Nortel collapsed due to a culture of arrogance

Nortel collapsed due to a culture of arroganceThe have been many explanations for the complete collapse of telecom service provider, Nortel five years ago, but experts now believe that it was due to "a culture of arrogance and even hubris".

A new analysis of the company's final decade of operations showed that the arrogant culture resulted in numerous management errors and weakened the firm's ability to adapt to changing environment.  A University of Ottawa team of professors, led by lead researcher Jonathan California have released a new detailed analysis on Monday about the collapse of the company.

Nortel had filed for bankruptcy protection in 2009 and was later disbanded.  The analysis is a result of three years of research and several interviews with former employees, executives and top customers the study was aimed at determining the cause of the failure of the company. the study was launched after former chief executive officer Jean Monty asked the research team and also said that he is ready to support the project  financially.

The study said that Nortel lacked the internal "resilience" to adapt to the changing business environment and also missed key opportunities between 2002 and 2006 leading to its collapse.




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