Saturday, October 3, 2009

Leadership and the Global Financial Crisis

A year ago the world was plunged into turmoil when the financial markets collapsed. There was widespread clamour for reforms that would prevent such a catastrophe being repeated.

A year on, what has changed.

Very little.

Money trumps morality. Greed trumps equity. The “Gordon Gecko’s” of the world continue to practice their mantra of “greed is good”.

Many managers and leaders are appalled at what has happened. They worry about the loss in shareholder wealth. They seek to redress the wrongs seen when companies fail to perform yet executives receive huge bonuses. Yet they are caught up in the maelstrom and wonder how they can lead in tomorrow’s world – a world in which pressure from shareholder action groups and other interested parties will mean many of these excesses are curbed.

There is a need for re-creation for leaders and organisations.

With the benefit of more than 40 years’ hindsight, I know that these leaders can be re-created. And I know, too, that re-created leaders can re-create their organisations so that they do provide increasing shareholder wealth not only this year but into the future.

These are the leaders and the organisations that have a future. These are the ones in which it is worth investing.

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