Welcome
Welcome to the latest issue of Bringing Work to Life. In the last five
issues we explored:
·
Linking workforce development to value creation in “Measuring Our
Progress: (http://www.elsdon.com/november_2004.htm)
·
How to decide if an organization will be a good fit for you in “Worklife
Survival: Finding a Fit” (
http://www.elsdon.com/oct__nov__2004.htm)
·
Confronting one of our fears as leaders in “Facing Our Greatest Fears:
Public Speaking”
(http://www.elsdon.com/sept__oct__2004.htm)
·
Bringing meaning to our work lives, the benefits to each of us and to
our organizations, in “May You Live All the Days of Your Life” (http://www.elsdon.com/august_2004.htm)
·
Seven key aspects of the organizational and business drivers for
workforce development in “Opening the Door for Workforce Development” (http://www.elsdon.com/july_2004.htm)
This month we begin an exploration of personal leadership looking first
at ethical issues in “That Still Small Voice.”
That Still Small Voice
“We don’t care about your other customers; just get
us the fibers we need.” These were the words of the CEO of our second
largest customer a number of years ago. I was in a business unit, then
part of Amoco Fabrics and Fibers, that made and sold fibers for
upholstery fabric. We faced a dilemma; our fibers were so successful
that demand far exceeded our ability to supply. We had placed all of
our customers on fiber allocation providing each with an amount based on
their previous use. We knew that if we stopped supplying some of the
smaller customers it could put them out of business. And yet here was
one of our major customers asking us to do just that. There was no
policy in place for this situation. We knew that it was an ethical
decision based on balancing the needs of all parties.
It did not take long to make this decision, we went
back to the CEO of our large customer and let him know that we had to
respect all of our customers and that we could only supply him with the
amount allocated. We assured him that we would do everything possible
to increase supply. We held our breath, willing to accept the potential
loss of this major account, which would have dramatically cut our
revenue. Yet our customer decided to stay with us, not ecstatic, but
accepting. In making this decision we protected those who were
vulnerable and we sustained our business. This decision sent a clear
message to everyone in the organization about the principles we stood
for, and helped cement an outstanding team. The fibers unit went on to
become one of the most successful in the organization and the industry.
After September 11, 2001 and those terrible moments
of destruction, most of the major airlines decided to cut their
workforces substantially. One didn’t, that airline was Southwest, which
recognized a commitment to a workforce considered by Southwest’s leaders
as central to the success of the organization. After I gave a talk in
Columbus, Ohio, referencing Southwest, one of the participants came up
to me and said: “I have a cousin who works for Southwest, and on
September 11, 2001, Herb Kelleher, the CEO of Southwest Airlines,
personally called the family of every Southwest pilot to assure them
their family member was safe.” Herb Kelleher and his leadership team
behaved in a way that respected the employees of the organization,
respecting ethical principles. Today, not surprisingly, Southwest’s
financial performance dwarfs that of the other airlines.
Our studies have shown that there is a direct
relationship between the ability of leaders to create a sense of
inspiring purpose and how strongly people affiliate with an organization
(Affiliation in the Workplace, Ron Elsdon, Praeger, 2003). Stronger
affiliation, in turn, leads to people operating closer to their full
potential (http://www.elsdon.com/learning_resources1.htm),
which translates directly to increased productivity. So it is not
surprising that the Amoco Fibers Business Unit and Southwest Airlines
were able to far surpass their competition. They are operating in a
manner where ethical practices prevail both in words and in deeds.
And yet unfortunately, there are many examples of
behaviors in organizations that range from questionable to criminal.
Managers at Enron, Arthur Andersen, the former head of Tyco: Kozlowski,
the former head of the New York Stock Exchange, Grasso, in each case
apparently operating on a principle of greed, sought great personal
gain, ultimately at the expense of others. Indeed there are some who
may subscribe to this code, but not many. I do recall one audience
member in a presentation I gave in Orange County asking what is wrong
with greed, but thank goodness it was only one from several thousand
over the years. Why are ethics checked at the door by some in
organizations leading to behavior that would be unacceptable in our
personal lives? Why is it that leaders in the Amoco team and at
Southwest Airlines honor their ethical obligations and others do not?
What principles should we observe when faced with complex ethical
decisions in the workplace? Let me suggest the following:
·
In key decisions incorporate the needs of all affected
parties including employees, the community, customers, clients,
shareholders and suppliers.
o
For long term sustainability of the organization balance
the needs of all stakeholders as opposed to favoring only the most
powerful.
·
Include representation from affected stakeholder groups in
making critical business decisions that affect those groups.
Enlightened societies dispensed with monarchies when they no longer
served a purpose. So should organizations.
o
One step forward is the recent Sarbanes-Oxley legislation
that was enacted in the U.S. to mitigate the excesses of those at the
top of organizations who were entrusted with power and then chose to
abuse it for personal gain.
·
As appropriate, include informed external advisors in key
business decisions (not paid supporters of the CEO).
o
In a world of growing competitive intensity, it is
essential to draw in the greatest insight possible to key decisions, not
simply the most aggressive or politically expedient.
