Another mantra at Andersen was quality. It was instilled in us — standards could not be too high. Anything with the firm’s name on it had to be perfect. The term “good enough” was not part of our lexicon. I realize that still, when every time I review a product from our team at my current job, I’m running through the Andersen quality checklist in my mind. Correct spelling, grammar, and consistency are obviously required. But I’m also asking myself, Is the product the result of critical thinking? Does it pass the “So what?” test? Is there sufficient data for the conclusions? Did it follow established processes in its creation? Most important, does it address the client’s pain? If we weren’t truly invested in solving the client’s problems, that would show. It seems trite to say that we were taught to care, but, in a way, we were. We were taught to appreciate the management and economic challenges faced by our clients so that we could truly partner with them to help.
We also learned very early how to conduct ourselves to instill confidence in our clients. We had guidance in how to dress and communicate. There was the coaching and quality review to help keep us from making mistakes in our products before they got to clients. As a result, we learned to be mature and professional very early in our careers.
The firm also believed in meritocracy. The “up or out” culture seemed harsh from the outside. What it meant, however, was that there were known standards for what skills and abilities you needed to move up to the next level. There was tremendous positive energy in an environment like this. Your supervisors continuously gave you opportunities to practice new tasks and coached you. If you succeeded against the standards, you were promoted. If not, you knew why and what to work on for the next promotion cycle. It sounds simple, but I have since seen many organizations where employees are demoralized because they don’t know specifically what they need to do to be promoted, and the process descends into management “playing favorites.”
When the firm dissolved, I was consumed with anger, frustration, and sadness. I tried to focus on the work at hand, which for me was at a large, publicly traded company — about as far away from the energetic partnership in which I had grown up as you can get. After a couple of years, I went to a small, private firm where I have more latitude and more collaboration with others on the management team. Now, when I think about Andersen, I often find myself reflecting on what I learned in those formative years. I try to live up to the values with which I was raised in business. That, to me, is the legacy of Arthur Andersen.
Karen Wilson is Vice President of Consulting at Fed-Sources, a market research firm for government contractors. Earlier in her career, she worked for the Business Consulting division of Arthur Andersen for seven years.
Comment #1
(Posted by wgould) Unrated
terrific article about the loss of a great organization. it had it's issues, as every company does, but the overall experience I had at Andersen was extremely positive. I share all ms. wilson's sentiments, and value the skills that she so eloquently details.
Comment #2
(Posted by an unknown user) Unrated
Spot on
Comment #3
(Posted by Liam Cleaver) Unrated
I am very proud of my time at Arthur Andersen -- for all of the reasons Karen has so eloquently captured. Congratulations Karen on reminding the alumni of what we had, and hopefully reminding others of what we all lost.
Comment #4
(Posted by Spacek) Unrated
Yes, spot on. It was perhaps the greatest loss in modern corporate history when Andersen was destroyed. It was a truly fantastic organisation. The values that where lost will never truly be understod. We all must remember this and try to carry the legacy with us.
Comment #5
(Posted by Christina Bergman) Unrated
Just want to say how happy I became when I read the article. Karen is expressing exactly how I think must of the people that have been working with Andersen feel. The culture, the pride - everything is correctly described. I do really miss Andersen.
Comment #6
(Posted by John J. Adams) Unrated
I was very pleased to see this article. I feel the same way. I truly miss the quality of people that I was able to work with at Arthur Andersen. Ive had opportunities to run two amazing organizations since I left AA but never found the same dedication to perfection. In addition, I really miss the camaraderie with amazing people around the globe.
Comment #7
(Posted by Tim Bethea) Unrated
Spot on Karen! You have captured eloquently exactly how I felt about working at Andersen. Although I was an 'experienced hire,' I learned more in my 6 years at Andersen than from most of the other organizations I worked for in the last 25 years. Thank you for reminding us all of what we learned at Andersen.
Comment #8
(Posted by John Pascual) Unrated
No words can describe how I felt when Andersen closed its doors. I was one of the young idealists that truly admired and sincerely felt the joy of finding a company that you want to spend the rest of your career with. I have worked for a number of companies since the end of AA, but I never felt that same proud feeling again, times when you introduce yourself "I'm with Arthur Andersen". Well done Karen.
Comment #9
(Posted by Expression) Unrated
I totally agree with Karen! I often reflect on my time at Arthur Andersen and how the Global Technology Organization was so ahead of the game. Its very disheartening to think of what was lost in the firm. I want others to know the contributions that the firm made, and not just how it fell apart. Thanks Karen!
