In the Lead Takeaways, Part 2

March 8, 2023

Laguna Beach

Our recent In the Lead event, in Laguna Beach, California, featured an inspiring lineup of visionaries, creators, entrepreneurs, philanthropists and leaders who shared insights on how women can maximize their impact and propel each other further.

To learn more about any of the topics below, connect with your Goldman Sachs team or request an introduction.

Understand how geopolitics impact your business and family

From: Exploring the Evolving Geopolitical Landscape
Michèle Flournoy, WestExec Advisors; Joe Wall, Goldman Sachs

Left to right: Ron Lee, Michele Flournoy, Joe Wall

After a tumultuous 2022, the road ahead continues to be uncertain as we’re faced with several geopolitical risks, said Michèle Flournoy. Those concerns include an escalation of the Ukraine-Russia war, heightened tensions between the U.S. and China, and a potential for Iran to enrich its uranium to weapons-grade levels, which could elicit a military response by Israel.

Both abroad and domestically, “uncertainty and volatility are the new norm,” said Joe Wall.

In the U.S., there are questions about how Congress will address the $31.4 trillion national debt and who will run in the 2024 elections. The results of these events could ultimately cause some economic turbulence and increase political tensions. Stakeholders will have to reach across the aisle and spend time outside their comfort zone in order to mitigate political gridlock, Joe added.

Even in the face of uncertainty, families and businesses can still take steps to plan for the future.

“Investors, CEOs, boards and families need to pay more attention to understanding geopolitical risks and how they can impact their portfolios or firms,” Michèle said. “Consult appropriate experts to plan for uncertainty and enhance your resilience.”
Related Content

Your brand starts with a six-word story

From: Unlock Your Personal Brand
Desiree Gruber, Full Picture

Fiona Carter, Desiree Gruber

Desiree Gruber believes everybody is here for a reason and one of the most important things you can do is articulate who you are and what you do. Cultivating the ability to capture attention with the story that defines you can help you develop and promote your personal brand.

She encourages people to create their own six-word stories. In just six words, you can create a powerful, poignant story about who you are and what you stand for. Your six-word story should be memorable and transmissible, meaning other people can easily and consistently share it within their own ecosystem. It’s a fun and creative exercise.

Desiree suggested starting with writing five to eight phrases about yourself. The very act of putting pen to paper can kickstart the process of defining your story. Cross things out that don’t resonate and explore adjectives and new phrases for things that do. Highlight words that stick out, and keep distilling your story down to six powerful words.

“Storytelling can absolutely be learned. It is one of the oldest skills of human beings,” Desiree said. “We all have a storytelling muscle, and you use it by sharing things that are important to you and helping people understand what you've seen in the magic that is in your life.”

As you become more comfortable with sharing your story and you further develop your personal brand, it should grow and evolve with you. Certain moments throughout your life and career provide opportunities to unlock your brand and take it to the next level.

An example of an unlocking opportunity would be starting a new job or celebrating a 10-year anniversary of your business. These milestones can enhance your personal narrative, helping you build on what you’ve already established.
Related Content

Breaking traditions and trusting your gut

From: Inspiring Hearts & Minds: Work, Family, Legacy Across Generations
Katherine Schwarzenegger Pratt, BDA Baby IG live series; Christina Schwarzenegger, Take Your Pills series; Maria Shriver, journalist & entrepreneur

Left to right: Katherine Schwarzenegger Pratt, Maria Shriver, Christina Schwarzenegger

Focusing your work on something meaningful and purposeful to you can help build and strengthen your legacy. However, finding meaning and purpose is often a lifelong quest laden with ambiguous answers. Self-exploration and embracing your individualism can help.

Maria Shriver grew up in a politically prominent family but was determined to forge her own path as a journalist. If you come from a successful family with established roots, she noted that finding your purpose may require you to step away from tradition.

“In my family, everyone went into law and politics, so they didn’t understand why I would do something else,” she said. “But journalism naturally fed my curiosity, my storytelling desire, my interest in people and my interest in stories, so I went on to pursue it also as a way to individuate myself.”

She encouraged her children to explore what resonated with them and to cultivate their own talents and interests. Katherine Schwarzenegger Pratt recalled feeling confused as a child when she heard her mother say “trust your gut,” but now she lives by this mantra.

“I was like, ‘What? What is my gut?’ Now of course, I understand it’s paying attention to the little voice and going with that, even if it's not a popular opinion,” Katherine said.

