Corporate America has revolutionized the world. We are known as innovators. Our influence has impacted almost every civilization throughout this planet and beyond. But there have been turbulent winds blowing through Corporate America the last few years, and lately, the winds have been increasing! Stocks are down, with even the “safe & steadfast” companies. Some of the companies, which were believed to be as solid as the ground we stand on, have been or are near failure. So what happened? To properly answer that question will require volumes to be written. Today I just want to focus on one small aspect of the problem.
We Forgot the Slogan, Americans love slogans. “Yes We Can!” “When The Going Gets Tough, The Tough Get Going!” There are many more, but I want to focus on:
“UNITED WE STAND, BUT DIVIDED WE FALL”
Corporate America is so divided, that it is segmented into groups of 5 to 25 people. The entire corporation may employ tens of thousands of people worldwide, but it is fractured and operating separately. The warring between these groups is encouraged. It’s much like the gladiators of ancient Rome. The winners go on, but the losers are scarred, humiliated, banished or dead. See if you recognize this next situation.
Bob, Jim and Nancy are all managers within a division of the company. They all have similar salaries with the possibility of a performance bonus at the end of the year. Nancy hit it out of the park last year! Her bonus was larger then her annual salary. Jim had a decent bonus last year, but nothing like Nancy. Bob almost lost his job because his section lost a lot of money last year. Bob was told to pick it up or he would be gone. He can’t afford to loose money this year and the economy isn’t helping.
We are taught to reward the winners and discard the losers, but is that the best plan? Let’s examine what happened last year.
Nancy had great success because of one new customer. She had contacted the customer years before, but had been told that her company was too large and expensive. Nancy never formally contacted the company again. Besides that was when she was just starting out as a sales rep. Nancy met her new customer at her son’s soccer game. Nancy’s husband usually took the boys to soccer. Saturday morning was catch-up at the office, or a sleep-in time. But Tom, Nancy’s husband was sick, so Nancy took the kids to soccer that day. It comes to find out that Nancy’s son was, good friends, with the son of the director of purchasing. They sat together and chatted during the game. The director of purchasing gave Nancy a card and invited her to call. That’s how Nancy became a hero. If that customer decides to leave for some reason, Nancy would be in big trouble.
Bob had been a manager for two years. He rose up through the ranks. He had gone back to school to complete his Bachelors degree a few years prior, but he had little management experience. Last year Bob really had a serious of problems that challenged his abilities. One of his best producers was diagnosed with cancer last year. His work really suffered because of it. It was suggested by Human Resources, that he should be placed on unpaid Family Medical Leave. Bob couldn’t hire someone else, because the cancer was going away and he may be back within six months. It turned out that he died within nine months. So, he operated for most of the year with a short staff. The rest of his team had little experience. You see, Bob was promoted to take on an expansion of the company. Many of his of the members of his team were recent college graduates with little experience.
The company had been sued because of inaccurate commitments made by one of his rookie team members. The settlement was charged to Bob’s team. Bob had asked for help from the other managers, but they were not concerned about bob’s problems. They were busy making money for the company; besides if Bob was having a bad year, they looked even better. They certainly were not willing to share team members or information. It could harm their bonus!
That’s right, Nancy had a win-fall, Bob had a bad year, and Jim’s year was normal. Overall the company had a modest profit. But it could have been better if they acted like a team.
I am against individual bonuses! If it is one company, then the profits and losses must be shared through out the company. They should be divided EQUALLY between the CEO and the production worker.
WHY SHARE THE PROFITS EQUALLY?
We all have a need to belong. Some find it at work, while others find it in family, church, sports or other activities. It has been proven that accepted members of a team make fewer mistakes, and produce much more then isolated individuals. The key is a person’s perception. Do they believe they are accepted? Do they believe they matter?
In life and business, it’s seldom the highly skilled, well paid employees who cause the company the most problems. Accounts are lost because of employees making less then twelve dollars per hour. They may not care about their job. These are unmotivated people. They are coin operated. They put in their time and get a check every two weeks. They don’t realize their importance to the company. Most are not treated like an asset.
I remember hearing of auto races lost because a $10 part failed. Accounts are canceled because of a rude customer service person. Inventory is damaged because of an $8 per hour warehouse worker. A client is lost because a critical document didn’t make it on time. The list can go and on and on….
A two thousand dollar bonus means little for those making $100-500K per year, but it is huge to someone making $425 per week. This can be a major motivator if it is explained that everyone in the company received the same amount. Those being paid less are critical in the success or failure of the company!
I hope this has been food for thought and action.
By Ken Bear Cole
Fishing with Bear LLC