CASE ANALYSIS OF SG COWEN: NEW RECRUITS

An HBR Case Study by Thomas Delong & Vineeta Vijayaraghavan

By – Basundhara(004), Boishali (005), Nandini Baweja (016), Shalini (021)

THE ORGANISATIONAL STRATEGY

SG COWEN is an American multinational independent investment bank and financial services company. It
specializes in Investment banking and M&A. Now wants to focus on two highly profitable areas: Healthcare
and Technology.

Skills that the organization holds: Self-starters, one who holds frequent social interactions with clients and
within group, fast learners – as wall street has no patience, Potential to become a long term banker, Culture fit
and ability of making transitions, highest quality professional who believes Cowen business model, Grow
geographically but stay industry focused which is investment banking.

RAE’S RECRUITMENT STRATEGY

Rae, instead of choosing the top 10 from the top 25 schools, moved to the next 15. He believed the top 25
schools would have giant employers with a huge budget and for his boutique sized firm, SG Cowen showcased
themselves as a bigger player and students would not leave this opportunity to be placed. The senior
management agreed it to be a wise decision as students from this school would be loyal. The steps taken by Rae
were:

1. Team Captain to give presentations: Team captains would give a short formal presentation based on four
questions: “who are we, what do we do, what distinguishes us from competitors and what are the next steps”.
They gave substantial time on informal question-answer sessions. Banking professionals assigned as team
captains (and often as alumni connected to its school) helped the new students to consider the role for
‘investment banking’ as they can influence people based on their current positions and roles.

2. Informational interviews: ‘informational interviews’ in advance of official first round interviews: before the
final interview/ evaluation, it’s thoughtful for the SG Cowen to come up something like this where the students
and the company would assess each other and whether to consider each other up.

3. Super Saturdays: Students from various schools gather from various location, and treated coordially; they
have direct interaction with the CEO. The Saturdays are a five half an hour session- not too long, not too short,
with an actual time check. After the bankers take interviews, there is a collective decision-making process- does
not depend upon a single decision.
In the case study, there are instances quoted by team SG COWEN, where they wanted Self-select students by
checking who attends the informational interviews informed by the Team Captains. Also, Fennebresque quoted
“We want to ferret out people who love technology, who love emerging growth”. They wanted to hire for fit,
where they could even stretch for personality and sparkle. They were looking for creative and enthusiastic
people who excel in their work as SG Cowen looks for Quality, not Quantity.

So, as per our team, the recruitment strategy of SG Cowen is aligned to it’s organizational strategy.

ANALYSIS OF THE HIRING CRITERIA:

As Pros has been discussed in the hiring strategy, we would like to throw some light upon the negative
aspects of the company’s hiring strategy.

1. Team Captains: Due to personal choices (from the same school) and time constraints from the banker’s
side, there is a chance of biases. Team captains are held liable for the quality of candidates based on their
different systems of prior evaluation. Some are stricter; others are less demanding.

2. Informational Interviews: Candidates unable to attend the informational interview due to lack of resources
might not get selected in comparison to someone who participated in the interview with less stellar qualification
may lead to another situation of biases. Though it may be a good criterion for the company to check the
sincerity of the candidate.

3. Super Saturday: An unstructured one on one interview process is a disadvantage. The time and evaluation
form could be better utilized if there were standard questions. There is also a ‘fastness’ in their approach as they
wanted the procedure to get over as soon as possible. Arriving on a common point, whether to hire or not, is
also a difficult question for them in a very short span of time.

RECOMMENDATIONS:

1. The incorporation of professionally trained HR personnel into this process. They will then be on hand
throughout and oversee the entire process so that they would be able to provide professional opinions.

2. The HR professional would also be tasked with establishing a structured standard for the interviews. This
structure would incorporate standard questions that would address specific items and personality traits of which
the organization should have knowledge.

3. They should hire from job fairs and from other continents (Europe and Asia) to bring in efficient people
and more cultural inclusiveness.

PROS AND CONS OF ALL THE CANDIDATES:

NATALYA GODLEWSKA

PROS CONS
 (MBA Cornell) Not a good culture fit
Undergraduate degree in Finance Less than perfect English
Career n finance with highest CGPA Stiff and uncomfortable for small talks
Knows many languages
Analytical knowledge
Go getter
Radiated Positive energy
Can –do- attitude

MARTIN STREET

PROS CONS

2nd year MBA (Wharton) No business experience

Could not attend Super Saturday
Leadership He was applying at others process
Dynamic personality Possibility to change to other firms
Rigid
Confident
Articulate
Taking finance courses

KEN GOLDSTEIN

PROS CONS

Valuable work experience Married and kids

Excellent recommendation Lower willingness to work 24x7
Strong social skills Uncomfortable in taking orders
Highly committed and loyal
ANDY SANCHEZ

PROS CONS

Enthusiastic Below average CGPA

People’s person Owns a firm already
Entrepreneur
Multitasker
Perfect cultural fit
Highly ambitious
Good GMAT and SAT score
Responsible enough

WHO IS THE BEST FIT?

After evaluation by the team and diving the pros and cons of the candidates in the given below table, we think
Andy Sanchez and Natalya Godlewska are the closest fit for the organization.
Natalya Godlewska: She has already worked in finance. She was the graduate teaching assistant at Cornell
business school, which might have deepened her understanding of the subject. Multi-linguist – so she can be at
ease dealing with people from different countries. Four years of prior work experience in the finance-related
firm. Good in analytical knowledge, understandings on finance markets. Determined, ambitious, hard working.
Less than perfect English can be improved while worked upon. Go getter and can-do attitude.

As per her weaknesses, she can be trained for her fluency in English. As she is a multi-linguist, and in
investment banking, working with different countries count. So, the team thinks she would be a cultural fit. As
many people hesitate to talk on the first meet, Natalya might open up once she joins the firm.

Andy Sanchez: Andy Sanchez has all our heart. He is a multi-tasking person and an entrepreneur. Completely a
people’s person. Informative about the firm and also reading up on investment banking, knows about current
deals about firms, is ready to take up new challenges in life. As per his weaknesses, grades should not be a
factor as it is seen in many cases that people with poor grades can do wonders in many organizations. He has
an excellent GMAT score and a competitive SAT score. He is also responsible enough to pay for himself as
well as his brother’s education through his business.