I was listening to a prominent banker talking about the banking crisis and one thing was very clear to me.  One of the key drivers for this was the way that the banks defined and rewarded success.  They wanted to drive up profits, and rewarded the people who came up with more and more inventive ways of describing things as ‘profitable’.  They gave them big bonuses which meant that others saw this and emulated their ‘success’.  In other words, they created a financial feedback loop and those of you who have stood near a speaker stack which is feeding back know how damaging this can be when it is amplified!

It is the job of leader to take a balanced view of what is going on.  They have to encourage innovation, and pushing the envelop but also to ensure that excess is avoided and the voice of prudence is heard.  This was a classic case of the Emperor’s New Clothes, but we were the poor schmucks who are paying for them!

“Pleasure is the greatest incentive to evil.”  Plato