Tuesday, March 22, 2011

Big Bang Spotlight: Yvon Chouinard

Yvon Chouinard is the founder of a company called Patagonia. The company primarily deals with outdoor gear, equipment and clothing. Although in recent years, they have expanded into new markets. He has a truly interesting biography that is sure to catch the attention of many. I have posted the link below that I used to find my most of my information. You may explore the link and see the amazing success story for yourself. Unfortunately, it is a rather long article. Fortune does an excellent job chronicling the life of how an explorer became an executive. Again, it is rather interesting, and you may enjoy reading it on your own time.

http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/02/8403423/index.htm

However, I would like to discuss a few of the more important concepts that are materially relevant to us. These topics include: ethics, motivational theory and how it impacts performance, designing a motivating work environment, and decision making. Yvon is a fantastic leader that has several characteristics that set him apart from other leadership figureheads. Unfortunately, we will not have enough time to discuss these intricacies. Regardless of time constraints, we will begin by addressing ethics.

In an attempt to avoid covering another group’s subject matter, I will be brief in my discussion of ethics. Yvon Chouinard is a business man who seems to have “figured it out.” He understood that business was not just about making money. He didn’t want the pursuit of endless growth to become his main concern. He wanted to serve the needs of his customers. Yvon knew that if he did things the right way, the profits would come. He also knew that profits could be attained legally and ethically. Chouinard was not interested in cutting corners, making “shady” business deals, or selling his soul to increase revenues. True to the explorer within him, he believed that “reaching the summit had nothing to do with where you arrived and everything to do with how you got there.” Many think that business ethics is common sense, and that it’s not a worthy attribute that sets leaders apart. If this were the case, why are so many frauds still exposed today? These ethics “beacons of hope” serve as a reminder that success can be achieved by playing by the rules.

Although Yvon Chouinard does not specifically address this issue, he has also paid close attention to the motivation of his employees. In chapter 5 we learned about the various theories of motivation. One of the needs based theories is Maslow’s Hierarchy of Needs. Yvon clearly meets his employees’ lower level needs through the salaries they receive and the safe working conditions he has provided to them. He also succeeds in satisfying the social needs of his workers by providing extensive opportunities to socialize. Daycare centers are also made available so that bonds with children can be maintained and strengthened. Esteem needs practically take care of themselves. Workers believe that they are doing meaningful work. Their love for the company and its purpose creates a strong bond that unites and empowers each individual. Therefore, each employee feels more important, respected, and appreciated. Patagonia does an excellent job meeting self-actualization needs. Patagonia receives multitudes of applications every year. The people who apply to Patagonia legitimately want to come to the company to make an impact on the world. The company offers all the resources and accommodations necessary to create ingenious and revolutionary products. Employees want to be all that they can be, both professionally and personally. At Patagonia, they have the ability to achieve personal goals in addition to developing their career. As a result of Yvon’s actions, his employees have high morale and perform at impressive levels.

In chapter 6, we discussed how managers can design a motivating work environment. Patagonia is arguably one of the most motivating work environments the business world can offer. Imagine being able to take breaks to surf the next big wave. Think about “testing” equipment while hiking in the mountains. Try to picture experiencing the latest outdoor gear while camping. These are outlandish things that actually happen. Chouinard enjoys life and wants his people to enjoy life as well. While these are amazing things, Yvon does address issues that are pertinent to what we have discussed in class. By further researching the company, I have found that Yvon uses job enrichment to get his employees more engaged in their work. By having more control and freedom in the creation process, they experience more productivity and creativity.

Employees have strong task significance because they feel that their work affects many people. Not only does it affect their fellow co-workers, their work also affects the general public. Employees understand that they are creating quality products that end users will experience and enjoy. Throughout the process, the company stays true to Yvon Chouinard’s focus on sustainability. Employees also know that the environment is a stakeholder that must be catered to. Each product is carefully designed while considering the environmental impact it may have. In short, employees realize that the work they do is important.

