Enron Revisited
Copyright Jack Mixner. 714 449 1040. www.mixnerstrategy.com
A re-read of the history of the Enron scandal (Smith) points to some key ideas I'll be working with in my clients:
- Simple is better than complex, especially when it comes to finance.
- Too many layers of management makes accountability and clarity less possible.
- Redefining terms, especially on a balance sheet, makes no sense, ultimately.
- When finance drives the operation, pause to reflect if things are going correctly.
- In a stressed marketplace, stressed deals are likely to sour, quickly.
- Living for the next report to Wall Street is not a wonderful way to manage a company.
Reference
Smith, Rbecca and John R. Emshwiller. 24 Days. How Two Wall Street Journal Reporters Uncovered the Lies That Destroyed Faith in Corporate America. HarperBusiness. 2003.