David Solomon rejects the common framing of prioritizing customers, employees, or shareholders. He views leadership as conducting an orchestra, where the goal is to keep all three stakeholder groups in harmony. Neglecting one will inevitably cause the entire performance to suffer.
To combat cultural erosion post-COVID, Goldman Sachs's leadership made a significant investment. They sent all 450 partners on mandatory two-day offsites in small groups to intentionally discuss, redefine, and recommit to the firm's culture, with the CEO attending every dinner.
Drawing lessons from former CEO Hank Paulson, David Solomon emphasizes that a leader's most crucial function is to maintain a clear direction—a 'compass pointing north'—and make the right call, even when it is unpopular or goes against the strong consensus of the room.
David Solomon, who describes himself as an 'unlikely CEO,' advises future leaders to concentrate on acquiring a broad range of skills by taking on diverse roles. He suggests focusing on mastering the craft rather than targeting the top job allows for serendipity and a more organic path to leadership.
David Solomon counters the Silicon Valley trend of hiring for 'slope' (potential). He argues that for large, established companies, deep experience provides the critical judgment needed to navigate the difficult 51/49 decisions that arise during crises, a quality he feels is underrated.
The consumer partnership with Apple represented less than 5% of Goldman Sachs's revenue but received disproportionate negative attention. The leadership team made the tough call to exit because the strategic distraction and damage to the firm's narrative outweighed its actual financial impact.
Drawing from his experience partnering with Apple, Solomon cautions that most large-scale partnerships fail. For a partnership to succeed, it must have 'compelling glue'—meaning deeply aligned incentives, a shared purpose, and a governance structure that can overcome the natural friction between two different organizations.
Brian Halligan recounts advice from iRobot's CEO that transformed his view on culture. He realized culture isn't a soft concept but a critical scaling mechanism; it's the operating system that guides employees' decisions when leaders aren't present, ensuring consistency as the organization grows.
Solomon admits a major error in launching their consumer business was relying on the firm's insular belief that its 'smart people' could figure anything out. He now believes that for new ventures far from the core business, acquiring a platform with existing expertise would have been a better strategy.
Solomon draws a sharp distinction between founders, who can 'anoint themselves' and hire to fill gaps, and those who rise within an established firm. He argues that to become a successor CEO at a company like Goldman Sachs, you must develop a complete skillset by actively improving your weaknesses.