From Financial Services to Blockchain and Crypto: How Executives Are Making the Switch - Heidrick ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
From Financial Services to Blockchain and Crypto: How Executives Are Making the Switch As the race for talent heats up in the crypto and digital assets sector, Heidrick & Struggles and the Global Blockchain Business Council (GBBC) collaborated on a survey to explore how executives are making the transition from traditional financial services firms to blockchain and crypto companies—and what they need to know when they contemplate the move.
F R O M F I N A N C I A L S E R V I C E S T O B L O C KC H A I N A N D C R Y P T O : H O W E X E C U T I V E S A R E M A K I N G T H E S W I T C H
Contents Making the jump 4
Five considerations when contemplating joining a crypto company 9
Looking ahead 10
2
2
H E I D R region,
Diverse I C K & inclusive
S T R U Gworkforces:
GLES Diversity and inclusion policy and practice in Asia Pacific
The idea of cryptography and digital Thus, blockchain and crypto companies The sector is also attracting
money has been around since the are attracting considerable attention attention from executives in
1970s, but it wasn’t until the publication among both retail and institutional traditional financial services
of the Bitcoin whitepaper “Bitcoin: investors seeking financial gain. The
firms who are increasingly
A peer-to-peer electronic cash sector is also attracting attention from
system” in 2008 that digital assets executives in traditional financial
comfortable joining the new
started to gain traction.1 The first known services firms who are increasingly and often volatile industry.
purchase made with bitcoin was in 2010, comfortable joining the new and often
and competitors began to emerge volatile industry. For example, Coinbase
shortly thereafter. In the past months, recently hired senior executives from
the crypto market cap has hovered Goldman Sachs, Barclays, and
around $2 trillion and is expected to Bridgewater.3
continue growing in the long term.2
1 Satoshi Nakamoto, “Bitcoin: A peer-to-peer electronic cash
system,” Bitcoin.org, October 31, 2008. 3 Joshua Oliver, Laurence Fletcher, Eva Szalay, and Philip
2 “Cryptocurrency prices by market cap,” accessed Stafford, “‘It’s wild out there’: Crypto firms lure top bankers in
December 21, 2021, coingecko.com. price boom,” Financial Times, May 26, 2021, ft.com.
3
F R O M F I N A N C I A L S E R V I C E S T O B L O C KC H A I N A N D C R Y P T O : H O W E X E C U T I V E S A R E M A K I N G T H E S W I T C H
Making the jump
To learn more about what is prompting Where are new blockchain and Previous experience:
seasoned financial services executives to crypto executives coming from? What types of financial institutions
join the blockchain, crypto, and digital executives come from (%)
assets sector, the Global Blockchain Nearly half of survey respondents
Business Council and Heidrick & (49 percent) joined the blockchain and Investment bank
Struggles conducted an online survey crypto industry from roles in investment
Other financial services companies
of 46 professionals who recently made banking. The other half came from
the move from investment banks, market infrastructure organizations, Market infrastructure firms
asset management firms, hedge funds, asset management companies, hedge
funds, and other types of financial Asset management or hedge funds
or other types of firms.4 The survey
explored their reasons for moving institutions, from securities and venture Bank holding companies
and the reality of their new roles and capital to bank holding companies.
businesses. At the time of the survey, all 4
of the respondents were still working in 9
blockchain and crypto, indicating that
the moves have so far been a success.
13
49
25
Source: GBBC and Heidrick & Struggles
4 The survey was conducted from July 2021 to October 2021. blockchain survey, 2021, n = 45
4
H E I D R region,
Diverse I C K & inclusive
S T R U Gworkforces:
GLES Diversity and inclusion policy and practice in Asia Pacific
Most respondents held high-level What roles executives had before joining a blockchain or crypto company (%)
positions at their previous institutions.
One-third came from roles as directors
Director or senior vice president 33
or senior vice presidents, and 28 percent
had previously served as managing
directors. We have seen that an Managing director 28
increasing number of senior executives
from traditional financial services Vice president 13
companies are more open to joining
blockchain and crypto companies as it
becomes clearer that cryptocurrencies Analyst or associate 11
and blockchain are a driving force
for the future of financial services. Other 8
C-suite 7
Source: GBBC and Heidrick & Struggles blockchain survey, 2021, n = 46
What’s prompting them How executives made the switch to a blockchain or crypto role (%)
to make the switch?
