Steven Pearlstein, writing in this morning’s WaPo has some good comments about Enron. In reviewing Kurt Eichenwald’s book, Conspiracy of Fools Pearlstein writes:
“What comes through in Eichenwald's narrative is how fragile institutions are and how susceptible they are to being corrupted by a series of small and seemingly innocuous decisions by individuals whose motivations are, in many respects, no different than yours or mine. At dozens of key points along the way, all it would have taken is one executive or auditor or lawyer or director willing to risk his job or bonus or disapprobation of his peers to stop the escalating fraud. And even if you don't completely buy the idea that Ken Lay was largely clueless (which I do) or that Jeff Skilling's offense was willful ignorance (which I don't), you can't help but come away from Eichenwald's story with a new appreciation for how people in an organization rationalize things they would recognize as wrong or stupid in another setting.” (emphasis added).
Somehow, I think that I will have occasion to refer to this comment as I review tomorrow’s report on reforming the intelligence community and the 72 page report of the National Leadership Roundtable on Church Management (NLRCM).

