Summary
Rob Kaplan, the vice chairman of Goldman Sachs, recently shared a warning for people climbing the corporate ladder. He explained that reaching a high-level position comes with a hidden danger: nobody is watching you anymore. While junior employees have bosses checking their every move, senior leaders are often left without oversight. This lack of feedback can lead to major mistakes and sudden career failures for even the most successful executives.
Main Impact
The main issue with senior management is the shift in who observes your work. Kaplan points out that once you reach the top, your only observers are the people who work for you. This creates a situation where leaders can develop "blind spots"—flaws or mistakes that everyone else sees, but the leader does not. Without a boss to correct them, these leaders often become isolated and stop learning, which eventually leads to a decline in their performance.
Key Details
What Happened
During a leadership masterclass, Kaplan discussed why many high-achieving professionals eventually "hit a wall." He noted that for the past 20 years, he has seen many successful people fail because they lost the habit of seeking advice. He believes that senior leaders often fall into a trap of thinking they no longer need to be coached. To fix this, he suggests that executives should treat their employees as their coaches rather than just people who take orders.
Important Numbers and Facts
Kaplan brings a lot of experience to this topic. He has served as the president of the Dallas Federal Reserve and taught at Harvard Business School. He is also the author of three books focused on leadership and self-reflection. One of his most practical tips for leaders is to hold three or four "skip-level" meetings every week. These are 30-minute sessions where a senior boss talks directly to employees who are several levels below them to get honest feedback and fresh ideas.
Background and Context
In most jobs, the higher you go, the more freedom you have. While freedom sounds good, it can be a problem in a big company. When a person is new to a job, they get constant training and corrections. However, when someone becomes a vice president or a director, people often assume they know everything. This stops the flow of helpful criticism. Kaplan explains that leadership is not a natural gift that stays with you forever. Instead, it is a skill that requires constant work and the willingness to listen to others, even those with less experience.
Public or Industry Reaction
Goldman Sachs CEO David Solomon has praised Kaplan for his deep knowledge of leadership and company culture. When Kaplan returned to the bank in 2024, his role was specifically designed to focus on mentoring and developing the next generation of leaders. The industry generally views Kaplan’s approach as a way to prevent "toxic" leadership. By encouraging debate and disagreement, companies can avoid the "yes-man" culture where employees are too afraid to tell the boss when something is wrong.
What This Means Going Forward
For current and future leaders, this means a change in mindset is necessary. Kaplan warns against relying too much on past success. Just because a certain style worked in a previous role does not mean it will work in a more senior position. Leaders must also be careful about the examples they set. If a boss says they want teamwork but only gives raises to people who work alone, the staff will follow the action, not the words. Going forward, successful management will require more transparency and a genuine effort to include the whole team in big decisions.
Final Take
Success in senior management is not just about making big decisions; it is about staying connected to the people around you. By staying humble and asking for feedback, leaders can avoid the traps of isolation and ego. If the pressure of the job becomes too much, Kaplan offers a simple solution: focus on helping someone else. Whether it is a coworker or a member of the community, helping others can help a leader find their focus again.
Frequently Asked Questions
What is a "skip-level" meeting?
A skip-level meeting is when a senior manager meets with employees who do not report to them directly. It helps the manager learn what is really happening on the front lines of the company.
Why do senior leaders fail according to Rob Kaplan?
They often fail because they become isolated. They stop receiving feedback from bosses and may have "blind spots" that their subordinates are too afraid to point out.
How can a leader avoid being isolated?
A leader can avoid isolation by encouraging their team to disagree with them and by building honest relationships where employees feel safe giving advice to their boss.