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Executive Times |
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Volume
8, Issue 5 |
May 2006 |
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Note
re: links---certain hyperlinks assume that you are registered as a subscriber
to the site. If you are not a subscriber to certain sites, the links will
fail. If you register, the links should work. Also, certain hyperlinks expire
and may not be available when you try to go to the site. Motivation
The “why” question can become
frustrating when a parent hears it relentlessly from a persistent
four-year-old. It can be equally frustrating in the workplace, especially
when there are gaps in performance expectations between executives and
employees. When executives explore why consumers use their organization’s
products or services, the answers can be less than desirable. When some
executives become introspective and ask why they do what they do, the answers
can be uncomfortable. In this issue, we explore the why question from the
perspective of employees, customers and executives, with positive and
negative illustrations for each. As you reflect on the stories in this issue,
consider the answers to these questions for yourself, for the employees in
your organization, especially those who report to you, and for those who use
your organization’s products and services. Fifteen new
books are rated in this issue, beginning on page 5, and the ratings are the
lowest and crankiest ever, which may reflect grade deflation or a mediocre
current selection. Four books received three-star ratings, eight are mildly
recommended with two-star ratings, and three books earned one-star ratings.
Visit our 2006 bookshelf at http://www.hopkinsandcompany.com/2006books.html
and see the rating table explained as well as explore links to all 292 books
read or those being considered this year, including 63 that were added to the
list in April. If there’s something missing from the bookshelf that you think
we should be considering or if there’s a book lingering on the Shelf of
Possibility that you think we should read and review sooner rather than
later, let us know by sending a message to books@hopkinsandcompany.com. As
an added benefit to Executive Times readers, we’ve put all the
books we’ve ever listed on one web page at http://www.hopkinsandcompany.com/All
Books.html.
We read in a
special report titled, “The Art of Motivation,” in the May 1 issue of Business Week (http://www.businessweek.com/magazine/content/06_18/b3982075.htm)
that Nucor has found an approach
to managing people that’s producing outstanding results. According to Business Week, “In an industry as Rust
Belt as they come, Nucor has nurtured one of the most dynamic and engaged
workforces around. The 11,300 nonunion employees at the Charlotte (N.C.)
company don't see themselves as worker bees waiting for instructions from
above. Nucor's flattened hierarchy and emphasis on pushing power to the front
line lead its employees to adopt the mindset of owner-operators. … Legendary
leader F. Kenneth Iverson's radical insight: that employees,
even hourly clock-punchers, will make an extraordinary effort if you reward
them richly, treat them with respect, and give them real power. … Under CEO
Daniel R. DiMicco, a 23-year veteran, Nucor has
snapped up 13 plants over the past five years while managing to instill its
unique culture in all of the facilities it has bought, an achievement that
makes him a more than worthy successor to Iverson. … At Nucor the art of
motivation is about an unblinking focus on the people on the front line of
the business. It's about talking to them, listening to them, taking a risk on
their ideas, and accepting the occasional failure. It's a culture built in
part with symbolic gestures. Every year, for example, every single employee's
name goes on the cover of the annual report. And, like Iverson before him, DiMicco flies commercial, manages without an executive
parking space, and really does make the coffee in the office when he takes
the last cup. Although he has an Ivy League pedigree, including degrees from Why do people want to become employees
of your organization? Why are they passionate about the work they do? Why do
they choose to remain with you? Why do they decide to leave? Do you “reward
them richly, treat them with respect, and give them real power?” Is talent
you want to keep walking out the door? What are you prepared to do to keep
your talent? Lovemark We were
intrigued to read in an article in the May 1 issue of Business Week (http://www.businessweek.com/magazine/content/06_18/b3982087.htm)
that Proctor & Gamble is shifting product strategy. According to Business Week, P&G “recently
realized that Tide, its segment-dominating cash cow, despite adding three
share points in the past year for a total 42% of the category, was in
jeopardy of slipping into mere commodity status. That's when consumers buy on
price and habit, which can spell the end of brand growth. The problem: Tide
for the past four years had only advertised mundane stain-fighting messages.
… So, in an attempt to cultivate Tide's inner ‘lovemark,’
new ads now dismiss the notion that laundry detergent is a mere commodity.
