SlideShare ist ein Scribd-Unternehmen logo
1 von 4
Downloaden Sie, um offline zu lesen
Appeared in New York Times yesterday

Why I Am Leaving Goldman Sachs
By GREG SMITH
Published: March 14, 2012

TODAY is my last day at Goldman Sachs. After almost 12 years at
the firm — first as a summer intern while at Stanford, then in
New York for 10 years, and now in London — I believe I have
worked here long enough to understand the trajectory of its
culture, its people and its identity. And I can honestly say
that the environment now is as toxic and destructive as I have
ever seen it.

To put the problem in the simplest terms, the interests of the
client continue to be sidelined in the way the firm operates and
thinks about making money. Goldman Sachs is one of the world’s
largest and most important investment banks and it is too
integral to global finance to continue to act this way. The firm
has veered so far from the place I joined right out of college
that I can no longer in good conscience say that I identify with
what it stands for.

It might sound surprising to a skeptical public, but culture was
always a vital part of Goldman Sachs’s success. It revolved
around teamwork, integrity, a spirit of humility, and always
doing right by our clients. The culture was the secret sauce
that made this place great and allowed us to earn our clients’
trust for 143 years. It wasn’t just about making money; this
alone will not sustain a firm for so long. It had something to
do with pride and belief in the organization. I am sad to say
that I look around today and see virtually no trace of the
culture that made me love working for this firm for many years.
I no longer have the pride, or the belief.

But this was not always the case. For more than a decade I
recruited and mentored candidates through our grueling interview
process. I was selected as one of 10 people (out of a firm of
more than 30,000) to appear on our recruiting video, which is
played on every college campus we visit around the world. In
2006 I managed the summer intern program in sales and trading in
New York for the 80 college students who made the cut, out of
the thousands who applied.
I knew it was time to leave when I realized I could no longer
look students in the eye and tell them what a great place this
was to work.

When the history books are written about Goldman Sachs, they may
reflect that the current chief executive officer, Lloyd C.
Blankfein, and the president, Gary D. Cohn, lost hold of the
firm’s culture on their watch. I truly believe that this decline
in the firm’s moral fiber represents the single most serious
threat to its long-run survival.

Over the course of my career I have had the privilege of
advising two of the largest hedge funds on the planet, five of
the largest asset managers in the United States, and three of
the most prominent sovereign wealth funds in the Middle East and
Asia. My clients have a total asset base of more than a trillion
dollars. I have always taken a lot of pride in advising my
clients to do what I believe is right for them, even if it means
less money for the firm. This view is becoming increasingly
unpopular at Goldman Sachs. Another sign that it was time to
leave.

How did we get here? The firm changed the way it thought about
leadership. Leadership used to be about ideas, setting an
example and doing the right thing. Today, if you make enough
money for the firm (and are not currently an ax murderer) you
will be promoted into a position of influence.

What are three quick ways to become a leader? a) Execute on the
firm’s “axes,” which is Goldman-speak for persuading your
clients to invest in the stocks or other products that we are
trying to get rid of because they are not seen as having a lot
of potential profit. b) “Hunt Elephants.” In English: get your
clients — some of whom are sophisticated, and some of whom
aren’t — to trade whatever will bring the biggest profit to
Goldman. Call me old-fashioned, but I don’t like selling my
clients a product that is wrong for them. c) Find yourself
sitting in a seat where your job is to trade any illiquid,
opaque product with a three-letter acronym.

Today, many of these leaders display a Goldman Sachs culture
quotient of exactly zero percent. I attend derivatives sales
meetings where not one single minute is spent asking questions
about how we can help clients. It’s purely about how we can make
the most possible money off of them. If you were an alien from
Mars and sat in on one of these meetings, you would believe that
a client’s success or progress was not part of the thought
process at all.

It makes me ill how callously people talk about ripping their
clients off. Over the last 12 months I have seen five different
managing directors refer to their own clients as “muppets,”
sometimes over internal e-mail. Even after the S.E.C., Fabulous
Fab, Abacus, God’s work, Carl Levin, Vampire Squids? No
humility? I mean, come on. Integrity? It is eroding. I don’t
know of any illegal behavior, but will people push the envelope
and pitch lucrative and complicated products to clients even if
they are not the simplest investments or the ones most directly
aligned with the client’s goals? Absolutely.Every day, in fact.

