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Perth presentation v02
- 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
3
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
4
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!!!
- 5. © Christopher Golis 2019
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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?
- 6. © Christopher Golis 2019
6
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
7##
- 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
11
(*7MTF = 7 Motivational Temperament Factors)
© 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
- 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
19
- 20. An EQ joke
https://www.emotionalint
elligencecourse.com/the-
collapse-of-arthur-
andersen-a-failure-of-
emotional-intelligence/
Any ?
© Christopher Golis 2019
20