executive summary“Controls cost, but lack of
control ultimately costs more.”
There is a new, legally mandated “core competency” for every manager in
an organization today—business control. With a single vote, Congress forever altered
the expectations placed upon businesses worldwide. The Sarbanes-Oxley Act of 2002
(Corporate Reform Act), making top executives of companies publicly traded in the U.S.
criminally and legally responsible for the accuracy of their financial reporting, changed
performance requirements for organizations of all sizes.
The Act mandates a result, but not a method. Consequently, everyone is talking about
reporting and control problems, but no one is talking about how to stop them or even how
to eliminate honest mistakes. Managing Pandora’s Paradox shows
readers how to do the following:
(1) Ensure the accuracy of reporting, and provide an active defense in the case of
honest error.
(2) Eliminate the unnecessary costs of out-of-control situations.
(There aren’t many book advantage statements stronger than, “How to save
money and stay out of jail.”)
This is not a book about ethics, although ethics are a consideration when designing
business controls. Dishonesty is a matter of values and behavior of individuals, and there
are many books published on that topic.
The real issue today is that nearly every organization has elements that are
out-of-control. And it’s no wonder, since management and front-line workers typically
receive no training in this area. Managing Pandora’s Paradox
addresses the complete lack of knowledge and skills regarding business controls, which are
far more than simple financial controls. Business controls must be part of every process
and system in the organization, and are now important enough to require their own
dedicated departmental function.
Managing Pandora’s Paradox presents 25 proven “best
practices” for ensuring proper control of an organization. It is based upon decades
of consulting and teaching worldwide. It is extremely how-to, with numerous conceptual
tools and process checklists for the reader. Leveraging stories taken out of today’s
headlines and from the authors’ consulting practices, the book provides a detailed
roadmap for getting an organization back in control and keeping it under control.
There is no faster way to put money back on the bottom line than by improving business
controls.
table of contents
FOREWORD
PREFACE
ACKNOWLEDGEMENTS
INTRODUCTION
PART I — THE
KNOT IS OFF:
THINKING OUTSIDE PANDORA’S BOX
CHAPTER 1
The Pre/Post World:
Strengthening Financial Controls with BizControls
CHAPTER 2
The Control Continuum: A
Dynamic Control Strategy
CHAPTER 3
The BizControl Checklist:
Six Hallmarks of Effective Controls
PART II — AFFLICTIONS FROM THE BOX:
OUT-OF-CONTROL INCUBATORS
CHAPTER 4
The Relational
Enterprise: Exposure Beyond the Walls
CHAPTER 5
Restructuring: The
Fallacy of Instant Expertise
CHAPTER 6
Process Improvement: Neighbors Doing Brain Surgery
CHAPTER 7
Departments: Sinking with the “Not on my watch” Mind-Set
CHAPTER 8
Culture: Ten Symptoms of a
Dysfunctional Organization
CHAPTER 9
Empowerment: When Everybody’s in
Control, No One Is
CHAPTER 10
IT Systems: Millions of Mistakes per Minute
CHAPTER 11
e-Business: The World Wide Worry
CHAPTER 12
Legislated Ethics: Sarbanes-Oxley and Other Toothless Solutions
PART III —
PANDORA’S HOPE: BEST PRACTICES
IN ORGANIZATIONAL BIZCONTROL
CHAPTER 13
Positive PR: Publicizing
the New Controls Message
CHAPTER 14
A New Core Competency:
Develop BizControl Skills in the Organization
CHAPTER 15
The Control Czar:
Establishing a New Controls Function
PART IV —
REBINDING THE BOX: TECHNIQUES FOR
CREATING INDIVIDUAL BIZCONTROLS
CHAPTER 16
BizControl Analysis:
Assessing Organizational Controls Status
CHAPTER 17
Pain Point Analysis:
Solving Specific Controls Problems
CHAPTER 18
The BizControl Process:
Ten Steps to Get a Process Back in Control
CHAPTER 19
BizControl ROI: Controls
Cost/Benefit Analysis
CHAPTER 19
Enterprise
Controls Systems: Software Support for Processes and Controls
CHAPTER 20
Closing the Box: Putting
BizControls in Action
APPENDIX: BizControl Resources
INDEX
ABOUT THE AUTHORS |