Nearly a third of respondents said Founded a company 31
they left their previous role to start
a company. The fact that so many Recruited by an executive at
20
executives are willing to take a risk on a a blockchain company
new venture underscores blockchain’s
role in the broader financial industry. Found a job in the blockchain space 11
An additional 20 percent said they left
their previous role because they were Invested in
9
recruited by an executive at a blockchain digital assets
or crypto company, highlighting the
Worked on a
importance of networks and connections 7
project initiative
in the digital assets space; executives
are more likely to join a blockchain Recruited by an
4
or crypto company when they know executive search firm
and trust the people working there.
Other reasons 18
Source: GBBC and Heidrick & Struggles blockchain survey, 2021, n = 45
5
F R O M F I N A N C I A L S E R V I C E S T O B L O C KC H A I N A N D C R Y P T O : H O W E X E C U T I V E S A R E M A K I N G T H E S W I T C H
What kind of companies Current stage of the companies
are they joining? 11
where executives joined (%)
A large proportion of the executives
we surveyed joined companies that are Start-up: Seed round through Series B 14 43
starting small and scaling fast. Forty-
three percent of respondents said their Growth company: Series C and above
companies are in the start-up phase,
Large, privately held enterprise
and a further 23 percent are in growth-
stage organizations. Only 9 percent Publicly traded company 9
said they work for large, privately
held enterprises. Similarly, the vast Government, academic, or nonprofit
majority reported working in companies
with fewer than 300 employees. This
trend reflects the way the sector 23
is evolving, with many companies
starting small and growing fast. Source: GBBC and Heidrick & Struggles blockchain survey, 2021, n = 44
How are companies recruiting Where would blockchain and crypto
for senior roles in blockchain companies hire from? (%) 11
and crypto organizations? 2
Personal networks
Personal networks play an outsize role
in recruiting, as we noted previously. Recruiter
Indeed, approximately two-thirds of
Internal recruitment
respondents said their company would 20
recruit through personal networks if Other
they were hiring an executive to focus
on blockchain or crypto. As the sector
is establishing itself, more and more
executives are ready to make the jump, 66
particularly if they see colleagues who
made the switch earlier succeeding. Note: Numbers may not sum to 100% because of rounding.
A large proportion of the executives Source: GBBC and Heidrick & Struggles blockchain survey, 2021, n = 46
surveyed said they would rely on
recruiting firms to fill a position; this
again resonates with our experience that
executive search firms are not generally
known for working in the sector unless
blockchain and crypto companies have
a clearly defined need for a senior
executive role. Only 2 percent said
they would first promote from within
the company, likely because executive
ranks are still thin at these small firms.
6H E I D R region,
Diverse I C K & inclusive
S T R U Gworkforces:
GLES Diversity and inclusion policy and practice in Asia Pacific
How are blockchain and crypto What skills are important for one of the three most important soft
roles different from roles executives in blockchain and crypto? skills for a blockchain executive, and
in the financial sector? 62 percent listed critical thinking.
To succeed in the blockchain and crypto Surprisingly, leadership and networking
The vast majority of participants space, executives need to be able to skills were at the bottom, but that
work on smaller teams with smaller adapt, think critically, and communicate could be a consequence of the fact
budgets in their new roles compared well. One executive said, “The pace of that respondents had to deal with
to their previous roles: 78 percent said change in blockchain vastly exceeds significant cultural change when they
their new team is smaller than the that in traditional finance. Executives joined a start-up, and learning the
one they came from, and 76 percent must process information quickly and ropes might have taken priority over
said they have a smaller budget. be comfortable making decisions in leading. It is likely the prioritization
When we asked executives about ambiguity.” Nearly three-quarters of these skill sets will change as the
what’s most different in their current of respondents cited adaptability as companies, and sector, mature.
roles compared to previous ones,
flexibility was high on the list, as well
as a sense of being able to have an
Most sought-after soft skills for blockchain and crypto executives (%)
impact. For many, culture also plays
an important role, as many are looking Adaptability 73
for an environment with a faster pace
of change and one in which they can
learn quickly and experiment, with a Critical thinking 62
less layered decision-making process.
