Monday, April 25, 2005

BOING BOING posts on the new documentary about Enron. It seems Enron's "anything for profits" management philosophy was built on a system of rating employee performance that put making money before and above any other consideration.

Every year, all employees were rated from 1 (best) to 5 (worst). The more money you made for the company, the better your rating. (Skilling was fond of saying that money was the only thing that motivated people). Skilling mandated that between 10 and 15 percent of the employees had to be rated as 5s. And to get a rating of 5 meant that you were fired. This review process was dubbed "rank and yank."

It's no surprise that this algorithm resulted in a corporate petri dish teeming with sociopaths who were taped in phone conversations laughing at the thought of stealing money from "grandma millies" who were hit with unaffor[d]ably high utility bills, and urging on the California wildfires by chanting "burn baby, burn!."

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