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Organisations advance by asking “what went wrong” rather than “who is to blame”

Bad events in organisations are generally the product of bad systems rather than bad people. So, while it is right to place responsibility for the VW scandal with the chief executive rather than the individuals who falsified emissions tests, we need to go on and ask what it is about modern corporate life that has made such misbehaviour not only possible but appear increasingly common.

The rich and powerful obstruct criticism of their actions through ‘Maxwellisation’

Sir John Chilcot recently explained that the delay to his Iraq war inquiry is in part due to “the ‘Maxwellisation’ process, in which individuals are given the opportunity to respond to provisional criticism of themselves in the inquiry’s draft report”. This is, perhaps, an appropriate legacy for one of the most flamboyant and litigious crooks of recent times.

Limited liability led to limited care for other people’s money

The financial sector in the 1980s and 1990s was characterised by a rush to incorporation. The mantra of “shareholder value” restored the nexus between finance and business that Smith had feared and Brandeis denounced. And the stage was set for negligence and profusion to prevail once again.

Rail privatisation has delivered improvements through accountability and autonomy

Both the leading candidates for the leadership of Britain’s opposition Labour party have now committed themselves to renationalising the country’s railways. But the state-owned British Rail was one if the most reviled institutions in the UK, and privatisation has delivered many relative benefits.

Solutions to the Greek debt crisis should be found through pragmatism not blame

The Greek crisis is not simply the result of Athens’ inept public administration but also of an extensive carry trade on eurozone convergence by northern European banks, notably in France and Germany, which obtained short-term profits by matching northern eurozone liabilities with southern eurozone assets. For every foolish borrower there is usually a foolish lender.

HS2 is yet another politically-driven project in search of a rationale

Projects acquire political momentum of their own. The original rationale is forgotten, if indeed it ever existed. And so it has been with HS2, the project to build a high-speed rail link from London to Birmingham and then to the north of England.

Rule of the vigilante is not the way to handle business misconduct

There are good reasons for state action in areas of business misconduct. But announcing ad hoc measures against companies in the news is the wrong way.

‘Trust me, I am a financial adviser’ is not good enough

Concepts of fiduciary obligation have been watered down in the modern financial services sector. It is time to reverse that.

How a proud corporate history can lead to poor governance

The failures of the Coop provide insights into common management problems in not for profit institutions – including Oxford University.

The welfare cap replaces political judgment with spin

Whatever initial misconceptions spin doctors may promote, reality will out.