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Financial Services Industry

Bankers choosing write words; The first draft: Putting it together

RMA Journal, The, Feb, 2002 by Richard A. Hamm

This third article in a series on writing skills for bankers looks at putting together the first draft of text. The first article (April 2001) was on purpose; the second article (October 2001) was on preparation and tips for getting the reader's attention. The Journal seeks your samples of bank writing--good and bad--to use as examples in future articles. Send samples to Beverly Foster by fax to 215-446-4101 or by e-mail to bfoster@rmahq.org.

The primary concept in the chart at right is that understanding your purpose, then preparing to write (by thinking about an attention-grabbing introduction and considering the structure of paragraphs, sentences, and words) all precede the act of creating the first draft of text. After the first draft is completed, good writers make corrections and polish the draft, and even go the extra step of giving the piece some pizzazz.

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Creating the first draft can be surprisingly difficult. We all have differences in style, varied abilities to manage our time, and limited resources to perform the work.

Personal style differences involve the preference for a longhand or a written draft, compared to sitting down in front of your computer and starting to type. Younger bankers tend to prefer the computer option. Also, advances in software make the computer an easier option now that most word processing programs are WYSIWYG (what you see is what you get). They allow you to see the finished product on the computer screen without printing a draft. It is interesting to note that participant discussions at an RMA writing course1 bear out the fact that very few people dictate (in person or via a tape recorder) first drafts any more.

Time management is important, such as being able to minimize interruptions or otherwise control the your environment. It also includes getting an early enough start to allow for multiple drafts and perhaps helpful proofreading by a colleague.

Perhaps the biggest issue is limited resources. In RMA's course, participants discuss a number of common constraints. Examples include:

* Technology. Software programs tend to evolve faster than banks can spend money to upgrade systems, leading to difficulties in sharing documents within banks or with external constituents, such as customers, lawyers, and CPAs. These difficulties arise from differences in software programs as well as translations between versions of the same program.

* Support. Support staff continue to disappear as financial institutions streamline the lending function. Many bankers are expected to handle their own letters and memos, since they (supposedly) have the computer tools to do the job. Lack of support staff also correlates to the very low incidence of old-fashioned dictation of first drafts.

* Time. In addition to time management problems discussed earlier, participants describe intense pressure to respond quickly to customer requests. Fax and e-mail capabilities have created an expectation of immediate action. Most bankers realize that faster response time has become an important competitive advantage.

* Editing skills. Participants frequently cite editing skills as a personal deficiency. They feel uncomfortable in the role of an English grammar and composition "expert," and prefer having a manager or more experienced banker review and approve documents. However, downsizing and elimination of management layers within banks have greatly reduced the availability of staff and time to edit and review documents.

* Information. Lack of information is perhaps the biggest challenge to credit analysts or others who must compose financial analyses. Within the lending due diligence process, it is rare to have all the information up front. In fact, a thorough analysis usually creates additional questions and requests for more information from the borrower. This "cycle" of question-digestion-question-digestion can be very time consuming.

* Customer access. Analysts rarely have the opportunity to directly interview or meet with the borrower, and must rely on the calling officer to provide information beyond what is evident in the financial statements and other documents.

With all of these constraints, bankers have quite a challenge to deliver effective credit write-ups, letters, or memos. There are no easy answers, but Business Writing for Bankers participants suggest open lines of communication within banks as the best solution. This includes better communication between lenders and analysts--in particular, involving the analyst in customer visits, when practical. In addition, bankers should ask for editing help from peers and managers, despite staff constraints. Another solution is to acknowledge information deficiencies in an honest and fair manner, then reach a credit recommendation based on the information at hand.

Consider Outlining Prior to the First Draft

Many skilled writers take time to create an outline prior to the first draft of text. Of course, for very short notes or memos, an outline may not be necessary. However, longer pieces tend to be more effective with a clear outline. Despite this advantage, outlining is viewed by many as an inefficient use of time in the writing process. Consider two related situations.

Financial Services Industry

Bankers choosing write words; The first draft: Putting it together

RMA Journal, The, Feb, 2002 by Richard A. Hamm

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