Inside the 5-hour psychological interview that can make or break your career at Citadel, Blackstone, and other finance titans
Its founder, Geoff Smart, detailed its vetting process, used by firms like Blackstone and Citadel.There's an unassuming group of talent whisperers who have the ears of top titans in finance.
Unlike many corporate psychology assessments, ghSmart can play an outsize role in determining a candidate's fate because it takes a stance on whether the candidate should get the job or be shown the door. When the company recommends against hiring a candidate, that's often the end of the line. Smart was pursuing a Ph.D. in psychology from Claremont Graduate University, studying under the business-management legend Peter Drucker, when he reached out to Henry Kravis, a cofounder of the private-equity giant KKR. For his dissertation, Smart wanted to study how venture capitalists evaluate and choose who to invest in, and he was hoping Kravis, a Claremont alumnus, would agree to participate in a study on evaluating management teams.
Smart said clients typically spend $500,000 to $5 million a year on ghSmart's services, but some spend over $10 million a year. Smart said the firm had grown by about 20% per year for the past decade — in 2022 its total revenue was $105 million. Having an independent expert determine the likelihood of a strong match is useful, especially for high-stakes hires."There is something to be said for the idea of having somebody who has a somewhat systematic, repeatable, disciplined way of evaluating people's fit," the hedge-fund exec added.The interview is rigorous and thorough. Candidates discuss their entire life, including their childhood experiences, dreams, and ambitions, Smart said.
That means the ghSmart interview isn't something you can necessarily prepare for in the same way you might, for example, read up on certain stocks or industry trends. The assessment is about telling the story of your life and career — and if it's not a fit, it's just not a fit, Smart said. Anyone can embellish their experiences and accomplishments in an interview. But psychologists who spend hours with candidates tend to sniff that out, Smart said.
Smart said the assessment is looking to glean patterns of successes and failures from the candidate's answers. In an effort to put prospective clients at ease, Smart financially guarantees its services, meaning clients can request a refund for any work they deem not valuable. Smart said he's turned down would-be clients because of concerns about ethics and diversity, equity, and inclusion, as well as doubts about whether ghSmart could meet a client's needs.
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