6 Project Management Lessons From Enron & Their Historic Collapse
I just finished watching “The Smartest Guys In The Room”. It’s a documentary about Enron, the once-revolutionary Texas energy trading company that famously collapsed in 2001. From the early 90’s right up to their downfall, Enron was a darling of Wall Street, ranking #7 on the Fortune 500 in the same year that news of its’ massive accounting fraud and unethical business practices swept the world. In the summer of 2000, Enron’s stock hit an all-time high of over $90 per share. In late 2001, Enron filed for Chapter 11 bankruptcy and is still known as one of the largest corporate scandals in American history. Not only was Enron a business titan on Wall Street, but they were also well-known on ‘Main Street’ too. Enron’s collapse led to nearly 30,000 lost jobs, thousands of evaporated retirement accounts and countless investors left with worthless stock. Enron was once a (mostly) legitimate energy company before it essentially became an energy stock market in the 90s. What the heck happened? The Enron story is complex yet simple at the same time, unpinned by human ego, greed, deceit and pride. As for the specifics of what happened, we’ll get into those too. Let’s discuss six project management lessons from Enron and their demise that came to me after watching the film.