It astounds me how little senior management gets a basic truth:
If clients don’t trust you they will eventually stop doing
business with you. It doesn’t matter how smart you are.

These days, the most common question I get from junior analysts
about derivatives is, “How much money did we make off the
client?” It bothers me every time I hear it, because it is a
clear reflection of what they are observing from their leaders
about the way they should behave. Now project 10 years into the
future: You don’t have to be a rocket scientist to figure out
that the junior analyst sitting quietly in the corner of the
room hearing about “muppets,” “ripping eyeballs out” and
“getting paid” doesn’t exactly turn into a model citizen.

When I was a first-year analyst I didn’t know where the bathroom
was, or how to tie my shoelaces. I was taught to be concerned
with learning the ropes, finding out what a derivative was,
understanding finance, getting to know our clients and what
motivated them, learning how they defined success and what we
could do to help them get there.

My proudest moments in life — getting a full scholarship to go
from South Africa to Stanford University, being selected as a
Rhodes Scholar national finalist, winning a bronze medal for
table tennis at the Maccabiah Games in Israel, known as the
Jewish Olympics — have all come through hard work, with no
shortcuts. Goldman Sachs today has become too much about
shortcuts and not enough about achievement. It just doesn’t feel
right to me anymore.

I hope this can be a wake-up call to the board of directors.
Make the client the focal point of your business again. Without
clients you will not make money. In fact, you will not exist.
Weed out the morally bankrupt people, no matter how much money
they make for the firm. And get the culture right again, so
people want to work here for the right reasons. People who care
only about making money will not sustain this firm — or the
trust of its clients — for very much longer.

Weitere ähnliche Inhalte

Andere mochten auch (20)

Issue 8 April 2011
Issue 8 April 2011Issue 8 April 2011
Issue 8 April 2011
 
Easypay
EasypayEasypay
Easypay
 
Dp bulgarian 2005
Dp bulgarian 2005Dp bulgarian 2005
Dp bulgarian 2005
 
ไฟฟ้า
ไฟฟ้าไฟฟ้า
ไฟฟ้า
 
Bewonersbedrijf na tekening
Bewonersbedrijf na tekeningBewonersbedrijf na tekening
Bewonersbedrijf na tekening
 
How oracle-uses-idm-chirag-v2
How oracle-uses-idm-chirag-v2How oracle-uses-idm-chirag-v2
How oracle-uses-idm-chirag-v2
 
Q4 11
Q4 11Q4 11
Q4 11
 
3 d shape_bingo
3 d shape_bingo3 d shape_bingo
3 d shape_bingo
 
3 dni w oświęcimiu
3 dni w oświęcimiu3 dni w oświęcimiu
3 dni w oświęcimiu
 
ClinicalStandards
ClinicalStandardsClinicalStandards
ClinicalStandards
 
Unit 2 age of exploration- guided notes
Unit 2  age of exploration- guided notesUnit 2  age of exploration- guided notes
Unit 2 age of exploration- guided notes
 
Acids & Bases Day 1a
Acids & Bases   Day 1aAcids & Bases   Day 1a
Acids & Bases Day 1a
 
The Summer University in Vienna
The Summer University in Vienna The Summer University in Vienna
The Summer University in Vienna
 
GoodInKind for non-profits
GoodInKind for non-profitsGoodInKind for non-profits
GoodInKind for non-profits
 
Правила прийому до Київського Славістичного Університету 2016
Правила прийому до Київського Славістичного Університету 2016Правила прийому до Київського Славістичного Університету 2016
Правила прийому до Київського Славістичного Університету 2016
 
Quick start to the Library March 2011
Quick start to the Library March 2011Quick start to the Library March 2011
Quick start to the Library March 2011
 
Love of god
Love of godLove of god
Love of god
 
Acute medical problems in GIpractice
Acute medical problems in GIpractice Acute medical problems in GIpractice
Acute medical problems in GIpractice
 
Lesson2
Lesson2Lesson2
Lesson2
 
Atom Movie Notes -Day 2
Atom Movie Notes -Day 2Atom Movie Notes -Day 2
Atom Movie Notes -Day 2
 

Ähnlich wie Appeared in new york times yesterday

Recruiting and Managing Millennials
Recruiting and Managing MillennialsRecruiting and Managing Millennials
Recruiting and Managing MillennialsLucas Group
 
