1The George Washington University Milken Institute School of Public Health, Washington, DC
Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport.
2025,
Vol. 12 No. 1, 1-16
DOI: 10.12691/jbe-12-1-1
Copyright © 2025 Science and Education PublishingCite this paper: Judith Mueller, Carly Jones, Michael Varco. A Case Study: “Theranos - The White Elephant That Wanted to Be a Unicorn”.
Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2025; 12(1):1-16. doi: 10.12691/jbe-12-1-1.
Correspondence to: Judith Mueller, The George Washington University Milken Institute School of Public Health, Washington, DC. Email:
judy01@gwmail.gwu.eduAbstract
The Theranos case exemplifies a highly publicized failure in public health leadership that jeopardized patient safety and undermined public trust in blood testing diagnostics. This case study examines the leadership failures that led to Theranos's downfall and eventual closure in 2018 from Elizabeth Holmes's perspective as she reflects on her journey while standing trial in 2021. By adopting Kotter’s change management framework and incorporating deontological principles into her leadership style during her tenure as CEO of Theranos from 2003 until the scandal’s exposure in the Wall Street Journal in 2015, Holmes could have transformed Theranos into a success story. The recommendations provided are presented as an “Ethical Disruptor Roadmap”, which seeks to bolster Kotter’s structured framework with a foundation in deontological principles. This roadmap aims to guide emerging biotech companies that are developing similar blood testing technologies to avoid the “Theranos Effect," which has left a lasting (blood) stain on the industry.
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