Goldman Sachs vice chair warns of a hidden senior management pitfall: the eventual lack of oversight from superiors
For many driven professionals, ascending the corporate hierarchy is the ultimate objective. However, Rob Kaplan, vice chairman of Goldman Sachs, warns that reaching top-tier management positions involves a hidden danger: the sudden disappearance of oversight.
“When you are in a junior role, senior leaders monitor your every move,” he remarked during a recent conversation with Meena Flynn, who chairs Global Private Wealth Management at Goldman.
Kaplan noted that this dynamic changes significantly as one’s career progresses. “As you reach higher levels and earn promotions, your superiors eventually stop monitoring you. At that point, only your subordinates are observing your actions.”
This absence of top-down supervision often leads to a trend where individuals fail despite a history of remarkable success. “Over the past two decades, I have seen a constant stream of highly successful people who eventually hit a plateau,” he said.
Drawing from his extensive career—which includes two periods at Goldman Sachs, time spent in academia, and a role at the Federal Reserve—Kaplan identified several factors that can derail senior executives: isolation, unrecognized weaknesses, a failure to keep learning, and poor relationship building.
Upon his return to the firm in 2024, the bank noted that Kaplan brought extensive expertise, strong professional networks, and global leadership experience to his vice chairman role. Beyond working with clients and various internal departments, Kaplan focuses on leadership development, mentoring, and corporate culture. He has also authored three books regarding leadership.
The reality of blind spots
Kaplan explained to Flynn that he advocates for a comprehensive perspective when mentoring the bank’s executives. “Every individual, regardless of their talent, possesses traits that are obvious to others but hidden from themselves. These are blind spots,” Kaplan said. If ignored, these flaws lead to isolation, as teams become hesitant to provide honest feedback when a leader goes astray.
To navigate the challenges of senior management, Kaplan suggested a non-traditional strategy: “You must learn to treat your subordinates as your mentors.” While some leaders worry this appears as a sign of weakness, he argued that executives should seek input from those who see their work most frequently. “It is vital to foster an environment where debate and disagreement are welcome. Encourage your team to speak up when they disagree with your decisions.”
He observed that many leaders either fail to recognize this or merely offer superficial support for feedback, only to dismiss it once it is provided.
Kaplan proposed a concrete tactic for those leading large teams: schedule three or four brief “skip-level” meetings each week. These 30-minute interactions should focus on sharing updates, checking in on staff, and seeking their perspective on organizational flaws. “You don’t necessarily have to implement every suggestion, but listening fosters a sense of inclusion,” he noted, explaining that this shifts the staff’s perspective from being mere employees to being stakeholders in the firm.
Another frequent error for new senior leaders is relying too heavily on previous accomplishments. “Many leaders mistakenly believe that the strategies that brought them success in the past will continue to work in their new roles,” Kaplan cautioned. Instead, they must evaluate their current environment and modify their approach.
This also involves being mindful of the examples they set. Since subordinates have fewer direct interactions with top leaders, they tend to emulate a leader’s behavior rather than their instructions. “If you advocate for teamwork but reward individualistic, aggressive behavior, your team will conclude that you value production over collaboration,” he suggested.
In addition to blind spots, Kaplan mentioned that senior executives often deal with internal “failure narratives”—self-doubts that emerge during difficult times. Managing these insecurities requires discussing them with a trusted external advisor. Furthermore, when establishing goals, leaders should identify three primary priorities but should involve their teams in the process. Gaining team consensus leads to better strategies and makes future adjustments less disruptive.
Kaplan also challenged the idea that leadership is a natural gift linked to charisma. “Leadership is a skill that requires constant effort,” he stated. It demands ongoing curiosity, a willingness to learn, and the drive to persevere through challenges.
When the stress of senior management becomes too much, Kaplan suggested a simple remedy: “Focus on helping someone else. Whether it’s a coworker, a client, a community member, or a child, assisting others can help you regain your perspective.”