There are multiple factors that stand behind the successful implementation of the P-O-L-C framework. It is important to prioritize some of them duly in case a company faces serious issues, or when the market indicates upcoming challenges. The collapse of WorldCom in 2002, that led to one of the largest accounting scandals in the US, provides a nice example of the lack of proper communication in a corporation. The inability of various top managers and accountants to communicate efficiently in order to prevent frauds is always disastrous.
WorldCom grew rapidly under Bernard Ebbers who managed to jump at the multiple opportunities that the growing interest for telecom services provided at that time. Nevertheless, the company went bankrupt in a matter of a few years. Moreover, Ebbers faced several charges, including one count of conspiracy, one count of securities fraud and seven counts of filing false statements with securities regulators. The fact that the large portion of Ebber’s wealth was in WorldCom stocks, let alone several loans and loan guarantees from the company, was also scrutinized.
The top managers of the company faced numerous charges and started to testify against each other. Moreover, Ebbers and his subordinates alike claimed to know nothing of the fraudulent schemes. According to Knecht (2020), up to 80% of employees generally believe that their opinions are not taken into account. Therefore, the major factor that led to the collapse of the telecom giant was the diminished quality of communication within the company.
The reasons for all the misunderstanding and complicated series of negotiations between Ebbers, directors and accountants are rooted in barriers to communication that include motive distortion and extreme self-absorption. The top managers and professionals who were expected to lead the company tended to prioritize their own interests and receive only the parts of information and data that was convenient to them. Thus, the atmosphere created by such an attitude eventually led to the collapse of the corporation, as a result of the lack of decently organized teamwork.
References
Knecht, Z. (2020). Social communication crises in the company and their overcoming. Journal of Decision Systems, 29(sup1), 129–138. Web.