Wednesday, May 23, 2012


Swing For the Fences                                                          

An elderly woman lived and died in a small Midwestern town.  She had never married and had pretty much kept to herself.  But Nancy Jones had been the oldest resident in the town and, when she died, the editor of the local paper knew he had to run a special obituary in the newspaper.  However, the more he thought about what to write, the more he realized that, other than reaching an extraordinary age, Miss Jones had never really done anything particularly noteworthy.
Becoming increasingly frustrated with the challenge before him, the editor, decided to ease the pressure and give the obituary assignment to the first reporter he came across.  Well, he happened to run into the sports reporter who eagerly took the job and quickly penned the following obituary:

Here lie the bones of Nancy Jones.
For her, life held no terrors.
She lived an old maid.  She died an old maid.
No hits, no runs, no errors.

Even if you’re not that much into sports you can’t escape the analogies, phrases and metaphors that have become idioms of life imitating the games we play:  “take it to a new level”; “Monday morning quarterback”; “on the ropes”; “full-court press”; “down for the count”; “saved by the bell”; “throw one’s hat into the ring”; “end run”; “swing for the fence”; “par for the course.” 

And then there’s Nancy Jones’ “no hits, no runs, no errors” signifying neutrality, idleness, lack of purpose, lack of success, do-nothingness and mediocrity.

Poet, essayist, critic and author James Robert Lowell succinctly stated the Jones’ approach to life this way, “not failure but low aim is the crime.”

It’s tempting, it’s convenient, it’s easy to go negative on business enterprise today.  Wall Street has been bashed, assailed and criticized as being representative of cheating, dishonesty, greed, and insensitivity to morality, ethics, integrity and right doing.  Much of the media would have us believe that corporate America is “going to the dogs.”   I don’t buy it and I trust you don’t either.

Oh yes, there are cheaters and crooks on Wall Street, on Main Street, in government, in education, in accounting, in law, and even in our houses of worship.  But by far and in the vast majority are people, companies and firms who are purpose driven, intent on conducting their business with integrity and who compete vigorously in the marketplace to justify investment dollars provided by a trusting public.  These companies take risks, invest substantial sums, employ lots of people, enhance communities, and occasionally make mistakes and are subject even to ethical lapses. 

There is a big difference, a defining difference in companies whose values and mission lead to passionate pursuit of operating with integrity and those companies which either purposefully deceive and cheat or companies which almost idly stumble along devoid of risk-taking, devoid of involvement with community or even its employees, and content with embracing the status quo.  Purpose and passion driven companies are not perfect companies and their employees and officers sometimes mess it up.  Some of these failures are ethical lapses leading to distrust.  But another big difference in these companies is that they immediately, upon becoming aware of failure, not only make it known to their customers and other stakeholders but also enter quickly into a remediation program which includes holding responsible parties accountable.  

We don’t accept excuses for cheating, integrity lapses or “hiding the ball.”  We will accept and in fact admire and respect confession, transparency, accountability and remediation.  I would much prefer doing business with companies and firms who are in President Teddy Roosevelt’s words “In the Arena” (***) making and addressing their mistakes than those entities which, while fearful of further investment, mistake, failure and the media, will place their entities in neutral.

Jim Collins whose books have sold over 10 million copies summed up in his recent best seller, Great By Choice, what it takes to be a difference maker and not merely another company struggling along.  Hear his words:  

“When the moment comes—when we’re afraid, exhausted, or tempted—what choice do we make?  Do we abandon our values?  Do we give in?  Do we accept average performance because that’s what most everyone else accepts?  Do we capitulate to the pressure of the moment?  Do we give up on our dreams when we’ve been slammed by brutal facts?  The greatest leaders we’ve studied throughout all our research cared as much about values as victory, as much about purpose as profit, as much about being useful as being successful.  Their drive and standards are ultimately internal, rising from somewhere deep inside.”

Great companies are not perfect companies.  They do have leaders who choose to “swing for the fences” realizing that there will be some runs, some hits, and yes, even some errors.  Not perfection but passion for building a better company and a better community.

Ad astra per aspera
***THE MAN IN THE ARENA
(Theodore Roosevelt)
    It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

Friday, May 4, 2012


Dance Skeletons, Dance!

