- Management Reference Guide
- Table of Contents
- Introduction
- Strategic Management
- Establishing Goals, Objectives, and Strategies
- Aligning IT Goals with Corporate Business Goals
- Utilizing Effective Planning Techniques
- Developing Worthwhile Mission Statements
- Developing Worthwhile Vision Statements
- Instituting Practical Corporate Values
- Budgeting Considerations in an IT Environment
- Introduction to Conducting an Effective SWOT Analysis
- IT Governance and Disaster Recovery, Part One
- IT Governance and Disaster Recovery, Part Two
- Customer Management
- Identifying Key External Customers
- Identifying Key Internal Customers
- Negotiating with Customers and Suppliers—Part 1: An Introduction
- Negotiating With Customers and Suppliers—Part 2: Reaching Agreement
- Negotiating and Managing Realistic Customer Expectations
- Service Management
- Identifying Key Services for Business Users
- Service-Level Agreements That Really Work
- How IT Evolved into a Service Organization
- FAQs About Systems Management (SM)
- FAQs About Availability (AV)
- FAQs About Performance and Tuning (PT)
- FAQs About Service Desk (SD)
- FAQs About Change Management (CM)
- FAQs About Configuration Management (CF)
- FAQs About Capacity Planning (CP)
- FAQs About Network Management
- FAQs About Storage Management (SM)
- FAQs About Production Acceptance (PA)
- FAQs About Release Management (RM)
- FAQs About Disaster Recovery (DR)
- FAQs About Business Continuity (BC)
- FAQs About Security (SE)
- FAQs About Service Level Management (SL)
- FAQs About Financial Management (FN)
- FAQs About Problem Management (PM)
- FAQs About Facilities Management (FM)
- Process Management
- Developing Robust Processes
- Establishing Mutually Beneficial Process Metrics
- Change Management—Part 1
- Change Management—Part 2
- Change Management—Part 3
- Audit Reconnaissance: Releasing Resources Through the IT Audit
- Problem Management
- Problem Management–Part 2: Process Design
- Problem Management–Part 3: Process Implementation
- Business Continuity Emergency Communications Plan
- Capacity Planning – Part One: Why It is Seldom Done Well
- Capacity Planning – Part Two: Developing a Capacity Planning Process
- Capacity Planning — Part Three: Benefits and Helpful Tips
- Capacity Planning – Part Four: Hidden Upgrade Costs and
- Improving Business Process Management, Part 1
- Improving Business Process Management, Part 2
- 20 Major Elements of Facilities Management
- Major Physical Exposures Common to a Data Center
- Evaluating the Physical Environment
- Nightmare Incidents with Disaster Recovery Plans
- Developing a Robust Configuration Management Process
- Developing a Robust Configuration Management Process – Part Two
- Automating a Robust Infrastructure Process
- Improving High Availability — Part One: Definitions and Terms
- Improving High Availability — Part Two: Definitions and Terms
- Improving High Availability — Part Three: The Seven R's of High Availability
- Improving High Availability — Part Four: Assessing an Availability Process
- Methods for Brainstorming and Prioritizing Requirements
- Introduction to Disk Storage Management — Part One
- Storage Management—Part Two: Performance
- Storage Management—Part Three: Reliability
- Storage Management—Part Four: Recoverability
- Twelve Traits of World-Class Infrastructures — Part One
- Twelve Traits of World-Class Infrastructures — Part Two
- Meeting Today's Cooling Challenges of Data Centers
- Strategic Security, Part One: Assessment
- Strategic Security, Part Two: Development
- Strategic Security, Part Three: Implementation
- Strategic Security, Part Four: ITIL Implications
- Production Acceptance Part One – Definition and Benefits
- Production Acceptance Part Two – Initial Steps
- Production Acceptance Part Three – Middle Steps
- Production Acceptance Part Four – Ongoing Steps
- Case Study: Planning a Service Desk Part One – Objectives
- Case Study: Planning a Service Desk Part Two – SWOT
- Case Study: Implementing an ITIL Service Desk – Part One
- Case Study: Implementing a Service Desk Part Two – Tool Selection
- Ethics, Scandals and Legislation
- Outsourcing in Response to Legislation
- Supplier Management
- Identifying Key External Suppliers
- Identifying Key Internal Suppliers
- Integrating the Four Key Elements of Good Customer Service
- Enhancing the Customer/Supplier Matrix
- Voice Over IP, Part One — What VoIP Is, and Is Not
- Voice Over IP, Part Two — Benefits, Cost Savings and Features of VoIP
- Application Management
- Production Acceptance
- Distinguishing New Applications from New Versions of Existing Applications
- Assessing a Production Acceptance Process
- Effective Use of a Software Development Life Cycle
- The Role of Project Management in SDLC— Part 2
- Communication in Project Management – Part One: Barriers to Effective Communication
- Communication in Project Management – Part Two: Examples of Effective Communication
- Safeguarding Personal Information in the Workplace: A Case Study
- Combating the Year-end Budget Blitz—Part 1: Building a Manageable Schedule
- Combating the Year-end Budget Blitz—Part 2: Tracking and Reporting Availability
- References
- Developing an ITIL Feasibility Analysis
- Organization and Personnel Management
- Optimizing IT Organizational Structures
- Factors That Influence Restructuring Decisions
- Alternative Locations for the Help Desk
- Alternative Locations for Database Administration
- Alternative Locations for Network Operations
- Alternative Locations for Web Design
- Alternative Locations for Risk Management
- Alternative Locations for Systems Management
- Practical Tips To Retaining Key Personnel
- Benefits and Drawbacks of Using IT Consultants and Contractors
- Deciding Between the Use of Contractors versus Consultants
- Managing Employee Skill Sets and Skill Levels
- Assessing Skill Levels of Current Onboard Staff
- Recruiting Infrastructure Staff from the Outside
- Selecting the Most Qualified Candidate
- 7 Tips for Managing the Use of Mobile Devices
- Useful Websites for IT Managers
- References
- Automating Robust Processes
- Evaluating Process Documentation — Part One: Quality and Value
- Evaluating Process Documentation — Part Two: Benefits and Use of a Quality-Value Matrix
- When Should You Integrate or Segregate Service Desks?
