Canadian HR Strategy

15 and grow revenue. Sears' recognition of the "employee-customer- profi t chain" became the model for other companies to follow. As Sears discovered, developing a vision in a top-down man- ner does not result in sustained engagement. Ensuring the direct involvement of employees in its creation, as Lincoln Electric has done, is critical. Delta too understood the futility of having senior executives engage in this kind of exercise. Instead, it applied a bottom-up system. e result is a vision, mission and values employees un- derstand and own. It's an enigma why there are still companies that expect employees to read and embrace their vision and mis- sion on the website but fail to inculcate them into recruitment practices, onboarding and performance standards. e successful implementation of any organizational change begins with the manager. Starting at the top, the culture leaders imbue directly shapes the experience of employees and, ultimate- ly, customers. It is a maxim that eliminating poor managers or, as Pallett memorably referred to them, "po-pos" — individuals who have been passed over and are pissed off — would solve the majority of an organization's problems. At Delta, this understanding of the critical role leadership plays in success is embodied in the fi rst link in its value chain, "Getting the right manager in place," and having metrics that re- fl ect the actual cost of poor leadership. In another nod to the innovative work Sears did in the 1990s, BMO is using a learning map with employees to facilitate turning its current focus on customer experience as a key competitive dif- ferentiator. While learning maps were not created by Sears, it was the fi rst to use them at town halls to engage employees in helping to build its market share. Sadly, management schools are now studying a diff erent busi- ness case on Sears. In its transition to a 21st century organization, something was lost. ese days, one is more likely to read about the company's failure to perform, the closing of retail outlets and disgruntled former customers. At every level, it seems Sears has forgotten the lessons of the 1990s and is more interested in padding the pockets of executives than remembering the value chain that once made it so successful. Barbara Kofman is SCNetwork's lead commentator on organiza- tional eff ectiveness and founding principal of CareerTrails in Toron- to, a strategic coaching and HR solutions organization focused on enabling individuals and organizations to resolve their work-related challenges. She has held senior roles in resourcing, strategy and out- placement, and taught at the university and college level. She can be reached at (416) 708-2880 or bkofman@careertrails.com. Setting an example (Strategic Capability) By Karen Gorsline C ustomer and employee experience are intertwined. Old- fashioned concepts such as loyalty, respect and treating others as you would like to be treated are meaningful at suc- cessful companies and infl uence actions, programs and culture. Lincoln Electric introduced piecework pay back in 1914. While some see this as a sweatshop practice, it clearly established the linkage between people, performance and profi t. What made Lincoln unique was a genuine understanding and valuing of the employees' contributions the company because it also established an employee advisory board, with elected repre- sentatives from every department, that has met every two weeks since 1914. By 1915, Lincoln employees had group life insurance. By the 1920s, they earned paid vacations, had a stock ownership plan and formal suggestion program — all leading-edge at the time. In 1934, they had their fi rst annual incentive bonus. Guaranteed continuous employment was tested in the 1980s as sales dropped in response to infl ation, higher energy costs and recession, but not one employee was laid off for lack of work. In 1993, employees voluntarily postponed 614 weeks of vaca- tion in order to meet customer demand for product. e Lincoln Electric culture — where employees are valued and hold themselves accountable for success — is diffi cult to rep- licate. Delta Hotels, Four Seasons and Ritz-Carlton all recognize that their most valuable resource is one they do not own — employees. Delta has found that pay alone does not retain employees. Quality employees stay at the company because they know what is expected of them, they have the tools to do the job, they have the opportunity to do their best, see an impact, feel cared about as a person and have a good relationship with their manager. Isadore Sharpe of Four Seasons Hotels sees employees as stan- dard-bearers of their service who must be treated with the same care and thoughtfulness as guests. Ritz-Carlton is famous for its motto "We are ladies and gen- tlemen serving ladies and gentlemen." While employees receive training, the emphasis is on attitude, understanding personally how good it is to receive great service and having the tools to do their job. Employees expect respect and respond by being accountable and demonstrating respect as a norm, regardless of their role at the organization. Companies o en mistake "assets" — such as customer market share and HR — as something they own and that can be man- aged accordingly. ey believe employees and customers can be educated to buy into company direction or conform to desired behaviour. But customers are earned one at a time and grown based on positive experiences with employees who treat customers as they are treated themselves. Both customers and employees can opt to disengage at any time, which o en results not only in the imme- diate loss but in damage to the company's reputation. Karen Gorsline is SCNetwork's lead commentator on strategic capability and leads HR Initiatives, a consulting practice focused on facilitation and tailored HR initiatives. Toronto-based, she has taught HR planning, held senior roles in strategy and policy, man- aged a large decentralized HR function and directed a small busi- ness. She can be reached at gorslin@pathcom.com.

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