Preventing another Enron with a quality tool: BSC
As you know a federal jury convicted former Enron chiefs Ken Lay on all counts and Jeff Skilling on most counts. The trial revealed while major business units weren’t making their operational goals, the company was making statements to investors on how well the units performed.
When companies use the quality tool Balanced Score Card (BSC) to translate vision and strategy into action and targets, then both management and employees know periodically whether their unit and their bonuses are on track to the BSC targets. When these targets are missed and top management announces “success” to their investors, then an ethical employee will raise a flag and keep on raising it until reaching Whistleblower Protections in SOX Section 806.