- Five Instructive Ideas for Interviewing
- Eight Surefire Tips to Use When Being Interviewed
- 12 Helpful Hints To Make Meetings More Productive
- Eight Uncommon Tips To Improve Your Writing
- Ten Helpful Tips To Improve Fire Drills
- Sorting Out Today’s Various Training Options
- Business Ethics and Corporate Scandals – Part 1
- Business Ethics and Corporate Scandals – Part 2
- 12 Tips for More Effective Emails
- Management Communication: Back to the Basics, Part One
- Management Communication: Back to the Basics, Part Two
- Management Communication: Back to the Basics, Part Three
- Asset Management
- Managing Hardware Inventories
- Introduction to Hardware Inventories
- Processes To Manage Hardware Inventories
- Use of a Hardware Inventory Database
- References
- Managing Software Inventories
- Business Continuity Management
- Ten Lessons Learned from Real-Life Disasters
- Ten Lessons Learned From Real-Life Disasters, Part 2
- Differences Between Disaster Recovery and Business Continuity , Part 1
- Differences Between Disaster Recovery and Business Continuity , Part 2
- 15 Common Terms and Definitions of Business Continuity
- The Federal Government’s Role in Disaster Recovery
- The 12 Common Mistakes That Cause BIAs To Fail—Part 1
- The 12 Common Mistakes That Cause BIAs To Fail—Part 2
- The 12 Common Mistakes That Cause BIAs To Fail—Part 3
- The 12 Common Mistakes That Cause BIAs To Fail—Part 4
- Conducting an Effective Table Top Exercise (TTE) — Part 1
- Conducting an Effective Table Top Exercise (TTE) — Part 2
- Conducting an Effective Table Top Exercise (TTE) — Part 3
- Conducting an Effective Table Top Exercise (TTE) — Part 4
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part One
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part Two
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part Three
- The 13 Cardinal Steps for Implementing a Business Continuity Program — Part Four
- The Information Technology Infrastructure Library (ITIL)
- The Origins of ITIL
- The Foundation of ITIL: Service Management
- Five Reasons for Revising ITIL
- The Relationship of Service Delivery and Service Support to All of ITIL
- Ten Common Myths About Implementing ITIL, Part One
- Ten Common Myths About Implementing ITIL, Part Two
- Characteristics of ITIL Version 3
- Ten Benefits of itSMF and its IIL Pocket Guide
- Translating the Goals of the ITIL Service Delivery Processes
- Translating the Goals of the ITIL Service Support Processes
- Elements of ITIL Least Understood, Part One: Service Delivery Processes
- Case Study: Recovery Reactions to a Renegade Rodent
- Elements of ITIL Least Understood, Part Two: Service Support
- Case Studies
- Case Study — Preparing for Hurricane Charley
- Case Study — The Linux Decision
- Case Study — Production Acceptance at an Aerospace Firm
- Case Study — Production Acceptance at a Defense Contractor
- Case Study — Evaluating Mainframe Processes
- Case Study — Evaluating Recovery Sites, Part One: Quantitative Comparisons/Natural Disasters
- Case Study — Evaluating Recovery Sites, Part Two: Quantitative Comparisons/Man-made Disasters
- Case Study — Evaluating Recovery Sites, Part Three: Qualitative Comparisons
- Case Study — Evaluating Recovery Sites, Part Four: Take-Aways
- Disaster Recovery Test Case Study Part One: Planning
- Disaster Recovery Test Case Study Part Two: Planning and Walk-Through
- Disaster Recovery Test Case Study Part Three: Execution
- Disaster Recovery Test Case Study Part Four: Follow-Up
- Assessing the Robustness of a Vendor’s Data Center, Part One: Qualitative Measures
- Assessing the Robustness of a Vendor’s Data Center, Part Two: Quantitative Measures
- Case Study: Lessons Learned from a World-Wide Disaster Recovery Exercise, Part One: What Did the Team Do Well
- (d) Case Study: Lessons Learned from a World-Wide Disaster Recovery Exercise, Part Two
This is the first of a two-part article on business ethics and some of the major recent corporate scandals that resulted in part from a lack of such ethics. In this first part provide some general background on the topic of ethics and then described two of the four major scandals looked at in this series.