We have a choice as
individuals to affiliate with those organizations that uphold the
principles we believe in. Exercise that choice. In so doing we will
create a more fulfilling and productive work world that honors all of
us.
The Employment Scene
As shown in the following figure, U.S. unemployment
has remained in the 5.4-5.7% range throughout 2004, reaching a low of
5.4% in August and September increasing slightly to 5.5% in October.
There is still much progress to be made to return to the full employment
of 2000, which is generally considered to exist when we have an
unemployment rate of about 4%.
U.S. unemployment rate (%), Source Bureau of
Labor Statistics.
This concern is amplified when we look at the
average time people are unemployed as shown in the following figure.
This increased dramatically during the current slowdown, surpassing the
time out of work during the early 1990s.
Average weeks unemployed. Source Bureau of
Labor Statistics.
Not surprisingly the number of people who believe
there is no job available for them has increased substantially since the
beginning of 2001, as shown in the following figure, reflecting both
perceptions of unemployment and underemployment
Persons who believe no job is available in the
U.S. (in thousands). Source Bureau of Labor Statistics.
However we are beginning to see signs of changing
demographics (an aging U.S. population) that will continue to slow the
growth rate of the workforce. The following figure shows U.S. civilian
labor force participation rate, which is the number of people, 16 years
of age and older, who are working divided by the population of that age
range, converted to percent. The labor force participation rate peaked
in 2000 and has been heading down ever since. As this trend continues
from an organizational perspective we will see a growing scarcity of
available people, and as individuals we will find more employment
choices that are readily accessible.
U.S. civilian labor force participation rate
(%). Source Bureau of Labor Statistics.
Quote
When I was young and free and my imagination had no
limits, I dreamed of changing the world. As I grew older and wiser, I
discovered the world would not change, so I shortened my sights and
decided to change only my country. But, it too seemed immovable. As I
grew into my twilight years, in one last desperate attempt, I settled
for changing only family, only those closest to me, but alas, they would
have none of it. And now as I lie on my deathbed, I suddenly realize,
if I had only changed myself first, then by example I would have changed
my family. From their inspiration and encouragement I would then have
been able to better my country and, who knows, I may have even changed
the world.
The words of an Anglican bishop found inscribed on
his tomb in Westminster Abbey quoted by Richard J. Leider in Coaching
for Leadership by Goldsmith, Lyons and Feas. 2000.
Upcoming Elsdon Organizational Renewal (EOR) Events
·
Coming in 2005
o
Presentation for UCLA Anderson School of Management Alumni
o
Presentation for ASTD Mount Diablo Chapter
o
Presentation for HR Connection
o
Presentation for UC Berkeley Haas School of Business Alumni
o
NCHRA workshop, San Francisco
About EOR: Our Value Contribution
We enhance your workforce, leadership and organization by:
·
Using proprietary approaches to understand workforce and leadership
challenges
·
Creating tailored action plans and solutions to strengthen workforce and
leadership practices
·
Building individual capabilities and contributions
We enable you to focus on external results and building value, confident
that your organization and leadership are operating at peak
effectiveness.
Our Mission
To support your organization by enhancing performance, productivity
and effectiveness through revitalized workforce relationships and
leadership practices.
Our Approach and Values
We tailor our engagements
to the needs of each organization with a process designed to surface
critical issues, identify root causes, build effective solutions,
monitor progress and implement.
With a scope that ranges
from system and organizational interventions to work with individuals,
our focus is on the heart of the relationship among the individual, the
organization and the community. We believe that organizational and
community prosperity are built on enabling each person to fulfill his or
her potential.
Our Services
We work with individuals and groups in your organization to drive
performance and development for both the short and long term. As result
people will choose to work in your organization and will prosper there.
We bring solutions when you need to:
·
Reverse declining revenues and performance
·
Revitalize your workforce
·
Stem the loss of key talent
·
Redirect your organization to new areas
·
Stop losing customers or market share
·
Penetrate new markets
·
Combat aggressive competitors
·
Handle major change
·
Break down communication barriers
·
Energize your leadership team
·
Successfully build on an acquisition or merger
Our proprietary services include:
·
State-of-the-art tools to take the pulse of your organization and then
move to action
o
Web enabled systems
o
Experts to gather and analyze information, moving your organization to
action
·
Individual leadership coaching to give you world class leadership
capabilities
o
Leaders who know themselves and their aspirations, build their
capabilities and become catalysts developing others
·
Workshops to build interpersonal skills in your organization so that:
o
Communication is timely, concise, accurate and personal
o
People listen to each other
o
Negotiations are quick and effective
o
Differences create rather than destroy value
o
Teams move forward, get results and quickly commercialize new products
and services
o
People understand and link their motivations to your organizational
needs
o
Your teams understand what it takes to create a committed, energized
workforce
o
People use their time well
·
Systems that make it easy to drive performance and build capabilities
by:
o
Linking objectives throughout the organization
o
Strengthening key competencies
o
Making sure you have the bench strength where and when you need it
o
Giving people tools to take charge of their own careers, development and
have a major long term influence on your organization
·
Proprietary simulation and modeling techniques that let you explore how
to maximize the value of your workforce
o
Move from guessing what might happen to looking in depth at the
financial impact of different approaches
