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Showing posts from December, 2018

How the Mighty Fall

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What, if anything, have we learned from Enron, WorldCom and other corporate failures?
What have we learned from the collapse of Bear Stearns and LehmanBrothers?
What have we learned from the alleged misdemeanors of media giants, Hollywood moguls, unicorn leaders, and others who we treated as icons till recently?
It appears that we refuse to learn anything.
When Carlos Ghosn arrived in Japan in 1999, many expressed surprise. After all, Renault was not in good shape and taking on the responsibility of the troubled Nissan appeared to be an unnecessary risk.
In fairness to Ghosn, he proved his critics wrong. With a ruthless focus on cost-cutting measures combined with engineering precision, he turned the company around.
The success of Nissan was instrumental in the acquisition of Mitsubishi. The conglomerate of Renault, Nissan, and Mitsubishi became one of the world leaders in automobiles.
The success story was not without its downside. For a start, Ghosn’s lifestyle contrasted wildly with the…