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Professional lessons from Andersen’s fall
Many of
Arthur Andersen’s employees have known only one employer since they
graduated, and may find it hard to find themselves joining the burgeoning
ranks of unemployed professionals. MOHAN BABU focuses on the fickle
nature of the corporate world
The biggest
tree makes the most noise when it falls—so goes an old saying. Arthur
Andersen, until a few months ago was a hallowed part of the “Big Five”, and
the best and brightest from top universities around the world vied to join
its ranks. And then came the Enron fiasco, with it the “100-year-flood” (as
Andersen executives like to call it). This 100-year-flood has already
dragged the firm into an inextricable jam, which some suspect may lead to
its disintegration. The collapse of the company is especially catastrophic
for the thousands of bright young professionals who bet their future on the
organisation. Many of them have known only one employer since they
graduated, and may find it hard to find themselves joining the burgeoning
ranks of unemployed professionals, especially in the current job market.
This story brings home the fickle nature of the corporate world in which we
live. The story also highlights the need for professionals to prepare
themselves to plan for sudden changes in their careers. If a solid company
like Arthur Andersen can start faltering in a matter of just a few months,
who is to say that the company you or I work for is going to remain forever?
A few weeks
ago, I read an interesting book titled Free Agent Nation, in which the
author Daniel Pink talks extensively about the paradigm shift in the
workforce. The author spent a few months travelling across America,
researching and talking with people, and concluded that the job-market as we
know it is changing. Modern day employees are starting to question the
future of their jobs, and are preparing to mitigate the losses in case of
unforeseen events leading to loss of jobs. Pink sees the emergence of
moonlighting as one of the ways in which professionals are trying to hedge
their bets in a changing world. The author goes on to add, “Moonlighting is
a way to diversify your human capital investments—and hedge against the risk
of your company collapsing or your job disappearing. In some sense, we’re
all moonlighters, because in every sense, we’re all risk managers.”
The job
market as we know it is undergoing a sea change. Job guarantee, or a career
for life is already passé, and professionals entering the job market today
can no longer expect the assurance of lifetime employment in return for
their “loyalty”. This is the reality not just in the US but in other parts
of the world too. I hear that layoffs are becoming more commonplace (at
least in the IT industry) in India too. If layoffs are a reality, are
individuals prepared for a shift in their careers?
Surprising as
it may sound, even in the West, most people are not prepared for drastic
changes a job loss can bring. Individuals invariably fall into the “not me”
comfort-zone, and go about their lives by trying to bury their heads in the
sand. Every time there is news of layoffs, downsizing or cutbacks, they hope
and pray that the climate of economic uncertainty will pass them over. They
probably shouldn’t be passively waiting for the cloud of uncertainty to
lift. People join organisations with the hope that they can work and grow
with the firm. Most employees make plans with respect to careers and other
aspects of their lives based on the jobs and place of work. A job or career
is a big factor in planning for other aspects of one’s life. However, as a
career starts resembling a series of gigs, one needs to shift one’s focus
and plan accordingly.
Professionals
probably need to start looking at their careers like a series of gigs. This
is almost like the way actors or writers look at their careers. For example,
an actress who is a “superstar” today may be relegated to a secondary status
right after her big hit when the next new face emerges from the shadows. She
may even lose out completely when the new crop of talent comes around. Do
actors wait for the next generation of talent to overtake them? No, a shrewd
actor will work hard on creating a niche—a dance sequence or something else
that will remain evergreen and sell! Similarly, programmers and IT
professionals need to carve out a niche in their areas of expertise. One way
to do this would be to acquire certifications and/or by gaining experience
in emerging areas. Professionals need to be prepared for the turbulent times
ahead and distance themselves from their peers in any way that they can.
This strategy
is no guarantee against layoffs but can help one land on one’s feet if an
inadvertent layoff does happen. Professionals also need to start commanding
higher premiums for their skills and save for lean times. The key is to
de-link one’s personal ambitions from that of organisations while working
diligently in the current job. By this I do not suggest that professionals
detach themselves from the happenings in the organisation where they spend a
good part of their working days. What I mean to imply is that individuals
need to think of their careers as independent gigs, different from the goals
of organisations.
Now, with the
benefit of hindsight, we can say, “if only Andersen’s bright young
professionals had the foresight to de-link themselves from the fortunes of
their company”... a lesson for other professionals like you and me.
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