Pages
Stay In Touch
More
© 2010, © 2011 LARRY BROUGHTON, All rights reserved.
Today’s Op-Ed piece in the New York Times by Greg Smith, who is resigning today as a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa, has simply blown me away. I may have a new business hero! If you ever wanted an explanation of why corporate culture is so vital to the organization’s success, read on. No matter the size or nature of your organization, this truly is a “must read.”
Op-Ed Contributor
Why I Am Leaving Goldman Sachs
By GREG SMITH Published: March 14, 2012TODAY 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.
READ MORE by clicking here. You will be taken to full article at NYTimes.com
I need time off from my own bad behavior.
As leaders we set the standards of excellence for our organizations—accepting the duty to provide, protect, and nurture our teams. When was your last reality check on whether you’re actually walking your own talk regarding these key responsibilities? Take a deep breath and reflect on the expectations you have of others. Now, reflect on your own behaviors. Do you keep people waiting, miss important deadlines, fail to fulfill promises, breach your own integrity standards, or show bad sportsmanship? Reality bites, doesn’t it? Yes, you’re the leader. Sure, you may work harder and longer. Heck no, you’re not exempt from your own code of conduct, nor the behaviors you expect from your own teammates. How will you ensure your own actions meet the standards you expect of others?
Everyone talks the talk. Most folks walk the walk. No one likes to admit they lack it. Without it, motivation is dangerous, relationships turn toxic, and power becomes disastrous. What is it? Integrity.
What would you do if a friend shared a false or hurtful rumor about you, but refused to disclose its source, and in fact neglected to defend or stand-up for you? What would you do if a self-proclaimed integrity-loving client reneged on important elements of a written agreement, then told you that pursuing any sort of action to uphold the agreement would “damage the relationship?” These are everyday situations we all must face at some point.
Sure, we understand the definition of integrity as the adherence to a moral or ethical code. But, isn’t the practical application, though, just insuring that our behaviors match our values? So, when our values and behaviors are congruent, are we be “walking the walk” or “walking the talk” or both? Hmmm.
It seems the “friend” is really no friend at all for sharing the rumor and not defending you against what he/she knows to be false information; and the words and proclamations of the “integrity-loving client” prove empty while their actions reflect the true nature of their character, right? Truthfully, both relationships are already damaged. Isn’t it best to simply sever the ties?
The dilemma: you have history with both the friend and the client…but, is there value in continuing to invest in either relationship? Does one have more value than the other?
I’m fond of preaching that we become the average of the people we hang out with the most. If it’s true (and I believe it is), don’t we want to surround ourselves with people who make the right choice, and do the right thing, even when it’s difficult and painful?
Sadly we face the dilemma of breached integrity in personal relationships and professional dealings far too often. We’ve become weak and morally bankrupt when we’re more concerned with avoiding a difficult conversation or a painful situation than we are about making the right decision or doing the right thing.
My high school wrestling coach used to teach that short-term pain brings long-term gain. He was talking about pushing our physical bodies to the limit, never giving up, and avoiding the bowls of ice cream during the wrestling season. But the same lesson applies when faced with potential breaches of integrity. Most could be avoided if we were simply willing to suck-it up, make the difficult choice, and do the right thing.
Make the right decision today.
So, what’s it take to be a world-class leader in any industry, organization, or position? Here’s my stab at the answer.
I was honored recently to have spoken at the Lessons On Integrity Breakfast Series, sponsored by Ethical Edge, on the topic of Trust: Your Leadership. It was great to speak to the group business owners and executives, but I had to do much of the presentation “old school” (sans powerpoint) because of some difficulties with technology that crept in to the event. We made light of it, had a few belly laughs, and ultimately just drove on without it.
I contend we have A Crisis Of Trust in the US, driven by the painful events of the first decade of this century: terrorist attacks of 9/11, corporate scandals, globalization, wars in Afghanistan and Iraq, the recession, and technology changes that many do not understand. Trust indices around the world are declining: we don’t trust CEOs, we don’t trust accountants, we don’t trust lawyers, and we don’t trust politicians.
What we do know, however, is that the environment in which leaders are operating today is significantly more complicated, and less predictable than in the past. It’s no wonder Time magazine named the first 10 years of this century The Decade From Hell (see cover story here).
Earlier in the week, as I was preparing for my talk, I did what any good speaker does…I sought wise counsel from my friends…on facebook and twitter. My friend Greg Leith, shared this pearl of wisdom: “Without trust, the leader is simply a puppeteer who THINKS s/he is leading. Within a short time period, people who can, EXIT…and those who remain are simply being psuedo-controlled by a deluded leader.” Well put, Greg!
The truth is, trust directly impacts performance and profitability. When trust is low or absent, speed and efficiency go way down, costs go way up. But, when trust goes up, speed and productivity goes up, and cost go down. I forget where I first heard this, but it has stuck with me for years: “Trust is like money. It’s tough to get and easy to lose.” I would add that it’s at the heart of all great leadership, and without it leadership is impossible.
Effective leadership, productivity and team morale are in direct proportion to the level of trust found within an organization. As managers and leaders, our ability to convey trust plays a significant role in effectively leading others, and nothing impacts an organization’s productivity more than the level of trust found within it.
(information of booking my keynote on A Crisis of Trust: LarryBroughton.net.)
