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 »  Home  »  Articles  »  Consultants on Consulting  »  Consultants on Consulting - What I Learned at Arthur Andersen
Category:   Consultants on Consulting - What I Learned at Arthur Andersen
By Karen Wilson | Published  09/1/2006 | Consultants on Consulting
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What I Learned At Arthur Andersen

I was startled to hear of Ken Lay’s death. To me, it seems a sad and bizarre postscript to the last few years. His death might mean something in terms of closure for the former employees of Enron, but he as a person means nothing to me. The whole Enron affair meant nothing to me, nor to over 99.9 percent of my colleagues at Arthur Andersen, except for the fact that it took our firm from us. The political pressure to find a scapegoat killed an institution that was arguably one of the most important companies in American history. Unequivocally, Andersen was important to me.

I think that it’s immensely sad that people will remember Andersen not for what it was, but for how it ended (despite the Supreme Court’s unanimous overturning of the conviction of Andersen).

Just as the lessons from our parents lead us into adulthood, what I learned at Andersen has taken me into business better prepared than I could imagine — more so than any MBA or job training course. I realize now how much I learned there — not from the world-class training center in St. Charles, IL, but through on-the-job mentoring, coaching, and guidance.

It was a model that drew criticism — take bright kids right out of college, train them, and put them in front of clients for top rates per hour. But the model is imitated all over the professional services industry because it worked for Andersen. I have held management positions in two other organizations since Andersen’s demise, and I realize every day how the firm’s values are still with me.

I see colleagues and clients struggle with how to truly empower and manage people. What I learned at Andersen is that regardless of how young or inexperienced employees are, you trust them; treat them with respect; give them responsibility, guidelines, and good coaching; and expect the best of them. At Andersen, you started “managing” people in your third year. You became a “senior” consultant (or auditor), responsible for small tasks within a large project. Your manager in turn coached you in your new role. I was 25 when I became a “senior.” I started to learn management in a safe environment, feeling supported by the firm.

My husband has been promoted into increasing levels of management in his software company. Often, he’ll ask me for advice about how to motivate employees to deadlines, how to deliver tough performance evaluations, how to address disgruntled team members, and other issues. I’m surprised to realize that I have good answers, gained from years of experience — and I’m only 33.

Comments
  • 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)
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    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)
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    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)
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    Coming from public accounting as an up through the ranks consulting partner, I agree and empathize with Karen.
     
  • Comment #12 (Posted by Tom Chenault)
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    That was a very good article, but the fall of Arthur Andersen was due to a new generation's lack of professional standards.

    http://www.bizjournals.com/dallas/stories/2002/07/22/editorial3.html

     
  • Comment #13 (Posted by G Miller)
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    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)
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    Two pages can in fact communicate volumes. Superb presentation

     
  • Comment #15 (Posted by Madan)
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    Interesting article. A consultants insight into what meant most to them.
     
  • Comment #16 (Posted by DK)
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    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)
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    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)
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    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)
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    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)
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    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)
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    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)
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    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)
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    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)
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    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)
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    Outstanding commentary on life and learnings at Arthur Andersen. I personally identify with this 100%.
     
  • Comment #26 (Posted by sherry)
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    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)
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    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)
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    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.
     
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