• Project timelines are shorter Communication 42
and decision making is faster. In
keeping with crypto’s scrappy, agile Quick problem solving 40
reputation, nearly 75 percent of
respondents said they have shorter
Creativity 22
timelines, and nearly 84 percent said
that decisions are made faster.
Teamwork 20
• Hierarchies and organizational
processes are loose. Also highlighting
agility, 78 percent of respondents Accountability 18
agreed that hierarchy was less strict
in their new roles, while 62 percent
Organization 13
said the same about processes.
• Processes and roles are less Ability to identify immediate
2
clearly defined. Only 15 percent of commercial needs
respondents reported having “clear
Continuously ingesting
responsibilities,” while 63 percent 2
new information
said their roles were less defined.
Networking 2
Leadership 2
Source: GBBC and Heidrick & Struggles blockchain survey, 2021, n = 45
7F R O M F I N A N C I A L S E R V I C E S T O B L O C KC H A I N A N D C R Y P T O : H O W E X E C U T I V E S A R E M A K I N G T H E S W I T C H
When it comes to hard skills, product Most sought-after hard skills for blockchain and crypto executives (%)
management and development topped
the list, with 72 percent of respondents Product management
72
listing it among the top three. The other and development
highly rated skills were also focused
on building the business, which makes Sales and business development 68
sense for early-stage companies.
Programming and software
Looking at the success differentiators, 50
development
respondents cited flexibility, curiosity,
grit, resilience, creativity, interdisciplinary Operational
41
thinking, and “comfort with discomfort.” leadership
As one respondent summed it up,
“Blockchain is constantly evolving and Marketing 26
requires skills for adaptability, curiosity,
genuine interest, and a strong conviction Recruiting and talent acquisition 13
that we are doing the right thing.”
Financial analysis
11
and forecasting
How does compensation compare?
Legal expertise 11
When comparing total compensation
for executives in blockchain overall with
those in traditional banking, nearly half Deep crypto expertise 2
of executives said they would expect
compensation to be the same or lower Project management, rigorous
2
for executives in blockchain and crypto, analysis, and critical thinking
while more than 30 percent expected
blockchain and crypto executives to Trading 2
earn more, and 17 percent—a notably
high share—said they didn’t know. We Other 2
have seen that professionals entering
the blockchain and crypto space are
often willing to accept a lower base rate
of compensation. They know they are Source: GBBC and Heidrick & Struggles blockchain survey, 2021, n = 46
taking a risk in entering the field, but
they also know the potential rewards in
terms of equity are significant because
the volume of investment keeps
growing: global venture-capital funding
into cryptocurrency and blockchain
reached a record of $6.5 billion in the
third quarter of 2021, up from $5.2 billion As one respondent
in the second quarter.5 summed it up, “Blockchain
is constantly evolving and
requires skills for adaptability,
curiosity, genuine interest,
and a strong conviction that
we are doing the right thing.”
5 Michael Bellusci, “VCs invested record $6.5B in
crypto, blockchain in Q3: CB Insights,” CoinDesk,
November 2, 2021, coindesk.com.
8H E I D R region,
Diverse I C K & inclusive
S T R U Gworkforces:
GLES Diversity and inclusion policy and practice in Asia Pacific
Five considerations when contemplating
joining a blockchain or crypto company
The survey results reflect closely
what we’re seeing in our work in the
digital assets sector. As more and
more executives make the leap from
financial services to blockchain and
crypto, five key themes emerge:
1. Blockchain and crypto companies headquarters, and those that do are the passion to be adaptable, creative,
offer exceptional room for increasingly open to remote work and comfortable in uncertainty.
individual growth. Because the arrangements. It remains to be seen
4. The blockchain and crypto industry
field is young and growing fast, if this trend will stick, or if companies
requires different leadership
functions and responsibilities are might return to an approach that
capabilities than traditional
less clearly defined than in other prioritizes office presence.
financial services. To keep up with
industries and therefore less rigid.
