The authors bring their unique insights to a close-range observation of Andersen's culture that has continued for more than 15 years. They first review Andersen's unique history and role; its traditionally careful attention to "enculturing" new employees via mentoring, social networking, rewards and punishments; and its social structure characterized by personal, "familial" relationships. Next, they narrate two decades of change at Andersen, showing how the firm's tightly integrated cultural system gradually began to devolve, rapidly coming apart in the wake of the 1990s new economy revolution. The book concludes with an insightful discussion of the systemic cultural and business factors that placed Andersen and many other organizations at risk, along with a realistic assessment of the proposed reforms.
Table of Contents:
Preface.
1. Beginning of the End.
All-Night Shredding. Growing Storm. Enron. Arthur Andersen. Andersen on Trial. In Search of an Explanation: Culture of Greed or Culture Change. References.
2. Honest Beginnings.
Founding Father, Founding Values. Think Straight, Talk Straight. Ensuring a Quality Workforce. The Andersen Partnership. The Making of a Myth. Arthur E Andersen's Legacies. References.
Growth before the Storm.
Growth. Leonard Paul Spacek. Expansion. Consulting. Balancing Flexibility with Control. References.
3. Losing Control.
Control by Division. Division Allegiance and Individual Success. Balancing Unity and Division. Outside Threat. Consulting to the Rescue. References.
4. Consulting Revolution.
Consulting Challenge. Shifting Values. Consulting Revolt--Consulting Coup. Conflict of Interest. References.
5. Sales Culture.
The Partner Purge of. Building a Power Base. Building External Power--Building Client Relationships. The Second Consulting Revolution. Shifting Values. References.
6. Mistakes in Judgment.
Conflicts of Interest and the SEC. Baptist Foundation of Arizona. Sunbeam Corporation. Waste Management, Inc. Risk Management. Errors in Judgment at Enron. Indictment and Trial. References.
7. Unraveling.
Other Side of the World--An “Inside” Perspective from Asia. Offices Began Slipping Away--An “Inside” Perspective from Europe. Unraveling--An “Inside” Perspective from the Midwestern U.S. Closing Up Shop. References.
8. Will Anything Really Change?
Regulating the Accounting Industry. Securities and Exchange Commission. Highlights of the Sarbanes-Oxley Corporate Reform Act of. Public Company Accounting Oversight Board. New Financial Accounting Standards Board Rules. Establishing the Public Company Accounting Oversight Board. Backsliding. References.
9. Conclusions: Andersen and Conflicts in the Public Accounting System.
The First Twists--Partner Independence. Another Turn--The Effects of Growth. Impact of Consulting Services. Andersen Adopts a Sales Culture. Culture Change. Wake-Up Call. References.
Index.
About the Author :
Lorna McDougall has extensive experience in organizational development for major companies and universities in the U.S. and UK. She joined Andersen Worldwide's Performance Consulting group in 1990, where her work included research, organizational planning and development, and cross-cultural training for worldwide delivery for Audit, Tax and Consulting.
Cynthia J. Smith worked in the Management Development Group in Arthur Andersen's Center for Professional Education and Development. She also worked at World Headquarters on cultural risk management and onsite with engagement teams in Asia developing improvements in high risk and international project management.
Susan Squires has over 15 years' professional experience conducting organizational research in corporate settings, evaluating new products, and leading business trainings throughout the United States, Europe and Asia. In 1994, she joined Andersen Worldwide, where she worked with Andersen Consulting and Arthur Andersen as well as many of their clients.
William R. Yeack joined Arthur Andersen in 1981, worked on audit engagements, earned his CPA (1983), and was a member of the Management Information Consulting Division, which became Andersen Consulting. He specialized in large, high-risk projects in the utility and financial industries. He held high-level executive positions with international responsibilities that involved ongoing business relations with the firm.