It was the Irish playwright, author and political activist George Bernard Shaw who has been quoted as saying, “if you have skeletons in your closet, better bring them out and make them dance.”  I don’t know Shaw’s reason or context for this remark but it communicates an important and significant point to me:  Whether company, firm or individual, when we become aware of unacceptable behavior, egregious negative circumstances, or any harmful trust-breaking situations, the earliest recognition and address of the matter is the most effective approach.  The antithesis of that approach is summed up by what I learned in Sunday school:  “Be sure your sins will find you out.”

The recent Fortune 500 lists Walmart as America’s largest company with revenues exceeding $400 billion.  This massive retailer employs over 2 million people and supports tens of thousands of suppliers.  Its stock is owned throughout the world and held by the largest pension funds in our country.  Walmart is a tremendous community participant and contributor and is viewed by many as a model corporate citizen.  I could list many other laudable virtues of this giant retailer but you get the point—Walmart impacts the lives of many and is a positive influence throughout the world.

Recently the New York Times reported the results of an investigation which revealed that Walmart’s Mexico subsidiary (the largest foreign operation with 431 stores) paid $24 million in bribes to local officials to avoid complying with regulations and thus to illegally obtain construction permits for new stores.  The report goes on to state that a Walmart internal inquiry into the matter had been suppressed at corporate headquarters in Arkansas. 

It’s too early for the general public—people like you and me—to know the depth and extent of the problem.  We are aware of reports that Walmart named a former U.S. attorney for the Western District of Arkansas as global Foreign Corrupt Practices Act (FCPA) compliance officer earlier this year.   In addition, the retail giant disclosed the lawyers, law firms and accountants helping with its ongoing investigation into the Mexican bribery allegations and its worldwide review of compliance.  Walmart’s audit committee is overseeing the investigation with both the investigating law firm and Big 4 auditor, Deloitte.

I’m pleased that Walmart is now addressing the issue but I, perhaps like you, am outright flabbergasted that it took the New York Times to make the Walmart skeletons dance.  If I were to ask you to name countries in the world where you might suspect bribery of government and company officials is rampant I dare say most of us would probably include Mexico.  Actually there is an annual public disclosure by Transparency International of its Corruption Perception Index, a listing in rank order of the perceived most corrupt countries in the world, that would confirm what many of us suspect.   Mexico is not the worst on the Index, ranking as number 100 out of 183 (183 being the worst).  The U.S. ranks 24th. 

 An obvious point to me is why Walmart all of a sudden seems shocked at the bribery allegations.  You’re doing business in a high risk country; shouldn’t you be aware of certain known or perceived problems of doing business there?  Do any of Walmarts executive officers read the papers, watch TV, browse websites?  Due diligence on the front end of doing business in any country is I’m sure a part of what Walmart does.  How did they miss the obvious in Mexico?  Are they now reviewing other questionable environmental conditions in other countries?

Walmart is now into its investigation phase that typically leaves the public with a cynical and doubtful view of the process and the appropriate outcome.  I’ve already started hearing the street talk:  “they’ll slow walk this one”; they’ll fire a few underlings”; “they’ll lawyer up, spend a lot of money and then business as usual.”  I hope not.

I have some advice for Walmart and it won’t cost them a dime.  Walmart won’t get this from their lawyers, their highly paid consultants, or their public relations and positive image folks but they will get it from the people who matter most—customers like me.  My simple but hard-to-swallow advice: DANCE!  


D ig deep into all allegations, known and suspected malfeasance anywhere in Walmart land.  Satisfy yourselves that in the high risk countries in which you operate there are systems of internal controls which will alert you to inappropriate, unethical or criminal activities.
A ccountability is essential.  Make it known that no one, absolutely no one in Walmart will be exempt from being held accountable for acts of omission and commission.  Get tough; be assertive and consistent on discipline.
N ever underestimate the power of the public trust!  Immediately begin a positive program of restoring trust, not damage control but proactive messages and actions about what Walmart is doing to make sure that business practices are legal, ethical and socially enhancing.
C ommit to expectations of a trusting public not simply cooperating with all investigative and law enforcement officials but leading them in collaborative fashion to help you restore trust.
E xalt and model integrity from the executive quarters all the way through the company in every country in which you operate.  Remind your customers in every store what you stand for and invite your customers to also be alert to anything which would detract from your trust-driven intentions.

