Enron: The Smartest Guys in the Room

Introduction

The case of Enron company is an example of many cases where leaders behave selfishly. The behaviors that we have seen in the management are an indication of how many managers use the behavior to ensure they achieve their goals and objectives. Disregard of communication in the company is one of the issues that we notice to have driven more of the employees into taking the side of operating without integrity. As the context elaborates, the use of artifacts, values, and assumptions in the wrong way is what led to the fall of the company which later ended up having the leaders arrested and prosecuted.

Have any questions about the topic? Our Experts can answer any question you have. They are avaliable to you 24/7.
Ask now

Artifacts

Firstly, the documentary reflects high levels of misuse of artifacts. One artifact used is the financial statement that the finance department utilized for the company’s benefit. Through the help of adjusted statements, it would be clear that they were making more profits, and this would attract investors and shareholders. By attracting shareholders, more money would be available for them to continue transacting it illegally to their accounts, and they managed to make themselves richer.

Another artifact that is evident in the documentary is the market to market value. This is a measure of the value of their accounts, which would change as time went. The use of this means of showing value managed to show that they made more profits, and this was an indication that they were successful hence attracting more investors. The management which, was led by Kenneth and Jeff, did succeed in attracting investors through this measure.

They also managed to use the Dot.com bubble as an artifact to ensure they utilized the internet in promoting their fake progression in the business. The internet is always the best place in marketing for many companies that work within a short period. The management, therefore, chose to use this nature of the internet, and they managed to attract the attention of many people including the media which later ended up publishing the company as among the successful operating companies.

Values

Some of the values that the Enron case makes us identify as missing in the organization is the integrity value. Any organization always needs to use integrity whenever they want to succeed. Employees and employers need to be open to the general public. The company employees and employers used the existing nature of management to cheat that they were making profits. The financial department is very secretive, and they are left with no option in the market other than to fluctuate their profits as a way to attract investors since the management had already failed.

The management acts greedily in hiding much of the information from auditors who needed to establish how financial flow takes place. The documentary takes us to notice some ignorance in the way they assume that all is well and use the political relations that Kenneth had to manipulate whatever they wanted to the directions they wanted. They even manage to have the media publish that they are the best company in making profits just because they needed more money than they diverted into their accounts for personal uses.

Another value that they have in the company is the disrespect to everyone. If they had respect for investors and other stakeholders, then it would not turn out that they were cheating the customers for the sake of attracting their contribution to the company. The kind of pride that they had is what drove them into doing some of these things, and they later turned to humiliate all of them including the financial manager who was so abusive whenever he was asked why he never allowed access to financial information.

Assumptions

In many cases, the management may create assumptions among members of an organization, which may mislead them. The case of the Enron documentary is a clear indication of an organization that has misleading management. The management which was led by Kenneth went to the extent of manipulating the media to publish their success reputation to create assumptions that they live defending even after some of the employees ending up betraying them by pleading guilty. The practices are not of any importance to any succeeding company.

The organization also contains assumptions that mislead the public and make the employees behave as if they were not professionals. One of the assumptions is that they had money to promote operations and fake success that they had created. This attitude is what led to many of them hiding the facts that were available about what they made in the company. Any company should always be transparent as a way to confirm that they are indeed successful. For the case in the documentary, they see transparency as a key to failure.

The attitudes they developed in everyone that they are the best company are what kept the management which included Jeff, always living a defensive life. Most of the complaints were considered as mere things by Kenneth. He was not aware that the mistakes would later turn to haunt him. He had to accept the truth if he was to ensure the future is successful. The decisions they made were for their short term benefits only.

Another assumption that misled many, including the public, is the idea that they made more profits. They used the existence of the internet and other technological opportunities to ensure they convinced many people that they worked for the best of their interests. Little did the public understand that the corporate was only made of a group of people who were obsessed with power, pride and wealth. These values are misleading, and no company or business will succeed from them. It requires any organization to prove that they have positive assumptions which are confirmed, for them to be the successful company they dreamt of becoming.

Conclusion

To sum up, there is a lesson that we can learn from the documentary; the use of artifacts, values, and assumptions in the wrong way is what leads to the fall of different organizations, companies or even businesses. Some of the behaviors that we see in employees are not recommendable for any successful initiative. Kenneth represents a majority of the managers who misuse their power to promote fake projections that disregard integrity. It is from this documentary that we should learn the need to use artifacts in the right way, such as in showing the correct projections for market ranking. Companies should support the use of values such as integrity and respect to ensure they stay in the market for longer and with enough respect from the customers.