Archive for the ‘Quote of the Day’ Category

QUOTE OF THE DAY: World Bank Lessons

Monday, May 21st, 2007

“I think it was a case of blind arrogance.”

 Former World Bank General Counsel Roberto Danino on the Paul Wolfowitz scandal
Danino’s no holds barred interview with Corporate Counsel recounts how Wolfowitz did an end run around the general counsel to avoid advice he didn’t like.  After Wolfowitz disagreed with Danino’s initial advice he took the matter to the bank’s three-member ethics committee.  After that, Wolfowitz sought contract review from outside counsel.  Through forum shopping and selective disclosures he ultimately achieved the result he wanted: a fat compensation package for Shaha Riza, the World Bank’s Middle East specialist and his girlfriend.

It reminds me of what Enron’s Ken lay did after Sherron Watkins confronted him about her fear of an accounting scandal at Enron.  Lay agreed to have outside counsel at Vinson & Elkins look into the matter, and he did.  But to help engineer the desired result he instructed counsel not to challenge Arthur Anderson’s conclusions.  It was another “I know better than you” decision that ended badly.

LESSON #1: Selective disclosures compromise the independent judgment of counsel and lead to Swiss cheese legal opinions that offer little protection when the sauce hits the fan.

LESSON #2:  Doggedly pursuing an end result with an “ends justify the means” attitude can blind smart people to important information and typically drives costs much higher than expected.

 

 

QUOTE OF THE DAY: THOUGHTFUL WRITING

Monday, November 27th, 2006

While on the one hand e-mail encourages people to write, on the other hand it discourages people to write thoughtfully.

Mary Mitchell, author of The Complete Idiot’s Guide to Etiquette as quoted in “‘Yours Truly,’ the E-Variations,” New York Times, Nov. 26, 2006.

E-mail sign-offs can set the tone of the communication and can even undercut the intent of the message according to Mitchell.  A product complaint letter, for example, sent to a company signed off with “warmly” miscommunicates the customer’s displeasure with the product. 

How true.

Unfortunately, employees unknowingly create potential smoking gun documents everyday when they fail to write thoughtfully.  Slap dash communications create misunderstandings.  Misunderstandings create frustrated customers and deal partners.  They can escalate into lawsuits in a heartbeat or at a minimum detract from the business relationship.

The easiest way to avoid litigation and dented relationships is to write clearly — to say what you mean and mean what you say.  It’s one of my 12 rules for avoiding smoking guns.

For more information about how to avoid smoking gun documents and the benefits of legal literacy please join me for the BNA audio conference on Legal Literacy this Thursday, November 20, 2006.  Reserve your seat today.