Comments

The BW op-ed on Enron is interesting, though I disgree with the concluding assertion:

"But the evidence that any of this will make executives more accountable and more honest rather than just more careful is thin. Contemporary business culture accepts outsized compensation as a given and takes for granted the notion that chief executives have no special responsibilities more pressing than ensuring a fabulously wealthy retirement. In such a culture it's certain that when the market next crests and crashes, hundreds of corporate executives will at least toy with ways to make the numbers look good until they can get their own money out."

It's accepting of dysfunction, a free market assumption that things just have to proceed as they have been recently, both passive and not supported by historical trend. Why would we not act? The contemporary business culture he talks about is about as enduring (and durable) as pile of Beanie Babies.

To his point, I suggest: It's the contrary. Almost everything changes, Almost all the time. His conclusion is, ultimately, just MBWT (Management By Wishful Thinking) on his part.

Well-written. Provocative. MBWT. Erroneous.

Posted by jeff angus at June 6, 2006 10:59 AM

Mark Gimein wrote a great analysis of the Enron scandal. It’s easy to blame the system, but the system isn’t something outside ourselves, some vast unseen force putting pressure on us to do things we don’t want to do. We are the system. It works that way because we work that way. It won’t change until we do. Adding more laws can’t protect us from ourselves. What is lacking here is character and the integrity to maintain right principles even at a personal loss.

The Skilling Trap is that trap you fall into when you don’t see beyond the letter of the law. Sadly most laws are in place because we substitute what’s legal for what’s ethical. They are not the same. It’s a tug of war we have all experienced. Ethical addresses what should I do. Legal is about what do I have to do. If legal is the only consideration then caution is the watchword. Ethics is about principles and responsibilities. If your actions are right but your attitude is wrong, it will eventually catch up with you. When leaders are looking out for themselves we have Enrons. Leadership is about service and looking out for those you are responsible for. Character is a real issue with real consequences.

Posted by Michael McKinney at June 8, 2006 12:20 PM