Christina Schwarzenegger took her mom’s advice by channeling her own personal struggles into a meaningful project. Her own experience with Adderall led her to produce a documentary series on how psychostimulants and anti-anxiety meds have both helped and hurt a generation of young adults.

“I wanted to take something that caused me a lot of pain and turn it into something that other people can see themselves in and learn from,” she said.
Related Content

Spark change by questioning the status quo

From: Changing the Game in the Arena & Beyond
Sue Bird, Togethxr & A Touch More; Allyson Felix, Saysh; Kara Nortman, Angel City Football Club & Monarch Collective

Left to right: Kara Nortman, Sue Bird, Allyson Felix

Sue Bird believes change starts with a simple question: Why? She has used this question to accelerate progress, whether it’s negotiating more equitable contracts with the WNBA or co-founding a production company that focuses on historically marginalized voices.

“Why are contracts set up this way? Why is this the way we do things? When you really start asking why, you being to realize, ‘oh, this world was set up one way for one type of person, men,’” she said. “You can unlock a whole new way of doing things and create more opportunities for people who have historically been excluded when you question how things are done.”

Speaking of people who have historically been excluded, Kara Nortman said it’s vital to surround yourself with a diverse group of people who can bring different backgrounds, perspectives and experiences to problem-solving and innovation. While being around like-minded people can be validating, it can also result in homogeneity and myopic thinking.

“Look for the places where this diversity will drive different decisions around planning, marketing and revenue streams,” she said. “And remember to map actual outcomes for people who want to replicate this strategy.”

The success of Allyson Felix’s clothing brand Saysh exemplifies the benefits of questioning the status quo and seeking diverse perspectives when creating a product. She realized many existing shoe and clothing brands didn’t evolve with their women customers and adapted her products to meet women’s needs at all life phases.

“It’s about listening to what people — customers and employees — need,” she said. “And doing better than we have in the past.”
Related Content

In the Blink of an AI

From: An Eye on Generative AI
Rachel Knaster, ASAPP

When new tech rains, it pours. ChatGPT has now set a record as the fastest growing application in history, reaching 100 million users just two months after its launch.*

Love it or fear it, you’re almost guaranteed to be seeing more widespread use of generative artificial intelligence (AI) technology, such as ChatGPT, in the near future. Gartner predicts that in the next five years, 30% of all internet content will be AI-generated.**

In Gartner’s survey of IT leaders at large enterprises, 50% of them said AI is already happening and has advanced so much in terms of how they can respond and predict. Why? Because there is more data available to train these models, which ultimately improves their output.

One real-world application of AI is an obvious and somewhat infamous one: customer service. Rachel Knaster said her company develops super-charged bot products to answer customer questions directly and make agents faster, more accurate and better at resolving issues for customers.

As you begin exploring this new technology, take care to understand what companies will do with the data users are inputting into chat models and prototypes. Your data is a valuable asset, and you want to ensure it’s not being used by the wrong people, company or AI.
Related Content

^{*Reuters, ChatGPT sets record for fastest-growing user base, 2023

**Gartner, The Future of Generative AI for Enterprises, 2023}

De-globalization? Don’t oversimplify. It’s complicated.

From: Fireside Chat With John Waldron
John Waldron, Goldman Sachs

Left to right: Meena Flynn, John Waldron

Can you take the complex global trends of the last 30 years and boil them down into one blanket term like “de-globalization?” Maybe. But John Waldron sees a more nuanced picture, one shifting alongside the evolving U.S.-China relationship.

“Until very recently, the 30-year play, whether you were a financial company like ours or a consumer business, was to build low-cost manufacturing capacity in China to serve global operations,” he said.

China’s admission to the World Trade Organization (WTO) in 2001 made that cross-border collaboration easier. In addition to benefits like reduced tariffs, WTO members, including the U.S., hoped China’s membership would help accelerate reforms in the country and bring it closer to the West, both politically and economically.

In the 20+ years that followed, these goals did not materialize and extenuating circumstances quickly complicated the picture. Supply chain bottlenecks, triggered and exacerbated by the COVID pandemic, led countries to realize the vulnerabilities of being wholly dependent on international production and manufacturing. Political figures gained popularity by tapping into nationalism trends further fueled by the pandemic.

However, that does not mean globalization is undergoing a widespread reversal. John believes that ship has sailed. Even with U.S. companies shifting supply chains and shoring up domestic manufacturing to build more resiliency, costs can be prohibitive.

“It’s still too expensive to move many of those manufacturing jobs back to the U.S. And companies aren’t going to do that en masse,” John said.

