5 Skill Sets Impact Investing Managers Should Cultivate
1. Technical: Specialized knowledge bases, including, but not limited to social sectors (health, housing, education, etc), technology and systems, operations. The greater the breadth and depth of knowledge, the better the chances of finding & exploiting hidden synergies and opportunities.
2. Tactical: Think of tactical skills as the “how” response to a technical challenge. What financial instruments has an individual used and how creative were the structures and deals? How well do these skills translate? An equity analyst used to widely-covered and analyzed US stocks might find due diligence on early stage emerging markets social enterprises to be a completely new experience. Fundraising is another important tactical skill to keep in the mix.
3. Strategic: My definition of strategy covers values, vision and empathy. The ability to explore and assess the potential rewards or consequences of a given action or investment is a critical skill for investment managers. When problem-solving, how many alternatives does a person typically generate, or do they tend to see a single “right” answer based on precedent? Creativity, curiosity and healthy understanding of risk (in all its forms) play a role in effective strategy development. It may require time and direct interaction to understand a person’s strategic competence, and not everyone is strategically inclined. We’ve all known brilliant analysts without a strategic bone in their bodies: this is worth thinking about when you’re designing individual career development plans!
4. Communications & Management: I think of this skill set as a continuum of relationship and leadership building. As an analyst, your ability to crunch numbers, write and deliver clear arguments for or against an investment may be what matters most. By the time you’ve matured into a senior investment officer, manager or director, the ability to inspire and motivate others is likely a higher priority.
5. Geographic: Don’t let the name lull you into complacency. Geographic skills include cultural understanding, languages, field experience and even academic background. While you always have the option of deploying excellent technicians and tacticians without any of this “geographic” expertise, I guarantee that understanding local language, culture and history contribute to better performance outcomes.
