Ready to learn the most important takeaways from The Smartest Guys in the Room in less than two minutes? Keep reading!
Why This Book Matters:
The Smartest Guys in the room outlines the events that lead to the failure of Enron, a once shining example for innovative marketing.
The Big Takeaways:
- Dishonesty within the company’s structure was an issue from its inception.
- If A subdivision of Enron (Enron Oil) neither sold nor made oil, and its “traders” forged documentation showing faux losses financially for Enron Oil.
- Jeffrey Skilling was supposed to be the company’s turn-around as CEO.
- Hiring Skilling did not change the fact the company was incapable of making real profits due to its business model that centered around falsified records.
- Where Skilling was the behind-closed-doors force, the face of the company became Rebecca Mark.
- Mark was responsible for the subdivision Enron Development and focused on cutting deals with developing nations (something Western companies didn’t do before the nineties).
- Enron’s employees focused on reward rather than carrying out tasks.
- Enron’s employees were given bonuses with each closing of a paperwork deal without physical work being carried out– a big mistake.
- Enron was swallowed by its debt finally.
- Bankruptcy ensued after years of the company hiding behind paperwork.