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A Dangerous Pattern: Rewarding Failure

by on March 10, 2010

The article reflects the fact that Wall Street bankers operate risky investment at the expense of taxpayer funds. It further points out the fact that many CEOs don’t take responsibility for the failure of business adventure, given the examples of Geithner, Bernanke, Summers or Nardelli. It reminds what we learned from John Roberts ‘s The Modern Firm “rewards were linked strongly to the performance of the individual assets”. I think this rule should also apply to the CEOs. They shouldn’t walk away with failure implementation, but thousands of employees lost their jobs and their incomes.

The point of this argument is that at the highest levels of government and corporations, we have accepted a culture of rewarding failure. That is why perhaps the best job in America is to be a failed CEO.

If we are serious about asking for excellent performance, then we have to stop rewarding failure.

To read more: http://blogs.hbr.org/ashkenas/2010/03/a-dangerous-pattern-rewarding.html

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