Brian Urkowitz, Head of Merrill Lynch's Global Transactional Client Services: "We rely on our junior team members to critically analyze processes, and recommend improvements, or to engage senior managers to make necessary changes to increase our level of quality."

As managing director and head of Global Transactional Client Services for Merrill Lynch, Brian Urkowitz is responsible for delivering services across the firm's entire Global Markets and Investment Banking Services (GMIS) unit. In addition, he oversees Global Equity Financing (GEF) middle office functions, which provide operational support to Merrill Lynch's Prime Broker, Exchange Member Clearing and Stock Loan businesses.

How did you come to specialize in Operations?

I started out at Salomon Brothers, working in its Branch Office Operations Training Program. The program was designed to create managers of their institutional offices across the country. It consisted of classroom training and operations functions rotations. When I finished, I wound up in the internal consulting group, working on projects to improve the sales support strategy. It was a great start because through the project I met lots of people throughout the organization.

The person who headed the group came to Merrill, and I went along with him to a similar function. The nature of the work was such that I met senior team members of the Operations group. It was a nice jump start to my career.

I then got sent to London to help manage the futures client service team. At the time, we were implementing a new system. I went there to work on systems, but got management experience.

Because of the consulting-like nature of the group I was in, I felt I needed an MBA. Merrill encouraged me to return to school and said I could come back when I got my MBA. I went to the Tuck School (at Dartmouth), and after graduating went to work in Merrill’s portfolio trading operations group. Next I ran the equity derivatives operations group.

This was an interesting time because this business area was becoming regulated and I was able to help design systems for being a regulated business. A year later, I had a great meeting with my boss about what I was going to do next. I wanted to go to a smaller place to see a more holistic picture of operations. There was an opening in Tokyo, so I went to manage equity operations in Japan. It was a great assignment because the business environment was changing. We were merging our retail and institutional businesses. The equity business was becoming deregulated. Also, I got to meet with senior people when they came to the region.

I then returned to the U.S. to run the product development team that I started with. A little later, I got the responsibility for the custody functions - we manage $1.6 trillion, and process several million transactions a day, and eight million client accounts. Next, I managed the operations that support our prime brokerage business. I still look after that team today. Most recently we put an emphasis on quality client service, and I run the functions that provide client services for traditional debt and equity businesses.

What's a typical day like for you?

It usually begins with 30 minutes of catch up on e-mail or a morning meeting. There can be conference calls with other regions. Today, it was with Europe about business growth. Our business is growing quickly and we have to better understand the impact direct market access has on operations. With our business team in London, we looked through plans and how to respond.

Then, I had breakfast with our summer analyst program from Dartmouth - as an alumni, I was able to arrange for a group of undergraduate students to work here. For the next hour and a half, I had a client services management meeting. This gathers the global Client Service team to discuss strategy and client issues.

Then, I'll spend about an hour and a half catching up on calls and e-mail. I'll have an hour meeting with the team to review metrics about clients and vendors; data that will tell us how about how we interact with our clients, what goes well and what needs improvement. Next, we'll have one-to-one meetings with each client service functional head about controls. We have a monthly sit down to review our outstanding payables and receivables. We focus on client needs and protect the firm from operating risk. At 4 p.m. I reviewed the technology efforts for our prime broker business. Later, there's a conference call about a specific client request. We buy data from sources that tell us what corporate actions are occurring so we can advise clients. This client wanted a new type of method of notification. Typically, we do it through e-mail and the Internet. This client wanted to have a file sent directly to them so they can upload it.

How does your role now compare with earlier in your career?

The biggest change is that earlier I knew every transaction that my team was involved with. I could give guidance to the group on trades. Now, I'm at a point where I don't worry about specific transactions unless things go wrong. I worry about what the business will want in the next six months or year, and whether we're positioned to deal with it. I now worry about capabilities.

Until recently the challenge of an operations manager was to do it cheaply without sacrificing controls. More recently, clients have told us that operations is an important factor in how they decide to do business. They want us to do it at the right price, but with greater concern about service. That has made our work a high priority in the company. So, the changed emphasis on the importance of operations is a great thing for our business.

Any advice to up-and-coming staffers?

The biggest thing is to be able to look at how things are done and ask why and whether it be done more efficiently. Any big brokerage house has many processes that are ten or twenty years old. They work very well and are very reliable. We rely on our junior team members to be able to critically analyze processes, and recommend improvements, or to engage senior managers to make necessary changes to increase our level of quality. It's important to always question whether or not there is a better way to do something. Ask yourself whether you can solve a particular client problem differently.