Massive corporate fraud, the dot-com bubble, the worst economic crisis since the 1930s—these events have undermined many companies and leaders over the past 15 years. As CEOs begin to absorb the lessons of this turbulent period, they should be careful not to overlook one significant contributory factor: hubris, the pride that comes before a fall.
In a corporate setting, hubris can take many forms, such as:
Creating grandiose strategies that find their way into glossy brochures, new advertising campaigns, and rhetorical conference speeches—but never get implemented
Launching high-profile moves into new, exciting, international markets in a costly and flamboyant way—but failing to create competitive advantage
Pursuing big mergers and acquisitions that deliver scale, bold headlines, and large bonuses for the management team—but no long-term value
Completing dubious financial transactions that undermine transparency—and serve only to show that the company isn’t addressing the fundamentals of business
Time and again, these activities have led companies to overextend themselves, to falter, and—all too often—to fail. CEOs should guard against them at all costs.
Via The Learning Factor