Reputation and someone's money going on the line

PHILIPPA MALMGREN

A managing director or Warburg Dillion Read (UBS) in London

What did the APEC Chief Executives Summit in September mean to you?


No amount of guessing can substitute for finding out what people really think. The CEO Summit was a great opportunity to find out how Asian executives and Asian policy makers are thinking about the region in the aftermath of the financial crisis. The mood was decidedly upbeat.

Did you get an opportunity to visit any other places in New Zealand on your recent trip?


I have been to New Zealand nearly twice a year for some 3 or 4 years now and somehow my work schedule never permits me to take some time to enjoy the countryside. Of course it does not help when your colleagues and clients find out that you are "in the region". As soon as they hear that, they want you to stop in Singapore or Hong Kong or Tokyo.

"As long as you are out here, you might as well come by Tokyo." I often point out that this is the same as saying that they "might as well stop in Tierra del Fuego (the southernmost tip of Latin America) as long as they are in New York." Even that does not really work. In this modern world of global travel and communications New Zealand is still a long way away.

What makes your day at work?


Being right. Financial markets have no pity. When you say you think the euro will strengthen or that the Bank of England will raise interest rates, for example, it is obvious very quickly whether you were right or wrong. Your reputation and somebody's money is at stake, so it is important to be right. On the other hand, probably the single most important skill in financial markets is the ability to admit when you are wrong. If you are prepared to admit that you were wrong about something then you make it possible to learn something you did not see before. That can only make it easier to be right in future.

How did you get where you are today?


Hard work, luck, serendipty. Who knows? When I was in my late teens and throughout my twenties I used to be like the old Soviet Union. I had five year plans that were revised every three years. That worked pretty well until opportunities started to come my way that I had never considered. Such opportunities involve risk precisely because one has not thought about them before. In the end, the biggest risk you take is taking no risk at all. Luckily I also realised that you have to take the biggest risks when you have very little to lose. That's typically when you are young and you do not yet have a mortgage or a partner or other life responsibilities. If you learn how to take risks then, you will be more comfortable taking risks later when you have potentially more to lose.

What were the most important lessons you learned on your way up?


The ability to communicate with the man in the street is the most valuable skill a person can have. Notice that nearly all the Nobel Prize winners in science can explain their work so that even your mother or your grandfather could understand it. Great people have the ability to make what they are saying clear and accessible to everybody no matter how complicated, technical or removed their profession might be. Successful leaders are also able to explain their message without being condescending in any way.

What advice would you give to a young person starting out in your field of business?


You will find it easy to rise to the top if you really love what you do professionally. If your career choices are driven by the desire for security or financial rewards then it is likely that someone who really loves the job will beat you to the top. If you love what you do it will be obvious to everybody, you will do a better job than your competitor and someone will always be willing to pay you for that.

Always try to follow the advice of the Queen in Alice in Wonderland. She said one should try to imagine at least 10 impossible things before breakfast. In reality these things almost always actually happen. Preparation for the impossible is more than half the battle.

Also, try to find a balance between being a specialist and a generalist. Your specialisation will give you the skills you need to make progress in your field. But your ability to see the bigger picture is what sends you to the top of your field.

What's the biggest challenge to your organisation in the present economy?


Having been with Warburg Dillon Read for only six months, I think all the challenges are still my own and not the organisation's.

What ambitions do you have?


Just one. To be able to do more and more and still keep my balance. Some say "you can't have it all". My husband, Paul O'Donnell, a mad Australian, always says "why not?" So, he is a great help in keeping me going.

How do you relax?


My husband and I spend a lot of time travelling for work and for fun. For the last few years I have been on the road at least 170 days each year. If you have to go somewhere on business you might as well try to enjoy it. I try to find out what is the new up and coming restaurant or the best restaurant in any city I visit. Wine and food are a great passion. This is good for the soul but not so good for the middle so we go skiing and snowshoeing in winter, hiking in the mountains in the summer. I also love going to the movies.

* Dr Philippa Malmgren talked with Susan Jennison.