Books of Interest
 Website: chetyarbrough.blog

Streetwise (Getting to and Through Goldman Sachs)

Author: Lloyd Blankfein

Narration by: Lloyd Blankfein

Lloyd Blankfein believes being the smartest person in the room is a mixed blessing. “Streetwise” is a biography of his life. He is educated as a lawyer but becomes an employee of Goldman Sachs when a firm he works for is acquired.

One gathers from Blankfein that he believes he is usually the smartest person in the room. Considering his accomplishments, one is inclined to believe he understands his intelligence. However, he realizes being smart is not enough for him to be a good manager. Blankfein finds his intelligence and wit can undermine the effectiveness of his direct reports. As a manager of an organization, Blankfein grows to understand success in any company is based on performance of people who report to you.

Every company has a culture. The growing success of Goldman is not because of any singular leader. It is the hiring of people who are ambitious and believe that they can do anything their employment requires. One who is hired by an aggressive company like Goldman has the expectation that they can add to the competitive advantage of its growth as a multinational investment and financial services company. Blankfein recognizes he is among managers that held abilities and ideas that often contradicted each other. The culture requires consensus building for the company to act on decisions to either continue or withdraw from corporate actions. Blankfein realizes persuasion rather than command is what has made Goldman successful. It is not one person’s sense of direction that makes a company a success. A good manager focuses on relationship-building to get the best results from the people who report to him or her.

Blankfein finds he depends on the persuasive abilities of the people who work in the firm. He argues that being anxious about other’s opinions helps him make considered decisions about the direction of the firm. His role in the company became multifaceted with his recognition of different investments as complementary tools for successful growth. Blankfein realizes he does not know everything and that his style of management is to read people well, not to take his position as an entitlement, and to spot talent in others who have a positive track record in their discipline. One can imagine Blankfein’s personality violates those beliefs in his tenure, but what manager of others is perfect.

One suspects, Blankfein was a difficult person to work for but one who benefited the growth and survival of Goldman Sachs. Goldman Sachs and Blankfein, like many American companies and people, lived through the 2001 Trade Center disaster and the 2008 financial crises because of managers like Blankfein.

One sees Blankfein growing as a manager in “Streetwise”. He appears to manage a hyper-vigilant temperament without killing messengers who fail by balancing their successes and potential against failure. He realizes it is necessary to make an investment in the people that report to him and to focus on the synergy of different expertise in the complex world of investment.