For John, globalization is more in transition than in retreat.

“I think words like de-globalization are dangerous words. It's too simple. We're in a much more nuanced place.”

Grit is a key component of success

From: The Power of Perseverance
Lydia Fenet, Christie’s

Lydia Fenet

Sticking it out when the stakes are low will help you persevere when the stakes are high, said Lydia Fenet, who shared actionable tips on how to create the life you want.

Perseverance is a powerful skill. In her book “Grit: The Power of Passion and Perseverance,” Angela Duckworth found that perseverance is a key quality for success, even topping aptitude and raw talent as a more accurate predictor of achievement.

Many of us are familiar with the experience of quitting something far too early. This is especially easy to do when you’re learning something and you hit a plateau, the period where improvement flattens because of boredom, motivation loss or a shift in the skill level needed to progress beyond the plateau. Grit and perseverance are traits that help us push through those plateaus to reach new heights of achievement.

Above all, it’s crucial to stay persistent and keep trying. Don’t let the fear that something won’t work out stop you from trying in the first place, Lydia said, noting we can learn from failure as much as we do from success.
Related Content

Bring intention to your goals

From: Level Up With Ciara
Ciara, Grammy-award- winning singer & songwriter, entrepreneur, philanthropist

Ciara

To achieve your goals, it’s not only critical to have a plan but to visualize yourself reaching desired milestones. Ciara discussed how several of her dreams — becoming a singer, entrepreneur and philanthropist — came together by the power of hard work and also seeing herself get there.

“The power of manifestation is real,” she said.

Manifesting your goals means bringing tangible, concrete characteristics to them, so they don’t exist only in your mind as an abstract idea.

Ciara also underscored the importance of timing.

“I used to jump at opportunities,” she said. “Now, I’m more intentional and only take on work that I’m connected to and feels authentic to me.”

Ciara said this approach has helped her create more meaning in her life.

“You’ll able to find joy even when things get tough and have the patience to glean important lessons because you’re committed in a deeper way,” she said.

Tackle cybersecurity from multiple angles

From: How to Keep the Whole Family Cybersafe
Carra Cote-Ackah, Goldman Sachs; Chris Pierson, BlackCloak

According to the Federal Trade Commission, consumers lost $8.8 billion to fraud in 2022, a 30% increase from 2021.* Having open and regular conversations with your family is one of the first and best steps you can take to protect your loved ones from fraud and other cybersecurity risks, said Carra Cote-Ackah, even before you put any monitoring services in place.

Talking candidly about cybersecurity allows you to learn more about your family’s digital behaviors and identify any risks, which can vary for different generations, Chris Pierson added.

Children and teens, for example, may be more susceptible to social media scams, while aging parents might fall for deceptive text and phone messages that target their finances. Ultimately, ongoing and candid dialogue builds trust between family members, and they’re more likely to ask questions and raise concerns, which can avert security breaches.

Implementing a few key security measures will go a long way to ensure your family stays protected, Chris explained. Certain accounts and devices, including email, financial accounts and smart home systems, should always have dual-factor authentication, which can decrease your risk of getting hacked.

Avoid sharing key details such as your location, addresses, phone numbers and family dynamics on social media; even private chats occasionally become public. Be mindful of the technology you are placing in your home. Choose brands, devices and features that complement your level of enjoyment and also come with robust privacy and security features.
Related Content

*Federal Trade Commission, 2023

Break investing barriers with women-led groups

From: Investment Networks Made for Women
Jessica Farron, Short List Capital; Candace Nelson, Sprinkles

“Boy’s clubs” haven’t just been places for men to unwind. Whether it’s via professional organizations, alumni events or rounds of golf, men have historically used these spaces to launch and evaluate business deals.

“I think women are realizing that if we want more parity and power, we also need to organize ourselves and create places to connect, whether official or unofficial,” Candace Nelson said. “And the onus is on us because they're not being built for us.”

Women can launch investing collectives to network around investment opportunities. Jessica Farron explained how her collective of six women, each from unique backgrounds, come together to aggregate diligence and deal flow, as well as invest in new opportunities.

“We leverage each other’s expertise and networks to grow our contacts and knowledge base,” she said. “We invest individually, but we use each other as sounding boards, and are honest and direct about why something works or doesn’t.”

Women-centered spaces also offer an opportunity to break down barriers and create new norms for female investors.

“Women have been socially conditioned to not talk about money, but I think we need to push past that,” said Candace, who’s part of a female founders/funders group in Los Angeles. “When you enter a room, ask women what deals they're working on, how you can help and how you can amplify them.”

