LEADERSHIP DEVELOPMENT AT GOLDMAN SACHS

CAPABILITY THROUGH LEARNING &

DEVELOPMENT

SUBMITTED BY: ISHITA CHHABRA

BATCH AND SECTION: MBA’2021[B]
STUDENT ID: 21020011
 TABLE OF CONTENTS

QUES-1: Why was Goldman Sachs so dominant in the market in

90’s?.....................................................................................................2

QUES-2: Why is Goldman Sachs considering a more systemic

approach towards developing leaders?.............................................2

QUES-3: What should be some of the key design features of the

leadership development program?....................................................3

TABLE OF CHOICE.........................................................................4

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 LEADERSHIP DEVELOPMENT AT GOLDMAN
SACHS

QUES-1: Why was Goldman Sachs so dominant in the

market in 90’s?
According to the case, it can be seen that the primary purpose of Goldman Sachs in the 1990s
was to concentrate merely on the globalisation of the company, which led to the firm's
dominant position in the market.

The business's assets under management (AUM) increased according to the case from $40
billion in 1993 to $125 billion in 1997 as a direct result of the strategy followed by them
which was basically chasing the footsteps of its rivals. Goldman Sachs has prioritised the
consolidation and purchase that is merger and acquisitions of smaller businesses rather than
relying entirely on their own natural rate of expansion. As a result of this growth, the firm is
now ranked fifth in terms of size, following others like J.P. Morgan, Merrill Lynch, Morgan
Stanley, and Smith Barney.

QUES-2: Why is Goldman Sachs considering a more

systemic approach towards developing leaders?
Goldman has to adopt an approach to training its future executives that is more structured in
order to accommodate issues both internal and external to the company. However, leadership
development program was needed as the organisation become more diversified and
globalised which requires more structural approach.

As mentioned with expansion of the company comes many problem one of them was
managing mentorship programme. More the size more it was harder to keep track.

Goldman has developed a traditional innovative approach to employee training and

education. At Goldman Sachs, management has typically been passed down through
"apprenticeship," or close collaboration with more seasoned employees to learn the ropes.
Senior managers strive to be more friendly and warm to new hires as they pass on their
shared values and culture. But, as the 1990s progressed, it became evident that this method

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could no longer be sustained. As a result, after size of company increased, they felt that they
should find the supplement for the apprenticeship program which would help the employees
grow professionally as well as personally. Seeing the expansion goals of the company, it was
be seen that they lacked the specialists to achieve these aims which resulted in the
employee’s failure and reluctant to take part in training program.

To encourage career planning and leadership development, many opportunities were needed.
The company needed to cultivate its most important asset, its employees, to gain a
competitive edge. Training and development were essential to keep talented employees
motivated.

To boost employee loyalty in the competitive business, training and development were
essential. Also, due to its quick growth and impressive roster of personnel, Goldman Sachs
went public in 1999, mandating a reliable rate of return for shareholders. Thus, Goldman
needed to make sure that its management embodied the company's values. This led many
Goldman Sachs executives to believe that the company needed to adopt a more rigorous
approach to leadership development.

QUES-3: What should be some of the key design features

of the leadership development program?
The top executives at Goldman Sachs would make excellent lecturers/trainers. Lectures
would also reflect enterprise values because of the lecturers' familiarity with them and their
commitment to the company. Although bringing in an outside expert is an option, the trainee
may have trouble internalising the company's principles if the lecture doesn't accurately
reflect those ideals.

Training should be given through mentorship, action-based learning, and classroom training.
The right people will be chosen thanks to tight collaboration with senior management.

Participation and Contribution is also one of the key design features. A strong voice of
conviction is a quality I look for in a leader. As a result, the leadership training programme
should emphasise the importance of the trainee acquiring the confidence to express their own
thoughts, especially when it comes time for them to make choices (for the foreign office) on
behalf of the firm.

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TABLE OF CHOICE
  Factor Choice 1
Construct Corporate
1 Form and location university
Integrated under HCM:
Customised programme
Structure and keeping all the
2 governance requirement in mind.
    Large staff
    Hire chief learning officer
3 Faculty mix Internal
4 Leadership model Adopt off the shelf
Length of
5 intervention Long
6 Program content Technical skills
Mix of training Formal classroom
7 methods trainings
Choice 2 Choice 3
Make use of the pre-
existing framework.
It will aid in reducing
the investment costs
that are necessary. Any other?
Stand-alone group  
Small staff: Limited
staff more
understanding and
better relationship.  
HCM led initiative  
For diversity,
choose external
and internal.
External trainers
can customise
courses for
different
company needs
and learning
External interests.
A combination of
the two, with
appropriate
customization, is
my
Home grown recommendation.
Short length sessions
would be appropriate
maybe 2-3 hours. in days/hours?
shared culture:
Program content
should reflect needs
and culture. They
should maintain
culture since it's
crucial to the
company's success. Any other?
5%  
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    Executive coaching 30 %  
    Job rotations 25 %  
    Action learning 25 %  
Other (Feedback, survey
    etc) 15 %  
Apprenticeship
upgraded training
8 Name the initiative     program

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