The culture of success
The culture of successThe culture of success
The culture of successanvithaphutane
 
PAUS 3211 students,I think this is a pretty decent piece havin.docx
PAUS 3211 students,I think this is a pretty decent piece havin.docxPAUS 3211 students,I think this is a pretty decent piece havin.docx
PAUS 3211 students,I think this is a pretty decent piece havin.docxherbertwilson5999
 
Why do companies lose their best talents?
Why do companies lose their best talents?Why do companies lose their best talents?
Why do companies lose their best talents?CelexProject
 
An Interview with Alexei Orlov
An Interview with Alexei OrlovAn Interview with Alexei Orlov
An Interview with Alexei OrlovAlexei Orlov
 
Five keys to achieving entrepreneurial excellence
Five keys to achieving entrepreneurial excellenceFive keys to achieving entrepreneurial excellence
Five keys to achieving entrepreneurial excellencehrt4
 
Start with why
Start with whyStart with why
Start with whyGMR Group
 
Pecha kucha besokz
Pecha kucha besokzPecha kucha besokz
Pecha kucha besokzDeny Hosea
 
Build your brand on the job - Workfront LEAP 2016
Build your brand on the job - Workfront LEAP 2016Build your brand on the job - Workfront LEAP 2016
Build your brand on the job - Workfront LEAP 2016Terri Trespicio
 
Top 10 Qualities of a Brand Ambassador
Top 10 Qualities of a Brand AmbassadorTop 10 Qualities of a Brand Ambassador
Top 10 Qualities of a Brand AmbassadorEdwin J. Goitia
 
How to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant h
How to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant hHow to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant h
How to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant hPazSilviapm
 
Real_Leaders Visionaries_100 LauraKoch #17
Real_Leaders Visionaries_100 LauraKoch #17Real_Leaders Visionaries_100 LauraKoch #17
Real_Leaders Visionaries_100 LauraKoch #17Laura Giadorou-Koch
 
16 Compelling Quotes From #Forecast2015 Speakers
16 Compelling Quotes From #Forecast2015 Speakers16 Compelling Quotes From #Forecast2015 Speakers
16 Compelling Quotes From #Forecast2015 SpeakersBase CRM
 
10 principles of bullishness
10 principles of bullishness10 principles of bullishness
10 principles of bullishnessJennifer Dziura
 
Tbcy chapter1
Tbcy chapter1Tbcy chapter1
Tbcy chapter1Man Lee
 

Ähnlich wie Appeared in new york times yesterday (20)

FiveReasons.160423.E
FiveReasons.160423.EFiveReasons.160423.E
FiveReasons.160423.E
 
Recruiting and Managing Millennials
Recruiting and Managing MillennialsRecruiting and Managing Millennials
Recruiting and Managing Millennials
 
The culture of success
The culture of successThe culture of success
The culture of success
 
PAUS 3211 students,I think this is a pretty decent piece havin.docx
PAUS 3211 students,I think this is a pretty decent piece havin.docxPAUS 3211 students,I think this is a pretty decent piece havin.docx
PAUS 3211 students,I think this is a pretty decent piece havin.docx
 
Why do companies lose their best talents?
Why do companies lose their best talents?Why do companies lose their best talents?
Why do companies lose their best talents?
 
An Interview with Alexei Orlov
An Interview with Alexei OrlovAn Interview with Alexei Orlov
An Interview with Alexei Orlov
 
Five keys to achieving entrepreneurial excellence
Five keys to achieving entrepreneurial excellenceFive keys to achieving entrepreneurial excellence
Five keys to achieving entrepreneurial excellence
 
Start with why
Start with whyStart with why
Start with why
 
Pecha kucha besokz
Pecha kucha besokzPecha kucha besokz
Pecha kucha besokz
 
Build your brand on the job - Workfront LEAP 2016
Build your brand on the job - Workfront LEAP 2016Build your brand on the job - Workfront LEAP 2016
Build your brand on the job - Workfront LEAP 2016
 
Mentoring, Week 8
Mentoring, Week 8Mentoring, Week 8
Mentoring, Week 8
 
Top 10 Qualities of a Brand Ambassador
Top 10 Qualities of a Brand AmbassadorTop 10 Qualities of a Brand Ambassador
Top 10 Qualities of a Brand Ambassador
 