Although we have yet to cover Chapter 11, Yvon provides a glimpse into the future of decision making. He has always had a vision of a business world that operates efficiently and cohesively with the biological world. In his campaign to bring harmony to the earth, Yvon has made substantial progress in the area of sustainability. He has taken the “green” concept to another level by implementing sustainability aspects in every level of the organization. As we will learn, there are multiple types of decisions that need to be made in an organization. Yvon deals primarily with strategic decisions. He is a visionary. He has developed concepts that he believes will take the company and the world to a better place. During his journey, he has explored new products, different methods of product transportation, unique product enhancements, and intuitive business processes. He continues to deal with new product lines. Patagonia is beginning to enter the surfing market. While Patagonia is deeply entrenched in the hiking, outdoors, and generally cold environments, Yvon sees an opportunity on the horizon, "We're getting into the surf market, because it's never going to snow again, and the waves are going to get bigger and bigger." While I do not want to spoil the surprise for those who have not read Chapter 11 yet, I assure you that Yvon Chouinard is an exceptional leader that has used his visionary mentality and excellent decision making abilities to propel himself to the top of the food chain.

I wish I could talk more about Yvon Chouinard, yet time will not allow it. I have posted links to relatively short video clips that help paint a more complete picture of Yvon and Patagonia. His influence in the world of business is already becoming visible. He has begun mentoring the corporate giant Walmart. Chouinard has provided the company with invaluable insights and Walmart has actually modeled its own sustainability plans with Yvon’s help and guidance. Yvon Chouinard has proven that he truly is a “Big Bang” mover.

http://www.fastcompany.com/blog/tom-foster/fosters-blog/patagonia-founder-yvon-chouinard-and-tom-brokaw-talk-green-marketing-vi (2:39)

http://www.fastcompany.com/blog/tom-foster/fosters-blog/can-wal-mart-be-sustainable-ask-patagonia-founder-yvon-chouinard (2:01)

Regards,
Jarek Palmer

Following Big Footsteps with GE's Jeff Immelt

In my next series of post’s I will be concentrating on GE’s current CEO Jeff Immelt. Jeff had an incredible task of taking over the very successful General Electric Co. after one of the most successful CEO’s of General Electric’s history decided to call it quits. While some thought that Jeff would buckle under the pressure and not be able to perform at the same standards as the previous CEO, John F. Welch, Jeff proved all the skeptics wrong. In contrast to the previous CEO’s style of leading, Jeff is a much nicer, easy going guy that leads in a completely different style then Welch. According to a business week article by Diane Brady, Jeff’s communication style is described as, “Where Welch poked, prodded, and deployed his troops as if they were heading off to war, Immelt cheers them on as if they’re the home team before a big game.” Jeff really runs the entire GE corporation as more of a team, rather than acting as a dictator. The article explains that Jeff will never use the I-word, but rather always uses words such as “we,” or “the team.” As we discussed in MQM 221 class the other day, a team is considered more of a group people with complementary skills, who are committed to a mission, performance goals, and approach for which they hold themselves mutually accountable. This is exactly how Jeff Immelt has decided to run the company as he stresses a coordinated interdependence of all individuals from different departments lowest to highest. Jeff stresses this interdependence of departments by making people his priority, especially concentrating on the ones that aren’t currently getting enough attention.

Since Jeff Immelt refers to the GE Corporation as one large team it is important to understand what type of team role Jeff has decided to take. According to our textbooks description of the different team roles Jeff Immelt is emulating almost to a tee, the role of the cooperator. In numerous articles of Jeff it refers to his leadership style as more of a cheerleader. Unlike many current power hungry CEO’s, Jeff has decided to help support his employees in accomplishing the team goals. In that article published by Business Week it describes Jeff’s communication style as simply showing interest in others. Jeff doesn’t even disregard the units that are currently struggling, but rather tries to support them to help accomplish their goals.

While Jeff is such a nice caring guy, he also knows the importance of productivity and discipline. If employees just can’t get things done he is not afraid to let them go and replace them. He has made sure to broadcast his message that effort is encouraged, but results are what count. Similar to the previous CEO Welch, Jeff knows the importance of delivering superb products and service. Although Jeff uses a completely different communication style then the previous successful CEO Welch, he still has been able to produce similar results. As I continue on with my posts I will discuss Immelt’s unique style of leading GE, as well as his drive for more company diversity. It will be interesting to see how Jeff’s unique style works in complete contrast to the previous CEO’s of GE. As I continue on with my post's I will progress to the present time and show what type of results Jeff has actually helped generate today for GE.

