Friday, October 17, 2008

Charles D. Ellis

Charles D. Ellis is the author of The Partnership: The Making of Goldman Sachs.

From a Q & A at the publisher's website:

Is Goldman Sachs really a lot better than other firms at managing risk?

The big difference is in the cumulative power of many “small” details. The difference in the speed, accuracy, and extent of communication inside the firm; the difference in intensity, focus, and disciplined toughness of the men and women hand selected to work there and real difference in recruiting, training, and compensation. All add up to a decisive advantage in management. Leaders and co-leaders manage Goldman’s many business units with rigor and drive; risk management is the envy of other banks; and coordination is powerful across business units and markets around the world.

As every Olympic athlete knows, such small differences make all the difference between gold, silver or bronze – or no medal at all. In the current, very difficult test, Goldman Sachs has come in 1st – again.

Goldman Sachs is often described as the best managed Wall Street firm. Is that true?

Yes, it is true. Goldman Sachs is the best managed “Wall Street” firm – and the best led. Management is why Goldman Sachs is consistently rated the best firm to work for and gets top ratings from clients all over the world. Superior management is why the firm earns more profit, develops more effective people, has made itself the market leader in the U.S., U.K, Germany, France, China, Japan, and in most major lines of banking business. No other firm comes close.

One of the things you will learn in The Partnership is just how Goldman succeeded in making themselves different from any other Wall Street firm. They learned early on that in order to survive, they had to not only make money, but create a culture that was universal, that demanded absolutely loyalty and, most importantly, act as one organism.
Read the complete Q & A.

Learn more about The Partnership: The Making of Goldman Sachs.

Five best: books on financial meltdowns.
Critic's chart: books on cash crashes.
--Marshal Zeringue