This Week's Herman Trend Alert

Leadership in Normal 2.0
 

  The Herman Trend Alert

November 22, 2006

Maintenance SOX?

In the past decade there has been a dramatic increase in corporate accountability. High profile accounting debacles have brought management practices under close scrutiny. To answer calls for justice from shareholders, employees and the public, courts are holding governing boards and the executives they hire to task.

One attempt to add safeguards against shareholder fraud result is the Sarbanes-Oxley Act of 2002 (‘SOX’). While established with good intentions, the financial burden on corporations and federal regulators is significant. A recent survey found that companies with average revenues above $5 billion report an average cost of compliance of $4.36 million. Expense areas include more stringent audit procedures, upgraded accounting system technology to enable compliance, and the addition of accounting and controllership staff.

Many people are cautiously optimistic that accounting problems of this scale are behind us. The question now is “how might a skittish administration adapt and apply the SOX ‘solution’ to other areas of big business?”

Some see equipment and facilities maintenance as an emerging area of concern. Like personal property, corporate assets wear out and need maintenance and replacement. At some point it’s only good business to make these investments. But what prevents a company from putting off these important expenditures--if no one is watching?

This situation has already begun to come to the surface in the petroleum products distribution industry. In early 2006 petroleum giant BP reported two pipeline ruptures at its Prudhoe Bay oilfield; one of which totaled some 200,000 gallons of oil. One BP employee admits, “We are at the point where there is so much damage to the lines from corrosion, we don't know where another leak will occur.”

Once again, furious shareholders, Alaska residents, and concerned environmentalists are calling for remedy. Consequently, BP is currently under criminal investigation for its pipeline management practices.

There are countless other examples of deteriorating corporate assets that may cause harm or damage. There is no question that the regulatory environment will shift to address maintenance and related issues. What remains to be seen is when and how it will happen. Remediation will be costly and time consuming.


© Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or https://hermangroup.com. To sign up, visit https://HermanTrendAlert.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."

HOW DOES SHE DO IT?
Our author Joyce gets quoted in TIME Magazine and other national media on a regular basis. You can, too! Sign up for ExpertClick.com. You will be found by the news media and in Google search: 1. Through your personal search-engine-optimized press room by 39 topics you choose; 2. By news releases pushed out 10 ways including Google News; 3. Be found in the 2020 printed Yearbook of Experts, Authorities & Spokespersons. Save 15% when you register by October 31st @ http://www.ExpertClick.com/Discount.

APF'S FUTURES FESTIVAL IN 3 DAYS: ONLINE OCTOBER 24TH: FULL SPECTRUM FUTURES
The Association of Professional Futurists proudly presents its annual online learning experiences on Full Spectrum Futures. Network with leading futurists from all over the world. And best of all, it's free to attend, though contributions are encouraged to help defray costs. For more information, visit here.

OUR VERSATILE TRANSLATOR ROCKS!
Excellent translation services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. 5-year Bachelor Degree in Translation. Also editing and proofreading of all kinds of Spanish language documents. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at marianalesti515@gmail.com or contact her on SKYPE at marianacampora.

To read this Herman Trend Alert on the web: https://hermangroup.com/alert/archive_10-21-2020.html.


Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.

New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 90 countries, including other websites and printed periodicals. Click here to sign up for the Herman Trend Alert.

Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service.


Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts

                                                                                                                                                                                                                                                                                                                                                                         


[ Home · About · Products · Resources · Media ]

 

7112 Viridian Lane
Austin, TX 78739
Voice: 336-210-3548
Toll Free in US & Canada: 800-227-3566
E-mail: info@hermangroup.com


  © The Herman Group. All rights reserved.

Web site design by WebEditor Design Services, Inc.