Enron Training Program
Enron??™s failure as a organization has been found to be based upon poor management, questionable business practices and a complete lack of ethical structure within the higher levels of the organization. ???The difference between a good company and a poor one is often reflected in the cooperation or lack of it among the people who work there.??? (Bergstrom, 2009) The application of an extensive training geared towards increasing the effectiveness of team communication, collaboraration and conflict resolution could??™ve been used to alter to resulting failure into a more productive and successful path.

In developing a training plan to increase the effectiveness of groups and teams, Team ???C??? constructed a training plan that would have helped Enron organization succeed rather than fail. The Leadership Development Training Program is a program that would provide future leaders of any organization with a strong foundation in the different aspects of the company. The program also provides hands on training of the different aspects of the business. The program would provide with opportunities to take significant roles in the leadership, management, and advancement within the program. Trainees would also have the unique opportunity to work with colleagues across businesses and from around the globe to lead change initiatives.
The Leadership Development Training program focuses on these primary areas: Operations, Finance with a focus on Accounting, as well as Business Development. Within the training program employees are trained to fully understand the needs of the business and how to best serve in their roles as leaders in the company. There are rewards given within the training program for exemplary personal performance and teamwork, recognizing and teaching that both are critical to long-term success of the organization.
Enron lacked good leadership within their organization. The leaders in executive levels allowed accounting fraud and decentralized corporate departments. The leaders did not properly hire nor did they train their management to ???do the right thing???. The leaders allowed the accounting department to cover up losses so that they could fake profits to increase market share. The Executive level management passed down their lack of integrity and greediness to the lower level managers. The training plan proposed would have trained the executives properly. It would have instilled the vision and integrity that the founders of the company had in mind. It would also give incentives to the employee that achieved an understanding of the companies??™ goals, vision, and one who achieves within the leadership concentrations.
The Leadership Development Program would be divided into three main areas:
The Operations concentration prepares the individual for roles as a as an operations manager. The operations management jobs are extremely important to the success of a business. An operations manager oversees every aspect of the business, from the conception of new ideas to the distribution of products and services. The leadership program would give training and understanding in core principles of the operations of the business. The individual is also taught the business the history of the business in this concentration as well as the goals and mission of the company.
The Finance/ Accounting concentration would prepare the individual for roles as a CFO of the organization. Within this concentration the individual would learn the aspects of the accountant, Sr. analyst, SR. Controller. The program would focus on understanding financial concepts and analysis for the purpose of achieving the operating goals of the organization. Learning how to read financial reports would be a key learning aspect of this concentration. The trainee would have to master this concentration as well as be able to maintain records and report earnings accurately. The majority if the individual??™s time spent in this concentration would be learning how to accurately complete and analyze paperwork. Also, one of the main focuses that would be taught is proper reporting and communication. The trainee??™s ability to properly communicate financial statements through the departments is also extremely necessary. Accounting and finance education can help businesses manage their cash flow, grow Long-term and short-term, as well as increase capital for the company.
Human Resources prepare the individual for roles as head of the HR department. Hr is very important concentration to lean because this is the department that establishes a structure to the organization as a whole. Also, it aids the finance department with cost of administration and hiring new employees. Within this concentration, the individuals will learn the different functions of HR as well as go in depth about the procedures of the organization. They learn recruiting and orienting new employees. The individuals need to learn this to hire exceptional management. The training would also focus on the aspect of instituting and monitoring policies. The individuals will understand that HR is taught to be unbiased. They will focus on learning what the company handbook entails as well as the general operating procedures of the organization. The training individuals would be taught to understand that HR is taught to be responsive to executives, manager and employees.
All concentrations would consist of a rotational time frame. The trainees would rotate in the classroom and on-the-job training. After successful completion of the training program, the future leaders are prepared to take responsible positions in the area of the concentration in which they have excelled. They also have excellent opportunities for advancement or the ability to move within the different aspects of the company. The training program offers opportunities for leaders to drive growth in their business. It would be set up so that the trained individuals would receive world-class and leadership training. They would also be able to interact with senior level officials of the company. This will allow them to gain the proper influence as they move up the management latter. This will also allow the future leaders to net-work and form relationships that will help progress on the right road to a leadership role in the company.
This leadership development program would have helped Enron organization to develop their future leaders. The program would eliminate the ???ol??™ boy network??? aspect of hiring. This is where the leaders clearly were allowed to hire their corporate counterparts who shared the same corrupt vision and ethics they their senior management had. It would have centralized the Human Resources as well as the accounting department and would have created leaders that excelled in this aspect of the company.
Overall, Enron lacked proper leadership training. The leaders in the organization were corrupt. They were the cause of the company downfall. The issues that Enron faced started from the bottom up. The founders lacked proper leadership skills. This is due to improper training. The leadership development training program would have allowed senior level manager the opportunity to properly grow within the organization, creating true leaders and a thriving profitable company.


Bergstrom, Barbara. (2009). Teamwork can make the difference between success, failure. Orlando Business Journal. Retrieved June 19, 2009, from http://orlando.bizjournals.com/orlando/stories/2008/10/13/smallb5.html

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