“One could attach many adjectives to the giant banks that tumbled down during the financial crisis of 2007 and 2008: reckless, greedy, hubristic, stupid. Here’s one that may come less readily to mind: shareholder-friendly. But that’s what they were. Several studies have found that the more shareholder-oriented a bank’s corporate governance and executive-pay arrangements were heading into the crisis, the more trouble the bank got into. A misplaced focus on pleasing shareholders, it seems, must be added to the roster of causes of the crash.”Let’s stress again to our 21st century shareholders and C-Suite, that Return on Employee Engagement (REE) or, mostly disengagement, is the emotional and intangible by-product of how the workforce honors or dishonors the company they are working for. It is the resulting outcome of three basic business components: 1. People and their well-being as employees and family members while at work or away from work. 2. Products/Services’ sustainability, quality and benefits for all employees, users and consumers. 3. Profit, because every company needs to make money. Profit should be the resulting outcome of employees’ positive engagement while manufacturing high quality products and/or services. Pillars 1. and 2. should be the cornerstones that contribute to the success and overall health of a company’s culture and financial results. Profit should be the end result of manufacturing extraordinary products or services by a super joyful workforce, motivated to go above the call of duty. How can workforce, clients and suppliers thrive in a toxic environment when the basics of company culture are wrong? What will JP Morgan’s “emotional” and financial damages be after last November’s Twitter hashtag #AskJPM high-jacking? Should JP Morgan start all over again? Renaming Human Resources into Human Capital Today, most businesses are still carrying the hierarchical woes of the “enlightenment” era and its resulting Industrial Revolution; a time when machines became the center of “human” manufacturing processes. Back then, the steam engine revolutionized the 19th century and brought in a “machine-centric” work ethic in the newly “industrialized” manufacturing environment. Managers had to ratify the short processes that would be performed by uneducated workers pouring in from rural areas. At that time, managers owned the knowledge of how machines operated. The plant worker had the sole purpose of implementing the manufacturing steps as quickly and efficiently as possible. Workers were not hired for their brain capacity but solely expected to work the machines. Henry Ford powerfully expressed it when he once said: “I pay my workers to bring their bodies to work and the bastards insist on bringing their minds.” Dragging our business ethics and infrastructures out of the 19th century footprint remains a challenge. The practice of using people as “machines” is still present when one considers the modern euphemism of “human resources”. Humans are still relegated to the level of resources or machines. Their main purpose was, and still is, to speed up the manufacturing process while minimizing costs. The 19th century machine-centric manufacturing processes have barely changed today. We continue to cling on to them while cleverly (or not so cleverly) relocating our manufacturing premises to international areas where “cheap labor” is still available. In the Huffington Post article “S&P 500 CEOs Make 354 Times More Than Their Average Workers”, dated April 15th 2013, it was reported that UnitedHealth Group CEO-to-employee pay ratio is 1,737:1 and Wal-Mart CEO-to-employee ratio is 717:1. One wonders about the pay ratio when considering that Wal-Mart employees are hopelessly fighting for a minimum yearly salary of US$25,000. In the International Business Times article: “Wal-Mart Says ‘Save Money Live Better,’ But Workers Don’t Make Living Wage And Rely On State Benefits” Christopher Harres wrote: ”… a study from June found that Wal-Mart workers in Massachusetts are forced to use government benefits like food stamps and Medicaid to top up their average salary. A similar report from California found that 44,000 employees rely on around $44 million worth of taxpayer money to get by. It’s thought that up to $1 billion is spent annually by states all across America to subsidize the lowest-paid Wal-Mart workers, according to ChangeWalmart, an advocacy group in support of Wal-Mart employees.” The French Revolution was supposed to introduce: Liberté Egalité et Fraternité (Liberty, Equality and Fraternity) but what happened to this old adage when considering the ruthlessness of corporate shareholders? How can Wal-Mart expect its employees to represent its culture (and by the way what is Wal-Mart’s culture?) when there is an obvious lack of respect, fairness and equity towards them? How about Wal-Mart’s suppliers? Are these paid fairly or do they also have to apply for subsidies? What is the resulting quality of the food the average US citizen has on his dinner plate? Can truly nourishing food result from such capitalistic greed? In Part three we shall look at middle management and the role it should play when implementing an open culture versus a hierarchical and silo culture. Looking forward to your suggestions and comments on this post. In the meanwhile, I wish all my reader a successful 2014 and God’s blessing upon all your undertakings.
Let’s get in touch:
Error: Twitter did not respond. Please wait a few minutes and refresh this page.
Clouding & Searching"Content Curation" "Flickr search" Big data Branding Business intelligence BYOD Character CIO Cloud Cloud computing Cloud Storage Collaboration Communication Company Culture Content Marketing CRM Curated Curating Curation Customer Service CX CXM Digital Marketing E20 Employee Experience Engagement Enterprise 2.0 Enterprise Social Network ESN feeds Flickr Geopolitics Google Blog Search Google News Humility IaaS Inbound Marketing Info-graphics Innovation Integrity Leadership Marketing Media Middle East Mobile Technology Mobility Motivation NFC PaaS Personnel Radian6 RSS RSS Feeds SaaS Sales Salesforce SCRM Smartphone Social Business Social Business Strategy Social Culture Social Enterprise Social Enterprise Network Social Leadership Social Media Social Media Plan Social Media Strategy Software as a service Stress Syndication and Feeds Tony Hsieh Traditional Marketing Twitter Value Zappos
- BYOD Cloud Computing Content Content Curation Content Marketing Cross Functional Teambuilding Customer Experience Customer Service Digital Marketing E20 Enterprise Social Network HR Human Resources IaaS Inbound Marketing Innovation PaaS RSS Feeds SaaS Social Business Social Business Strategy Social Culture Social Enterprise Social Media Social Media Cloud Social Media Strategy Team Teambuilding Twitter
Welcome to my Blog
- 16,671 hits
- Employee Engagement – an Executive, Managerial and Individual Responsibility (Part Two)
- Employee Engagement – an Executive, Managerial and Individual Responsibility (Part One)
- Die Acht Schritte Zum Erfolg
- Seven changes for TomTom to implement in order to turn things around: An open letter to TomTom’s Management Board Members
- Five Crowd-Sourcing Lessons Learned from a Retail Business Moving its Shop Location