2-3 paragraph Discussion
Assignment and Instructions attached. Please use APA citations and Instructions
After 158 years in business as a major New York investment bank, Lehman Brothers collapsed in 2008. Investors had lost confidence after the company revealed enormous losses in its mortgage banking unit. Attempts to rescue the company failed, and it filed for bankruptcy. The economy was already distressed, but Lehmans failure helped trigger the steep and prolonged decline that has been called the Great Recession (Davidson, 2012).
How did poor results in one unit, mortgage banking, bring down a major, diversified bank? How did the collapse of one bank bring down the global economy? Lehmans misfortune illustrates the interconnectedness of banking, which is a system, as well as how failures in the banking system can spread through a larger system, the economy. As Meadows states inThinking in Systems, a system is more than the sum of its parts (2008, p. 12).
As you review Peter SengesThe Fifth Discipline: The Art & Practice of the Learning Organization, consider his premise that todays problems come from yesterdays solutions (2006, p. 57). Think back through your own work history to identify a situation that illustrates poor systems thinking. Consider whether managers were applying yesterdays solutions to a current problem.
Postthe following:
A brief description of an organization with which you are familiar and the example of poor systems thinking you observe
An explanation of the core issues that you think led to this systems failure, including whether managers were using yesterdays thinking
An explanation of whether there might have been a different or better outcome if managers had understood the principle of the parts of the whole fit together (Justify your response.)
General Guidance:Your initial Shared Practice Discussion post, will typically be 23 paragraphs in length as a general expectation/estimate.
