The dumbest guys in the room
Last week, I finally caught “The Smartest Guys in the Room” – the story of the Enron scandal. If you have an interest in business ethics or corporate social responsibility, it is a damning tale of greed, egotism and self-delusion.
Imagine the culture in an organisation where the (perceived) weakest 15% of employees are fired each year. Where the organisation can report profits on energy projects which haven’t even been built (or sometimes never were). Where people can be given multi-million dollar bonus for those imaginary profits. In such a poisonous environment, you can imagine that organisation deliberately withholding energy to the State of California until blackouts to push up electricity prices, so they can sell that energy at a premium.
And the extraordinary thing is how many people went along with it. The documentary referenced the Milgram experiments where ordinary people were persuaded to administer dangerous electric shocks to screaming actors (I had never seen the footage of these legendary and terrifying sessions before – truly harrowing).
And how did it end? In tears. The house of cards collapsed, the authorities started investigating and, of the two smartest guys in the room, Jeff Skilling went to jail and Kenneth Lay died awaiting his fate. In a word: Dumb.
But the lesson is, once again, culture beats everything else and culture flows from the top.