When asked if the HBS brand has suffered as a result of the crisis, MBA chair Joseph Badaracco says that many HBS graduates were at the center of the financial crisis:
“To the extent that these people got decisions wrong, essentially with the entire world economy at peril, we’re going to blamed for that. On the other hand, they all went to the school and so somebody who thinks to themseleves I would like to get training and associate with other people who are likely to be at the center of things in the future is going to think hard about coming to this place.”
Interviewer: “So it shows that you can get a damn fine job if you go to Harvard Business School but you might end up accidentally ruining the global capitalist system along the way.”
Badaracco adds that HBS was teaching “state of the art” risk management, which happened to be “deficient”. That many smart people thought risk was being better distributed through the financial markets. “Turned out that distributing risks was the flip side of interconnecting so many important institutions so that when one of them failed, others were damaged or pulled down. And that’s something that simply was not seen.” By HBS, perhaps. Others saw it and warned of it. Of the risks of interconnectedness.
Is Badaracco being intentionally misleading or just naive?
Either not good for the holder of the chair in business ethics.
Incidentally, Badaracco was vehemently opposed to publication of my book.