Tuesday, September 26, 2006

Comment / H-P Board Scandal

Comment / H-P Board Scandal
by Jay T. Simmons, CEO
Board Advisory Services, Inc.

Several questions that no one is asking need answers. 1) What corporate environmental factors prompted Dr. Keyworth to leak in the first place? 2) Why didn't the boardroom relationships allow them to work through a management process to identify the leak within closed doors? 3) Why wasn't their ethics policy communicated and applied throughout their vendor selection process for such a sensitive issue?

Their management process broke down. Any organization has employees that can and will violate policies. It is the leadership and management structure that creates an environment that minimizes and mitigates such risks. Why do whistleblowers blow? Because 79% of them had a moral compass that said this activity is wrong and the organization wasn't listening. They went outside as a last resort. We need to relearn the skill of managing and put leaders in place who can set the example for acceptable behavior and openness built on mutual respect.

Above comment in response to --

Experts Urge Overhaul of H-P Board
Wall Street Journal, 9/26/06

H-P should overhaul its board of directors in the wake of the leak-investigation scandal, corporate-governance experts say.

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