The following is the exclamation point on my HBS PhD failure. I enjoy thinking about it now, because of the myriad lessons and discoveries learned in the year long process, and since its conclusion. My next post will discuss more vividly what brought me to this point and what I took away from it. In the mean time, enjoy approximately one thousand hours of research, reading, interviewing, campaigning, writing, studying, rewriting, critiquing, being critiqued, discarding, and writing some more. According to Malcolm Gladwell, were it only for this statement of purpose, I would have nine thousand hours to go. But I did it! I failed beautifully, and not for a lack of trying. One thousand words in approximately one thousand hours…
“Throughout my childhood I was surrounded and challenged by adults who encouraged inquisitiveness and independent thought, which is consistent with Bahamian culture. My earliest memories involve researching unfamiliar ideas and playing word games with my parents. This desire to learn through identifying inconsistencies and scrutinizing the status quo was also fundamental to my success in collegiate debate and auditing/fraud examination. Auditing is a study of more than just numbers and processes; it provides insights into human behavior, something that has always delighted me. I pursued expertise as a Certified Fraud Examiner (CFE) and CPA due to exposure to criminology and deviance in business. However, scope limitations in the corporate environment often restrict problem solving, and while my business acumen has greatly expanded over time, I need to explore freely and be challenged more regularly. A career in academic research will promote such freedoms. As a PhD candidate I would specifically examine; (1) how “Psychological Safety” impacts the prevention and detection of fraud, and (2) how fraud is exacerbated by cultural differences globally.
First, I am fascinated by Dr. Edmondson’s work in Psychological Safety which colors people’s willingness to report fraud. This relationship is critical. I learned about Psychological Safety while investigating the ideas emerging from Harvard’s Organizational Behavior and Psychology departments. I have numerous research ideas inspired by this study and I have seen the implications of communication style on fraud. I am also particularly interested in Dr. Bazerman’s “malleable morality”, and the thoughts Dr. Thomas shared about the direction of neuroscience which begs questions about fraud applications. I am also extremely keen on exploring how Dr. Badaracco’s “leading quietly” compares to the advocacy to speak up, especially in the ethical context, and how it impacts the tone of organizations relating to fraud.
Second, it must not be assumed that Psychological Safety and fraud are culturally invariant. The aforementioned work is complicated further by culture, and I propose that actively evaluating how “latent voice” and even “quiet leadership” impact fraud using the cross-cultural lens is critical to business stability. The organizational climate in some cultures is extremely candid, as in the Bahamas, and reflects the social climate. In Asian and Indian cultures by contrast, speaking out on even the simplest matter is characteristically seen as disrespectful. So to what extent do those aware of fraud engage in this “Diffusion of Responsibility” by not speaking up, and how do differences in culture impact this “Bystander (Genovese) Effect”?
I have also formulated other research ideas related to the distinctions between a country’s social and corporate cultures. American social culture, which is so predicated on free speech, contrasts clearly with its much more restrictive corporate culture. Conversely, Eastern countries appear to have less disparity between their corporate and social cultures as the result of religious and governmental influences. How are latent voice and fraud impacted in each place? Additionally, how much dishonesty must occur before a breakthrough in communication results; at what psychological cost to the eventual whistle-blower; and at what financial cost to the organization? Given that whistle-blowing is indisputably the most frequent means of uncovering fraud, candid and timely communication is vital, highlighting this critical interface between Psychological Safety and fraud.
Geographical disparities in fraud management emphasize the ever-expanding need for cross-cultural research, especially given increasing globalization and economic desperation fueling malfeasance. Per the 2010 Global Fraud Study, the U.S. reported 56.8% of all fraud cases, while Europe reported only 8.7%. Yet, the median loss in Europe was $600,000 compared to $105,000 for the U.S. Do the lower discovery rate and higher median loss indicate that Europe is more tolerant of latent voice, allowing frauds to fester? Company leaders must understand that employees’ desire to communicate freely, without fear, is a very practical business concern; and uniform process controls and codes of conduct across divisions are insufficient to minimize fraud. This is only the first time that such global fraud data has been presented, convincing me further of this research need and potential.
I understand what it takes to succeed in different cultures as a result of my experiences living and working in both the Bahamas and the United States. I have also observed immigrants in both places succeed and fail to assimilate socially and ethically. But how does immigration impact communication styles in the native labor force? Experiencing cultures in places as varied as Cuba, China and Europe has increased my desire to understand people whose motivations may largely be rooted in their backgrounds. How are children in different places taught to communicate and with what effect on their moral development and ultimately fraud, as they join the workforce? How do cultural distinctions which influence gender relationships, impact fraud perpetration and discovery? Enjoying so many aspects of business prompted me to blend them with my insatiable love of culture. Organizational Behavior easily facilitates this, as does the environment at Harvard University.
I will build on a decade of practical business experience in pursuit of this PhD. Recently; I was requested to support an Attorney/Client Privileged investigation to recoup several million dollars for my employer. I highlighted errors in crucial assumptions preventing a likely forfeiture in excess of one million dollars. I also helped pioneer a joint venture between Internal Audit and Risk Management called the Fraud Committee, aimed at identifying and addressing areas of risk throughout the company. I enjoy and take seriously my role as the key Internal Audit contact on fraud issues and hope that this extends to academic circles through my research.
Besides learning about fraud, I appreciate the importance of teaching others. I am an adjunct lecturer for a graduate level Fraud Prevention and Detection course at the University of Denver and I have written and presented workshops on fraud for my colleagues. I am also writing proposals to present at the ACFE European and Pacific Rim Fraud Conferences in 2011. I reiterate my academic goals through such experiences, but they also underscore significant areas still needing investigation, like fraud in the global environment.
In summary, I am driven by my broad exposure to the corporate and cultural worlds. I enjoy researching, learning, writing and teaching, but to participate at the highest level in academia a PhD is imperative. I am also convinced that having passion, interesting questions, even perseverance alone will not create impact. It is only through the keen training and traditions at Harvard University that I can convert these into relevant and lasting contributions. It is at Harvard that I hope to learn from and alongside premier global thought leaders, cultivating the skills to become one myself.”