Forge connections with the people you want to help

From: Uplevel Your Philanthropic Passion
Alexandra Idol, Rosehill Investors and Maverick Collective; Ivy McGregor, BeyGood; Julie Veldman Harris, Valinhos Foundation

Left to right: Jean Altier Bohm, Alexandra Idol, Julie Veldman Harris, Ivy McGregor

In the vast and often complex world of philanthropy, forging connections with the people you want to help is the best place to start.

The concept of giving back was instilled in Alexandra Idol and Julie Veldman Harris when they were growing up, through their families’ emphasis on volunteering and philanthropic engagement.

Ivy McGregor said hands-on engagement is a strong starting point for philanthropic initiatives.

“At Beygood, we get on the ground, uncover the need and seek out local people who we are making an impact,” she said.

From there, it’s the “three Ps” of philanthropy: working with people, creating programs and working with partners, with the goal of making each one better.

Tracking data is crucial as well, to compare goals to actual results and to better understand what drives success.

Philanthropy is constantly evolving, and for Alexandra, a crucial part of understanding that evolution is connecting philanthropists with opportunities and each other, something she strives for in the Maverick Collective.

From identifying efficiencies to recommending trusted partners to one another when urgent action is needed, there’s power in their collective experience that can drive progress.
Related Content

The complex art of closing a deal

From: The Art of the Deal
Kerry Blum and Syida Long, Goldman Sachs; Nancy Smith, Analytic Partners

A key step in arranging your potential exit when you’re selling your business is learning how to tell your company’s unique story. Another is ensuring you work with experts you can trust.

Nancy Smith knew her analytics technology company, Analytic Partners, was at an inflection point but wasn’t certain what should come next. Goldman Sachs had the expertise to help her better determine and establish what she wanted for herself, her employees, her family and her business.

“The journey begins with answering this question: What is the strategic value you and your business uniquely have? And then you need to be able to tell that story,” Kim Posnett said.

From there, it is critical to begin building out your management team — especially the roles of CFO and general counsel — well in advance of a potential sale. When it’s time to work with a banker, look for someone with a nuanced understanding of your industry and its players.

And sometimes, “the answer may not be doing a deal,” Kim said, “but if it is, you want all of these [potential buyers]… competing with each other to dance with you.”

It is just as important to be proactive about your personal planning in order to maximize after-tax proceeds. Again, the caliber of advice is critical.

“Make sure you surround yourself with good advisors,” Syida Long said. “It’s just crazy how many missteps you can have.”

Despite the complexity, Nancy was unequivocal when it came to the question of whether achieving her dream or the pursuit of it made her most proud.

“For me,” she said, “it was the pursuit. The pursuit absolutely.”
Related Content

Successful beauty and wellness brands go narrow but deep

From: The Business of Beauty & Wellness
Amy Liu, Tower 28; Monique Rodriguez, Mielle Organics; Katerina Schneider, Ritual

Left to right: Brittany Boals Moeller, Amy Liu, Monique Rodriguez, Katerina Schneider

The global beauty and personal care market was estimated to be worth $503 billion in 2021,* and there’s no shortage of new products coming to market. To stand out in a crowded space, businesses should have a unique story and selling proposition, said Monique Rodriguez.

“Brands with a solid, genuine, authentic story and connection with the consumers are the ones that are going to reach people in this really saturated market,” she said.

Monique’s company Mielle creates products for natural textured hair made from healthy ingredients and educates women about healthy hair.

Amy Liu added that a successful brand will “go narrow but deep.” That means zeroing in on one audience while connecting with it across multiple channels. Research where your audience spends time and align your strategy to meet them there.

“People have never been more distracted, so you may need several touch points to reach them, which can include social media, in-store placements or ads,” Amy added.

Tower 28 is active across all these channels but puts particular emphasis on its relationship with Sephora — the most frequented touch point of its audience — which has helped the brand deepen its relationship with consumers.

Katerina Schneider uses the narrow but deep concept in a slightly different way with her company Ritual.

“I started the company when I was four months pregnant and I couldn't find a prenatal vitamin that I trusted,” she said. “Like so many of us, I knew that we deserved better. And so, I set out to really reimagine the industry from the ground up.”

