The article draws on Schein's (1993, Legitimating clinical research in the study of organizational culture, Journal of Counselling and Development, 71, 703–708 1996, 2004) framework of cultural practice to develop our analysis. It argues that this was a major cause of neutralizing these controls, which in turn proved to be a major factor in Enron's fall into bankruptcy. This article identifies the radical change in Enron's corporate culture that took place from the Lay-Kinder era (1986–1996) to the Lay-Skilling era (1997–2001).
Yet these controls were rendered ineffective in the company's last few years. At the time of its demise in 2001, the Enron Corporation could boast of its comprehensive, state-of-the-art management control and governance systems.
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