Hiring Philosophy – Today & Yesterday

I was reading an article today where the present CEO of Goldman Sachs said that “hiring geniuses can be a strategic trap.” He stated that when he was hired, “he was focused on developing skills, and seeing where the road took him.”

He goes on to state that “tech & finance companies are known for hiring geniuses. They look for people with perfect grades and high IQ scores.”

He said that he looks for people “who can judge themselves honestly, take responsibility for mistakes, and knows when to stop.”

All of this reminded me of something that Alan “Ace” Greenberg said over 35 years ago. Greenberg was the former CEO of Bear Stearns, a major Wall Street financial firm in the late 1980’s and early 1990’s.

The company I was with, was considering going public. We were talking to a number of Wall Street firms concerning that. Bear Stearns was one that we were considering. I had visited their New York City offices, and had the opportunity to meet Mr. Greenberg, and we had a discussion concerning personnel.

He had written a book, which contained copies of his various memos to the staff of Bear Stearns. One of these memos dealt with personnel. He became known for hiring PSD individuals. Poor, Smart and a desire to be Rich.

Poor meant not elite or privileged. Smart meant someone who was capable and sharp, and Rich meant someone who was highly motivated, and hungry to do well.

He preferred someone who was energetic, ambitious, and talented. Someone whose focus was a desire to do better, and not someone who only had a degree from an elite school. The school made no difference. It was the other qualities, described above, that he was interested in.

In essence “hire people with talent, give them responsibility, and trust them to perform.

I thought that was a unique concept then, and I still do today. This was something that I carried through the remainder of my business career.

When I was building a staff at Fairchild-Hiller in the 1960’s, I looked for individuals who had those characteristics, without realizing it. Three of the most talented individuals that I hired, did not have a college degree, but they certainly had the qualities that Greenberg discusses. I tried to manage on that basis for my entire career.

I also tried to keep to the old axiom, “hire folks smarter than yourself, and be honest and forth right always.” Treat them with respect, and you will end up with a superior team.

Jess Sweely

Madison, Va.