Do you think his style of coaching his employees and viewing the Corporation as one large team will continue to work? If not, what types of changes do you feel Jeff should make to his communication style?

By Jason Dangles

http://www.businessweek.com/magazine/content/01_38/b3749088.htm

Saturday, March 19, 2011

The Innovation of Wegman Food Markets and the Leadership Strategy of Danny Wegman

Wegaman Food Markets, a privately-held company, has transformed from a small food store to a successful self-service food market. The innovations that were innovated by Wegman's were vaporized water spray, refrigerated food display windows, homemade candy shop, and a cafeteria lounge. In the 1970's Wegmans wanted to transform their store into a “mall in a store” concept. This concept included gift cards, floral products, and pharmaceutical departments. Along with all the innovations of Wegmans, they also provided their customers with their services for 24 hours.

Danny Wegman took over the presidency and CEO duties in 1976. When Danny took over the company began to sell their own product and offer a variety of different products to their customers. If a parent brought their children to the store and they were getting on their nerves they could simple drop them of in the child care center. Wegman's tried to make it easiest as possible on the customer to make them happy and satisfied so they would return and support their company.

The culture of Wegaman's relies on providing their people with the best products, service, incentives, and programs to maintain them as loyal employees or customers. Wegman's does a lot for the community . It started a Work-Scholarship Connection program. This program helps kids who are thinking of dropping out of school due to bullying, grades, or certain other issues. They take this kids in and give them part-time jobs and a teacher that would train them to do their job along with their school work. If the student was successful in both areas, the student would get a 5,000 scholarship to a college of their choice after graduating form high school.

Danny Wegman is the man that makes this business one of the best companies to work for according to Forbes. This is because of the leadership strategy that Danny possesses in the workplace on a daily basis. Wegman's management team is very informative and accessible to their employees. They make you feel as if you are part of a family. The management team is always visible to employees and customers, as they walk down the aisles and says hello to you and see how you are doing. Some companies have their management team in a office all day and you never have the chance of talking to them or giving any in point you might have to help the company grow and expand. Wegaman's not only allows employees to participate in meetings to discuss professional and personal issues, but it is highly encouraged that they do so. This allows the executives to get inside feedback directly from their employees to see how they are doing and could they improve their company in certain ways. Wegman's also wants to hear from their customers. There are survey forms that are sent in a newsletter or magazine articles to hear what their customers are experiencing while shopping at Wegman's.

Wegman's is a very successful company because of their CEO Danny Wegman's leadership. Danny knows that to become a success in business you must be backed by your employees, customers, and community. The skills that Danny uses to have the support of those individuals are communication, team work, and being friendly and accessible throughout the community. Danny kept the lines of communication open between himself and the people he hires and provided his service towards. He does this by allowing for feedback by customers filling out survey forms and employees being active in the meetings of the company. Team work is shown through managers, stockers, cashiers, and all others being on the floor together working as a team. Thirdly community service is shown by offering programs to children struggling in school and allowing them a chance to learn the ways of Wegman's by being part of the organization and getting help in there eduction. Wegman's is a grocery store that knows how to attract and retain customers.

Wegman's is an excellent example of how a company can innovate their ideas and become a leader in the business world. Danny Wegman was the man who made this all happen by his willingness to listen to his employees, customers, and community to help him make his business and rewarding them with a friendly environment to work at, shop at, and learn from in their lives.

