The Goldman Sachs Story: Why Every Business Needs a Code to Live By

by Jim Owen, Founder and Chief Inspiration Officer, Center for Cowboy Ethics and Leadership

As someone whose first career was in the investment industry, I was fascinated to read the Wall Street Journal’s recent review of a new book called “What Happened to Goldman Sachs.”  Written by someone who, like the book’s author, had formerly worked at the firm, the review underscores the perils of corporate leaders who forget—or never bothered to define—what their companies stand for.

In an industry populated by smart, successful people, Goldman was for decades at the top of the heap in terms of reputation and cachet, not to mention profitability.  The key to its success was its culture.  Goldman was known for recruiting the smartest, most driven people on Wall Street, and demanding that they operate with an almost superhuman work ethic.

The firm excelled at finding ways to profit. But it kept greed under control by placing one business principle above all: “our clients’ interests always come first.”   Partners made sure this principle was heeded, knowing that any hint of a conflict of interest or unethical behavior would put the firm’s sterling reputation and its fortunes at risk.   

The book chronicles how Goldman’s culture eroded and morphed over time, causing many of its most talented people to leave the firm. It’s a classic tale of “the slippery slope.”   Regulatory changes reshaped the competitive landscape, leading Goldman to dump its circa-1869 private partnership structure and go public. Suddenly, the firm’s long-held business principles had to compete with the goal of delivering high returns to shareholders. At the same time, as federal regulators issued a flurry of new rules, “Goldman’s standards drifted away from its business principles and toward the management of legal liability,” as the book reviewer puts it.

I’m sure many of Goldman’s former partners were saddened by allegations that Goldman used clients’ information to trade against them, as came to light in 2010 and 2011, and by the subsequent Justice Department and SEC criminal investigations of the firm.  Among other things, Goldman was accused of knowingly peddling “junk” securities to investors, a breach of trust that showed its vaunted “clients-first” policy had become a sham. 

Goldman has survived and, after a spate of financial troubles, continues to prosper.  But the tarnish to its reputation is irreversible, and it will never again be held in the esteem it once enjoyed.  Goldman is an object lesson for any business leader who doubts the importance of having “a code to live by.”  

What it Takes to Succeed – from the Employer’s Perspective

By Jim Owen, Founder and Chief Inspiration Officer, Center for Cowboy Ethics and Leadership

When you’ve got a message you want to share with the world, it’s always great to get reinforcement from thoughtful and knowledgeable people.  So I was gratified to read the Wall Street Journal’s recent interview with Bob Funk, founder of the fifth largest employment agency in America.. 

In recent weeks I’ve been out on the road, talking with audiences about what it takes to succeed in America today.  And on that score, Bob Funk and I are of like mind.  He believes that “anyone who really wants a job in this country can have one” if they meet three conditions.   First, he says, you need integrity.    That happens to be my first secret to success as well.  But that raises another question—namely, what does integrity mean to you?  Definitions vary, but to me, integrity means living by a code – the values and principles that matter most to you –and striving to make your words and actions line up with those beliefs.  (This is what our Standing Tall workshops are all about.)   

Mr. Funk lists “a strong work ethic” as the number-two requisite for getting a job. And once again, that squares nicely with what cowboys call “Try”—that is, bringing a can-do attitude and 110% effort to the  tasks or challenges at hand.  I’m such a believer in Try that I wrote a book and produced a documentary film about it.  His third requirement for being employable is that you need to be able to pass a drug test – which, I agree, is a given. 

Notice that nowhere in the interview does he mention grades, diplomas, or SAT scores.  Evidently Mr. Funk believes, as I do, that employers care as much or more about character as they do about credentials.  You can teach someone job skills, but you can’t teach someone to have integrity or take pride in their work.  Those are qualities we each have to develop and strengthen on our own.   

It’s a measure of Mr. Funk’s own integrity that in the interview, he gives his reasons for opposing ObamaCare even though its passage would likely boost his own business.  Without getting into a debate over the health care law, I want to applaud any business leader who speaks out for what he sees as the good of the country—and I hope his example will inspire others to do the same.

A Simple Question - or Is It?

by Kent Noble, Executive Director, Center of Cowboy Ethics and Leadership

If a close friend were to ask you, “What do you stand for?” would you reply without hesitation?  Or would you respond with the old “deer in the headlights” look? 

Prior to my involvement with the Standing Tall program, I’m not sure I could have articulated my views in a meaningful way.  In fact, my response might have unfolded something like this:

Questioner: So, Kent, tell me what it is you stand for?

