Art & Science Archive
Brevity will always be “the soul of wit” (Hamlet). In the modern world, brevity also has become a scarce and highly valued form of courtesy. In finals presentations, or in client and consultant meetings, representatives of investment management firms frequently hurt their cause by talking too much and saying too little — a habit exacerbated by lack of empathy for the audience. Here are a few real-life vignettes underlining the importance of brevity:
The manager who won the business by being concise. An investment firm was last to present during a day-long series of finals presentations. The audience asked this firm to limit their comments to 10 minutes. The manager said, “We can do better than that. We can limit our comments to 5 minutes, to allow more time for your questions.” When this manager later won the business, they asked their new client why they had won. The answer was simple: “Your presentation was the shortest.”
Managers who earn Brownie points by watching the clock. A consultant friend reminded us that plan sponsors now frequently send a letter to finalists requesting that they adhere to the exact time allotted for the presentation. But some firms still go over time, causing the entire schedule to run late. In such situations, the consultant said, investment managers can win huge Brownie points by shortening their presentations to help a plan get back on schedule.
The manager who got lost (and lost the business) during the Q & A. Another consultant told us this story: A public trustee asked a question during a finals about a manager’s diversity policy. The first manager (who did not have a policy) gave a lengthy answer concluding with the unfortunate statement, “We don’t believe in quotas.” The second manager also did not have a policy, but simply said so, and added a brief comment about his firm’s approach to recruiting personnel. In a factual sense, both firms said exactly the same thing. But the second manager addressed the question and moved on while the first rambled on in an embarrassing way.
The manager who would not be brief. At an industry conference earlier this year, a manager stood up during a panel discussion and asked the following question, “Recently our firm was invited to compete for a $600 million mandate. But we were given only 15 minutes to present and our strategy is very complex. So I declined the invitation. Did I do the right thing?” Clearly, this fellow needs to revisit his Shakespeare.
Some investment managers are either unable or unwilling to be brief. They fail to understand that brevity enhances clarity, that short stories often sell — not merely because they are short but also because they are more powerful. For managers who respect both the power of brevity and the importance of audience time constraints, a well-honed short story can become a vital strategic advantage.