Yes, “DANCE” is perhaps overly simplified but it’ll work not as some short-term fix but as a longer term, more permanent approach to ensuring the public that Walmart is serious about going forward, fervently addressing its problems.  Walmart is a model in many communities.  The company now because of these latest allegations has a tremendous opportunity to do the right thing and demonstrate what others in similar kinds of situations might do. 

Will Walmart lead?  Will Walmart make their skeletons DANCE?

Ad astra per aspera


Monday, April 16, 2012

A Culture of Character



Kirk Douglas, in his autobiography, relates an amusing story. Driving along on the outskirts of Los Angeles one day, he stopped to pick up a hitchhiker. As the young man got into the car, he recognized the famous actor and, in awe, asked "Do you know who you are?"   Astonished by the simplicity but also the profundity of the question, Douglas pondered its meaning and considered if he even knew the answer.
 
Knowing who we are is fundamental to shaping ourselves, our companies and our firms into who we really want to be and how we are seen by others.  I firmly believe that successful and trustworthy companies are intentional and purposeful in their efforts to produce quality products and services and to sell those products and services within channels and systems which rely on truth and transparency.  These same companies and firms know who they are when it comes to treating employees as partners and associates, being sensitive to their care-taking environmental role and being an active and positive presence in their respective communities.

Yeah, I know that sounds like “motherhood and apple pie.”  Nice words but does anyone believe it or do it?  Actually many companies and firms—and I think most—subscribe to a purposeful plan of always knowing who they are and how they should behave in the marketplace.

Ever hear of Tom Hill, Chairman of KIMRAY, Oklahoma City?  Not only is Tom an outstanding leader of a remarkable company (recently awarded Center for the Public Trust’s Being a Difference Award), he is also the founder of an international organization, Character First! which provides families, schools, businesses and other organizations materials and training for building character.  His company, KIMRAY, manufacturer of control valves and related equipment for oil and gas producers, reflects Hill’s values by convening all its employees once a month, informing them of company performance, plans, and, yes, its values.  It’s just one more step in building character in a company and its employees.

Tom Hill’s 2010 book, Making Character First, is a guide to building a culture of character in organizations.  I was impressed with the Pocket Guide accompanying the book, which lists 49 character traits and their opposites and I offer them to you as not only a summary of the book but also a checklist of meaningful attributes to consider personally and professionally:

Alertness vs. Carelessness                           Attentiveness vs. Distraction
Availability vs. Self-Centeredness               Benevolence vs. Selfishness
Boldness vs. Fear                                         Cautiousness vs. Rashness
Compassion vs. Indifference                       Contentment vs. Covetousness
Creativity vs. Underachievement                Decisiveness vs. Procrastination
Deference vs. Rudeness                              Dependability vs. Inconsistency
Determination vs. Faintheartedness            Diligence vs. Laziness
Discernment vs. Shortsightedness              Discretion vs. Recklessness
Endurance vs. Despair                                Enthusiasm vs. Apathy
Faith vs. Ignorance                                     Flexibility vs. Stubbornness
Forgiveness vs. Rejection                          Generosity vs. Stinginess
Gentleness vs. Harshness                          Gratefulness vs. Presumption
Honor vs. Disrespect                                 Hospitality vs. Loneliness
Humility vs. Arrogance                             Initiative vs. Idleness
Joyfulness vs. Self-Pity                             Justice vs. Corruption
Loyalty vs. Unfaithfulness                        Meekness vs. Rage          
Obedience vs. Rebellion                           Orderliness vs. Confusion
Patience vs. Restlessness                          Persuasiveness vs. Contentiousness
Punctuality vs. Tardiness                          Resourcefulness vs. Wastefulness
Responsibility vs. Unreliability                Security vs. Worry
Self-Control vs. Self-Indulgence              Sensitivity vs. Callousness
Sincerity vs. Hypocrisy                            Thoroughness vs. Incompleteness
Thriftiness vs. Extravagance                    Tolerance vs. Hostility
Truthfulness vs. Dishonesty                     Virtue vs. Vice
Wisdom vs. Foolishness

Do you know who you are?  Does your company or firm know who it is?  A review of the character traits listed may give us further insight to answering the question that befuddled Kirk Douglas.
Ad astra per aspera