Streetwise — Chapter 20: The Partnership Culture

1. 1. Lloyd Blankfein's proudest achievement at Goldman Sachs is maintaining and strengthening the partnership culture after the IPO.
2. 2. A partnership culture means partners are mutual owners, entitled to broad information and input across the firm, not just their own area.
3. 3. Blankfein told partners to treat the firm's reputation as paramount, as a screwup in one area affects the whole firm globally.
4. 4. Goldman Sachs has never had an 'eat what you kill' compensation philosophy; it rewards long-term firm benefit over individual book of business.
5. 5. Blankfein emphasized mutual respect between partners and younger employees, noting that younger staff often have more impressive résumés.
6. 6. Goldman annually moves out the bottom 5% of performers to make room for new talent, a practice Blankfein likened to pruning.
7. 7. Blankfein set up an alumni office and events to maintain lifelong ties with former partners, treating them like a university alumni network.
8. 8. Goldman's culture has 'antibodies' that resist diversity efforts, including a belief in meritocracy that opposes affirmative action and an American style that clashes with other cultures.
9. 9. Blankfein decentralized philanthropy through GS Gives, allowing partners to direct grants to causes they care about, which has donated nearly $3 billion.
10. 10. Goldman launched 10,000 Women and 10,000 Small Businesses to provide business education and capital to entrepreneurs in developing countries and the US.
11. 11. Blankfein overruled the commitments committee to underwrite Tesla's 2010 IPO, a decision he considers right despite straining a relationship.
12. 12. Blankfein compares his pre-crisis agenda to Lyndon Johnson's Great Society, with the global financial crisis threatening to become his Vietnam.