The failure of Lehman Brother suggests that too much power may go with
formal position while non-positional leadership in organizations is not given
enough of a chance to check the excesses of office. Richard Fuld could take
advantage of much having to do with his formal position so he would not have to lead. In contrast, a
competent subordinate, Mike Gelband, faced a considerable headwind in trying to
lead through persuasion without the benefit of a position trumping Fuld’s own.
The full essay is in Essays on the Financial Crisis, which is available in print and as an ebook at Amazon.
Related Essays:
"Fuld's Arrogance at Lehmen: Systemic Risk"
"Lehman's Dick Fuld as the Antagonist in the film, 'Too Big to Fail'"
"Fraud as Fair: Lehman as Beneficiary of Society's Pro-Business Cultural Values"
"Executive Stature: Glimpses of the Man Behind the Curtain"
"Lehman Bros: Insufficient Accountability in Corporate Governance"