Michael Lee Stallard

A few hours ago, Goldman Sachs acknowledged in an SEC filing that mounting criticism in the press is a risk to the firm.  Goldman should be concerned.  A firm’s reputation affects employer brand, employee engagement and employee retention.  In the past Goldman employees were proud to say they worked for the firm.  Not so today following a long string of articles where Goldman has been referred to as a blood-sucking leech in the economy that cares only about its bottom line.  I cringe when I read such reports because I have several good friends who work or have worked at Goldman and without exception I trust and respect each one.  That said, having worked on Wall Street for most of my career, I know that people get caught up in thinking what they do is a game the score of which is determined by  how much money they make relative to others.  This mindset encourages imprudent risk-taking and behavior that may meet the letter of the law, but not the spirit. (Note: the gamesman profile was first described by Michael Maccoby in his book The Gamesman.)

I advise leaders that they must clearly communicate a set of virtuous values and keep them in front of employees.  The most effective leaders do this by celebrating the stories of individuals who exhibit the right values and getting rid of employees who don’t.  Absent a clear focus on virtuous values, an organization’s members will eventually stray into ethically questionable behavior that can destroy the firm.  And with organizations such as Goldman that are interconnected to many companies and countries via derivative contracts,  they can take the economy down with them.  That’s one reason I agree with Paul Volker and others who support effective regulation of financial services organizations.

Jason Pankau and I recently spoke at Vistakon, Johnson & Johnson’s Vision Care group. J&J has an inspiring identity that is expressed in its Credo. Our definition of an inspiring identity is that it exists when everyone in the organization is motivated by the mission, united by the values and proud of the reputation.

Take a look at the J&J Credo by clicking here. As you study the J&J Credo ask yourself if its mission and values are inspiring. After you study the J&J Credo, turn your attention to your organization’s mission and values and ask the following questions:

• Are your mission and values clearly expressed and widely communicated?
• Do you have a portfolio of stories that help people understand your organization’s mission and values?
• Do people in your organization periodically take time to consider their decisions and practices in light of consistency with your organization’s values?
• Does your organization’s reputation reflect it’s values?
• Does your organization’s employer brand benefit from its inspiring identity?

J&J does a marvelous job on the Credo section of its website.  Take a look at it by clicking here.  In preparation for a book I’m writing, I’ll be interviewing Kathleen Fitzpatrick, J&J’s Director of Credo and Workplace Engagement, and posting portions of the interview on this blog.

Have you seen expressions of corporate identities (mission, values, supporting stories or practices) that have inspired you?   If so, please post them here or email me at mstallard [at] epluribuspartners [dot] com.

Yesterday was President’s Day in the U.S., a day in which we primarily celebrate our first president, George Washington.  Reading the article “George Washington’s Tear Jerker” in yesterday’s The New York Times, one might ask, was Washington really the great leader he has been made out to be?  I asked myself that question during the summer of 2002 and began a journey to unpack truth from myth.  My journey went as far as contacting and interacting with Edward Lengel, the foremost historian on Washington’s generalship.  After doing my own research I wrote the following which became one of the chapters on 20 leaders in a book I wrote entitled Fired Up or Burned Out.

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First in Their Hearts

Richard Neustadt, Presidential Scholar at Harvard University, observed the following about George Washington: “It wasn’t his generalship that made him stand out . . . It was the way he attended to and stuck by his men. His soldiers knew that he respected and cared for them, and that he would share their severe hardships.” Read more »

Nick Sarillo lost the feeling of connection to his work when the home construction employer he worked for over 12 years shifted focus from quality and craftsmanship to speed and mediocrity. So Nick did what every self-respecting man of action does. He quit and started his own business where every employee would feel connected to his or her work. Today, Nick’s Pizza & Pub is the 4th busiest independent pizza company in America and it’s the cover story in this month’s Inc magazine. The story is entitled “Lessons from A Blue-Collar Millionaire,” written by Bo Burlingham, one of my favorite writers.

Nick’s Pizza & Pub is a prime example of a business that thrives because its leader is focused on achieving both task excellence and relationship excellence. Just read its purpose and values below:

Nick’s Pizza & Pub
“Pizza on Purpose”®

Our Purpose: “The Nicks Experience”
Our dedicated family provides this community an unforgettable place; to connect with your family and friends, to have fun and to feel at home!

Nick’s Pizza and Pub Values

• We treat everyone with dignity and respect.
• We are dedicated to the learning, teaching and ongoing development of each other.
• We have fun while at work!
• We provide a clean and safe environment for our guests and team.
• We honor individual passions and creativity at work and at home.
• We communicate openly, clearly and honestly.
• We honor the relationships that connect our team, our guests and community.
• We take pride in our commitment to provide a quality service and a quality product.
• We celebrate and reward accomplishments and “A+” players.
• We support balance between home and work.
• Health: We are a profitable and fiscally responsible company.  We support the physical and emotional well-being of our guests and team members.
• Our team works through support and cooperation.

I met Nick and his business partner Chris Adams at The Great Game of Business Conference and Nick attended a presentation Jason Pankau and I gave last Fall at Northwestern University’s Forum for People Performance Management and Measurement. Read more »

A New York Times article at this link describes a University of Pennsynvania study that concluded the most emailed Times articles brought about a positive emotional response of awe on the part of readers. That makes sense, doesn’t it? When hearts are moved, people move. I’m not knocking rational content, just recognizing the power of feelings to move people to action. I have learned from experience that I have to reach peoples hearts and minds to bring about change. Unfortunately, so few leadership development and change programs do that.

