I’ve been hearing and reading a lot from both sides on the pros and cons of bailing out the auto industry. The latest topic – the CEO’s came to Washington to make a case for their bailout in their private corporate jets. Huh.
As a business person, I am pretty certain that the cost of these private jets isn’t the problem behind their need for a bailout. On the expense sheet, I am guessing they’re a pretty small percentage – a blip on the screen. However, I do think they’re a symptom and message.
They are a symptom of entitlement. People are worried about losing their job, retirees are faced with losing their health insurance, and the execs are flying in luxury. How much do the employees TRUST that their leaders are working on their behalf?
They are also sending a message that you (the employee or retiree) can suffer, but we’re immune to these changes. Sure, we have to grovel to the government for money to save us, but we’re not giving up anything personally to do it. Whether that’s true or not, actions speak louder than words. Just because we’ve always done doesn’t make it right now.
I happen to be listening to a webinar by AMA and they are reaffirming my thoughts. Companies with a corporate culture that brings out the best in their employees – empowers them – have been shown to perform better in the marketplace.
Their study shows that the biggest problems with most companies today are:
- they do not foster trust
- they are not innovative
- they don’t respond quickly or well to change
Does any of that sound the like problems the automakers are facing? I’m not convinced that a financial bailout will fix any of that. Mitt Romney agrees. The problem runs deep – through the culture of the companies themselves. Unfortunately I think there are a lot more companies out there who are experiencing the same challenges at different levels.
My new mission, and that of Path Forward, is to help companies build a culture of empowerment. That’s the only way we’re going to continue to be competitive in this new, innovation economy.
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Thanks your idea, really helpful for me do to the research.
teeth whitening
What’s important is that the American People have little say in what is going on. Politicians from both parties do whatever they want with little Recourse. Congress gave themselves a 6% raise this year. The defense department wanted 2 new jets similar to the jets used by the Corporations in the auto industry… and they got them, plus 4 more! It seems no one in Washington understands what a budget is and that you can not pay off debt with more debt. Big crash coming soon.
SK – you raise a great question! I wonder what the 5% pay cut would look like. For me, it goes back to personal responsibility. Why don’t people stand up and take responsibility for their actions? Isn’t that what they get paid the big bucks for? Where’s the integrity?
I couldn’t agree more, Julie. What also in my mind about all these bailouts, is that if all the senior execs from these big companies (yes, not just automakers but including financial service corporations and others) are willing to take a 5% paycut, I wonder if that would equal the amount of the bailout money that they ask for. AFTER ALL, the execs are being paid to do a job – to keep the company operating in a healthy, profitable manner, and now if they need to
un back to mama” to ask for help aren’t they already FAIL in their doing job and shouldn’t be paid?? If an employee not doing his/her job well they get fired. What about these CEO? The absurd amount of money that they make just leads to wonder how much do these Chief level execs really worth??