Is Goldman Sachs Living the Culture?

On CNBC, there was a brief discussion of the Goldman Sachs culture and the possible changes it may be making to the culture. For example, the Goldman culture is known for putting client first, team second, and employee third. Thus, a partner’s business card is aligned with that core belief–with the Goldman Sachs name being most prominent. This is an example of aligning Projections (your image) with the core culture (the values at the heart of your organization).

Goldman historically has not been known for having a revolving door. If you left the firm, you did not return (although Edward Forst was an exception). This allowed those below to have opportunities to move up–a motivational tool to retain workers. If employees were allowed to leave and later return, then opportunities for promotion would be reduced. In a high pressure job with long work hours, this was a tool to keep valued employees. But now Noto a former Goldman partner and media stock analyst who left to serve as the NFL CFO is now returning in October to co-head the global media group. Although his departure from Goldman was not for a competitor, his re-hiring is not typical for this company. Will we start seeing more former Goldman employees coming back to the Goldman home? Will the change to a “bank” status continue to impact the organizational practices and with it the culture?

Companies must be aware of the impact small changes can have on their core culture. Although some changes may seem insignificant, if they are in conflict with the core culture values, these changes will imply a different set of principles that are more important. And if practices continue to change without a discussion of the core culture and its changes, then employees will be confused and with that confusion will potentially be less motivated. Practices–even a business card or an employment practice–must be aligned with the principles and values of the culture. And if the culture needs to change, that must be explicitly addressed and not left for employees to guess.