Ritual meets a very specific niche with prenatal vitamins, including one flagship vitamin that now has a peer reviewed and published clinical study at a major university.
Related Content

*Source: Statista, 2023

Sustainable investments and performance can co-exist

From: Sustainable Solutions That Drive Returns
Abigail Pohlman and Letitia Webster, Goldman Sachs

Today’s sustainability challenges are highly complex and require a significant amount of investment capital. For example, to reach global sustainability targets, the world needs $6 trillion per year of investment in the 2020s to meet 2030 net-zero, infrastructure and clean water goals.*

Accessing this opportunity through sustainable investments consists of a variety of investment approaches one can apply across a multi-asset class portfolio, the primary ones being values alignment, environmental, social and governance (ESG) integration, and impact investing. While values alignment and ESG integration have been historically applied to the public markets, impact investing is most often applied to the private markets.

Investors and families shouldn’t think of sustainable investing as an all-or-nothing approach focused on what you want to avoid, Abigail Pohlman said. This can make it difficult for family members to get started and agree on an investment strategy.

“Instead, consider what you want to lean into as a family,” she said. “That could be companies that provide accessible and affordable healthcare, education or financial products and tools. Then, you can dip your toe in by selecting a few investment strategies that fit — you don’t have to change your entire portfolio.”

Battery storage, electric conversion, energy management and renewable energy will also offer robust investment opportunities, Letitia Webster said, especially in the wake of U.S. Congress passing the Inflation Reduction Act, which set aside $370 billion of tax credits and incentives for clean energy and infrastructure. Sustainability can also include funding opportunities that sit at the intersection of clean energy and inclusivity, ensuring underserved communities also have access to solutions that support the climate transition.

“Sustainable investing is just as rigorous as traditional investing in that we’re considering all the same performance, data and risk factors,” Abigail said. “We want to use this sustainability lens to drive equivalent or additional returns.”
Related Content

Align board positions with your values and goals

From: Boardroom Insights
Ilana Wolfe and Pamela Codo-Lotti, Goldman Sachs; Jeanne Jackson, MSP Capital

Serving on a corporate board comes with significant commitment and responsibility. That’s why it’s crucial to be intentional about what you can realistically contribute (in terms of your time, expertise and perspective) and what you’re hoping to gain from the experience, said Ilana Wolfe. This can help ensure the role is a good fit in both directions.

Doing your diligence is important throughout the interview process. Ask questions and request information from management and, following appropriate channels, the company’s advisors. Every company is different, so inquire about things like the board’s structure and culture, past performance, strategic goals and where they see the biggest challenges and opportunities. Get a deep understanding of what the company needs to navigate the future, and if your time and talents would be well suited for the board role.

“Board interviews should be two-way conversations. You want to ensure your unique superpowers will be leveraged and that you are comfortable lending your reputation to the organization,” Ilana added.

Jeanne Jackson noted boards are not there to make management decisions related to running a company, but rather to ensure the company goes through the right thought processes in strategy and value creation.

“A board member has to approach their task with some humility and understanding of what they’re there to do,” Jeanne said.

Public company directors also need to strike a balance between supporting management and holding it accountable on delivering shareholder value. And in a world where sustainability is increasingly becoming a key issue, board members will have to oversee conflicting stakeholder agendas.

“While managing these various demands is complex, focusing on sustainable, long-term value creation can provide a helpful framework for directors,” said Pamela Codo-Lotti.

View Day 1

Investment Strategy Group (“ISG”). The Investment Strategy Group, part of the Asset & Wealth Management business (“AWM”) of GS, focuses on asset allocation strategy formation and market analysis for GS Wealth Management. Any information that references ISG, including their model portfolios, represents the views of ISG, is not financial research and is not a product of GS Global Investment Research and may vary significantly from views expressed by individual portfolio management teams within AWM, or other groups at GS.

This material is intended for educational purposes only and is provided solely on the basis that it will not constitute investment advice and will not form a primary basis for any personal or plan’s investment decisions. While it is based on information believed to be reliable, no warranty is given as to its accuracy or completeness and it should not be relied upon as such. Goldman Sachs is not a fiduciary with respect to any person or plan by reason of providing the material herein, information and opinions expressed by individuals other than Goldman Sachs employees do not necessarily reflect the view of Goldman Sachs. This material may not, without Goldman Sachs’ prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient. This material is not an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction. Investing involves risk, including the potential loss of money invested. Past performance does not guarantee future results. Neither asset diversification or investment in a continuous or periodic investment plan guarantees a profit or protects against a loss. Information and opinions provided herein are as of the date of this material only and are subject to change without notice.

© 2023 The Goldman Sachs Group, Inc. All rights reserved.

^{Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).}

About Us