Just finished the last stop on a seminar/workshop tour that has taken me over 30,000 miles over the last three weeks talking to folks on two continents and in three countries about the Lean Business Model. Before I begin the long trip home I thought I'd share some of the key points I have been trying to make with the hundreds of senior executives I have been fortunate enough to meet and speak to along the way.
If an employee asks you what the purpose of the business is – why everyone gets up every day and comes to work there – how would you answer? To make money? To earn a profit for the owner?
If you were that employee, would the answer inspire you to give everything you have to help achieve that goal?
What is your commitment to your employees? … your suppliers? … your community? … your customers? Are you willing to abandon any of them – all of them – if an opportunity to replace them with a more profitable alternative comes along? What is the price of your loyalty? What would it take for you to abandon them? $100? … $1,000? … $10,000? At what point is money more important than they are? Can you succeed if all of them make exactly that same level of commitment to you?
If you want to join the ranks of the excellent companies like SC Johnson which has survived and thrived through wars, depressions and recessions for over 120 years without laying anyone off, driven by old Herbert Johnson who said, "The goodwill of people is the only enduring thing in any business. It is the sole substance. The rest is shadow;" or to gain the admiration and respect reserved for the few leaders like Barry-Wehmiller's Bob Chapman who says, "We measure success by the way we touch the lives of people;" then maybe you ought to rethink the way you would answer that question.
Dale Savage says
This sounds so idealistic to most company executives. Their response is, “If we don’t make a profit then we WILL touch the lives of many people…by laying them off.” There has to be a balance and the principle of “Respect for People” has to be properly understood to keep that balance. It is more than just “warm and fuzzy feelings” but many executives have a hard time seeing it and comprehending that it is challenging and enabling each associate to be the absolute best that they can be. I think a lot of leaders want to be able to do this but they are so stuck in their rut of traditional thinking that it is very difficult for them to put it into practice daily.
Grant Lindsay says
Good post!
A similar perspective can be gained from TOC.
Goal: Make more money now and the future.
Necessary Conditions:
1) Provide a secure and satisfying environment for employees now and in the future
2) Protect the interests of the shareholders
3) Provide satisfaction to the market now as well as in the future.
A strategy that violates any one of the 3 necessary conditions will jeopardize the goal.
Additional information might be needed to motivate an employee, but it is at least a step closer than “Make money”.
Martin_B says
A thought-provoking set of questions.
Gary Morgan says
Just wanted to say I really enjoyed Bill’s seminar in Auckland. Even though I am employed in the General Insurance sector, myself and my collegues were able to take some good points away from the day. Also thanks to the Kaizen Institute for organising the day..
Bill Waddell says
Thanks Gary. The feeling is mutual. I only regret it took me so many years to find my way to New Zealand for the first time. It was a great experience and a chance to meet countless great folks who live in a place and a culture in which lean principles are a natural.