3. The Andersen Model

There are organizations that eventually go beyond the scope of their formal objectives and stand out of their peers, creating thus a sort of new category. They grow out of the harness of their kind and expand the meaning of the word that identifies them.

More than a professional services firm

In the Andersen Culture the firm was always referred to as “the Firm”, with a capital F.

Arthur Andersen became “more than a professional services firm”, it became a religion. Some have even called it a sect, although we can assure that is quite obviously an exaggeration.

Half monks, half soldiers

What is certain, and a view held by almost all those that shared the climatic moments of the Firm, is that the Arthurs were “half monks, half soldiers”, as Manuel Soto used to say, in the way Saint Ignatius Loyola spoke about his Jesuits.

We, the authors, shared that philosophy during our years in the Firm and it marked us for life, as we believe happened with 99% of those that went through the same school. Even today, many years after Andersen fade away, we remain faithful to Andersen’s creed, whose principles we intend to expound in this book. We keep respecting and trying to apply those principles in our daily endeavors.

This respect, along with a feeling of gratitude for what the Firm has meant in our lives, is what makes us refer to it as “the Firm” with a capital F. Furthermore, that was the way the Firm was referred to inside the Firm. We trust the readers will understand and excuse this harmless license.

The strength of values

The Andersen Model foundations are the values that were instilled in all those who belonged to the Firm and who created a singular combination that, in certain places and certain moments, made of Arthur Andersen the most successful and most admired Firm. It was the example not only for competitors but for companies in general.

The strength of that model and those supporting values was such that their consequences are still present in our world, even if we are not aware.

We will try in this book to make an immersion in the Andersen Model and try to find both the formula that made its success and the dangers that were hidden underneath.