Kent: I’m sorry—I’m not sure I know what you mean.

Questioner: I’m just curious.  Have you ever thought about what it is you stand for—you know, what are your core values—your strongest and most important beliefs?

Kent: Well, of course I have—hasn’t everyone?  I believe—I believe—it’s important for me to be the best father and husband I can possibly be—yes, that is definitely what I believe, and it is absolutely very important to me. 

Questioner: Great—that makes perfect sense.  What else?

Kent: What else?  Uhhh—well—ummm—I believe you should work hard and be honest—yes, you should definitely be honest—and you should also try to be a good person—yes, you really must treat others well—ummm—did I already mention working hard?  (Meanwhile, I would be thinking, “man, please don’t ask me ‘what else?’ again.”)

The point I’m trying to make is that before the Standing Tall program was developed, I only had a foggy notion of what it is I stand for.  Sure, it was all somewhere inside.  But I really hadn’t brought my deepest beliefs and values to the conscious level where I could easily convey them, let alone build my life around them.  

Over the last 18 months, I’ve noticed my situation isn’t all that uncommon.  In fact, now that we’re conducting Standing Tall sessions for a variety of business and community leaders, I would say very few people have spent time clearly defining exactly what it is they stand for.  If you find that hard to believe, try asking someone the question yourself.  You’ll probably find the hypothetical conversation I’ve outlined above is pretty typical.     

Could this be why we’re consistently bombarded with scandalous headlines from the worlds of business, sports, politics, etc.?  And what about the people in our lives?  Don’t we all know  good people who have uncharacteristically become involved in bad situations?   If we were simply more in touch with our most important values, would things be different?  If we identified exactly what it is we stand for, and then built those beliefs into our daily lives, might we become stronger, more confident, and more principled versions of ourselves?  

Obviously, we all have values.  But we don’t always connect with them in a profound way.  We sometimes keep our principles tucked away as opposed to fully integrating them into our lives. I think that's precisely why the Standing Tall program has taken root across the country.  People realize that they’ve never really taken the time to stop and think deeply about their core beliefs.  Our workshops guide busy professionals through the process of defining their values and putting them into action.  And, based on the testimonials we’re receiving, developing your personal code is a real “game changer,” especially if you keep it in the forefront of your mind. 

So, if you haven’t brought your strongest and most important beliefs to the conscious level, think about the difference it could make in your life if you did.   Then, should anyone ever ask you what you stand for, you’ll be able to respond, “I’m glad you asked.  Pull up a chair.” 

In Memoriam: Julia K. Anderson

When Jim Owen and the rest of the Cowboy Ethics team were deciding whom to profile in The Try, Julia Anderson – the pen name for Klaudia Birkner—immediately stood out as someone with profound life lessons to share. Marji Wilkens interviewed her for the book, returned to spend personal time with Julia, and soon joined her circle of friends and supporters.  Through Marji we had frequent updates on Julia, whose abiding spirit shone through despite her worsening physical condition. Upon learning Julia’s passing we asked Marji to write a tribute to her friend, who lived a life of Try up until the very end.               

On August 9, Julia K. Anderson passed away peacefully at her home. She was 40 years old and the strongest, most courageous person I’ve ever met.

I first encountered Julia in 2009 when I interviewed her for The Try. To me, her life looked like a tale of unmitigated woe: a difficult childhood in foster care, the onset of blindness, and then a promising ski racing career cut short by a mysterious disease that left her bedridden. I expected to find some amount of self-pity or longing for things lost. What a delight instead to meet a woman of ferocious determination with a sparkling mind and spirit.

I soon became part of a small group of friends who visited Julia regularly. I always came away amazed and grateful for our conversations. Julia was a teacher, and I was one of her privileged students.

Our little team took Julia skiing, ice-skating, to the park and on other outings. Ordinary excursions perhaps, but you have to understand that Julia’s body was like a floppy rag doll. It took an hour or more to dress her for skiing and get her into hip-to-toe metal braces. Then the arm braces went on. She looked like Ironman until we zipped up her US Ski Team jacket and she glided to the lift. On the slopes Julia was fast, sleek and beautiful. She last skied on February 23, 2013.

From Julia I learned two life lessons. The first is that hope can keep you alive. She never stopped researching her disease and treatments. She read countless medical textbooks and advised her physicians, feeding them research papers. As her beloved neurologist said, “I learned that she was always right.” Julia always believed that with the right information and right attitude things could get better.

