New Ways of Thinking As Executives

The last post we looked at the stupidity of “Executive Think” and how it is highly destructive to American corporations. This post will examine some new ways of thinking that executives must adopt (if they care to survive).

1). The CEO is the head of a team, not a god or hero. Americans love to put CEOs on pedestals and, recently, behind bars. There is a great old saying, “Never believe your own PR.” Too many executives have forgotten this and are acting as if they are invincible. The Justice Department and dead hand of Adam Smith are showing them differently.

It takes a team to make a company work, and the whole team does not live in the executive suite! This is something that American executives have mostly forgotten, but had better remember in a hurry. I’m completely disgusted by the spectacle of skyrocketing CEO pay while workers are being stiffed. This is immoral. I’m also completely disgusted by AIG’s executives who, after receiving our taxpayer money as a bailout, went on a retreat at an exclusive spa. These people should be fired, indicted, tried and, if found guilty, jailed.

We as executives must remember that we are the leaders of a team, not Oriental Potentates. We shouldn’t have to remind people of that, but, obviously, we do. At least you only had to kiss the feet of an Oriental Potentate. Many CEOs want you to kiss their ass!

2). Layoffs are failures, and should be treated as such. An executive team which has to lay people off should never receive bonuses or reward pay of any kind. Layoffs signify a failure and a lack of integrity on the part of the executive team and the company. The executive team who does that may deserve to be part of the layoff. They certainly do not deserve rewards. It is part of the scandal of American business that executives believe they even deserve rewards when they have failed their employees. In Japan layoffs (which rarely occur) can lead to the suicide of the executive who has to order them, because the Japanese are better people than we are who understand that they’ve let their employees, their families and society as a whole down when they deprive people of jobs. Frankly, I wish that American executives who order layoffs would think about suicide. It would be more appropriate.

3). Executives do not deserve ANY better “perks” than a factory line worker. Executives often think that they are the most important people in a company. They are not. Every person on the team is vital to the company’s mission — the custodian no less than the CEO. While different people should be paid according to their skill level, there is no real reason why executives should receive better health insurance or other benefits that rank and file employees do not receive.

4). The life, health or happiness of an executive is no more intrinsically important than that of any other person in the company…and sometimes a great deal less. American business must change its way of thinking! Just because people have MBAs and dress in nice suits and sit in air conditioned offices, they are not intrinsically more valuable than any other person in the company. The attitudes in American business that they ARE more valuable is causing great anger among the rank and file. There are all the historical signs of a pending revolution, whether a quiet one through laws or a bloody one where executives are taken from their offices (let us hope it is the former, although the latter has occurred many times in history). People are intrinsically important, regardless of their title, salary, or the clothing they wear. We must begin to recognize the intrinsic worth of each individual.

5). Pay must be equalized. The enormous gap between what an average worker is paid and an executive is paid is just plain immoral, unethical, and bad business. This rarely exists in other countries. The fact that it exists here is a great scandal. Executives who wish to survive in the coming world will begin giving up their ridiculously high paychecks and assuring that every person in the company is paid with fairness and justice. There is no logical or business reason for executives to receive 800 times more than the average worker at a company, with additional perks and bonuses. Five or six times, yes. But 800? This is simply abuse of power by those who have it.

6). Executives must practice “walking management.” Every executive should be required to do one of the company’s dirtier jobs for at least a few days a year. I do not know if they still do so, but, in the early days, Grease Monkey made every single executive start by greasing cars, and then work his or her way through all of the company jobs. They then sent their executives back a few days a year to grease cars. Grease Monkey is a very successful company. I think part of the reason is that ethic. Everyone knows that every executive has “been there,” and might be there again for a while. Make executives (including yourself) do some dirty work alongside your employees. I always choose, for myself, the dirtiest job I’m capable of doing within the companies I’ve run over the years, and do it for several days a year.

7). Show compassion. The executive who wants to be successful will be compassionate towards customers, employees and vendors. My wife and I, if we’re not busy and one of our beloved associates is, are just fine with picking their kids up from school, taking them home and feeding them a snack. Treat employees and everyone else with great compassion, and it will pay off.

8). Destroy hierarchy and unnecessary policies. I’m sick to death of “company policies.” When something goes wrong, the reaction of most executives is to make a policy about it. STOP THAT! Deal with the individual problem, and move on.

And why do companies need hierarchy any more? I’ll tell you why. It is a “turf thing.” People like to strut around with fancy titles, big offices and inflated salaries. Fire these people and hire some folks who actually want to get something done for your company and themselves. People don’t need fancy titles, big offices, special perks or inflated salaries. Choose people who have a passion for what they’re doing, love to be part of a team where there is “floating management,” and make up their titles for fun. “Wizard of the Realm” has a nice ring to it.

In my company, and others I’ve run, the person with the most experience on the issue we’re facing is the boss, even over me. This makes sense. If an admin has more experience than me on something, she or he is the boss. The sooner we get rid of false hierarchies and run companies sensibly, the better off America will be.

9). Let employees be themselves…and find their own solutions. Rather than making employees do things the “company way,” let people do things their way. I will lay you dollars to donuts that they’ll do it cheaper, better and quicker than “your way.” Give people a chance and they’ll run with it. Now this means that your enormous ego has to take a vacation. Why should you have thought of it. None of us is as smart as all of us.

10). Have fun. Companies of the future will be companies where people love to come to work. Starkist Tuna — not a company where you’d think it would be fun to work — rather than buying into “do more with less” B.S., hired more people, slowed down the assembly line, and got rid of managers, organizing people into self-managing work teams. What happened? Absenteeism dropped to almost nothing. Ditto Worker’s Comp claims. Productivity went way up. Rather than stripping one half of a fish, the whole fish got stripped. People took responsibility for one another, covered for one another, and got rid of the deadwood themselves. Good for you, Starkist!

This stuff is not just good morality, or pie-in-the-sky, it is good business. Frankly, some of this stuff is about to be mandated by the government. CEO and executive pay has gotten out of hand, and there are increasing calls for regulation on this. “Perks” have also gotten out of hand, and are also being scrutinized heavily. The companies who will be celebrated are those who go beyond the new laws we’re about to see reining in executive abuses and greed. I hope that you and your company will be among those who take this to heart and transform your company culture. If this is already your company culture — good for you! Please let me know about you and I’ll mention you in this blog and tell your story!

If I or my colleagues can be of any assistance in transforming company culture to fit the new, post-crash realities, please call us.

To a prosperous 2000!

J.