Little big things
Little big thingsLittle big things
Little big things
 
How to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant h
How to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant hHow to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant h
How to Be a C.E.O., From a Decade’s Worth of ThemAdam Bryant h
 
Advertisement Analysis Essay
Advertisement Analysis EssayAdvertisement Analysis Essay
Advertisement Analysis Essay
 
Business Lessons Learned
Business Lessons LearnedBusiness Lessons Learned
Business Lessons Learned
 
Real_Leaders Visionaries_100 LauraKoch #17
Real_Leaders Visionaries_100 LauraKoch #17Real_Leaders Visionaries_100 LauraKoch #17
Real_Leaders Visionaries_100 LauraKoch #17
 
16 Compelling Quotes From #Forecast2015 Speakers
16 Compelling Quotes From #Forecast2015 Speakers16 Compelling Quotes From #Forecast2015 Speakers
16 Compelling Quotes From #Forecast2015 Speakers
 
10 principles of bullishness
10 principles of bullishness10 principles of bullishness
10 principles of bullishness
 
Tbcy chapter1
Tbcy chapter1Tbcy chapter1
Tbcy chapter1
 

Mehr von Abhishek Saha

Wenty tips to increase employee engagement
Wenty tips to increase employee engagementWenty tips to increase employee engagement
Wenty tips to increase employee engagementAbhishek Saha
 
What are the keys to success
What are the keys to successWhat are the keys to success
What are the keys to successAbhishek Saha
 
You are a masterpiece
You are a masterpieceYou are a masterpiece
You are a masterpieceAbhishek Saha
 
Words to avoid while taliking to customer
Words to avoid while taliking to customerWords to avoid while taliking to customer
Words to avoid while taliking to customerAbhishek Saha
 
20 signs that you can
20 signs that you can20 signs that you can
20 signs that you canAbhishek Saha
 
9 leadership development strategies
9 leadership development strategies9 leadership development strategies
9 leadership development strategiesAbhishek Saha
 
9 leadership development strategies
9 leadership development strategies9 leadership development strategies
9 leadership development strategiesAbhishek Saha
 
3 words that guarantee failure
3 words that guarantee failure3 words that guarantee failure
3 words that guarantee failureAbhishek Saha
 
45 lessons life taught me
45 lessons life taught me45 lessons life taught me
45 lessons life taught meAbhishek Saha
 
50 tips for surviving your worst work days
50 tips for surviving your worst work days50 tips for surviving your worst work days
50 tips for surviving your worst work daysAbhishek Saha
 

Mehr von Abhishek Saha (16)

Wenty tips to increase employee engagement
Wenty tips to increase employee engagementWenty tips to increase employee engagement
Wenty tips to increase employee engagement
 
What are the keys to success
What are the keys to successWhat are the keys to success
What are the keys to success
 
What is your story
What is your storyWhat is your story
What is your story
 
You are a masterpiece
You are a masterpieceYou are a masterpiece
You are a masterpiece
 
Words to avoid while taliking to customer
Words to avoid while taliking to customerWords to avoid while taliking to customer
Words to avoid while taliking to customer
 
An identity crisis
An identity crisisAn identity crisis
An identity crisis
 
Coin
CoinCoin
Coin
 
20 signs that you can
20 signs that you can20 signs that you can
20 signs that you can
 
My introduction.
My introduction.My introduction.
My introduction.
 
9 leadership development strategies
9 leadership development strategies9 leadership development strategies
9 leadership development strategies
 
9 leadership development strategies
9 leadership development strategies9 leadership development strategies
9 leadership development strategies
 
3 words that guarantee failure
3 words that guarantee failure3 words that guarantee failure
3 words that guarantee failure
 
100 quotes
100 quotes100 quotes
100 quotes
 
5 career mistakes
5 career mistakes5 career mistakes
5 career mistakes
 
45 lessons life taught me
45 lessons life taught me45 lessons life taught me
45 lessons life taught me
 
50 tips for surviving your worst work days
50 tips for surviving your worst work days50 tips for surviving your worst work days
50 tips for surviving your worst work days
 

Kürzlich hochgeladen

Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023Steve Rader
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 

Kürzlich hochgeladen (20)

Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023NASA CoCEI Scaling Strategy - November 2023
NASA CoCEI Scaling Strategy - November 2023
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 