Have you ever worked for a company that cares so much about their employees, customers, and community? If so, Were did you work and what made them such a success in your eyes?

http://www.wegmans.com
www.good2work.com/article/5029

Posted by: Mitchell Terry

Successfully Changing South Africa's Culture

Nelson Mandela’s tactical decision to change his political movement from peaceful rallies to physical conflict proved to be one of the worst, although one of the greatest decisions he ever made. I find this to be one of the worst decisions in the fact that a transformational leader should never resort to violence, which also cost Mandela over 27 years of his inspiring life in prison. His time spent in prison, however, was not wasted as his message spread across South Africa and inspirationally motivated its citizens to seek an even power distance across their country between blacks and whites. Although imprisoned, Mandela’s power still reigned across the nation and intimidated the South African government as stated by A&E television network, “A 1981 memoir by South African intelligence agent Gordon Winter described a plot by the South African government to arrange for Mandela's escape so as to shoot him during the recapture (2010).” A&E television network later declared that the plot was foiled by British Intelligence, thus ensuring Nelson Mandela’s safety. While inside of prison, Mandela sought to better himself by writing an influential autobiography titled, Long Walk to Freedom, which revealed much of his life and in essence helped him better understand himself along with his cause. During this time of self-enhancement there was an immense amount of national and international pressure from around the world demanding the release of Nelson Mandela. With mounting pressures on all sides of the South African government President Frederik Willem de Klerk announced a new life for Nelson Mandela when he ordered his release in February 1990.

After 27 years of imprisonment, I believe Nelson Mandela had a renewed urgency to share his message for the good of his people along with a newly established need for achievement as he essentially picked up further ahead than he left off. Following his release, a conscientious and empowered Nelson Mandela took a directive leadership approach by pushing for foreign nations to not reduce their pressure on the racist South African government. This was also a proactive strategic decision to not let up on the stress faced by the South African government, and provide more empowerment to anti-government activists. His momentous growth in popularity while imprisoned and push for new government reform proved their value as he was elected President of the African National Congress in 1991. I found that Nelson Mandela recognized to achieve permanent change in the nation that there would need to be a new constitution implemented. Over the next three years Nelson Mandela struggled with the South African government to negotiate a new national constitution because he knew the importance of that document for national change. He later would find out that will he receive a vast change in job enlargement and enrichment before this could be accomplished. As described by A&E television network, “Negotiation prevailed, however, and on April 27, 1994, South Africa held its first democratic elections. At age 77, Nelson Mandela was inaugurated as the country's first black president on May 10, 1994, with de Klerk as his first deputy.” After a lifetime of oppression and struggle Nelson Mandela was now in a powerful position to erase segregation forever. It is my belief that his first order of business as President was to establish some sort of affirmative action program to help eliminate faultlines and institute procedural justice in the South African government. This affirmative action desegregation program began by employing many black South Africans in government positions, as well as utilizing the country’s most popular sport of rugby promote equality among blacks and whites. A recent movie, Invictus, also does a great job depicting Mandela motivating black South Africans to support the national rugby team which was once racially biased against black citizens. During this time of promoting equality amongst the nation’s citizens, Nelson Mandela was continuing his work on establishing a new constitution. According to the A&E television network, “In 1996, he signed into law the new South African constitution, which established a strong central government based on majority rule and guaranteed rights of minorities and freedom of expression (2010).” For three more years he would regulate and demonstrate strong social responsibility as President of South Africa before his retirement in 1999. Nelson Mandela would forever change the organizational behavior of a racist government, and help eliminate the surface level diversity in a segregated nation because of his transformational leadership.

Nelson Mandela’s life has struck the hearts of many people throughout the world as his transformational leadership approach accomplished his terminal goal of equal diversity amongst all citizens in South Africa. Nelson Mandela has experienced a great feeling of job satisfaction from changing the government’s environment and knowing the nation of South Africa’s culture is at peace. Even with these accomplishments, however, he has continued to demonstrate strong organizational citizenship behavior for his country. He has displayed this through corporate social responsibility as he promotes the equality found in South Africa around the world, and still helps the nation’s citizens by building schools along with other various charitable projects. His self-management and innovative leadership abilities may have even influenced the world’s citizens to not accept tyranny from a government as progress is seen in the Middle East and North Africa today. Nelson Mandela is a true illustration of a transformational leader because even after reaching his need of self-actualization, he still continues to give back to the world.

“It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger. Then people will appreciate your leadership”
-Nelson Mandela

Can you think of a transformation leader of change that has had a similar influence on people as Nelson Mandela has done? If so could you please describe why you believe this to be true? If not, do you have any predictions for who you believe may be the next transformational leader in the world?

