The Enron Collapse By: Jeff Porter Kevin Clark ... - Franklin College

company’s guidelines on ethics and values made up of employees from every
level of management where each has an equal vote. These changes are rather
large but we feel that they could take place immediately, within a few months.
• Culture. Enron’s culture is one where there is no clear direction with a dual role
of both an owner and trader of commodities. They stress a highly competitive,
arrogant, distrustful culture that made objecting to unethical behavior very
difficult. We want to change the current culture to a more purpose-driven culture
(13). We choose this culture because in this culture leadership will effectively
stress a clear purpose of the company. Since everyone has the same common goal
we feel that this will stop some of the bad investments while uplifting employees
unlike the old culture. We want to start the transition immediately. Meetings will
be held with management to discuss the focus and their role in this changing
culture. Human resources will be extremely important in getting the company’s
message across. They will post informative notices and answer any questions
about new polices. They will phase it in starting with new employee orientation.
Along with the ethics workshop mentioned in the control system, new hires will
also go through a session about Enron’s purpose and core values. The “rank or
yank” system of review will be scraped and a probationary system will be put in
its place. It will involve those that are below the 10% will be sent for more
training and given a period to show improvement before being let go. We believe
that this relieves pressure to perform that led to those unethical shortcuts. Along
the same lines, criteria for performance review will be weighted equally instead of
having highly weighted categories like “intellectual curiosity”. Top managers