A legendary Morgan Stanley banker reveals the importance of 'emotional intelligence' on Wall Street
Over his 40-year banking career, James Runde learned that being just as smart and hardworking as his colleagues wasn't enough.
Instead, developing emotional intelligence, or "EQ," is key to getting ahead on Wall Street, Runde wrote in an article published Monday by the Harvard Business Review. Runde started working at Morgan Stanley in 1974 and eventually served as a vice chairman in the bank's investment-banking unit.
"Without EQ, it's likely that you will be your firm's 'best-kept secret' — not recognized, not appreciated, not promoted and, often, not properly compensated," Runde wrote. "Developing EQ is just as pertinent for the recent graduate who is starting out, as it is for the seasoned veteran."
As you move up the ladder, you will have to be self-aware, flexible, and open to new things, Runde wrote. That will not only help expand your network but also make you more prepared for future responsibilities.
Collaborations are also important, since performance reviews reward team players rather than those acting as lone wolves.
Building trust is another key factor to winning business.
Here is Runde:
"Building a relationship of trust can take years, but it pays dividends. For years, I worked with one client on a mergers and acquisition concept that never materialized. But over that time I gained the client's confidence because I listened and was reliable. That client, United Parcel Service, ultimately awarded our firm with the lead-underwriting role in the largest initial public offering in history at that time."