Appeared in new york times yesterday

  • 1. Appeared in New York Times yesterday Why I Am Leaving Goldman Sachs By GREG SMITH Published: March 14, 2012 TODAY is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it. To put the problem in the simplest terms, the interests of the client continue to be sidelined in the way the firm operates and thinks about making money. Goldman Sachs is one of the world’s largest and most important investment banks and it is too integral to global finance to continue to act this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for. It might sound surprising to a skeptical public, but culture was always a vital part of Goldman Sachs’s success. It revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients. The culture was the secret sauce that made this place great and allowed us to earn our clients’ trust for 143 years. It wasn’t just about making money; this alone will not sustain a firm for so long. It had something to do with pride and belief in the organization. I am sad to say that I look around today and see virtually no trace of the culture that made me love working for this firm for many years. I no longer have the pride, or the belief. But this was not always the case. For more than a decade I recruited and mentored candidates through our grueling interview process. I was selected as one of 10 people (out of a firm of more than 30,000) to appear on our recruiting video, which is played on every college campus we visit around the world. In 2006 I managed the summer intern program in sales and trading in New York for the 80 college students who made the cut, out of the thousands who applied.
  • 2. I knew it was time to leave when I realized I could no longer look students in the eye and tell them what a great place this was to work. When the history books are written about Goldman Sachs, they may reflect that the current chief executive officer, Lloyd C. Blankfein, and the president, Gary D. Cohn, lost hold of the firm’s culture on their watch. I truly believe that this decline in the firm’s moral fiber represents the single most serious threat to its long-run survival. Over the course of my career I have had the privilege of advising two of the largest hedge funds on the planet, five of the largest asset managers in the United States, and three of the most prominent sovereign wealth funds in the Middle East and Asia. My clients have a total asset base of more than a trillion dollars. I have always taken a lot of pride in advising my clients to do what I believe is right for them, even if it means less money for the firm. This view is becoming increasingly unpopular at Goldman Sachs. Another sign that it was time to leave. How did we get here? The firm changed the way it thought about leadership. Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and are not currently an ax murderer) you will be promoted into a position of influence. What are three quick ways to become a leader? a) Execute on the firm’s “axes,” which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit. b) “Hunt Elephants.” In English: get your clients — some of whom are sophisticated, and some of whom aren’t — to trade whatever will bring the biggest profit to Goldman. Call me old-fashioned, but I don’t like selling my clients a product that is wrong for them. c) Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym. Today, many of these leaders display a Goldman Sachs culture quotient of exactly zero percent. I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make
  • 3. the most possible money off of them. If you were an alien from Mars and sat in on one of these meetings, you would believe that a client’s success or progress was not part of the thought process at all. It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God’s work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely.Every day, in fact. It astounds me how little senior management gets a basic truth: If clients don’t trust you they will eventually stop doing business with you. It doesn’t matter how smart you are. These days, the most common question I get from junior analysts about derivatives is, “How much money did we make off the client?” It bothers me every time I hear it, because it is a clear reflection of what they are observing from their leaders about the way they should behave. Now project 10 years into the future: You don’t have to be a rocket scientist to figure out that the junior analyst sitting quietly in the corner of the room hearing about “muppets,” “ripping eyeballs out” and “getting paid” doesn’t exactly turn into a model citizen. When I was a first-year analyst I didn’t know where the bathroom was, or how to tie my shoelaces. I was taught to be concerned with learning the ropes, finding out what a derivative was, understanding finance, getting to know our clients and what motivated them, learning how they defined success and what we could do to help them get there. My proudest moments in life — getting a full scholarship to go from South Africa to Stanford University, being selected as a Rhodes Scholar national finalist, winning a bronze medal for table tennis at the Maccabiah Games in Israel, known as the Jewish Olympics — have all come through hard work, with no shortcuts. Goldman Sachs today has become too much about shortcuts and not enough about achievement. It just doesn’t feel
  • 4. right to me anymore. I hope this can be a wake-up call to the board of directors. Make the client the focal point of your business again. Without clients you will not make money. In fact, you will not exist. Weed out the morally bankrupt people, no matter how much money they make for the firm. And get the culture right again, so people want to work here for the right reasons. People who care only about making money will not sustain this firm — or the trust of its clients — for very much longer.