A timely message from Herbert London:
Hubris, the sin of overweening pride or arrogance, is invariably the basic condition that undermines societies and individuals in classical literature. But we seem to have forgotten that hubris has its influence in the real world as well. “If you’ve got it, flaunt it,” is a common modern expression of hubristic sentiment in our time. Kenneth Lay, former CEO of Enron, lauded his company for having been a “New Economy” firm “before it became cool to be one.” On August 14, 2001, he sent an email to employees, noting, “Our performance has never been stronger, our business model has never been more robust. We have the finest organization in American business today.” Now, of course, the company is in ruins, employees are out of work, pensions have been converted to dust, and criminal proceedings may await the principals. Similarly, a recent Money Central article noted that John Chambers, chairman of Cisco, had predicted continued 30 to 50 percent annual growth for his company. One year after he made that prediction, the company suffered three straight quarters of 70 percent declines in profits. In yet another recent example of this phenomenon, after a vice president of Delta Airlines said, “We are the best in the business,” the company’s stock price plunged 31 percent. There is often a high price to be paid for such boasting.