It started with the wrong one
He says many of the senior bank executives did not bother to have their eyes and ears close to the ground — completely missing the obvious economics of overextended mortage loan customers — and as a result, they made very uninformed lending and loan repackaging decisions.
“These executives literally kept themselves so disconnected from reality that, in this case, the change started with one, but the problem was their inability to see the change was the problem. Consider instead what might have happened had those same senior executives interacted, talked with, become part of, and had conversations with real people who lived in very different worlds … it would have likely led them to make very different leadership choices.”
The calm after the storm
Rangan says, however, that it is time to stop the mudslinging and instead turn the focus on the right individuals who can get their companies back on track.
“I’m sympathetic actually with the policy makers who are in roles of power and authority who feel responsible but don’t want to worsen the problem by taking actions just because people say ‘act now’. I’m therefore more tolerant of what appears to be not 100 per cent competence, because people need time to figure out what the problem is before they can propose or advance a sensible solution.”
Complete article and videos at http://knowledge.insead.edu/LeadershipinCrisis081216.cfm?vid=156