A ‘Goldman’ Opportunity Awaits Bank in Need of a Reputation Makeover

Goldman Sachs put itself in a vulnerable position – the bank lost squillions and needed to be bailed out by US taxpayers. From what we see from this side of the pond, the company has tended to operate – and continues to do so even in these straitened times – with a sense of arrogance and entitlement. That may impress others on Wall Street (well, those that are left) but it doesn’t wash all that well with the general public.

Let’s face it: who ever really warms to arrogance either at an individual level or corporately? Any organisation that goes about its business in a superior, self-important manner is, well, detached. 

Trust and arrogance usually have a high negative correlation.

How can Goldman Sachs not expect public criticism from bloggers and the like? In fact, we’re surprised there’s not more of it.

Here’s some free PR advice for Goldman Sachs … well, (un)common sense really:

Take the criticism; keep your head low, keep the lawyers out of sight (they usually want to ‘legal’ all communications into indiscernable corporate-speak anyway); rein in the arrogant tone and, while you’re at it, inject some humility into your public comment and your culture as well. Lesson #1 = learn from it.

Open up the channels of communication – get rid of the veils of secrecy, knock down the fortress walls and become more open and transparent as an organisation.

Hard to do for a big corporation you say? Not for CEOs who have vision and can galvanise a team.

Everyone can see the world – and how we communicate in it – has changed. The power has steadily shifted into the hands of the consumer (Exhibit ‘A’: Mike Morgan’s Goldmansachs666.com). This seismic change was well underway before the global economic meltdown. The crisis, however, has merely exacerbated things.

Goldman Sachs has the perfect opportunity to ‘wipe the slate clean’ and start rebuilding its corporate reputation – indeed its entire brand – this time with a bit of humanity thrown in.

The ‘old’ Goldman Sachs brand is a fax machine in an internet world. It suited the 1980s and recent bull markets.

We suggest the company distances itself from the ‘old-school’ corporate ego stuff and start positioning itself for the ‘new economy’ – one in which trust, transparency, relationships and engagement matter more than ever before. 

It can be done. Just ask Tony Hsieh from Zappos.com.