Corporate Alumni Networks
Companies are fond of saying that their employees are their No 1 asset.
Assuming that is true, it’s odd how companies react when those assets walk out the door.
Typically firms ignore, forget or even treat former employees with hostility. In the modern era employees who quit or are fired are often frog marched to the exit.
It doesn’t have to be like that, however, as I was reminded reading a fantastic Business Insider article about Goldman Sachs by reporter Reed Alexander.
Two decades ago, Goldman set up an alumni relations office to maintain ties with former employees. It might seem odd for an investment bank viewed as cut throat, but it makes more sense when you realize that people often leave and return to Goldman.
Recently, the firm put the effort to remain connected to people who have left on steroids by appointing Alison Mass, previously the firm’s chairman of investment banking.
What Allison has done isn’t rocket science but it’s hard work and requires setting up a serious ground game. First, the firm stepped their outreach and tracking to make sure they could contact as many of the 115,000 former employees as possible.
Next, the group established and promoted:
-Mentorship opportunities
-Networking dinners
-A Newsletter
-A job board
Goldman says the connections have already brought in deals. That’s not surprising given the fact they are considered among the best of the best in banking and trading.
In many ways what Goldman is doing isn’t different than what universities do when they connect and track graduates and build community via reunions to raise money.
In this case, however, they goal isn’t fundraising but to to tap into information.
The key part is the realization that community doesn’t just happen.
It’s something you have to cultivate.
In an era of AI, with cheap computing costs, the value of personal connections and relationships is poised to skyrocket, making it a savvy move.
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BRIEF OBSERVATIONS
CAR SAFETY: A spring that costs $8 became dislodged from my car and as a result, the hood failed to close completely. It’s the kind of failure that could cause a potentially fatal situation. For me, it was a reminder that so often so much is held together by so little.
SUBSTACK: As George Mack points out, there is a remarkable vibe shift going on at Substack. If you haven’t spent time on the platform recently, there is a newish tweet-like feed with a very high signal-to-noise ratio. Lots of quality information and scant outrage.
THE GREAT LOOP: I had never heard of the Great Loop. But it sounds just as hard but more fun than the Appalachian Trail.
BETTY CROCKER: My mom is still using her Betty Crocker cookbook on a regular basis. It is a gem, filled with fantastic recipes in an iconic package.
CORN AT THE SHORE: I’m at the Jersey Shore this week and that means we are having Jersey corn most evenings.
Please reach out if you have any thoughts about today’s newsletter. I enjoy hearing from readers. Send me a message if you want to talk or meet up if you are in NYC.
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