management, sensemaking

It is all a matter of trust and meaning


 

Trust is a scarce resource and as the resource based view (RBV) of the firm would argue, you need to compete for it. However, trust is something you do not buy on competitive markets, it need nurturing and patience. Trust is the outcome of relational processes whereby organizations and customers, citizens, employees, etc. invest into shared expectations, long-term relations, empathy and support. Business needs to realize that it exists BECAUSE people support its legitimacy. Business is business, but no business can be business without MEANING to its stakeholders. Being a CEO means being able to sense what is going on, and Diamond took too much time to realize it, but he eventually DID. Ironically, he is not being lead by ethics, but by instrumental values. He could have realized it well in advance, had he been able to confront with people who really hold different ideas than his and his immediate reports. That is what Corporate Sense Making can do: challenge common assumptions and shared beliefs that make corporate boards lose track with reality. but REALITY is out there!

Barclays boss Bob Diamond: Bankers must be better citizens to regain trust | Mail Online.