Fallen Giant Rises Again

https://www.ft.com/content/2d5688f2-4794-11dd-93ca-000077b07658

Summary:Shi Yuzhu, one of the richest man in China now, once committed a big error andbecame the man in China with the greatest debt. That was when he earned muchmoney from his software company and spent most of them in constructing thehighest building in China, which failed in the end and dragged him into debt.

Critique:Shi’s mistake was soharmfulbecause of the influence of his leader’s role. As the highest leader in thecompany, he had the highest power and responsibility. Every decision made byhim had theinfluenceto impact the whole company. This is why leaders should be cautious about everymove they make. The reason that led to this error can be explained fromindividual levelandorganization level. As anindividual, Shi was one of the most successful entrepreneur at that time, so hemight be too arrogant and conceited when he decided on constructing anunrealistic building. Also, theorganization managementwas not perfect in the 90s. Leaders inthe company had very power that no other departments could restrict them. Thisbecomes much better nowadays where most companies have great policies andregulations to constrain the power of hierarchies so that companies won’tsuffer a lot from high level individual’s mistake. Last but not least, Shi’sattitude towards the error was respectable. Heapologizedto all the people involved and tookfull responsibility on his own. He could just go bankrupt and ignore all thedebt. However, he chose to start another business and repay all the debt by his own.