Several important factors explain Goldman Sachs’ dominant position in the market in the 1990s. Firstly, considering the structure of Goldman Sachs, the bank acknowledged the fact that structural differences were required for effective management. For example, the bank’s expanding geography to overseas offices required relying more on guidance from representatives and managers in the country of presence. Moreover, the bank utilized teams of two to three managers, which provided maximum benefits of complementary skills and diversity. Next, through the continuous choice of elite undergraduates, the bank’s human resources were represented by talents characterized as high achievers. Thus, the careful selection of candidates allowed for building a cohesive team of professionals and facilitated the process of instilling the right qualities and values in employees, such as collective spirit. Careful selection of candidates also provided the bank an opportunity to develop a sophisticated corporate culture built on principles of excellence, self-improvement, and mutual respect.
The systematic approach to developing managing directors was founded on the company’s commitment to adherence to business principles and the need to address the growing diversity within the organization. However, the main factor that favored the systematic approach was limited time resources. Working in the banking sphere implies a busy schedule for employees; therefore, an organized, systematic approach addressed the timing issue, making leadership development accessible to all program participants, including the senior leaders.
Leadership should be able to adapt to the changes in the banking industry and technological progress. It is suggested that leadership will require the use of technical skills in such functions as the organization of projects in remote teams in the future. In E-leadership, the function leadership measures are targeted at maintaining employees’ engagement and retaining the talent in the company. Thus, E-leadership should be included as a key design feature of Goldman’s further leadership development programs.