Lessons from Goldman Sachs: The Corporate Culture Disconnect

Goldman Sachs got a black eye this week when Greg Smith, a mid-level executive at the brokerage firm not only resigned, but published an op-ed piece in the New York Times outlining his reasons for leaving. Mr. Smith cited Goldman Sachs’s culture of greed and utter disregard for the best interests of its clients. 

Not surprisingly, this very public display of dissatisfaction has generated plenty of discussion about corporate culture on Wall Street. I hope it also has the effect of generating discussion within your firms about your corporate culture. After all, it’s better -- and less costly -- to learn from someone else’s mistakes.

Here are a few ways to avoid the cultural disconnect that appears to exist at Goldman:

1. Don’t believe your own hype. Every organization I’m aware of boasts about its corporate culture on its website, at seminars, in recruiting collaterals, everywhere. All too often, the words are taken as gospel, with no regard for how individual behaviors actually create or destroy a culture. Look at your firm culture with a critical eye. If you and yours can’t do it objectively, hire an outsider to do it for you. Whatever you do, don’t assume that because it is written, it is true.
2. Check in regularly with those who create and sustain your culture: your team members. Use every method at your disposal, from dashboard “high satisfaction day” inputs to surveys to a casual conversation over a cup of coffee. Do this more than you think you have time for and would enjoy. You may discover valuable information that’ll make it worth your effort.
3. Treat your clients and team members with respect. No exceptions. When you are cordial to a client on the telephone, only to hang up and have a hissy fit about that stupid, entitled #!?*-ing client, you’re sending a very confusing message to those who work with you. You’re also taking the risk that the client will hear about it on Twitter, Facebook, or some other way -- within minutes.

Most important, do the right things for the right reasons. Speak well of everyone when you can. When you can’t, take the opportunity to be silent. When you must communicate something negative, do so with skill and kindness. That’s how really great cultures are built.