Leadership Development at Goldman Sachs Harvard Case Solution & Analysis

Leadership Development at Goldman Sachs Case Study Solution


Goldman Sachs is one of the leading full-service investment banks in the United States. It is mainly focused on long-term growth and sustainability in the banking industry. Moreover, it provides better service as compared to other competitors to acquire the market share and increase the shareholders. Goldman Sachs has created a distinctive culture of the employees and management as well as it has provided the development leadership for the firm's managing directors and selected external clients.

From the case analysis, it is identified that the company is decentralized and the development is handed in the higher management. Mostly the employees are very conservative, and the environment of the company is restricted. Throughout the 1980s and 1990s, professional development was the primary requirement for the entire job. It is mainly considered because of variation in the job description and increasing alternative options for the employees.

As an investment bank, Goldman Sachs is trying to hire very smart people to maintain the working environment and help them in each stage of professional skills. The company provides orientation to the newly hired employee to understand the culture, the activities and the expectations connected with the job specification.

To develop the leadership abilities, the higher management has planned to focus on the internal managers to put them in circumstances where their existing skills and way of thinking is insufficient, and they behave in soft manners with their employees.  Furthermore, it is determined that the management has followed the vertical way of communication which is easy to identify the culture of the organization and the employees have to report the particular assign manager. In addition to this, the managers are supposed to work in close collaboration with the senior leaders to share the ideas and alternatives for the best possible decision.

Problem statement:

The difference between existing structure of the organization and the change in job description and specification, employees are less energetic and motivated towards the work due to less motivation and the culture is more sophisticated to adopt by employees.

Why is Goldman Sachs considering a more systematic approach to developing leaders?

From the case analysis, it was identified that the company was at the growing stage and generating more revenues as compared to the previous year. It was expected that the competency level of the employees and management was not helpful to finalize and close the complex deals. Goldman Sachs has identified to increase the leadership principle and train the employees to effectively address new client so that the investors could minimize the risk while raising through the ranks in investment banking, asset management, equity trading and fixed income sales.

Goldman Sachs requires a systematic approach for developing the position of managing directors MDs in the company to control the working authority and reporting system. It was also done to build the consistent culture in the organization, and it would be more flexible for the employees to follow and report. Moreover, the systematic approach was applied to time management and work alignments. Employees were expected to complete the work on given times, and the Managing Director was supposed to help the workers if they face any difficulties or hurdle.

A systematic approach would help the management to recognize the behavior of Goldman managers to shift their attentions from the line work and aware them of their actual requirements. Moreover, the objective of a systematic approach was to build the cross-cultural leadership among the staff so that the employees feel comfortable in working with others in different cultures. It was expected that good bankers need to be trained to become good managers and formulated a new step in the hierarchy and development of systematic approach would help information of leaders.

Moreover, it was expected that within ten years, Goldman Sachs grew around 6,000 to 15,000 employees that included around 600 new MDs positions. Managers were interested in learning the apprenticeship dealing, but the expansion might be threatened the quality of present leaders and the consistency of the culture. Furthermore, it was identified that the company was big to manage the employees and divide the work due to which the company needed to get some leadership developments to resolve the conflicts and make the efficient workplace.

Moreover, it was determined that the systematic approach could increase the number of employees and the management could expand the business in different cities such as they had planned to invest in Japan. Irrespective of the fact, leadership development could make the people better and more efficient on their working desk and polish their skills to perform better and provide more beneficial results regarding sales and profitability. Systematic approach obtains the working concept from practicing managers within Goldman Sachs itself. It provides the project or action based learning opportunities to the senior Managing Directors to assign small groups in the organization and assign the particular task to resolve the short-term issues.

Leadership Development at Goldman Sachs Harvard Case Solution & Analysis


Significantly, the systematic approach could be determined by using the feedback strategies, which would help the management to overcome the weakness and extend the opportunities, in order to reward the individual for their achievement such as, providing extra compensation to the employees who completed their targets before deadline or do extra efforts on its job for higher revenues and sales.............


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