Tech executives in particular should take a page from top financiers on how to build efficient, competitive, and successful companies.

While the financial industry often gets a bad rap, it is important to note that not all finance organizations are created equal. The most sophisticated and successful financial institutions are incredibly vigilant about plugging holes and rooting out corruption. This is largely due to the fact that legislation forces transparency in the sector.

Leaders in other fields can learn a great deal from studying leading finance companies. Unlike tech companies, which maintain relatively friendly relationships with competitors, finance is a dog-eat-dog world. Finance companies refuse to permit bloat and inefficiencies because they can't afford such distractions when billion-dollar decisions are on the line.

Finance's Finer Points

Not all business leaders desire a house in the Hamptons and a private yacht, nor do they thrive on the fast-paced, 24/7 work ethic that finance demands. But founders and executives of all stripes could stand to cultivate some of finance leaders' most effective qualities.

Here's what distinguishes the leaders and winners in the finance industry:

  • They take management seriously.

Major finance corporations conduct extensive management training that yield standardized processes and well-trained leaders. Executives in the tech industry would benefit from more intensive training, for ourselves and our staff members, before diving into or doling out management positions.

  • They recruit talent aggressively.

Finance companies know how to entice the brightest analytical minds, and they hook them before they've even started their careers. Much like talent scouts pursue college athletes for the big leagues, top finance organizations operate strong recruitment programs. They visit the best universities in the country, promoting their grade-A internship opportunities to promising would-be investors.

  • They're data-driven.

Finance professionals rely on high-level, high-quality data information to stay on their competitors' trails. Minute alpha advantages make the difference in billions of dollars in profit, which is why you see finance companies using predictive tools that are years ahead of those in any other industry.

  • Finance is a zero-sum game.

Professionals in this field either win big or lose big, and they're keenly aware of what's at stake. That mindset creates a hyper-focused approach to delivering results.

 

How Tech Can Be More Like Finance

Tech companies can learn a great deal from the finance industry by:

  • Investing in management training. 

Tech executives should make it a priority to develop their own management skills and to train their staff members to be effective leaders.

  • Recruiting top talent aggressively.

Tech companies should invest in strong recruitment programs to attract the best and brightest minds in the field.

  • Becoming more data-driven.

Tech companies should make better use of data to inform their decision-making and to develop new products and services.

  • Investing in management training. 

Tech companies should recognize that they are operating in a competitive marketplace and that they need to be constantly innovating and improving in order to succeed.

By following these tips, tech companies can become more efficient, competitive, and successful.