What does it take to have staying power in the modern economy - not only to survive, but to thrive and prosper? This is an issue that has grown more urgent in recent years, as we have seen the once mighty companies such as Merrill Lynch and AIG fail and crumble. In examining the situation lending, banking regulation and derivatives structures can provide insight into the specifics of the accident, paying attention to the intricacies of the mortgage market and asset-backed securities hides the real lesson, he says. He argues that our own theories of management are the main culprit - a triumvirate of well-intentioned theories that are taught in every business school and entrenched in every large publicly traded companies. Designed for durability and efficiency, they instead had the opposite - transience - and contributed mightily to the collapse of both the technology and financial services to the 2001-02 collapse of 2008. No accident would not have happened, he said, if our theories were as robust as those used to control the American National Football League (NFL). "Hide
by Roger Martin Source: Rotman School of Management, 5 pages. Publication Date: April 1, 2009. Prod. #: ROT077-PDF-ENG
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