Putting people
first in the
company
1
Common(management)sense
1.
2.
3.
4.
Human being is rational
Self interest
Capable of making the right choice
Profits first and foremost especially for a
corporation
5. You’ll attack financial problems with cost
cutting and down sizing
6. People are regarded and rewarded as tools
2
Common sense
• “It’s economic wisdom that the way to success is
to cut costs…. One of the quickest ways is to cut
people, so downsizing has become quite
fashionable…. But, laying off employees can be
done by any organization with sufficient stomach
for the task. Downsizing itself, cannot fix
problems with products or services, with quality
or with another factor that determinate
success…. It even does not effectively reduce
costs.”
3
Common sense - figure
Performance problems
•low profits
•high costs
•lousy customer service
Organizational response
•low stock price
•reduce training
•layoffs
•salary freeze or reduction
•use contract labor
Individual behaviors •freeze on hiring & promotions
•decreased motivation
•more accidents
•more turnover
•reduced job satisfaction
4
Pfeffers' 7 effective practices
1. Employment security
2. Selective hiring of new personnel
3. Self-managed teams & decentralization of
decision making
4. Comparatively high compensation contingent
on organizational performance
5. Extensive training
6. Reduced status distinctions and barriers,
including wage differences
7. Extensive sharing of financial and performance
information throughout the organization
5
Jim Collins
1. Build to Last
2. Good to Great
Core: looking for excellent organizations
6
Essentials
Stage 1: DISCIPLINED PEOPLE
• Level 5 Leadership
• First Who, Then What
Stage 2: DISCIPLINED THOUGHT
• Confront the Brutal Facts
• The Hedgehog Concept
Stage 3: DISCIPLINED ACTION
• Culture of Discipline
• The Flywheel
7
Jesus?
Truman: "You can
accomplish anything in
life, provided that you
do not mind who gets
the credit."
Core:
1) Put Level 5
leaders in the most
powerful seats.
2) Create a Level 5
leadership culture.
8
First who, then what
1.
Get the right
people on the bus
2.
Get the right
people in the right
seats
3.
Get the wrong
people of the bus
4.
Put who before
what
9
Confront the brutal
facts
1) Create a climate
where the truth is
heard.
2) Get the data.
3) Embrace the
Stockdale Paradox.
10
the hedgehog concept
1) Keep it simple—be a
hedgehog, not a fox.
2) Get your three circles right.
3) Act with understanding, not
bravado.
11
culture of discipline
12
the flywheel
• synergy of the different elements
13
A Christian alternative?
Keywords in all stories & research:
1. Responsibility
2. Sharing
3. Talent management
4. Recognition
5. Sustainable growth; durability
6. Wholeness
Remarkable
Biblical
14