Archive for December, 2009
Lessons in Leadership
Friday, December 4th, 2009Earlier this week I had the good fortune to attend a Greek festival at my children’s school that was the culmination of weeks of study about ancient Greece. In honor of the celebration children were asked to make and wear traditional ancient Greek clothing (e.g., a toga) to school. This event reminded me of a similar childhood experience when I was in junior high school. I had been elected class vice-president, but soon after assumed the presidency when the position was vacated by my school mate whose family moved to another state.
Ms. Kinder was a social studies teacher and the student council faculty leader at my school. I worked closely with her for the duration of my tenure as president. In hindsight Ms. Kinder was a fabulous teacher, but to most 12 year olds she was unduly strict. I now understand that what we interpreted as strict was her attempt to instill in each of us a sense of responsibility and accountability. Here is how that played out for me as class vice president. (more…)
In the wake of the financial crisis: rebuilding the image of the finance industry through trust
Thursday, December 3rd, 2009“In the Wake of the Financial Crisis: Rebuilding the Image of the Finance Industry through Trust” by Erika Hayes James links the financial crisis with positive organizational management. When stable corporate entities, such as Merrill Lynch and Lehman Brothers, enter bankruptcy, a crisis is definitely occurring. A crisis is defined as a low-probability, high-impact event that poses a threat to a company’s security. What has now become known as “the financial crisis” has affected banks, but also insurance companies such as AIG, and automakers such as GM, Ford, and Chrysler. Perhaps because of what some would call the source of the problem, the subprime mortgage lenders, and their predatory lending practices, an environment of corporate distrust has emerged.
Trust is built when expectations are met over time. Companies acquire trust by fulfilling the public’s needs and avoiding negative outcomes. When a crisis happens, trust is disturbed. Confidence in the abilities of a company and a perception of honesty from its leaders are important to stakeholders. When stakeholders can rely on management to do the right thing, a relationship of trust exists. When that trust is betrayed, however, negative feelings and unproductive behavior can occur on both sides.