CHAPTER THREEEarly Warning Signals

The limitations of one-sided vision were on vivid display in the financial problems that engulfed the world throughout 2008. Although the crisis reflected structural, economic, and political problems that had been brewing for over a decade, it also constituted a leadership crisis of epic proportions—a crisis that remains in the aftermath of the meltdown.

This is ironic given that many of the high flyers whose actions led to the threatened financial collapse came from companies that prided themselves on having strong leadership cultures. These companies boasted of hiring the best talent on earth, poured resources into grooming employees deemed to have high potential, and showered their stars with extravagant ...

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