The Herd Mentality Can Cost You Your Job
The two outstanding examples of corporate herd mentality are the headlong charges of AMP and NAB overseas to make their fortunes. That resulted in $bn2.6 and $bn3.6 write-downs respectively.
Is it a coincidence that these overseas investments ended in disaster? I think not. At the same time we had Westfield and other corporate giants, including the NAB, take a beating in the US. "Just global downturns" I hear you say.
The cause of each of these write offs is complex, but here are a set of common corporate behaviours that may provide an insight into the fate of AMP & NAB.
It is the last factor, which is most deadly. If people feel
inhibited to question what the Executive or Board hold as sacred truths for fear of their
corporate careers, we have a severe case of "groupthink".
If you are interested in more information please give us a call on +61 412 026 909 and ask to speak to one of our consultants.
PARTNERS in PROGRESS