to navigate your career, we strongly believe that to succeed, you need to have good leadership, regardless of how technically strong you are in a particular role. When evaluating your career path, we highly advise assessing your leadership styles and habits. This can aid you in honing your skills and determining whether taking on a leadership role at present is the best option for your career growth.
One Ten Associates specialises in recruiting non-investment talent at all levels in the alternative investment sector. Our team understands that changing careers can be daunting, and we are here to provide guidance and support. If you are looking to transition into a leadership role or or are seeking to hire a leader, please get in touch to arrange a consultation here: https://www.onetenassociates.com/contact