Comment #10
(Posted by an unknown user) Rating
I joined AA and then was part of Andersen Consulting for a total of ten years. I started my own firm about 10 years ago and was fortunate to have many ex-AA folks join. What a great training ground. What a great company. It's too bad that supreme court vindications are like posthumous pardons: what good are they for the one who is killed?
Comment #11
(Posted by jim morell) Rating
Coming from public accounting as an up through the ranks consulting partner, I agree and empathize with Karen.
Comment #12
(Posted by Tom Chenault) Rating
That was a very good article, but the fall of Arthur Andersen was due to a new generation's lack of professional standards.
Comment #13
(Posted by G Miller) Rating
This doesn't fit into my observations and others descriptions of a number of AA and AC projects I saw in process or post-mortem. The firms often put unqualified people at absurdly high rates on to its many projects. It amazed me that clients would put up with it. Sticker shock and disssatisfaction were often the results.
Comment #14
(Posted by Patrick Mc Neese) Rating
Two pages can in fact communicate volumes. Superb presentation
Comment #15
(Posted by Madan) Rating
Interesting article. A consultants insight into what meant most to them.
Comment #16
(Posted by DK) Rating
Good article, and interesting comments about values at Andersen. Regardless of supreme court action, though, it's disingenuous to say Anderson fell simply because of Lay of Enron. Anderson fell because it didn't do everything it should have to prevent many things from occuring there.
Lay wasn't convicted of any financial improprieties -- he was convicted of making false statements AFTER the improprieties took place.
That's not a defense for Lay, merely a reflection that lack of a specific conviction -- or in Anderson's case, overturned on appeal -- doesn't necessarily exemplify pure innocence. It merely means lack of substantive evidence for a conviction for that particular crime.
I liked Andersen; had many friends there, and many still feel exactly as the author does here. But to say that a firm once so incredibly powerful and well-connected was torpedoed without any malfeasance on their part is, well, just not accurate in my opinion.
Comment #17
(Posted by savage) Rating
Thanks for sharing your experience and wisdom. I have tried to replicate at my current firm many of the attributes that characterized the successful practices at AA...even more than 25 years ago. Thanks for reminding me to revisit those values.
Comment #18
(Posted by an unknown user) Rating
Maybe Enron and the "scape-goating" politicians had a small role in taking down Andersen, but ultimately it was the firm's own arrogance and "above the law" mentality (both characteristics exhibited within this article) that lead to Andersen's demise.
Comment #19
(Posted by Robert F. Kelley) Rating
AA&Co. provided opportunities for me to achieve my uppermost potential working with the most honorable and "greatest professionals" around the world! Thirty-three years of challenges and justice ending with injustice meted out by government.
Comment #20
(Posted by Jill Roy) Rating
Great reflections on what makes great management. I "grew up" in management at Charles Schwab in the 80's and 90's. At that time, Schwab management was precisely as Karen describes AA - High standards, customer and employee focused, driven to developing great managers, and excellent morals and values. Most times, it is a cluster of wonderful executives that can create a culture like AA or Schwab. When those people move on, regardless of the reason, the culture is compromised and the company becomes vulnerable to the failings that allowed AA to become close enough to guilt for an initial conviction. We only honor those previous executives who created the parts of the firms that we adored and admired by going out in the world and mentoring new executives who will create or correct companies who raise corporate values and morals high. Thanks Karen for the article. Jill Roy, www.jillsconsultantlist.com
Comment #21
(Posted by S. Maye) Rating
I enjoyed the article; the appeal of a strong culture resonates with me. As much time as one spends 'at work' in this business, having no 'there' there could make the experience particularly challenging.
Comment #22
(Posted by Jim Soudriette) Rating
The flash of the past is of little interest to many of the young
As for me, the truth of our business is lying right out there for those who want to search it out
Tough times, have you noted more smaller CPA and legal firms are now being dragged over the coals, Overall, the industry is secure. One can learn plenty form the examples which have ruined the financial resources of many who actually had nothing to do with the mess their firm voluntary entered into.
Comment #23
(Posted by Mike) Rating
Arthur had systemic ethical issues in the partnership. It is tragic that that the rank and file employees lost their jobs due to lack of a moral roadmap. Enron wasn't the only example - look at the causes of the divorce of Andersen Consulting from AA and Andersen Worldwide.