3. Companies are prioritizing culture the demands of a fast-moving field,
Blockchain and crypto companies
impact over role-specific experience. successful candidates need grit,
are more willing to hire professionals
Blockchain and crypto companies are resilience, and the willingness to
with less experience in a particular
looking for professionals with enough go all in. Executives looking to join
role and are ready to promote them
industry experience to fill gaps the blockchain and crypto sector
and expand their responsibilities
required by their specific context, but need to have a high risk tolerance
on an accelerated timeline.
needs change with the evolution of and the ability to operate at a
2. Flexibility means leaders can the company. For instance, early-stage considerably more accelerated pace
shape the way their companies blockchain and crypto companies are than more traditional sectors.
operate. Flexibility is a key incentive more likely to require engineers or
for executives making the switch, and product development specialists and, 5. Culture is critical. In a new industry,
as hierarchies, processes, and roles later, sales or more senior executives. founders play a significant role
are less defined, traditional factors As potential regulatory requirements in shaping company culture, for
such as time spent in the office have are looming, many blockchain and better or worse. Candidates would
faded in terms of relevance as the crypto companies are now looking for do well to ensure they understand
COVID-19 pandemic progressed legal and compliance specialists. But the culture of the organization they
and working from home became whatever hard skills they’re looking are considering joining. The fact
a common occurrence. Some for, blockchain and crypto companies that so many are hired through
organizations do not have traditional undoubtedly need people who have networking offers an advantage.
9F R O M F I N A N C I A L S E R V I C E S T O B L O C KC H A I N A N D C R Y P T O : H O W E X E C U T I V E S A R E M A K I N G T H E S W I T C H Looking ahead As we look ahead, one thing is clear: disruptions of the COVID-19 pandemic. the blockchain, crypto, and digital For the immediate future, professionals assets space will continue to evolve in who want to capitalize on today’s unpredictable and dramatic ways. The dynamic growth potential will need to exponential growth we have recently ensure they have the capabilities to seize seen could well continue, or there could the opportunity to reinvent themselves. be a hiring bubble propelled by the 10
H E I D R region,
Diverse I C K & inclusive
S T R U Gworkforces:
GLES Diversity and inclusion policy and practice in Asia Pacific
About the authors Sofia Arend David Richardson
is the director of communications is a partner in Heidrick & Struggles'
at the Global Blockchain New York office and a member of the
Business Council. Financial Services Practice. He also
leads the Market Infrastructure & Data
sofia.arend@gbbcouncil.org
Services sector and the Crypto &
Digital Assets sector.
Riyad Carey
is a senior policy analyst at the Global drichardson@heidrick.com
Blockchain Business Council.
Sandra Ro
riyad.carey@gbbcouncil.org is the CEO of the Global
Blockchain Business Council.
Adrianna Huehnergarth
is an engagement manager in info@gbbcouncil.org
Heidrick & Struggles’ New York
office and a member of the Financial
Services and Crypto & Digital Assets
practices.
ahuehnergarth@heidrick.com
11About the The Global Blockchain Business Council (GBBC) is the leading global
industry association for the blockchain technology ecosystem with
Global
more than 350 institutional members, and 130 Ambassadors from 76
jurisdictions and disciplines. GBBC is dedicated to furthering adoption
of blockchain through engaging regulators, business leaders, and global
Blockchain changemakers on how to harness this groundbreaking technology to
create more secure, equitable, and functional societies.
Business
Council
The Global Blockchain Business The Global Blockchain
Council has offices in Geneva, Business Council can
be reached at:
London, New York, and info@gbbcouncil.org
Washington, D.C.
Specialty Heidrick & Struggles’ Specialty Practices advise our clients on emerging
technologies and disruptive innovation. Our search capabilities help the
Practices
most innovative companies reach their ambitions for growth, scale and
brand impact, accelerating their paths to industry disruption.
These practices include:
• Data, Analytics & Artificial Intelligence
• Crypto & Digital Assets
• Cybersecurity
• Robotics & Internet of Things
Leaders of Heidrick & Struggles’
Specialty Practices
Global Sam Burman
Global Managing Partner
sburman@heidrick.com
Sector Matt Aiello David Richardson
Cybersecurity Crypto & Digital Assets
maiello@heidrick.com drichardson@heidrick.com
Ryan Bulkoski
Data, Analytics & Artificial Intelligence
rbulkoski@heidrick.com
Copyright © 2022 Heidrick & Struggles International, Inc.
All rights reserved. Reproduction without permission is
prohibited. Trademarks and logos are copyrights of their
respective owners.You can also read
