Training Grounds – Carnegie Corporation of New York (EP.377)
Apr 1, 2024
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Join seasoned allocators Ellen Shuman, Meredith Jenkins, Kim Lew, and Alisa Mall as they explore how Carnegie Corporation of New York nurtures industry leaders. They dive into the organization's unique training culture that has produced numerous CIOs, even rivaling the famed Yale model. Discover insights on their investment philosophies, the significance of teamwork, and the evolution of leadership dynamics. The conversation highlights key strategies in fostering talent and adapting to change within the investment landscape.
Carnegie Corporation of New York has successfully developed numerous future industry leaders in the investment field, with a majority of investment professionals progressing to CIO roles or leadership positions in related fields.
Ellen Schumann emphasizes the importance of scrutinizing the team behind the investment strategy, rather than just focusing on the strategy itself, leading to unconventional and successful investment decisions at Carnegie Corporation.
The podcast highlights the delicate balance between autonomy and responsibility in decision-making, showcasing how a collaborative culture led by Ellen Schumann enabled diverse perspectives and critical thinking, resulting in a resilient and successful investment strategy at Carnegie Corporation.
Deep dives
Evolution of Talent Development and Team Structure
The podcast episode delves into the evolution of talent development within the Carnegie Corporation team. Ellen Schumann, the first CIO at Carnegie, describes the initial challenges of building a team and promoting individuals. Over time, with the team growing and portfolio maturing, roles became more defined. The team's structure evolved from intense brainstorming sessions to a more systematic approach, fostering professional growth and specialization.
Manager Selection Process Insights
The discussion reveals valuable insights into the manager selection process at Carnegie Corporation. The process involved extensive due diligence, emphasizing the importance of understanding the team dynamics and investors' personalities. Ellen's emphasis on scrutinizing the team behind the investment, not just the strategy, shaped their approach. The team's flat hierarchy enabled open discussions and thorough vetting, leading to unconventional, successful investments.
Balancing Autonomy and Responsibility in Decision-making
Central to the episode is the delicate balance between autonomy and responsibility in decision-making. Ellen Schumann, as the CIO, navigated this balance by empowering her team members while ultimately shouldering the responsibility. The team's collaborative approach involved candid discussions, allowing diverse perspectives to influence decisions. The culture fostered by Ellen encouraged individual growth and critical thinking, culminating in a resilient and successful investment strategy.
Nurturing Professional Growth and Decision-making Process in Carnegie Corporation
The journey within Carnegie Corporation showcases the emphasis on nurturing professional growth and a robust decision-making process. From the early stages of hiring and promotion challenges, to the team's cohesive evolution in talent development, the episode highlights the continuous learning curve. The transition from crisis-driven portfolio building to a structured decision-making approach reflects the team's adaptability and strategic acumen. The collaborative dynamic, flat hierarchy, and commitment to personal growth underpin Carnegie's success and enduring legacy.
Evolution of Leadership at Carnegie
The podcast delves into the evolution of leadership at Carnegie over time, showcasing how key team members transitioned into higher roles. Ellen's decision to leave after nurturing a strong team highlights the importance of succession planning and fostering talent within the organization. The discussion emphasizes the significance of building a strong team with bench strength to ensure seamless transitions and continuity in leadership roles.
Cultural Shifts and Organizational Adaptations at Columbia
The conversation shifts to Kim's transition to Columbia University and the challenges faced in inheriting a new team and a different investment philosophy. The podcast highlights the importance of cultural alignment and adapting leadership styles to fit the organization's needs. Kim's experience underscores the value of listening tours and leveraging past learnings to navigate unfamiliar territories, emphasizing the importance of building a cohesive team and fostering an environment that encourages risk-taking and growth.
Today’s show is the first in an ongoing mini-series discussing Training Grounds, organizations that have developed and spawned future industry leaders. We’ll cover both allocators and managers to see what we can learn about developing talent.
In the first episode of the mini-series, we discuss Carnegie Corporation of New York. Ellen Shuman became Carnegie’s first CIO in 1999 after working for David Swensen at Yale. Over her dozen year tenure and that of Meredith Jenkins and Kim Lew for the next dozen, and incredible 8 of the 17 investment professionals that walked in the door have become CIOs, and the rest appear either on their way or found their passion as leaders in complimentary roles or outside the industry. Those who became sitting CIOs are Meredith at Carnegie and Trinity Wall Street, Kim at Carnegie and Columbia, Jon Michael Consalvo at Carnegie, Alisa Mall at Michael Dell’s Family Office, Niles Bryant at Bowdoin College, Brooke Jones at Bryn Mawr College, Ken Lee at Children’s Healthcare, and Li Tan at Radian X. Carnegie is a lesser-known allocator training ground than Yale, but it’s produced half the number of future CIOs from fraction of the team size.
My guests to discuss how this happened are Ellen Shuman, Meredith Jenkins, Kim Lew, and Alisa Mall. We cover the chronology of their paths, and the Carnegie organization and investment process, including recruiting, culture, research, decision-making, and succession. Alongside the many applicable lessons they share, their palpable love and respect for each other is evident from the get go.
