Case | HBS Case Collection | October 2003 (Revised April 2005)

Innovation Corrupted: The Rise and Fall of Enron

by Malcolm S. Salter

Abstract

Presents an historical overview of Enron's rise and fall and summarizes what is currently known about (1) the evolution of Enron's business model, (2) the organizational processes Enron officials relied on to drive and monitor the business, (3) emergent behavior related to the structuring of major partnerships and corporate financial reporting, and (4) oversight provided by Enron's management and board of directors. Concludes with a comment on how Enron's story as a new, post-deregulation corporate model escaped critical analysis by the financial community, the business press, and other observers for such a long time.

Keywords: Business Model; Behavior; Governing and Advisory Boards; Success; Transformation; Failure; Business Processes; Energy Industry; United States;

Citation:

Salter, Malcolm S. "Innovation Corrupted: The Rise and Fall of Enron." Harvard Business School Case 904-036, October 2003. (Revised April 2005.)