From your perspective and using Schein’s criteria on page 131, identify the three biggest “gaps” between the culture that the Enron leaders espoused and the actual culture they created. What ethical “lenses” do you apply to determine “the biggest”? What aWe also discuss several other topics like andre adler nyu
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re the three biggest gaps between how Enron made their culture appear and what was actually happening? What are the driving behaviors? What ethical “lenses” do you apply to determine “the biggest” 1. Artifacts (what you observe) 2. Espoused values and beliefs (what you hear) 3. Underlying assumptions (what is driving behaviors) ● Enron leaders dominated the culture ● Ken Lay & Jeff Skilling didn’t think they did anything wrong ● Shredding of everything at Enron ● Ken Lay always portrayed a man that acted morally and wanted people that came in contact with Enron to believe that they were being treated respectfully and in the highest regard ○ Valhalla scandal challenged his integrity ■ Two oil traders made bets for Enron on whether the price of oil would rise or fall the traders always won ■ Ken Lay did not fire or do anything to the traders he encouraged traders to gamble more ■ Mckelroy bluffed the market and fixed the books ■ Ken Lay knew about everything ● Jeff Skilling ○ They got marktomarket accounting ■ Allowed Enron to mark potential future profits when a deal was signed regardless of cash in hand ● Left open to manipulation ■ His favorite book was “gene” ● Set free characteristics of “survival of the fittest” ● Only cared about money ● PRC: people are graded from 15 and 10% of people had to be a 5 otherwise they were fired ■ “Tough and aggressive culture” ● Traders were brutal ■ Huge risk taker● Enron culture ○ “Macho”FRIDAY 1/27 1. Traditional Organization Design 2. Network Organization 3. Platform Design a. Connecting producers and consumers b. Growth spurted by technology 4. Organization Design a. Creating differentiating capabilities that help execute strategy b. Culture cannot be “designed” it’s an outcome c. It’s not just about the structureit’s about the operating structure d. Strategy > Capabilities i. If you don’t change the work, you won’t change the outcome 5. Organization Alignment a. The degree to which an organization’s strategy, structure, processes, people, rewards and culture are cooperating and impacting the achievement of desired goals b. It is always easier to change a business strategy than to change an organizationbut far too many leaders lead with structure 6. Business Model a. Includes value proposition, target market, distribution channels, cost structure, and revenue model 7. Platform Business Model a. Do not own many tangible assets b. Suppliers and customers come together c. Reducing transaction costs 8. Traditional (Pipe) Model a. product/services b. inputs/outputs c. Physical infrastructure d. linear/sequential e. customers/providers f. Value added through process g. Customer loyalty/retention 9. Platform Model a. information/interactions b. Configurable attributes c. Digital infrastructure d. Multidimensional e. Participants f. Value added through network effects g. StickinessSATURDAY 1/28 1. Change Management a. The people side of change b. Change is costly c. Shock Denial Frustration Depression Experiment Decision Integration d. Polarities what’s changing, what’s staying the same e. Organization’s don’t change unless people change 2. Change leadership 3. Strategies for overcoming resistance a. Participate Facilitate Educate Negotiate Manipulate Coercion b. Change formula: i. Dissociation (x) Vision (x) First Steps > Resistance