We are human beings, not human doings. We have feelings, a conscience, hopes and dreams. That’s what I love about my work. This week Jason Pankau and I were speaking at one of America’s largest, most well-respected corporations. The individuals we met came from all around the world and they were visibly moved to action. A woman from outside the US emailed me to say the stories we presented were inspiring and the message would resonate with her colleagues at home. The lesson here is that rational content is essential but if you want action you had better help people FEEL the need to change. Emotional resonance is the music that makes our lives and organizations sing.

Recently I wrote about Dov Siedman and his company LRN. I was delighted to see this article about him in Fortune magazine.

LiveMint/The Wall Street Journal in India asked me to comment on why Steve Jobs and Apple have been so successful. In an interview entitled “‘Think Different’ is What Makes Apple Stand Out,” I shared that it is more than the beauty and functional excellence of Apple’s products that make the firm so successful. Apple’s inspiring identity plays an important role too. (Above is a video of the original “Think Different” television ad.)

All that is necessary for evil to triumph is for good men to do nothing.

- Attributed to Edmund Burke

In honor of the Reverend, Dr. Martin Luther King, Jr., I’m posting an article I wrote that was published in The Economic Times in India and in the American Management Association’s Moving Ahead.  The article in part describes the time before a concert in Arizona when U2 received a letter that stated Bono, the band’s lead singer, would be killed if the band played the song Pride, which honors the life and legacy of the Rev. Dr. Martin Luther King, Jr.  The FBI told U2 it believed the threat was not a hoax.

Although I don’t know for certain, I suspect that Bono reflected on Dr. King’s choice to speak out in the face of death threats.  Dr. King had the courage of his convictions and was willing to risk death to push back the evils of prejudice.  Now, Bono had to decide if he too was willing to speak out against evil and risk death because of it.

Read more »

I hope Google is considering what I presented at it’s Mountain View, California headquarters last summer as it decides how to respond to the Chinese government’s apparent hacking of Google’s servers to access information on Chinese human rights protestors. If evidence becomes clear that the Chinese government is responsible for the attack, Google’s response will have an significant effect on the firm’s reputation, consumer brand, employer brand and employee engagement. This is a test of Google’s corporate character and whether or not it will live up to its aspiration “don’t be evil” and its belief in supporting a free marketplace of ideas. Human rights abuses and censorship in China are no secret. To be indifferent to China’s actions in this instance, however, is to provide silent assent. What company or leader would want such a legacy?

The Chinese Government-Google showdown reminds me of a line from Elie Wiesel’s profound speech entitled “The Perils of Indifference.” In it, Wiesel states:

“Why did some of America’s largest corporations continue to do business with Hitler’s Germany until 1942? It has been suggested, and it was documented, that the Wehrmacht could not have conducted its invasion of France without oil obtained from American sources. How is one to explain their indifference?”

It would be wise for Google’s leaders to read Wiesel’s speech and consider how history will eventually record their decision. Some decisions reflect inflection points for a firm and for history itself. As historian David McCullough reminds us in the preface to his book Brave Companions,

“…while there are indeed great, often unfathomable forces in history before which even the most exceptional of individuals seem insignificant, the wonder is how often events turn upon a single personality, or the quality we call character.”

This can be said for corporate character too.

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Note: Above is a video of a presentation I gave on leadership, employee engagement, productivity and innovation at Google’s corporate headquarters, the Googleplex, last summer. On this rare occasion, I presented alone. Normally I present with my colleague Jason Pankau because better together.  As Jason says, “Mike’s the serious one, I’m the fun one.”

While growing up did you have role models in your life who had a profoundly positive effect on you? Perhaps it was a teacher who believed in you and pushed you to strive, a parent of one of your friends who consistently provided encouragement or a coach who modeled great leadership, teaching you to work hard and play fair. I’m fortunate to have had positive role models and mentors in my life who brought out the best in me and I’ve tried to play that role for younger people in my community.

I was reminded about positive role models recently while watching a remarkable television program called Friday Night Lights. I really want to encourage you to check out this award-winning and critically-acclaimed drama. This show is gritty and real.  I don’t want to give away the story but suffice it to say the writing, acting and production of this show are extraordinary, a far cry from many of the vacuous programs on today.  You can rent the first three seasons at your local video store and the fourth season will be broadcast soon on NBC (if you have DirecTV, you can watch the fourth season now on Wednesdays at 9:00 PM Eastern).

While I’m not an avid football fan (and you don’t have to be to enjoy this show), I love this drama for its inspiration, entertainment and the values it promotes. The primary examples of great role models on display are in the characters of coach Eric Taylor and his wife Tami. Eric is the high school football coach in a football-crazy West Texas town that, incidentally, is based on Odessa, Texas, where I worked for Texas instruments in my first job after college.  Tami is a guidance counselor who becomes the high school’s principal in later episodes.   Eric and Tami are both leaders who inspire the kids to achieve excellence in their academic and athletic endeavors, and in their relationships and personal character. The show’s adult and teenage characters face the types of heart-wrenching trials and temptations that we all face in life, whether it’s the sickness or death of a loved one, a friend who needs us during a busy and demanding time in our life, or the lure of doing something we know is wrong for the sake of status or financial gain.

The above video clip includes images from Friday Night Lights set to Coldplay’s song “Fix You.”   The images coupled with the song’s music and lyrics capture the spirit of Friday Night Lights. I hope you’ll check it out. You’ll be glad you did.