Chapter 6: Corporate Culture -The Invisible Hand of the Company Part 5
In the last post, Harry T. Wolf explained why he could not change the culture of Goldman Sachs if he became CEO. And, we saw how Harry went about changing a “negative, finger pointing, aggressive culture.” It took Harry years to make changes, and he had the support of the board to make it happen.
Prior to his current (and second) stint as CEO, Harry was the Chief Operating Officer (COO) of a technology company in Silicon Valley I’ll call “ScorpCo*”. During Harry’s first year, the company launched a complete upgrade to its platform – software, hardware, peripherals and third party components. “I am intensely proud of what the organization achieved during that year. [We delivered] it all, and had successful sales. In most companies, you get paid it big bonus for that. It didn’t work that way at Scorpco.” Wall Street rewarded the company for making its numbers. Harry was demoted.
The year was difficult – Harry had to defend many decisions publically that he did not agree with. “I’m a firm believer that if you’re part of a management team that by whatever mechanism decides on a course of action, it’s your duty to carry it out with absolutely the best grace you can. I have always tried to take ownership of that decision, rather than place it as a third party decision.” Harry had a philosophy of long term objectives, but the company was perpetually focused on the short term – “60% of revenue came in last 48 hrs [of the quarter.]** It’s a crazy way to run a business.” According to Harry “burnout was high” among employees, and he felt “sheer exhaustion, both physical and emotional.”
It doesn’t have to be that way, and Harry’s life got much better after he left the company. The reason why he left surprised me.
*ScorpCo is a fictitious name I picked because the CEO is a Scorpion. This post from Chapter 4 gives an example of working for a Scorpion
** A hockey stick culture like this will eventually exhaust everyone both in and out of sales.