In colonial America, they branded your palm with a ‘T’
for thief, so that in future everyone would know not to do business with you or
work for you. These were the bad old days of overextending your credit. Today while
going bankrupt is still a source of shame – is more like a personal finance
management tool. Recently many b-schools seem to be going bust, what could be
the reason? Almost a decade ago, setting up a b-school was a fashion. A decade
later, personal debts of its owners has led to many of them shutting shop. But the
ones who setup these institutions seem to be the biggest gainers out of the
sale; simply because the value of the asset (real estate) had appreciated almost
400 – 500%
Getting it wrong is mostly not about ignorance or
culture. The trend seems to give a hint that these b-schools don’t fail or get
it wrong by mistake or ignorance. The answers of ‘why’ lies in studying how
decisions are actually made, who gets to make them and why those people decide
to do what they do.
An individual liability of the owner’s is conveniently
transferred as organizational liabilities. Despite there being a blatant breach
of trust demonstrated by the Trustee’s, there is no accountability whatsoever. It’s
common to assume they’re deadbeats – spendthrift who’s kids enjoy expensive
world tours (holidays), luxurious cars. Later they realize they can’t pay the
mortgage. The mortgage is most often than not the Trust’s real estate. Now when
the repayment is almost impossible, the easiest way out is selling the real-estate.
But somebody has to be held responsible for this mess.
Yes, it’s the inefficient employees or even better the recessionary trends in
the economy. The real culprits clearly get away scot-free.
When will this scenario change?
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