The second lesson I learned is the meaning of “purpose.” Julia believed that we are all here to pay attention, learn, and see our life as a complete whole. Every experience, even its bleakest, darkest moments, has its place in the tapestry of life. She summed it up this way: “When I think about the past, I see that what was negative at the time turned out well in the end. Certain things had to happen for me to know what I know and be who I am.”

Since Julia has been gone I’ve tried to think about life as she did. Stuff happens. Get over it. Don’t let anyone define your limits. Nothing is impossible unless you say it is. Live fully and pay attention. Fight to the end. If all that isn’t “The Try” in action, I don’t know what is. Thank you, Julia, from the bottom of my heart.

What's Your Roadmap to a Meaningful Life?

This post is from Kent Noble, Executive Director of the Center for Cowboy Ethics and Leadership.

This week a man’s reputation was ruined through a series of lies and denials he perpetrated on the public, his teammates, and his sport.  Ryan Braun, a five-time All Star and former National League MVP and rookie of the year, was suspended for the rest of the season by Major League Baseball for the use of performance enhancing drugs (PEDs). 

While many players have been banned over the years for using steroids, it was Braun’s in-your-face repudiations that drew the ire of so many.  Moreover, like Lance Armstrong, Braun didn’t appear to care whose character he impugned as long as he retained his fame and fortune.

While we could spend the better part of a day discussing professional sports and the use of PEDs, I would prefer to consider why some people are anchored to a defining set of principles, while others drift aimlessly in pursuit of glory and greed.

At some point in our lives, I believe most of us are confronted with the inner uncertainty—am I here for me, or am I here to make a difference? 

Even with our innate desire to do the right thing, this consideration can be sobering as it often seems easier (not to mention more rewarding and fun) to pursue a lifestyle that primarily benefits our self-interests. 

As we each consider our unique path and destiny, some will select a road of service and/or giving, while others will choose to pursue a trail of self-indulgence.  More yet will opt for a route somewhere between the two extremes. 

At the end of the day, whether you’re Ryan Braun or your community’s “person of the year”, each of us is responsible for the path we choose and the consequences associated with our decision.  Unfortunately, there are too many examples of professional athletes, Wall Street insiders, politicians, entertainers, corporate executives, and others in the spotlight who choose to pursue self-centered temptations and excesses. 

So, what should we do if we don’t like the path we’re traveling?  Well, fortunately, we can adjust our internal GPS and take an alternate route.  By following these three steps, we can develop a roadmap for a course that precisely reflects the type of person we want to be: 

1.     Decide exactly what it is you stand for—in other words, what are your core values?

2.     Communicate your values—that’s right, tell people what’s important to you and what you expect from yourself.  Now that’s pressure!

3.     Commit to “walking the talk”, especially when it’s difficult to do so.  Remember, if you don’t, Step 2 is going to make you look bad.  We told you the pressure was on!

Obviously, this process requires a significant degree of buy-in from the individual.  Defining, declaring, and pursuing your principles takes dedication and persistence.  However, if you commit to examining life’s big and small decisions through this lens, we feel confident you’ll blaze a trail that will result in a meaningful and rewarding journey.   

 

Welcoming Kent Noble

We have an exciting announcement to make: Kent Noble has joined the Center for Cowboy Ethics and Leadership as our new Executive Director. What Kent brings to the job is not just an impressive background in business and academia, but also a deep passion for what he is doing. 

Kent Noble

Kent and Jim began working together while Kent was assistant dean at the University of Wyoming College of Business, where he helped forge a working partnership between the College and the Center.  

Luckily for us, the more involved Kent got with our Standing Tall approach to business ethics, the more enthusiastic he became. In fact, it was Kent who took the initiative to build the program concept into a thought-provoking, interactive workshops in which participants create their own “code to live by.”

The program quickly caught on, and as Kent explains, “leading the workshops was so immensely rewarding that I realized this was how I wanted to spend the rest of my career.” 

Besides leading Standing Tall workshops all across the country, Kent will be involved with the Center’s programs across the board, helping me spread the word that "we can all be heroes in our own lives.” We’re honored that he’s chosen to join our team.  

An Extra Supply of Try

We wanted to share with you some of our favorite stories from Jim Owen's book The Try. Over the next few weeks we are going devote our blog posts to telling you the stories of an inspiring group of individuals.

Our first profile is one of our favorites, Ty Murray the King of the Cowboys.
No one possesses Try quite like Ty.


The Try: Ty Murray Preview from Havey Productions on Vimeo.