Why Is Goldman Considering A More Systematic Approach To Developing Leaders

1.Why is Goldman considering a more systematic approach to developing leaders?

Goldman Sach’s rise to investment banking prominence was through a formula that entailed exemplary foresight, a committed group of diverse leaders, and the fostering of a winning culture. As a result of the firm’s increasing holdings and global size, Goldman Sachs became concerned with the need to expand on more well-developed leader-managers which would better prepare to meet the complex needs that the company was facing. Coupled with this was the complexity of the time. Investment banks were hiring through a non-tradional workforce due to the increasing labor pooling competition, sometimes referred to as the “War for Talent” (Snook, 2007, p. 2). Not only were there

Founded in 1869. With initial capital of one hundred thousand dollars ($100,000) the organization pioneered some unique leadership matrices which helped to foster a collaborative environment focusing on company success, customer retention and satisfaction and corporate pride. To further highlight these principles, executive positions were often shared by co-chairs as in the cases of - Weinberg and Whitehead together ran the company from 1976-1984 and later Friedman and Rubin who together led the fixed income division in 1984 and later the firm in 1990 (p 3). Through this initial co-presidency, fundamental values were further ingrained in the organization. This included a fourteen-point corporate code emphasizing teamwork, integrity, talent reputation and quality (Snook 2007). This construct is a solid example of Meredith Belbin’s Team Leadership Theory, key components of which include: seeking talent, building on diversity, and developing colleagues (Gosling, etal, 2003) By the mid ‘90s a series of partner-level committees were instituted, designed to provide “broader partner representation and oversee matters of strategic importance to the firm”. (p5). At a more junior-level, co-headships of product lines provided for complimentary skills in leadership along with cross-training between managers, making transitions easier if a team member left a role due to promotion or exiting the firm.

This process is paramount to the continued success of honing their new employees into high performing managing directors in an expedient manner. By incorporating additional training and development elements to their current learning foundation, it would further support their collaborative approach while simultaneously strengthening Sachs’ predilections to attract and retain the pool of leaders necessary to meet the growth demands as the company burgeons to other countries. This is the magic elixir to bolster Sachs already substantive