As an investment banker, you may often face questions from clients, colleagues, or interviewers that require you to demonstrate your knowledge, skills, and professionalism. How you answer these questions can make a big difference in your credibility, reputation, and success. Here are some tips for answering questions in a clear and concise manner.
Before you answer any question, you should consider who is asking it and what they want to know. Are they looking for a high-level overview or a detailed analysis? Are they familiar with the terminology and concepts you are using or do you need to explain them? Are they friendly or hostile to your point of view? Tailor your answer to suit your audience's needs, expectations, and preferences.
Give the question and person asking it respect. This question is important to them. A question can be a means to answer some other issue. Good to clarify what the questioner means by their question, what is their intent.
Pause for a moment before answering.. If a person feels they will be given time to ask the question at their own pace they will often instinctively use that time to self-edit and refine or clarify their point. By focussing on listening and providing a short pause before speaking, it gives the person asking the question time to arrive at the question they really want you to answer, and signals a respect to their contribution and willingness to consider their point before taking your turn to respond.
I'd like to add that the first step is to take the time to read the question and make sure that you understand what the person is asking for. If it is not clear, do not hesitate to ask for clarification.
Make a pause before responding to the specific question. This gives you time to receive, process, and think about what you want to say or ask next.
1. Audience Identification: Recognize the questioner's background and intent. 2. Purpose Clarity: Understand if they seek an overview or detailed insights. 3. Familiarity Check: Assess their familiarity with terms, explaining as needed. 4. Tone Assessment: Identify the tone – friendly, neutral, or potentially hostile. 5. Tailored Response: Adjust answers to meet their needs and expectations. 6. Concise Communication: Deliver information efficiently. 7. Adaptability: Flexibly adjust response style to diverse audience traits.
A well-structured answer helps you organize your thoughts, communicate your main points, and avoid rambling or digressing. A simple way to structure your answer is to use the STAR method: Situation, Task, Action, and Result. Start by briefly describing the situation or context of the question, then explain what task or goal you had, then describe what action or steps you took, and finally summarize the result or outcome of your action. This method helps you showcase your problem-solving, decision-making, and analytical skills.
Structuring an answer takes time. I often heard "I answer very quickly"... If you can answer very well and wery quickly, that's great but in my experience the vast majority of the quick answers missed the point. Therefore, taking the time is key if you want toget back in a structured and comprehensive way
The best way to answer is to start with an example or a incident/ situation People find it eay to relate when explained or answered that way rather than just closing the question
Situation: Introduce the context or scenario where a task or question arises. Task: Clearly define the task or goal at hand, outlining the objective. Action: Detail the specific actions taken to address the task, providing a step-by-step approach. Result: Summarize the outcome or results achieved, emphasizing the impact of the actions taken. This structured approach ensures a clear and organized response, allowing for effective communication of your thought process and showcasing relevant skills.
Avoid vague, generic, or irrelevant answers that do not address the question or provide any value to the listener. Instead, use specific examples, facts, or figures that support your answer and demonstrate your expertise. For example, if you are asked about a deal you worked on, you can mention the name of the client, the size and type of the transaction, the role you played, the challenges you faced, and the impact you made. However, be careful not to disclose any confidential or sensitive information that may violate your ethical or legal obligations.
Answer the question simply without using vague statements and substantiate your answer with factual examples to demonstrate that you know what you are talking about.
Precision in Details: Focus on providing specific and detailed information relevant to the question. Concrete Examples: Illustrate points with real-world examples, incorporating names, figures, or specific circumstances. Relevance Emphasis: Ensure every part of your response directly addresses the question, avoiding unnecessary information. Expertise Demonstration: Showcase expertise by incorporating facts or figures that enhance the credibility of your answer. Confidentiality Caution: Exercise discretion, refraining from sharing confidential or sensitive details that may breach ethical or legal boundaries.
Do not waste time or words by repeating yourself, adding unnecessary details, or using filler words such as "um", "like", or "you know". Instead, use clear and concise language that conveys your message in the shortest and simplest way possible. Avoid jargon, slang, or acronyms that may confuse or alienate your audience. If you are not sure if your answer is clear and concise, ask yourself: Does it answer the question? Does it make sense? Does it have a clear beginning, middle, and end?
One thing I found helpful is my former CEO's request "if you send me an e-mail, it has to contain the core message in the first sentences and be shorter than 10-12 lines, otherwise, I do not read it". I always keep this rule in mind!
I have found the most effect way to communicate on concise matters and keep focus on key points is to follow the BIFF framework: Brief, Informative, Factual & Friendly
Your tone, voice, and body language can affect how your answer is perceived and received by your audience. Speak with confidence, clarity, and enthusiasm, but also with respect and humility. Do not sound arrogant, defensive, or aggressive, as this may damage your credibility or rapport. If you do not know the answer to a question, do not panic or lie. Instead, admit that you do not know and offer to follow up later with more information. If you encounter a difficult or hostile question, do not take it personally or lose your composure. Instead, acknowledge the question and respond calmly and professionally.
Confidence in Communication: Speak with assurance and clarity, conveying your message confidently. Enthusiastic Tone: Infuse enthusiasm into your voice to engage the audience positively. Respectful Demeanor: Maintain a respectful and humble tone, avoiding arrogance, defensiveness, or aggression. Admission of Lack of Knowledge: If unsure, admit not knowing and offer to follow up, fostering honesty. Calm and Professional Handling: Remain composed and professional, especially when faced with challenging or hostile questions.
After explaining my answer I do use clear examples to my audience, how they can apply it, also talking about how someone did before, comparing their results before and after.
1) Repeat the question in your own words if it is complex to be sure you know what you're answering. 2) Follow up after, did I answer your question?