Lessons in Great Leadership — From Enron and Theranos?
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A multitude of red flags foretold the dramatic falls of these two giants. As organizational leaders, it is our job to stay vigilant — and take action if we see the same warning signs in our own companies.
t's a tale of two company implosions, past and present. Enron, a Texasbased energy goliath went bankrupt in 2001 and wiped out $1.2 billion in shareholder equity, thousands of jobs, and much of its workers' retirement savings. Theranos, once a Silicon Valley darling, fizzled out in 2018 after its leaders were indicted in a "massive fraud" scheme that raised $700 million from investors for blood-testing technology that flopped.
signs early and stop workplace shadiness before it is too late? Is there anything prospective and current employees can do to avoid problem workplaces or expose major issues when they arise?
Scott Young
What these firms had in common was plenty of warning flags waving in front of their leaders, employees, investors, and the media. In each case, only a few whistleblowers and a few reporters stepped up to uncover the truth. By the time the rest of the business world had decided to listen, the damage had been done. How can leaders learn to spot these warning 26
For leaders, the key is to create a workplace culture in which people feel gratitude and recognition for speaking up about a problem.
For would-be or current employees, it's vital to ask the kind of questions that can reveal a compromised culture. The cultures of Enron and Theranos were too far down the road of deception and denial for red flags to be properly remedied, but the rest of us can benefit from their mistakes. Here are a few red flags that could pop up in your organization — and some advice on how to act on them before disaster strikes. Recruiter.com Magazine
