LEADERSHIP LESSONS FROM ENRON

Pasadena, California-February 15, 2002- Pasadena-based management consulting firm, Corporate Coaching International (CCI) is urging corporate executives to heed the lessons learned from Enron mistakes. CCIs team of consultants believes the Enron debacle could have been avoided had senior management followed several simple, but critical, tenets of good leadership

FOR IMMEDIATE RELEASE
CONTACT:
Kim Finger, Ph.D.
Corporate Coaching International
540 El Dorado Street, Suite 102
Pasadena, California 91101
Phone:   626.405.7310
Fax:   626.405.7312
Email:   Kim@corporatecoachingintl.com
Web Site: www.corporatecoachingintl.com

LEADERSHIP LESSONS FROM ENRON
Pasadena, California-February 15, 2002- Pasadena-based management consulting firm, Corporate Coaching International (CCI) is urging corporate executives to heed the lessons learned from Enron mistakes. CCIs team of consultants believes the Enron debacle could have been avoided had senior management followed several simple, but critical, tenets of good leadership:

·   Build communication systems. In this day and age of information technology you cant communicate enough. Use town hall meetings, teleconferences, brown bag lunches, etc. to create avenues for upward and downward communication. To keep the lines of communication open and break down the barriers between management layers as well as departments, leaders must be mindful of the need to explore others' perceptions, ideas, and opinions," advises Pam Erhardt, Ph.D., an organizational psychological with CCI. The reflex to simply tell others how things will be must be tempered by the ability to explore, clarify, and understand."
·   Expand your communication circle. In addition to creating systems for enhanced communication, develop a broad range of people organization-wide and at all levels from whom you seek information and advice. Its as simple as reverting to the old MBWA stlye of management -- managing by walking around," says Stephen Xavier. Adds Bruce Heller, Ph.D., Dont fall into the trap of relying exclusively on a small circle of advisors who may feel they have too much to lose by telling you the truth."
·   Honestly assess the Achilles Heels of your direct reports. As a picture emerges that some Enron executives were always known to be less than forthright, it reveals the inclination of CEOs to place blind trust in those lieutenants with a proven track record of delivering results. Communications expert, Tom Henschel, points out, The executive behaviors that undermined this company and its shareholders did not suddenly blossom overnight at Enron." Henschel suggests such behaviors should have been directly addressed earlier.
·   Clearly define deliverables and accountabilities. Delegation is no excuse for abdication," says CCI President, Lois P. Frankel, Ph.D. What you were responsible for before you delegated it, youre responsible for after." Avoid micromanagement by delegating the project, not the process and hold people accountable for delivering results to your doorstep.
·   Lead with your values. It is easy to be envious of companies that win big with a great story and short cut strategies. Who doesnt want to win with a small investment, little effort and enormous returns? Still, hard work, drive, determination and a willingness to offer others something important and worthwhile is a more proven strategy to success. Executive coach Joe Thigpen, Ph.D. advises, Leaders need to trust that, in the end, remaining true to who they are and what they offer will give the highest return on investment. In the long run, the fundamental qualities of substance, character and value win over and over again."
·   Dont read too much of your own good press. Wall Street falls in love with the illusion of success. It is as easy to get caught up in their hype as it is to get caught up in your own success. A really smart investment is not whats hot" for the moment. Look at the real numbers and not at the story. What was the real RoC at Enron?" asks Thigpen. People wanted to believe the endless opportunity for wealth but had no foundation on which to build that belief."
·   Create cross-functional operations. Organizations that work in silos (vertical departments) are more likely to be territorial and resist appropriate scrutiny from other parts of the company," asserts Erhardt. This precludes capitalizing on the synergy, and checks and balances, created when cross-functions work collaboratively."

###