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THE QUESTION
Building Better Wall Street Leaders?
A major cause of the year-old financial crisis was a failure of leadership in a financial sector that had become focused on its own short-term profits rather than the long-term health of the economy. What does Wall Street have to change to produce better leaders, a different culture and a more long-term focus?
Posted by Ben Bradlee and Steve Pearlstein on September 14, 2009 11:53 AM
FROM THE PANEL
No Downside to Greed
Private-sector pressures on Wall Street business leaders mean we are unlikely to see significant change in the business culture, and appropriate government intervention will be necessary.
Posted by Kurt Schmoke, on September 18, 2009 6:29 AM
Celebrate the Heroes
Bring out those who have had the courage to buck Wall Street trends and help them to change the game.
Posted by Deborah Ancona, on September 17, 2009 7:02 AM
Don't Fight Regulation
The best we can hope for is that some far-sighted bankers will work with the Congress rather than fight it in crafting legislation that will incentivize transparency, accountability and longer-term thinking on Wall Street.
Posted by Marty Linsky, on September 16, 2009 7:20 AM
Education Without Ethics
To change Wall Street, business schools should include ethical leadership as a core component of their curricula.
Posted by Lt. Col. Todd Henshaw (Ret.), on September 16, 2009 7:13 AM
A Las Vegas Illusion
Wall Street has only one prerogative and that is to maintain the illusion that it adds value so that it can charge spectacular sums for its services
Posted by Roger Martin, on September 16, 2009 7:05 AM
Earning Isn't Leading
Wall Street often equates people who know how to earn high wages with people who know how to lead.
Posted by Joanne B. Ciulla, on September 16, 2009 6:59 AM
A Jamie Dimon Model
Changing behavior at financial institutions requires leaders with a clear philosophy, starting with a statement of purpose that translates into how employees are expected to act and how results will be defined and measured.
Posted by Michael Maccoby, on September 16, 2009 6:52 AM
Society Before Shareprice
Wall Street has a lesson to learn from its neglect of the big picture. Now it's up to the government to ensure that there is transparency on Wall Street.
Posted by Yash Gupta, on September 16, 2009 6:39 AM
Surviving the Good Times
Given that we suffer from over-confidence when things are going well, company executives and directors can require a culture of caution and a mindset of continuous improvement.
Posted by Michael Useem, on September 15, 2009 11:51 AM
Channeling the 'Animal Spirit'
Business organizations must be designed-to check greed, stupidity and corruption and to channel capitalism's "animal spirits" into sustained, durable creation of real economic value.
Posted by Benjamin W. Heineman, Jr., on September 15, 2009 6:57 AM
Shoe-Leather Strategy
The more virtual the world gets, the more personal and approachable leadership has to be.
Posted by Barry Salzberg, on September 15, 2009 6:51 AM
Twelve-Step for Wall Street
If the leaders of the U.S. business community were your friends or relatives, you'd stage an intervention after their long series of drunken orgies stretching over the past 30 years.
Posted by Alan M. Webber, on September 15, 2009 6:40 AM
Shareholders First
Wall Street leaders have a duty not to the "long-term health of the economy," but to their shareholders. If they work toward that interest, the national economy is almost certain to benefit.
Posted by Slade Gorton, on September 15, 2009 6:36 AM
'What Would Happen If...?'
Scenario planning -- relentlessly asking "what would happen if?" -- should be a vital part of leadership in any industry, but it is a particularly essential discipline in financial industry.
Posted by Tom Monahan, on September 15, 2009 6:29 AM
A Question of Purpose
We have seen plenty of piracy, now where is the stewardship? Is it even possible to change the culture to a more sustainable perspective?
Posted by George Reed, on September 14, 2009 3:18 PM
Aligning Rewards and Hopes
If newly minted MBA grads wanted to help the world achieve "long-term health," they would have become medical doctors! The reward system has to change first.
Posted by Marshall Goldsmith, on September 14, 2009 3:09 PM
A Larger Vacuum to Fill
Moral leadership in the global financial arena will take years to regain, and Wall Street and Western governments need to respect practices in foreign markets that may challenge the classical understanding of open markets and capitalism.
Posted by Raju Narisetti, on September 14, 2009 2:24 PM
Less Welch, More Aristotle
Business schools need to become educational institutions, not just trade schools.
Posted by Mickey Edwards, on September 14, 2009 2:01 PM
Still Time for Mea Culpas
Personally I am dubious that Wall Street will heal itself, but the culture may change if top leaders take responsibility for the crisis.
Posted by Howard Gardner, on September 14, 2009 1:01 PM
The Answer Lies in Washington
Congress must strengthen our financial regulatory system so that someone is looking out for "systemic risk."
Posted by Paul R. Portney, on September 14, 2009 12:43 PM
Reversing 'Group Think'
The high-risk, high-reward pay structures of Wall Street over time drive diversity out of a workforce, leading to dangerous group think.
Posted by Beth A. Brooke, on September 14, 2009 12:34 PM
Incentivize the Long Term
Let us create a greater financial and regulatory framework that reduces risk, values assets realistically, and incentivizes long-term over short-term profits.
Posted by Andy Stern, on September 14, 2009 12:18 PM
FEATURED COMMENTS
m_rth2: I believe Wall Street needs much more oversight. I don't think new leaders in the field would work--greed always wins out. ...
Billy1932: 3.6 Billion in bonuses to Merrill Lynch failures last year, how can any sane person can ask the question? Obscene greed still holds Wall Str...
wmboyd: An ex-SEC attorney told me that anyone still at the SEC after 5 yrs. was there only because no one on Wall Street (private sector) would hir...