-Zach Seibel

Works Cited:
A&E Television Networks (2011), “Nelson Mandela Biography,” (accessed March 3, 2011), [available at http://www.biography.com/articles/Nelson-Mandela-9397017]

Monday, March 14, 2011

Transforming the Goals of One’s Own to an Entire Nation

In the mid-1900’s South Africa, similar to the United States at the time, was a nation of racism and oppression against black citizens as alliances were established among minorities to create equal rights amongst whites and blacks in the nation. A transformational leader throughout this movement was Nelson Mandela, who during a time of tyranny employed inspirational motivation for change in a peaceful fashion for his black South African followers. He is one of the few individuals that have strived to change the organizational behavior of an entire national government. I believe that Nelson Mandela’s stable terminal values of equal rights for all amongst everyone in South Africa led to the instrumental values of directing a peaceful black movement. However, many of these followers would also need to be intrinsically motivated as well, because of the government oppression felt by most black South Africans. Mandela was actively enrolled in South Africa’s African National Congress, which an organization formed to promote equal rights for black South Africans. Mandela instituted a directive leadership role to organize petitions so that he and his inspirationally stimulated black followers would conduct rallies in a peaceful manner against the racist policies of South Africa’s government. I suppose this required a great amount trust from Nelson Mandela in his peers, as there would be potent opportunity for violence to break out between the predominantly white South African Government and the black African National Congress.

After 20 years of leading peaceful rallies, I believe that Nelson Mandela was experiencing a degree of burnout from the high level of stress he was dealt within his position as an equal rights leader based upon the few positive results he could show from his job-performance. This holds true because, with little to no change in the rights of black South Africans, an intrapersonal conflict arose in Nelson Mandela as he began to seek other methods in his resistance for change in the nation. According to A&E television network, “In 1961, Mandela, who was formerly committed to non-violent protest, began to believe that armed struggle was the only way to achieve change (2011).” He then made the tactical decision to found an armed faction of the African National Congress, which was dedicated to sabotage and guerrilla warfare tactics. This is proof that Nelson Mandela’s goal commitment for equal rights in South Africa was so important that he changed his instrumental values in order to feel positive self-efficacy. In my opinion this change from peaceful coalition political rally tactics to physical struggle would prove to be one of the worst, although one of the greatest decisions Nelson Mandela had ever made in which I will discuss this in my next blog post. Shortly after this strategic alliance was implemented, a three day workers strike was led by Mandela. One year later he was then arrested for organizing the movement and was sentenced to five years in prison for the strike. Two years after his imprisonment, Mandela and several of his followers were brought to trial where they received the ruling of life imprisonment for their political offenses. Although imprisoned, Nelson Mandela’s pursuit of equal rights and legend of influential leadership built a degree of self-esteem in black South Africans which would forever change the nation.

Nelson Mandela is a recognizable name all around the world for his accomplishments as proven in the first half of my two part blog postings related to his transformational leadership abilities. He has demonstrated transformational leadership in South Africa because he has taken his terminal values, set goals for the nation based on those principles, and aligned them with followers. It is evident that Mandela has utilized all different aspects of his leadership ability to effectively motivate and influence his followers in order to change the culture of an entire nation. Nelson Mandela’s rise to power in the nation of South Africa is also a testament to organizing his coalition tactics, or a group of individuals working together toward a common goal to influence others. He was able to organize groups of followers, who of which influenced others, by utilizing his charisma, creativity, and building trust. It is for these reasons that Nelson Mandela is a Nobel-Peace Prize Winner and transformational leader across the globe.

Do you believe that Nelson Mandela could have avoided the actions guerrilla warfare and sabotage? If so, what are some alternatives he should have taken before making the tactical decision of violence in order to efficiently, and effectively lead the African National Congress’ goal of establishing equal rights among all citizens of South Africa?

-Zach Seibel

Works Cited:
A&E Television Networks (2011), “Nelson Mandela Biography,” (accessed March 3, 2011), [available at http://www.biography.com/articles/Nelson-Mandela-9397017