Instead, they reflect P&G's conviction that the
‘relationship’ women -- they're not bothering with men -- have with their
laundry goes well beyond cleaning grass-stained T-shirts. Indeed, the effort
is part of a companywide strategy to reestablish bonds between customers and
all of its brands, no matter how mature or mundane. Lynne Boyles, P&G
global vice-president for advertising, says the company is on a mission to
unearth and cultivate the deep connections people have with its products. ‘We
are striving for that with all of our brands.’ … Behind the strategy lies the
cold truth that product benefits are quickly copied, whether it's cleaning
power or diaper absorbency. So P&G is putting more capital into how a
consumer feels toward a brand, a value harder to replicate.” Time will tell
if consumers will acknowledge relationships with these commodity-like
products. Why do customers use your products and services? Is your
value proposition easily replicated by competitors? What relationship exists
between your customers and your products? Are you and those in your
organization passionate about those products? Do you regularly discount your
products to generate sales? Are you spinning on a carousel? Example Executives who
attempt to motivate employees by cheerleading at high volumes can be
annoying. Some employees wonder if the person is real. We’ve found the best
executives motivate effectively by being themselves and by setting a positive
example. We read an interesting interview in the 4/24 edition of The Wall Street Journal (http://online.wsj.com/article/SB114583135219833574.html)
with Anne Mulcahy,
CEO of Xerox that stressed the
importance of setting a good example. When asked about dealing with customers
during the dark days of her leadership of the Xerox turnaround, Mulcahy said, “The first thing
you do is lead by example and get out there and meet with customers. In some
cases they were nervous about doing business with us. Sales reps have a hard
time delivering the message that ‘we're going to be around, despite what
you're reading in the newspapers.’ I made it personal. They had my personal
commitment that we wouldn't let them down.” In answer to a question about how
to get executives to meet with customers, Mulcahy
said, “We started a formal approach called Focus 500, and it was our top 500
clients and we assigned all our top execs [to these customers]. They were
fearful of going out and calling on customers. They really didn't want to
hear all the stuff that wasn't going well. But then it became meaningful in
terms of their jobs, this connectivity to customers ... There are at least
200 executives who are assigned to the top 500 clients. ... Another program
is called ‘officer of the day.’ We all get a day a month to take the calls
coming in from customers. Even if you're in meetings you have to get out and
take the call.” The turnaround may not be over, but the example sends
positive messages. It’s clear that Mulcahy likes
her job, and that rubs off on others. Why do you do the work you do? What kind of example
does your behavior set for others? Are you passionate about your work? Does
it show? How would others define your “charisma?” Follow-up
We’re
dedicating this month’s follow-up column to some of the executives on trial: Ø We noted in the April 2005
issue of Executive Times the
resignation of Wal-Mart’s former
#2 executive, Thomas M. Coughlin,
following an internal investigation that uncovered theft. From various media
sources, we’ve learned that he agreed to plead guilty to federal charges of
wire fraud and tax evasion, and he could end up in jail for two years or
longer. So far, we don’t know if the Bentonville
Public Library will renege on its commitment to name its new building
after Coughlin and his wife. Ø
In
the April
2005 issue of Executive
Times, we observed that fired HealthSouth
CEO Richard Scrushy was acquitted of fraud
charges. The Associated Press wire reported in April that he and his
wife are now full-time ministers and will help to feed starving children in Ø
When
we quoted Fortune in the February 2006
issue of Executive
Times stating that the Enron trial would “be hard fought, perplexing, and surprisingly
suspenseful,” we said we couldn’t wait. One of the best sources for trial
information is at the hometown paper, the Houston Chronicle. Visit http://www.chron.com/news/specials/enron
and explore links on everything from witness profiles to court documents. The
trial is everything that Fortune predicted and more. Legacy
Relentless For fifty
years, Sandy Weill
spent every day working at what he loved and driving himself
and others to become the best. On April 18 at the Citigroup shareholders meeting, Weill
retired as chairman at age 73. Brooklyn-born Weill wanted
to become an Air Force pilot, but defense spending was reduced when he
graduated from Cornell in 1955, so
he got a job as a runner for Bear
Stearns, making $35 a week. By 1960, he was a successful broker, and
started a firm with three partners. Over the next twenty years, he made
twenty acquisitions, and sold that company, Shearson, to American
Express for $930 million in 1981. He became President, turned around the
troubled Fireman’s Fund unit, and
left the company in 1985 when his efforts to take Fireman’s Fund private
failed. At age 53, he was wealthy, but out of work. In 1986, he convinced Control Data to spin off its Commercial Credit operation, which it
did, and Weill invested $7 million and became CEO.
By 1988, Weill and his team turned around Commercial
Credit, and acquired Primerica, Smith Barney, and the A.L. Williams insurance company. In
1992, he bought 27% of Travelers
Insurance. In 1993, he bought Shearson back from American Express for
$1.2 billion. He then bought the rest of Travelers with stock, and merged
Shearson with Smith Barney. In 1996, he acquired the property and casualty
operations of Latest
Books Read and Reviewed: (Note: readers of the web version of Executive Times can click on the book covers to
order copies directly from amazon.com.
When you order through these links, Hopkins & Company receives a
small payment from amazon.com. Click
on the title to read the review or visit our 2006 bookshelf at http://www.hopkinsandcompany.com/2006books.html).
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ã
2006 Hopkins and Company, LLC. Executive
Times is published monthly by Hopkins and Company, LLC at the
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Hopkins & Company Ø Coaching:
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Company, call Steve Hopkins at 708-466-4650 or visit www.hopkinsandcompany.com. |
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