Bad Blood (Theranos) and The Smartest Guys in the Room (Enron) describe toxic workplaces that allow frauds and cons to flourish.

Bad Blood about Theranos

Smartest Guys in the room

Having recently read Bad Blood (Theranos) and The Smartest Guys in the room (Enron)  I was stuck by the similarity of the toxic workplaces that allowed these huge frauds to continue.

Enron used "creative" accounting and corrupt financial business practices to hide loses in the energy sector. Each quarter's results snowball on previous failures leading to a huge implosion in 2001

Theranos developed blood testing machine intended to replace the need for off-site blood tests using just a few drops of blood. The devices never worked reliably or accurately compared to established testing machines. As a silicon valley "Unicorn" this company burnt millions in start up finance.

Similarities

• Both companies were driven by charismatic characters with little grasp of the actual underlying science of the business.
• Both had "Bulldog" partners that bullied and coerced employees into compliance.
• Facts were hidden, one company used creative accounting methods to hide the real business financial facts, the other hid the miserable product performance from regulators and investors.
• Both companies prevented cross company employee engagement to prevent effective collaboration.
• Both companies had ineffective but high profile governance boards that were in thrall to the CEOs.
• Both company had highly paid employees who job description was vague and performance marginal.
• Original innovators leave in disgust or under a pretence cloud.
• Both companies had the internal culture of a cult. "All in or get out".
• Both companies valued long hours, apparent dedication over actual effective results.
• Both companies employed outside "consultants" to aid and abet the toxic business processes; Accountants in one case, Lawyers in the other.
• Whistleblowers were either ignored or legally threatened sued and silenced.
• Investors wanted to believe the "Too good to be true" story above the realities of market sense.  

Loses
Enron -In excess of $70 Billion. A publicly listed company who's loses were spread across the regular stock market.

** Update Legal outcome and convictions

Theranos - In excess of $600 Million as well as 1000s of inaccurate blood test results leading to real medical harm. A private company who's loses hit a smaller group of private investors.

**Update March 2018 Ms Holmes and Balwani charged with fraud
**Update Oct 2020 Ms Holmes and Balwani to face jury trial.

**Update Dec 2022 Both Homes and Balwani to face serious prison time

** Update Dec 2022 Homes to serve 11 years serious prison time

** Update Dec 2022 Balwani to serve 13 years serious prison time.

See also
Bernie Madoff and This list  of other large corporate failures.

Apple's secret recycling program reveals Apple store design secret.

The hidden secret behind the design of prestige Apple stores can at last be revealed. In an press briefing yesterday Apple executives revealed to ARCHITECTUREAL DIGEST the design driver that has made Apple retail stores so iconic.

At the regular start of quarter meeting today an investigative reporter from AD probed the Apple retail store design manager for further information about the practice that has led to outrage across Apple iPhone users.

Many loyal Apple users have suffered the loss by cracking and breakage of their beloved iPhone only to be charged $100s for a screen repair. The little known policy that can at last be revealed today is that the Apple repair service has been recycling the glass from broken iPhones into frontages and stair features at iconic Apple stores.

The Apple manager, Toby Gillimond, responsible for this hidden program is quoted "Whilst it takes many broken iPhone screens to make the stairs in an Apple store we receive so many busted and smashed phones that we have been opening a new store every month. The glass is tough and strong and once recombined into new glass slabs makes an excellent staircase."  When probed to establish if the owners of the broken iPhones were compensated Toby evasivly replied. "Apple makes many excellent products using materials from a variety of sources. We feel that recycling broken iPhone glass into a useful industrial material fits well within our recycling program parameters."

There you have it folks when next visiting an Apple store ( set to be reopened after the Covid-19 crisis) remember that you walk upon the tears of owners with broken iPhones.

Broken iPhones

Glass staircase in Exeter Apple store

Not for public release before 1st April 2020.