The fall of the house of
Andersen: insights into the business culture and the reasons for its decline.
- A remarkable view from the
inside: written by four former in-house organizational experts.
- Culture in crisis: beyond
Andersen to business culture in general (from the S&L scandals to Waste Management,
Sunbeam, Enron, and Worldcom).
- Lessons from the Andersen
collapse: Why Andersen's culture failed, why other businesses remain at risk, and what to
do about it.
The authors of Arthur
Andersen bring their unique insights to a close-range observation of Andersen's culture
that has continued for more than 15 years. They set the stage by reviewing Andersen's
unique history and role; its traditionally careful attention to "enculturing"
new employees; 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. Organizational leaders can read this book
as a profound cautionary tale; researchers and students of organizational culture can read
it as one of the most extraordinary case studies ever presented. Includes a foreword by
Dr. Leonard Sayles, Professor Emeritus, Columbia University Graduate School of Business.
Dr. Cynthia Smith worked at
the Management Development Group in Arthur Andersen's Center for Professional Education
and Development and at World Headquarters. Susan Squires joined Andersen Worldwide in
1994, working with Andersen Consulting and Arthur Andersen. Dr. Lorna McDougall once
served as a cultural specialist for Management Development at Arthur Andersen. William R.
Yeack joined Arthur Andersen in 1981 and was a member of the Management Information
Consulting Division, which became Andersen Consulting.
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.
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
184 pages