When confronted with problems in recruiting newly minted talent from top business schools, what steps did Goldman Sachs take to change its culture and work climate? What lessons can be learned from Goldman's efforts about the culture change effort to promote good strategy execution?

Question

What will be an ideal response?

Answer 1

See Illustration Capsule 12.2. Cultural change never comes swiftly, but recruiters at Goldman decided to act, and sought buy-in for changes from the company's C-suite of executives. To foster a more familial atmosphere at work, Goldman began with small steps, such as setting up sports leagues and encouraging regular team happy hours. More significantly, Goldman instituted more employee-friendly work schedules and policies, more accommodating of work-life balance. The bank also liberalized its parental leave policies, provided greater flexibility in work schedules, and enacted protections for interns and junior bankers designed to limit their working hours. Goldman also overhauled its performance review and promotion systems as well as its recruiting practices and policies regarding diversity. By 2017, results were apparent even to outside observers. To create and nurture a culture that can adapt rapidly to shifting business conditions, companies first need to consider whether or not its current culture is strong or unhealthy, and, if the latter is true, take appropriate corrective actions. By the same token, companies must make a point of staffing their organizations with people who are flexible, who rise to the challenge of change, and who have an aptitude for adapting well to new circumstances.