A Better Workplace --- Meridian Group's Newsletter, Number 3, 1-17- 02
Lessons in Corporate Culture: What Can Terrorist Regimes Teach Us?
Our December newsletter referred to the introspection many people have experienced following Sept. 11th. These events shocked us with the image of everyday people placed in harrowing circumstances who became willing to sacrifice their lives with the conviction that it was the right thing to do. These events remind us that the behavior of ordinary people can change powerfully in response to a change in setting.
In a slightly different example but supporting the same point, in 1974, the strident image of Patty Hearst, a perfectly middle-class young woman, appeared in the San Francisco Chronicle newspaper, toting a machine gun at a bank heist. Her SLA captors changed her circumstances. However, on rejoining her family, she returned to regular life. Her dramatic response to new circumstances is a powerful lesson: Each of us is ready to respond to changed circumstances with a vast array of potential behaviors, always in a way we feel is appropriate.
The Influence of Leadership Style on Culture
The press is forming a consensus that the violence we receive from third world countries is bred by authoritarian regimes that limit personal and economic freedoms. Autocratic leadership, wherever it is, has the same effect. Here at home, we enjoy the satisfaction and motivation flowing from democracy and free enterprise. Many enlightened corporate leaders aim to create that same experience for their employees. We have long known that solid economic benefits flow to managers who are willing to create a culture where people can satisfy their needs to be creative and productive.
In 1776, Adam Smith, an early economist, philosopher and author of The Wealth of Nations, described this as the power of the self-interested "Invisible Hand" that drives free markets. He saw that free enterprise taps into human desires, interest and motivation. In stark contrast is the heavy-handed control of authoritarian and communist regimes. Tight centralized control might look great on a spreadsheet but it ignores one simple profound truth--it doesn't inspire, it doesn't motivate. It may even enrage.
If you want high productivity, nationally or corporately, establish a system that taps into people's needs, desires, hopes and drives.
The Southwest Difference: A Culture Success Story
Last quarter we saw one airline thriving in the tumult since September--Southwest Airlines. Their culture is distinct. Any traveler who has been checked in at the reception counter by a knee-protector-clad baggage-handler knows that roles there are flexible. Employees do what they see needs to be done. No sweat. You want energy and productivity? Southwest has it. And their on-board greetings tell the same story--people having fun being creative and productive.
What corporate leader does not long for that same energy, commitment and creativity from their employees? All that is needed is an open hand, an invitation to join as a true partner in the common venture of the company.
| How Changing the Conversation Changed the Culture: A Case Study All CEOs can't be Herb Kelleher, Southwest's just retired CEO. But they don't have to be. You can develop the culture any time. Meridian Group helps managers do this by carefully changing how they talk with their team. Listen to the experience of one client, an Operations VP newly assigned to a troubled production facility: "I kept this question in front of my mind. 'How do you get the hearts and minds and interest of the people?' At my first management meeting, the managers were ready to give me the production numbers. But instead I asked 'How many people were laid off this week and on what shifts?' I also asked about accidents. Second, I said 'I want a measure of the quality of production. Then I'll want the numbers.' The response was silence from my managers. I said 'Here is the direction, how can we get there?' I got this message out in weekly meetings and annual meetings. I repeatedly explained the overall goal and opened the plans to the people affected. This really threw them off base. They were used to management keeping things close. I kept asking [myself and managers], 'How can we ensure that the people will trust management?' "I had a coherent master plan--reduce cost by one million dollars a month. We aimed at sixty million dollars over five years. We easily achieved that. The actual savings were almost double our goal over the five years. On the way, we achieved one million man-hours without a lost-time injury. We did all this through people." |