Inside Arthur Andersen : shifting values, unexpected consequences / Susan E. Squires, Cynthia J. Smith, Lorna McDougall, William R. Yeack.

Format:

Book

Contributor:

Squires, Susan.

Language:

English

Subjects (All):

Arthur Andersen & Co.

Corporate culture.

Physical Description:

xvii, 185 pages ; 24 cm

Place of Publication:

Upper Saddle River, N.J. : FT Prentice Hall, [2003]

Summary:

The collapse of Arthur Andersen was among the most profound events in the history of American business. For nearly a century, Andersen was synonymous with integrity. Seemingly overnight, the firm imploded in scandal. How could it have happened? Inside Arthur Andersen uncovers the roots of Andersen's collapse, tracing its spectacular two-decade transformation from staid auditor to aggressive consulting firm -- and the profound change in corporate culture that made it possible for Andersen people to begin shredding thousands of Enron documents that fateful day in October 2001. Could Andersen have adapted to a new business environment without compromising the values that first made it successful? How did Andersen's leaders miss the harbingers of disaster? The authors of this book are uniquely well positioned to answer these questions. Together they bring more than 26 years of experience studying Andersen culture from the inside. In this book, they tell a story that every leader needs to hear. Susan E. Squires has over 15 years of 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.

Contents:

Chapter 1 Beginning of the End 1

All-Night Shredding 1

Growing Storm 4

Enron 5

Arthur Andersen 10

Andersen on Trial 16

In Search of an Explanation: Culture of Greed or Culture Change 20

Chapter 2 Honest Beginnings 25

Founding Father, Founding Values 26

Think Straight, Talk Straight 31

Ensuring a Quality Workforce 33

The Andersen Partnership 35

The Making of a Myth 37

Arthur E. Andersen's Legacies 37

Chapter 3 Growth before the Storm 41

Leonard Paul Spacek 45

Expansion 49

Consulting 53

Balancing Flexibility with Control 54

Chapter 4 Losing Control 59

Control by Division 61

Division Allegiance and Individual Success 63

Balancing Unity and Division 65

Outside Threat 68

Consulting to the Rescue 70

Chapter 5 Consulting Revolution 75

Consulting Challenge 77

Shifting Values 80

Consulting Revolt

Consulting Coup 84

Conflict of Interest 92

Chapter 6 Sales Culture 95

The Partner Purge of 1992 97

Building a Power Base 100

Building External Power

Building Client Relationships 102

The Second Consulting Revolution 106

Shifting Values 110

Chapter 7 Mistakes in Judgment 113

Conflicts of Interest and the SEC 114

Baptist Foundation of Arizona 118

Sunbeam Corporation 119

Waste Management, Inc. 120

Risk Management 123

Errors in Judgment at Enron 125

Indictment and Trial 127

Chapter 8 Unraveling 133

Other Side of the World

An "Inside" Perspective from Asia 136

Offices Began Slipping Away

An "Inside" Perspective from Europe 138

Unraveling

An "Inside" Perspective from the Midwestern U.S. 141

Closing Up Shop 146

Chapter 9 Will Anything Really Change? 149

Regulating the Accounting Industry 149

Securities and Exchange Commission 150

Highlights of the Sarbanes-Oxley Corporate Reform Act of 2002 151

Public Company Accounting Oversight Board 154

New Financial Accounting Standards Board Rules 156

Establishing the Public Company Accounting Oversight Board 159

Backsliding 160

Chapter 10 Conclusions: Andersen and Conflicts in the Public Accounting System 163

The First Twists

Partner Independence 165

Another Turn

The Effects of Growth 167

Impact of Consulting Services 168

Andersen Adopts a Sales Culture 169

Culture Change 171

Wake-Up Call 173.

Notes:

Includes bibliographical references and index.

ISBN:

0131408968

OCLC:

52441435