Before initiating any discussion on ethics, it is helpful to first distinguish between personal ethics and business ethics. I define personal ethics as the set values an individual uses to influence and guide his or her personal behavior.
The personal ethics of an individual are usually developed early in one's life. The values of honesty, trust, responsibility and character are typically instilled in a person during childhood. But the degree to which these values are reinforced and strengthened during the trying years of adolescence and early adulthood will vary from person to person. In some cases these early life traits may not always win out over the temptations of power, greed and control.
Business ethics, on the other hand, tend to focus on the behaviors of an individual as it pertains to his or her work environment. The differences between personal and business ethics may be at once both subtle and far-reaching.
For example, individuals who are unfaithful to their spouses will have compromised their personal ethics of trust and honesty. The number of people affected by such discretions may be few but the intense impact of the actions may very well be devastating, life altering and even life-threatening. But if these same individuals embezzle huge sums of money from a corporation, the impact on a personal level may be felt less while the number of people affected — employees, investors, stockholders — could be substantial.
Following the boom and bust dotcom craze of the first few years of the new millennium, a record number of major business scandals occurred in the United States. Tempted with over-inflated stock values, a lack of close government regulation and a booming, optimistic economy, executives with a questionable sense of ethics took advantage of their situations. In 2002 alone there were no less than 28 Fortune 500 companies found to be engaged in significant corporate scandals. The downfalls of the executives from these firms became very public in their coverage, devastating in their effect, and in a few cases stunning in their scope. As details of the criminal acts of these individuals emerged, it became apparent that corporate officers used a wide variety of accounting irregularities to enact their illegal schemes. Listing 1 includes some of the more common of these uncommon practices.
Listing 1 Accounting Irregularities
- overstating revenues
- understating expenses
- inflating profits
- underreporting liabilities
- misdirecting of funds
- artificially inflating stock prices
- overstating the value of assets
Any number of fraudulent firms from this time period could be held up as instances of unethical business practices, but the following four serve as especially good examples: RadioShack, Tyco, WorldCom and Enron.
The RadioShack Case
The RadioShack Corporation, headquartered in Forth Worth, Texas, offers consumer electronics through hundreds of its retail stores. In May 2005, David Edmondson became RadioShack's Chief Executive Officer (CEO) after having been groomed for the job for years prior. The company did not fare well under Edmondson. Sales and stock price both dropped. Employee morale was low, both for non-supervisory personnel whose employee stock purchase plan was cancelled, and for managers who were subjected to a controversial "Fix 1500" initiative in which the lowest rated 1500 store managers out of 5000 were on notice to improve or else.
Edmondson's final undoing was due less to his corporate performance and more due to a personal lack of ethics. Police arrested Edmondson for driving under the influence in early 2006 at about the same time reporters learned he had misstated his academic record on his resume. Edmondson claimed he had earned degrees in theology and psychology from the Heartland Baptist Bible College when, in fact, school records showed he had attended only two semesters and was never even offered a course in psychology. On February 20, 2006, a company spokesperson announced that David Edmondson had resigned over questions raised by his falsified resume. The company struggled through all of 2006 attempting to recover its financial health.
Edmondson's civil indiscretions are small in comparison to the criminal behavior of other executives described in this section. Still, it points out how unethical behavior by even one key individual can have far reaching effects on a company and its employees, including all those working in the IT department.
The Tyco International Case
The scandal at Tyco International, a diversified manufacturing conglomerate whose products include toys, plastics and household goods, was far more significant than that experienced by RadioShack and eventually led to criminal prosecutions. CEO L. Dennis Kozlowski and Chief Financial Officer (CFO) Mark Swartz had both enjoyed highly regarded business reputations before their fall from grace. Business Week magazine, in its January 14, 2002 edition, even listed Kozlowski as one of the top 25 corporate managers of 2001. By September 2005 both were being led away in handcuffs to begin serving between 8-1/3 to 25 years in prison.
On June 17, 2005 a Manhattan, New York jury found Kozlowski and Swartz guilty of stealing more than $150 million (U.S. dollars) from Tyco. Specific counts included grand larceny, conspiracy, falsifying business records and violating business law. Judge Michael J. Obus, who presided over the trial, ordered them to pay back to Tyco $134 million. In addition, the judge fined Kozlowski $70 million and Swartz $35 million.
The case came to represent the pervasive impression of greed and dishonesty that characterized many companies who enjoyed brief periods of prosperity through devious means. When some of Kozloski's extravagances came to light during trial, they only served to fuel this notion. These included him buying a shower curtain for $6,000.00 and throwing a birthday party for his wife on an Italian island for $2 million, all paid for with Tyco funds.
Summary
This concludes part one of the two-part series on Ethics and Scandals. In this initial segment I discussed the issues of personal and business ethics, and then described two recent corporate scandals involving RadioShack and Tyco International. In part two I look at two even larger recent scandals involving WorldCom and Enron.