Comment #24
(Posted by Abed Sinan) Rating
Having read the article, all I can add is that the Audit/Consulting profession, after the scandal of Andersen, was left with no shine nor glory. The profession has lost its image and impressive high-profile.
Comment #25
(Posted by Debabrat Mishra) Rating
Outstanding commentary on life and learnings at Arthur Andersen. I personally identify with this 100%.
Comment #26
(Posted by sherry) Rating
Could not agree more with Karen. It was the best experience I had in my entire career. Way to go Karen the article brought back such great memories. :)
Comment #27
(Posted by Patrick) Rating
If someone believes in the Lies and facade, I can see where Karen felt this way about the company - a poor deluded soul indeed. Make no mistake - ENRON was at least 50% Arthur Andersen's FAULT, if not closer to 90%. Aren't these 'public-accounting' companies supposed to be 'protecting' the public's interest?. What happened to the EXPERTS in knowing about fake-accounting??!!
I worked in the Utilities Industry in Texas for THE major player while the scandal/utilities fire raged on in California. I even had a home in an elite subdivision of almost 1Million homes close to Andrew Fastow's home. I too was hired into AA as one of the bright ones with an MBA and several awards (before ENRON). BUT I walked away (ran actually) after just 2 months, when I got to know people and the Management Team - what a Joke! What I learned in AA was that unqualified people were thrown into projects at exorbitant rates and any wannabe manager could brown-nose their way up the ladder, step on people, and study at the AA 'Management Academy' to manipulate clients, and objectives (increase hours, make spinoff projects), at most any cost besides AA's financial loss, or risk of Lawsuit... Yes, many of the TECHNICAL people there are good - but Management is Perverse and Stinks. The Best thing I can say about it is that it was a 'well-Oiled-Machine'.
Oddly enough, I too am a successful IT consultant (independent, over 20 years now) and actually live by the same ethics mentioned - quality, results, etc. but under my own company-name and I CANNOT be bought! What I don't do is Lie to my clients, or short-change them with flawed prototypes, suboptimizing projects or staff who should not be there (and try to hide them behind some other new 'expert'). Deceptive companies like AA were behind some of the biggest rip-offs in history, particularly the de-regulation of the Utilities Industry in the U.S. until the meltdown (ENRON). Their 'technical-experts' and PM's took places in major private companies claiming they knew all about the de-regulation and they HID the problems and exorbitant costs. Same thing at the state's protective entity - ERCOT. Most of the start-up people were AA / AC consultants. People of the State of Texas (and other states) got RIPPED OFF by these scum-bags for upwards of 10Million. 150/hour to have AA build this (vapor-ware) data-warehouse. Now there's an entity to 'manage' what did NOT NEED MANAGING previously. And even now ERCOT is paying 180 / hour for consultants to implement controls around all the transactions from this huge monster. I know cuz I'm back there with another company, now in Security and IdMgmt.
OF COURSE most other companies follow the MODEL - it's very PROFITABLE. In FACT, other Big-4 companies also manipulate Politicians for the same results - Look at the Sarbanes-Oxley (SOX) Law which is also a great gold-mine for consulting / Big-4 companies. Resulting from ENRON and the likes... go figure.
FOLLOW THE MONEY - AA Lobbyists payoff Politicians. Politicians author Bills which become Law. These 'laws' claim to protect the public after problems / scandals like ENRON. The Laws require high-tech consultants which are hard to find, therefore expenive Hourly Rates. The State of Texas pays for a regulatory body like ERCOT and the technical infrastrucutre. The citizens are SUPPOSED to get a break on their uitlity bills from de-regulation - but they DON'T. Electric Rates went up over 18% across the board!! AA makes money on all these consultants. Politicians got their contributions. Worse-case, if any UTILITY company lost up to 10% of their customers, they are still up by around 6% profit due to the higher rates... ARE WE LEARNING YET??!!
Don't get me started on this genius Prez W and his appointment of Ken Lay to the U.S. Energy Council....:( <duh>
Comment #28
(Posted by atlantaaa) Rating
Outstanding article. Five years later, I still feel the sting of -- what is a very personal -- loss. I too have tried to replicate many of the special aspects of the old AA culture in new firms, but with limited success. As for the negative comments posted here, you'll note that none appear to come from those who actually worked there -- all outsiders with a limited perspective.