The Arrogance of Power

I am sure that this isn't anywhere near the first time that this title has been used, but it is wholly appropriate for my thoughts this morning. Over the last couple of years, I have had the misfortune to come across individuals whose perspective on life, business and the relationships that result have been influenced by their sense of their own power. Such perception may have been built by wealth, access to wealth, previous successes or other factor which they used to convince themselves that they have power and influence (or at least deserve to have). These are not good people to associate with and generally results in monetary or (more importantly) time loss.

This morning, we are reminded about the arrogance of power with the news of Dominique Strauss-Kahn and Chris Huhn. Of the two, DSK is by far the worst. Assuming that he is guilty of his actions (and the evidence appears to be building), he has not only let himself and his family down, but his position within the European debt crisis means that many millions of people could be affected. Upon hearing the news, I was quite taken aback that someone in his position could have been quite so stupid. However, on reflection, my sense was that this was most likely an arrogance that he had that he was untouchable.

Chris Huhn came to my attention in a TV interview during the UK's AV referendum where he appeared an angry individual and someone making demands rather above his station. Now we hear that he covered up a speeding offence by asking his ex-wife to carry the can. This did not surprise me as he had been on my radar screen since that TV interview. My sense is that David Cameron will not be unhappy to see his back, but once again, it leaves the Lib Dems in some difficulty. More people are affected.

I used to think myself as being a good judge of character. Even today, I believe that I can judge people reasonably well, but I also know that some folks can slip within the cracks. However, with experience, I believe that personal judgement is the most critical aspect of building a business and frankly, building your life. I once read an interview with a senior HR officer at Microsoft who said that they spend so much time in their hiring process not identifying future stars, but ensuring that they dont hire anyone that could bring down the company. That is sensible.

Could DSK's frailties have been identified before he reached such a prominent position? Could Chris Huhn have been identified as someone who could be tempted in this way? I believe so, but I also know that there are many reasons why there is not the incentive to weed them out.

The same arrogance exists in the finance industry. Goldman Sachs have the arrogance that lets them rip off clients for their own gains because time and time again, they have got away with it. So much so that individuals within the finance industry have started believing that this behaviour is not only acceptable, but demanded.

I dont have a magic formula here other than trying to remember myself that no matter what position I am in, I have to trust my instincts and complete appropriate due diligence on anyone that I enter into a business or social relationship with.  I also have to remember that the 'Human Factor' can never be underestimated. How many folks today will lose money or over the next few months will lose their jobs, because of DSK and the delays that will result in the European debt work-out.