Elissa Sangster: Welcome back to our three part series on careers at BlackRock, the world’s largest asset management firm. Barbara Novick is Vice Chairman of BlackRock, and one of the firm’s founders.
Barbara Novick: Hi, I’m Barbara Novick. I’m one of the founders of BlackRock. I currently head our government relations and public policy efforts. For over 20 years I headed what we now call a global client group, which was responsible for all business development, marketing, and client service across all business and across all products.
Elissa: We asked Barbara what sets the firm apart.
Barbara: BlackRock is different in a number of ways. When we started the firm, all eight of us came from what’s called the sell side, and we came with a different perspective. So rather than coming from a buy side firm and trying to replicate what we had seen, we actually sort of came at it in a way that everything was fresh, and we said, “What should it look like?” Not, “What does it look like at another firm?” That doesn’t mean we didn’t look at other firms, but we ended up being a leader rather than a follower. Very much forward thinking. What are the new trends? What’s coming next? How should we position the firm? And less looking back.
Of course, we had no legacy systems. We had no legacy products. It’s very easy to do that when you’re new.
We also put, from the very beginning, an emphasis on teamwork. Very client-centric business model. Thinking about what could we do for clients from a solutions-based marketing approach, and how could we bring in the resources of the firm, literally across the firm, from any portfolio group to operations groups to legal, to any questions clients might have, really forming client teams and answering clients’ questions more broadly. So very little silo-ing and very much a one BlackRock approach.
The culture is really, like I said, one of teamwork. It is designed around a client-centric business model. Many firms in asset management are more siloed, very product oriented, or very individually focused. What we try to do, everything from our compensation model to how we cyclically rewarded people was to encourage them to think about the client first, and to be part of a broader client team, as opposed to just their own area.
Elissa: Barbara spoke about careers in financial services, and why she chose asset management.
Barbara: Asset management is a great career. First of all, it’s interesting. It’s always changing. If you like finance and you like capital markets, you’re very much involved in those aspects of the financial services sector. What I particularly like is you’re all on what I call the same side as the client. If you’re at a sell side firm, everything you do, you’re buying, you’re selling, there’s a price you’re negotiating. As a buy side firm, you establish a relationship. You’re really selling trust, and it’s a very different business model. It’s one that is, I think, really a lot of fun. We are fiduciaries to our clients. It shows in everything that we do. And if the clients win, we win, and vice versa. So being on the same side as the client, I think, is a nice place to be, and builds