The meeting ended. Will picked up his pad, stood up, tossed his paper cup into the wastebasket, and stepped through the doorway right behind Janet. But before he could get her attention, Ed got his.
"Will, just one thing to button up — can you stop by my office a minute?" Ed asked.
"Sure," Will replied.
It was a short walk to Ed's office. They stepped in. Ed closed the door quietly. "Just want to give you the charge numbers for this week and next," he began. He handed Will a slip of paper that had two account numbers on it.
"Here they are. Top one's for this week, the other's for next."
"OK," said Will. "That it?"
"Yep. See you."
Will opened the door, went around the corner to his own office, set his pad and the slip of paper on his desk and sat. Odd, he thought. Why the secrecy? And why split the work across two accounts, when it was exactly the same work? He wondered what was going on.
helps you stay out of
the gray areaWill never did find out. Perhaps it was legitimate, but it might have been a "budget swap."
In organizations that track expended effort, people charge their time to various accounts, represented by charge numbers. When "actuals" deviate too far from projections, the manager is often considered to have erred. Managers of overspent (or underspent) accounts are tempted to move charges across accounts to compensate.
In effect, they "swap" money across accounts. Here are just a few forms swaps can take.
- Altering time sheets
- This approach is less common today, because so many organizations now use electronic time reporting systems. Systems that still use hardcopy are the most vulnerable.
- Directed or conspiratorial misreporting
- Ed and Will might be a case of directed misreporting. Typically, this requires a level of naiveté or fear on the part of the person who's being directed. Conspiratorial misreporting occurs when all parties are aware that they're reporting false data.
- In Parking, team members are temporarily detached from Project A, and then attached to Project B, which has adequate funding. Once parked, they may continue to do "just a little" work on A — a meeting, or a quick phone call, or more — but they charge all their time to B.
- Out and in
- When two budgets use the same external vendor for labor, equipment, or materials, the vendor can overcharge one of the budgets, and undercharge the other to compensate. Usually, this requires collaboration between the vendor and the managers. It's much easier to arrange when both budgets are controlled by the same manager.
Managers who use budget swaps to conceal problems do real harm to their organizations. But they harm themselves, too, because of another, less visible swap — their budgets for their integrity. Top Next Issue
For more about budgetary deception in the wider context, check out M. Jensen, "Paying People to Lie: The Truth About the Budgeting Process," European Financial Management, Vol. 9, pp. 379-406, September 2003. Available at SSRN.
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More articles on Ethics at Work:
- It Might Be Legal, but It's Unethical
- Now that CEOs will be held personally accountable for statements they make about their organizations,
we can all expect to be held to higher standards of professional ethics. Some professions have formal
codes of ethics, but most don't. What ethical principles guide you?
- Some Truths About Lies: II
- Knowing when someone else is lying doesn't make you a more ethical person, but it sure can be an advantage
if you want to stay out of trouble. Here's Part II of a catalog of techniques misleaders use.
- Devious Political Tactics: A Field Manual
- Some practitioners of workplace politics use an assortment of devious tactics to accomplish their ends.
Since most of us operate in a fairly straightforward manner, the devious among us gain unfair advantage.
Here are some of their techniques, and some suggestions for effective responses.
- Extrasensory Deception: II
- In negotiating agreements, the partners who do the drafting have an ethical obligation not to exploit
the advantages of the drafting role. Some drafters don't meet that standard.
- Counterproductive Knowledge Work Behavior
- With the emergence of knowledge-oriented workplaces, counterproductive work behavior is taking on new
forms that are rare or inherently impossible in workplaces where knowledge plays a less central role.
Here are some examples.
See also Ethics at Work for more related articles.
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- The Race to the South Pole: Ten Lessons for Project Managers
- On 14 December 1911, four men led by Roald
Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen
had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished.
As historical drama, why this happened is interesting enough, but to organizational leaders, business
analysts, project sponsors, and project managers, the story is fascinating. Lessons abound. Read
more about this program. Here are some dates for this program:
- The Westin Virginia Beach Town Center, 4535 Commerce Street,
Virginia Beach, VA 23462: September 13,
Monthly Meeting, Hampton Roads Chapter of the Project Management Institute. Register now.
- CTCPA, 716 Brook Street,
Rocky Hill, CT 06067: September 20,
Full-day Workshop, Southern New England Chapter of the Project Management Institute. Register now.
- The Westin Virginia Beach Town Center, 4535 Commerce Street, Virginia Beach, VA 23462: September 13, Monthly Meeting, Hampton Roads Chapter of the Project Management Institute. Register now.
- Creating High Performance Virtual Teams
- Many people experience virtual teams as awkward, slow, and sometimes
frustrating. Even when most team members hail from the same nation or culture, and even when they all
speak the same language, geographic dispersion or the presence of employees from multiple enterprises
is often enough to exclude all possibility of high performance. The problem is that we lead, manage,
and support virtual teams in ways that are too much like the way we lead, manage, and support co-located
teams. In this program, Rick Brenner shows you how to change your approach to leading, managing, and
supporting virtual teams to achieve high performance using Simons' Four Spans model of high performance.
Read more about this program. Here's a date for this
- Baci Grill, 134 Berlin
Road, Berlin, CT 06416: September 19,
Monthly Meeting, Southern New England Chapter of the Project Management Institute. Register now.
- Baci Grill, 134 Berlin Road, Berlin, CT 06416: September 19, Monthly Meeting, Southern New England Chapter of the Project Management Institute. Register now.
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- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.