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Posts Tagged ‘Tom Petters’

The Ability to Hide

Tuesday, October 19th, 2010

Alvin Toffler, author of Future Shock and The Third Wave just released a paper titled, 40 for the next 40, A sampling of the drivers of change that will shape our world between now and 2050. As expected from a futuristic thinker, Toffler provides a plethora of ideas to think about and ruminate on.

There is one idea that Toffler points out that relates to the phenomenon I refer to as Silent Problems (problems that are being avoided, neglected, going unnoticed or are being intentionally silenced) in my book Without Warning. This idea is:

It will be impossible for organizations to hide improper actions:

Rapidly growing amounts of information, and the proliferation of professional/consumer grade tools for analysis and interpretation, mean previously empowered individuals will now be able to see what organizations are doing, and promote that information to others.

 

Consumer opinion of corporate responsibility practices will influence product/service selection and brand switching.

 

This obviously doesn’t imply that mankind, nor organizations won’t try to hide improper actions. After all, there will always be a Madoff, a Petters, an Enron and others out there preying on the innocent. For some, it is simply their human nature and their predisposition. And this is not to suggest that even with vast computing power; governments will become smarter, thereby becoming more effective in their vigilance in preventing such wrongdoings. It does suggest that a cat and mouse game where wrongdoers will find it necessary to weave an increasingly complex web of deception in an attempt to stay one step ahead of the Feds will continue into infinity. Which by itself; is a knowledge network of sorts.

 

In the end, the empowerment of data changes everything. Yet man must take such data and make decisions, and implement actions. Which makes me ponder, will data overwhelm our ability to make decisions and implement actions?

The Edge of What’s Legal

Friday, May 21st, 2010

In Minneapolis, businessman Tom Petters was recently convicted of running a $3.5 Billion ponzi scheme. He was a high flyer with a huge presence in the Twin Cities business community. What is interesting about this scheme is that Petters was attempting to pay off all of his debtors by leveraging legitimate businesses such as Sun Country Airlines and Poloroid. But the mountain was simply too high, and then the roof collapsed. One of his key employees turned Petters in and the rest is history. Today in the Pioneer Press, writer John Welbes quotes Hank Shea, a former federal prosecuter and teaches at the University of St Thomas Law School states:

White-collar criminals normally start out with minor transgressions and then progress to more serious crimes. “Don’t be focused on whether you can walk up to the edge” of what is legal.

Yes, the edge of what’s legal is a slippery slope. It’s a finite spot that too many people and businesses explore, only to find themselves unable to pull back from its magnetic force. It’s a spot where some venture in search of a competitive advantage, often with toxic consequences. It’s a spot where many problems become intentionally silenced, creating the long lasting risk of the silent problem phenomenon.

Bottom Line: Be wary of the “edge of what’s legal.” It’s often a trap.

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Without Warning - Rondey Johnson

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