Category Archives: Accuracy

Another one bites the dust

“Steinhoff’s CEO Resigns Amid Accounting Probe,” The Wall Street Journal December 7, 2017 B3.  Off-balance sheet accounting leads to resignation of CEO of parent company of Sleepy’s (a mattress brand), and a drop of 62% in share value.

Where was the Board?  Where were the auditors?  Trying out the company product?

Who pays the price of management’s failure?

Advertisements

Leave a comment

Filed under Accuracy, Compliance, Compliance, Compliance Verification, Controls, Corporation, Culture, Duty, Employees, Governance, Information, Internal controls, Oversight, Oversight, To report, Value

Who captures the metrics?

“Nielsen Acknowledges It Misses ‘Live’ Streamers,” The Wall Street Journal December 7, 2017 B3.  Networks don’t get full credit on the viewing statistics (number of viewers for a particular show) for all the live viewers.  Apparently, those viewers who stream certain broadcasts aren’t fully counted.

What do you do when technology changes, and it’s harder to count what you’re used to counting?  How do you price your offering?  What’s your information worth?

Leave a comment

Filed under Accuracy, Analytics, Data quality, Definition, Information, Value

Nissan, too

“Nissan Report Faults Management,” The Wall Street Journal, November 18, 2017 B3. Factory workers falsified inspection data.  Nissan recalls 1.2 million vehicles.  Did management press too hard when setting targets?

Everyone on the manufacturing floor knew the inspections were being done by under-qualified workers, and hid it from the inspectors.  Management was clueless.  Practice was the norm for nearly 30 years.

Would your culture allow this to happen in your company?

Leave a comment

Filed under Accuracy, Compliance, Compliance, Controls, Corporation, Culture, Data quality, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Management, Oversight, Policy, Protect assets, To report

The hits just keep on coming

“Faked Data at Issue Again in Japan,” The Wall Street Journal, November 25, 2017 B1.  Mitsubishi Materials continued to ship car, plane, and power-plant parts to 200 customers (including in the US) while factory workers were fudging quality data on rubber gaskets and copper products.  As is common, they sat on the news for a while.

This follows similar stories about Kobe Steel and Nissan Motors.  So much for the much-vaunted quality initiatives in Japan.  These types of problems “have deep roots in Japan Inc.’s governance problems,” which rely on decentralized and largely independent operations.

If there’s a problem somewhere else in your industry, you probably have it, too;  you just haven’t found it yet.

Leave a comment

Filed under Accuracy, Board, Compliance, Controls, Corporation, Culture, Data quality, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, Managers, Oversight, Protect assets, Supervision, To report, Vendors

Unsocial media

“Police See Social Media Fuel Crime,” The Wall Street Journal, November 25, 2017 A3.  Immediate access to information “played a major role in escalating disputes….”

One assumes that this is true whether the information spread on social media is or isn’t true.  Is a lie halfway around the world before the truth gets its shoes on?

What are the social implications of so much (unfiltered and unverified) information being made available to so many so fast?  Who has a duty to verify or filter it?  How do you control this within the confines of your business?  Do you have a duty to?  Is the control only common sense?

Leave a comment

Filed under Access, Accuracy, Controls, Corporation, Duty, Employees, Information, Ownership

Keeping secrets

“SEC Accuses Long Island Town of Fraud,” The Wall Street Journal, November 24, 2017 B11.  SEC alleges town failed to tell bondholders about special loan deals.  Town feels victimized, as the town board didn’t know of the special deals.

If you have a duty to disclose certain information, and don’t disclose it, that is called either “failure to disclose” or “fraud.”  Or a failure of management.  There are certain things that, as a director, you are supposed to know.

Board members are fiduciaries.

Leave a comment

Filed under Accuracy, Board, Communications, Compliance, Compliance, Corporation, Data quality, Directors, Duty, Duty of Care, Governance, Inform market, Inform shareholders, Investor relations, Oversight, Supervision, To report, Value

Credit without a Social Security Number

Indian Lenders Mine Phone Data,” The Wall Street Journal, November 24, 2017 B10.  Lenders fill gap in credit histories by checking data on phones to track Facebook connections and on-line shopping.

So, would we be more comfortable with this approach than the Equifax approach?  What’s more private, your phone or your Social Security Number?

Leave a comment

Filed under Access, Accuracy, Analytics, Data quality, Information, IT, Value