According to a study by the consultancy Booz Allen Hamilton, of all the value destroyed by the largest US companies between 1999 and 2003 (including Enron, Tyco and friends), just 13 per cent was the result of failures of regulatory compliance or board oversight. Eighty-seven per cent was caused by strategic or operational error.
In other words, investors' health is, now as ever, at much greater threat from managerial cock-up than conspiracy. As Bob Garratt, visiting professor at Cass Business School, puts it: 'Think of Marconi, Equitable Life and Morrisons - the issue here isn't financial propriety, just basic competence.'
See full Article.
Also see Executive Summary, in pdf format.
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