What About the Other 19?

Yesterday, I wrote about the Business Roundtable’s newly released Statement on the Purpose of a Corporation, a declaration signed by 181 of its 200 member CEOs.

Nineteen corporations decided not to sign on to a statement that broadens the purpose of a corporation from “shareholder primacy” to a “fundamental commitment” to all of their stakeholders. In other words, it’s no longer sufficient or sustainable to be just about the money. Corporate interests must now include employees, suppliers, communities and the environment.

Those who did not sign include the Blackstone Group, GE and Alcoa.

While no one will be surprised if this new statement fails to result in systemic change, considering that it lacks any measure of accountability, it is a big symbolic step forward that has already met with significant resistance.

The Council of Institutional Investors said, “Accountability to everyone means accountability to no one. It is government, not companies, that should shoulder the responsibility of defining and addressing societal objectives with limited or no connection to long-term shareholder value.”

This reactive dualism is not surprising in the least. Rather, it is an instructive reminder of the prevailing limits of the corporate imagination and just how far we are from making the modern workplace more fully human.

In today’s New York Times, Andrew Ross Sorkin summed it up nicely, “For whatever progress may have been made Monday, it is hardly clear the debate is over. In fact, the fight for corporate identity is just beginning.”

Whether you are an owner, a leader, an employee, a supplier or a customer, I hope you see the possibility that exists for you to fight for that new corporate identity where you work and live. Raise your expectations, of yourself and your colleagues, and trust that an expansive application of accountability is the best strategy for long-term growth you can possibly employ.


 

The Curiosity of a Visitor

It is impossible to convey the experience of visiting this waterfall through a single photograph; through any photograph, for that matter.

If you don’t hike the forest trail, if you don’t hear the first, distant thrum of the rushing stream, if you don’t reach into the cold water and brush your hand across the stones, if you don’t test the fallen log to see if it will bear your weight across the rocks, if you don’t watch and listen and revere both the stillness and the movement of the place, if you don’t swat the mosquitoes from your legs on the way back down the trail then, well, you cannot know.

And all of that took place in only a single one-hour window, late in the afternoon on the last day of July. What is happening there right now, I can’t possibly say. It is similar, yes, but it is not the same, and it would be hubris to claim, having been there once, that I know the place.

In that spirit, please consider the exercise of the annual performance review for what it really is, a singular statement of a year of work feebly attempting to stand as a representation of the whole.

It cannot and should not be done.

I implore you to treat each employee with the curiosity of a visitor to a wonderful new place. Each encounter is an opportunity to expand your understanding, but none ever completes it.

You might ask, “What will this visit help me to see that I could not see before?”


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Plaikni Falls – Crater Lake National Park – July 31, 2019 at 4:21 pm

 

Winning with Culture

I spent nearly eight years of my professional life working to bring a “coaching culture”  to life within the TaylorMade Golf Company. Alongside brilliant product creation, exceptional marketing efforts and flawless sales execution, our ability to sustain a purposeful culture of learning and development led to some truly incredible results. Hardly a perfect science, in the pursuit of a coaching culture we rarely got it all right. But that’s missing the point because culture is always unfinished business. It is a work in progress if ever there was one. But, when a company grows 4X over 12 years you can and should look to many reasons why. If you don’t look at culture you’re missing a huge part of the story.

Here’s a piece from the Wall Street Journal that does a nice job of explaining the measurable elements of TaylorMade’s rise to dominance (How TaylorMade Made Its Move). What it fails to address is one of the most glaringly obvious reasons for this historic growth: a company culture that will knock your socks off. I appreciate that the WSJ lives mostly in the land of the rational, the measurable and the known. I further appreciate that culture, leadership and learning are decidedly fuzzy and definitely “soft.” As such they don’t get discussed in the mainstream business media which is a sad reality that has to change. I know the role that culture played in achieving those results because I was there. But you don’t have to take my word for it since TaylorMade isn’t the only one linking an intentional culture to incredible results.

Zappo’s has been playing this game for a little while, also. And they also have the results to show for it as they have taken the idea of an intentional and purposeful culture to an entirely new level. Zappo’s leaves no room for doubt that it is the squishy stuff like culture that took them to a billion dollars in revenue.

I had the opportunity to visit their headquarters last December and it is obvious from the very moment you step foot in the place that there is nothing “squishy” about what’s going on there. For as much fun as they seem to be having they are dead serious about maintaining a culture that allows them to deliver exceptional business results. Again, it is their culture that allows for the results to follow. This is on purpose for one simple reason: it works.

I appreciate your skepticism. The media never talks about it because they haven’t figured out how to do so. I suggest you go see for yourselves. The good people at TaylorMade and Zappo’s are waiting for your call.