ICEI2019 presentation by Chris Golis: The Collapse of Arthur Andersen: A Failure of Emotional Intelligence?

1. The Collapse of Arthur Andersen:
A Failure of Emotional Intelligence?
16 July 2019
7th International Congress on Emotional Intelligence
Christopher Golis MA MBA FIML
www.emotionalintelligencecourse.com
1© Christopher Golis 2019

2. Agenda
 Arthur Andersen: What happened?
 Why it happened?
 How it could have been prevented?
 Why EQ research is failing today?
© Christopher Golis 2019
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3. © Christopher Golis 2019
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Arthur Andersen
 1913 start-up
 “Not enough money in the city of Chicago”
 Company motto = Think Straight, Talk Straight
 1930s: First major Audit firm to introduce
consulting
 Accused of conflict of interest by competitors
 Eliminated conflicts with the Method ( Probity)
 Competitors (Ernst & Young, Price Waterhouse,
Coopers & Lybrand) followed AA’s diversification
strategy

4. © Christopher Golis 2019
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Arthur Andersen
 Post WWII Myers-Briggs embraced
 Became the expert in implementing IBM Systems
 1989 John Edwards & Eye of the Tiger conference
 1992 Great Partner Purge (Probity Profits)
 2001 Enron and Worldcom
 2002 85,000  16 employees in 1 year!!!

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Arthur Andersen
 Why the collapse?
 Inside Arthur Andersen: Shifting Values,
Unexpected Consequences
 ? Conflict of cultures
 But why didn’t EY, PW, C&L follow AA?

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Problem not culture
conflict but wrong
profiling system
 Myers-Briggs converted a 85,000
employee company 16 people in
one year.
 Myers-Briggs destroyed Arthur
Andersen
 Myers-Briggs does not identify
Corporate Psychopaths

7. How do you detect
psychopaths?
 Bob Hare creator of the PCL-R Test
(Psychopathy Check List – Revised) &
co-author of Snakes in Suits.
 Hexaco = Big 5 + Honesty/Humility
Kibeom Lee and Michael C. Ashton
The H Factor of Personality
Neuroticism = Emotionality
 7MTF/Humm-Wadsworth
© Christopher Golis 2019
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8. 8
The Development of
the 7MTF*
 1920 Rosanoff: What drives our core emotions?
 “ We are all slightly mad” (Spectrum disorders)
 There are only 4 mental illnesses
 Cyclodia
 Schizophrenia
 Hysteria
 Epilepsy
 + Normal
(*7MTF = 7 Motivational Temperament Factors)
© Christopher Golis 2019

9. 1935 Humm-Wadsworth
7 components
 Cyclodia
 Schizophrenia
 Hysteria
 Epilepsy
 Normal
 Manic
 Depressive
 Autistic
 Paranoid
 Hysteroid
 Epileptoid
 Normal
9© Christopher Golis 2019

10. 2007-15
Different Disorders
 Manic
 Depressive
 Autistic
 Paranoid
 Hysteroid
 Epileptoid
 Normal
 Manic
 Depressive
 Autistic
 Paranoid
 Psychopath
 Obsessive-Compulsive
 Neurotic
10© Christopher Golis 2019

11. 2016 7MTF* is born
 Mover
 Doublechecker
 Artist
 Politician
 Hustler
 Engineer
 Normal
 Socialiser
 Doublechecker
 Artist
 Politician
 GoGetter
 Engineer
 Regulator
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(*7MTF = 7 Motivational Temperament Factors)
© Christopher Golis 2019

12. 12
Understanding others:
TOPDOG
 Talk
 Organisation
 Position
 Dress
 Office (or Home or Car)
 Gambit
© Christopher Golis 2019

13. 13
GoGetter (Hustler)
 Desire for material success
 Psychopathy
 Self-interest: WIIFM
 Empathetic & Charming
 Astute, good financial acumen
 Love of gambling and
excitement
 Winners and losers
 Opportunistic & egocentric
 Machiavellian & narcissistic
G = naive, gullible, martyr
© Christopher Golis 2019

14. 14
GoGetter/Hustler
• Talk - Money, name dropper
• Organisation - Wholesalers
• Position - Brokers and agents
• Dress - Flashy
• Office – Showy and glitszy
• Gambit - Punctual and friendly
© Christopher Golis 2019

15. 15
Goleman publishes EQ in 1995
1. 5 million copies in 5
years
2. Why is EQ important?
3. What is EQ?
© Christopher Golis 2019

16. 16
cgolisau@gmail.com
What is Emotional Intelligence?
Self
Understanding
Ψ test
Self
Influencing
Mindfulness
Others
Understanding
Empathy
Others
Influencing
Social Skills
Self
Others
Understanding Influencing
© Christopher Golis 2019

17. 17
The big flaw in Goleman’s book
1. How do you lift
your EQ?
Appendix A:
No model of core emotions!?
© Christopher Golis 2019

18. Goleman’s Emotional Intelligence
P290: Appendix A Final Paragraph
© Christopher Golis 2019
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19. What’s wrong with EQ
today?
 EQ research is too biased towards
emotions & moods
 No mention of Lisa Feldman Barrett
 Mood meter = impractical tool
 Should reverse direction and research
mental disorders & temperament
 7MTF = best practical tool to lift your EQ
© Christopher Golis 2019
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20. An EQ joke
 https://www.emotionalint
elligencecourse.com/the-
collapse-of-arthur-
andersen-a-failure-of-
emotional-intelligence/
 Any ?
© Christopher Golis 2019
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