Archive for November 20th, 2008

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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