Greg Smith’s “Why I Am Leaving Goldman Sachs” – A Corporate Culture Wake-Up Call
A powerful Op-Ed piece in the New York Times today is setting the Internet on fire, and for good reason.
In “Why I Am Leaving Goldman Sachs,” former executive director Greg Smith writes that after nearly a dozen years with the legendary Wall Street firm, he is resigning from his management position effective today. His reason? Because the “environment now is as toxic and destructive as I have ever seen it.”
He goes on to describe a corporate culture which he perceives has lost its moral compass, emphasizing profits over clients. The part that struck me most was when he described the moment he decided to leave: as director of the firm’s prestigious and highly sought-after summer internship program (quite an impressive group, whom I had the opportunity to work with many times when I produced team building scavenger hunts), he realized that he “could no longer look students in the eye and tell them what a great place this was to work.”
Wow.
I’m sure that much will be discussed in the coming days about the validity of Mr. Smith’s claims, as well as the nature and state of Goldman Sachs’ corporate culture and the fallout from his article. While I am in no position to comment on these aspects of today’s story, I think that the article does shine a rather bright spotlight on the tremendous impact workplace culture has on people, as well as corporate reputation.
Today’s article demonstrates pretty graphically how culture isn’t just some touchy-feely senior management afterthought, taking backseat to more important topics such as business development and strategic direction; rather, how people in the workplace are expected to behave, dress, interact and conduct business with clients speaks volumes about the firm’s core values, as well as reflects the image and example set by senior management. Corporate culture helps define firms by saying clearly “this is who we are,” a message reinforced through hiring practices and client bases. When it comes to inspiring and motivating staff and attracting appropriate business, making clear exactly who you are through a strong, consistent workplace culture isn’t just ancillary, it’s essential.
Today, as you discuss this article with colleagues, ask yourself: what is our company’s culture like? As a business owner, senior manager or HR director, what kind of tone am I setting for how our staff conduct themselves with our clients and amongst each other? Are people happy about working here, about who we are and what we stand for?
Or will be reading a resignation letter from one of our staff in the New York Times tomorrow?