This is a serious issue for professional firms pushing for growth. As the incetives to sell go up, so must the controls to avoid both selling something the firm shouldn’t and providing advice to a client more geared at selling more work than looking after the client’s best interests. Note that in Andersen’s case the partner in charge of the Enron account successfully challenged the firm’s controls.

Firm management may exhort its partners to sell, sell, sell, but it seldom balances that message with a reminder of the need to use good judgement, behave ethically and abide by controls while doing so. They take it for granted that the partners remember and care about such things. Unfortunately, not all partners do.

Good post,

Ford Harding