The SEC is investigating Xerox (again) for over-counting revenue on resales of equipment. “SEC Investigates Whether Xerox Employees Inflated Sales.” Wall Street Journal, October 9, 2013 B3 http://on.wsj.com/1grw08k
Apparently, this is or was a common problem in the industry. And it happened in a business that Xerox had bought in 2010. A business that had had some stock option backdating problems in 2006. Oh, and Xerox had paid a penalty to the SEC relating to how the company calculated revenue from leasing contracts) some years earlier.
Well, is this a compliance issue or a knowledge management issue? Is this a learning organization? Or is there a problem that could of/should have been unearthed during due diligence before the 2010 purchase?
Oh, and the former CEO of the business that Xerox bought is currently president of Xerox Services.
How would you deal with the culture there? Attribute it to “lax compliance”? See prior post on the CEO at a Japanese bank. http://bit.ly/19iw3y6