CanFit Pro Firms of Endearment

How world class companies profit from passion & purpose.
What we can learn from them to make our businesses stronger.

@JTActiveMgmt #CFPT011 To get a free copy of the complete notes go to www.slideshare.net/JTActiveMgmt

What is a FoE in Corporate Speak?

A company that endears itself to all stakeholders by bringing the
interests of all stake holder groups into strategic alignment.

These companies meet the tangible and intangible needs of their
stakeholders in ways that delight them and engender affection for
loyalty to the company.


Which means . . .
FoEs strive for a share of the heart with every one they
interact with:
• They earn a share of the customer’s heart and will then
gladly share a bigger portion of their wallet;
• They earn a share of the employee’s heart, who will
then take a quantum leap in productivity & work quality;
• They emotionally bond with their suppliers, which
means a benefit to them in responsiveness and superior
offerings; and
• They give communities reasons to feel pride in your
presence in the community.


Which means . . .


Who We Are
These five statements explain what we‘re all about:
1. We care about and listen to our people.
2. High standards are a way of life. We pursue excellence in
everything we do.
3. We make a difference in every community we serve.
4. We respect our people.
5. We empower our people to make decisions that improve their
work and benefit our customers and our company.


The President, Danny Wegman says, ―Something
our competitors don‘t have & our customers can‘t
get anywhere else is our staff ‘s knowledge.‖


For their Team:
• Up to 2 months per year with full pay, to volunteer with an
environmental cause of their choice.
• ‗Green benefits‘ - $2K rebate in you purchase a hybrid vehicle,
• ―Brain Food Classes‖ on surfing, yoga, time management,
business communication, even European history!
• Cafe serves healthy, local & organic food
• Subsidised on-site child care – parents often have lunch with the
kids in the company cafe.


For their Suppliers:
They must meet specified quality, environmental compliance and
social responsibility standards.

Why do supplier often undertake restructuring to be a Patagonia
supplier?
• The high regard Patagonia have for their suppliers.
• They know they choose their suppliers based on quality,
responsiveness and social conscience not price.


Every one to two years they choose an environmental crisis to devote most of our energy
towards (see our Current Campaign), but that doesn't mean we turn our backs on other
important issues. Here you'll find information and action alerts on environmental issues that
won't necessarily appear in our catalogues or retail stores:
* Arctic National Wildlife Refuge
* Oceans as Wilderness
* Don‘t Dam Patagonia
* Stop Global Warning March


Good Neighbours Stay Vitally Connected

Throughout Harley-Davidson's history, the Company has remained
vitally connected to neighbours and neighbourhoods in all the
communities where we have facilities, eager to reach out with a big heart
and a helping hand. Together, Harley-Davidson and its employees strive
to open NEW ROADS OF POSSIBILITY for others... starting in our
own back yards.
One of Harley-Davidson's core priorities is to support the communities
where we have facilities. The company and the Harley-Davidson
Foundation accomplish this by supporting various community programs.
Our employees also contribute time and money.


54% share of the market in the US, 16% in Japan, 10% in Europe, 38% in Australia –
could have more but have agreed with US dealers not to sell more than 30% of it‘s supply
of bikes overseas, in order to meet the domestic needs first.

They ask 50 employees each year to help review company grants and company giving.

Harley Davidson Learning Centre for staff to continuously learn and train to do their jobs
better plus other functions within the organisation.

Understand unions are a stakeholder, so involve them in planning for the company‘s
future


Starts with a week long orientation: Foundation Week, where the store manager will spend
one full day with them.
Tagline: ‗Contain yourself ‘
Staff encouraged to ―Think out side the box‘
They have a ‗Fun Committee‘
241 hours of training in year one compared with 7 as the industry standard and then 160
hours each year thereafter.
Financial statements are available for all the staff, even though it is privately owned.


Five core values: safety, caring, integrity, fun and passion.
New employee orientation consists of 1 hour with President Dave Barber & 1 hour with
CEO David Neeleman on airline economics & 1 hour with Vincent Stabile, VP of People,
for a discussion on company culture & values.
People Department instead of Human Resources Department
JetBlue‘s CEO, David Neelman flies the airline at least weekly and walks the aisle talking
to customers.
JetBlue Crew Member Crisis Fund – every staff member contributes to a fund which is
accessed if an employee is in crisis.
3P‘s – Great people drive solid performance which generates prosperity for all.
Support more than 75 charities per month in the cities they serve. These are donations
usually of round trip vouchers.


http://www.jetblue.com/p/about/ourcompany/promise/Bill_Of_Rights.pdf


In it‘s early years the employees came up with a plan to run a 4 plane
schedule with just 3 planes. To do this everyone pitched in
(including pilots) to turn the plane around in 10 minutes!

―Recognising that our people are the competitive advantage, we
deliver the resources and services to prepare our people to be
winners, to support growth & profitability within the company, while
preserving the values and special culture of Southwest Airlines.‖


‗Culture Committee‘ which has 96 employees nominated by fellow
staff from al levels of the company to ensure the corporate
culture: ‗do whatever it takes to create, enhance, and enrich the
special Southwest spirit and culture that has made it such a
wonderful company/family.‘

―A company is much stronger if it
bound by love rather than be fear.‖


―20% Time‖ – employees can spend 20% of their time at work
working on individual projects. This has lead to new company
offerings!

To help with work-life balance they offer: gourmet food, free
massages, dry cleaning, counselling, legal services, showers, a games
room, doctor on site and fully equipped gym.

Employees who work on outstanding company projects receive the
‗Founder Award‘ – the first two have been restricted stock worth
$12m!


―Shareholders are better off in
the long run when the
company is doing good things
for the world even though they
might have let go some profits
in the short run.‖
Larry Page & Sergey Brin
Founders


Core values: humanity, humility, integrity, and excellence

They check computer log in times and if there are strange hours or week end work, they
realise that that individual has a lack of resources and staffing.

―Nothing is more wasteful than to burn up people,‖ Jeffrey Swartz, CEO

―At the centre of our challenge as an enterprise is a fundamental obligation
to innovate and operate as a community of leaders—aligned around a set
of values: humanity, humility, integrity and excellence. More than mere
words, these beliefs stand at the foundation of all we pursue—in
relationships with stakeholders, as stewards of the company‘s mission,
and as engaged citizens committed to sharing strength in our global community.‖

Jeff Swartz, President & CEO, The Timberland Company


Within a 2 year period they helped 20,000 part time employees
attend college – ‗Earn & Learn Program.‘ They worked with
242 Colleges to defer billing to students to make education
more affordable and encouraging involvement.

30,000 employees have much of the company‘s available shares,
which means they ‗own‘ the business and this will more likely lead
to going the extra mile for the customers.


―Triple bottom line‖:
• Economic – return on equity
• Social – employer of choice index, total charitable contributions,
car accident frequency
• Environmental – fuel efficiency, emission targets, noise
requirements

―We place great value in the transparency of our
business and the ways in which we hold ourselves
accountable.‖ Michael Eskew, CEO


One of the fastest organically growing banks in America

The Service philosophy: ―Involved today, Improving tomorrow."

‗Yes Bank‘ – it takes one person to authorise a loan and two to say
‗no‘, so they emphasis to the community that taking a loan is not
stressful by calling themselves the Yes Bank.


WOW department lead by Dr Wow and this where all the praising
emails, letters and call go to. WOW Awards Ceremony – employees
walk down a red carpet and are given trophies from the CEO

‗Kill the Stupid Rule‘ – if employees suggest a better way of doing
things they are paid $100.


WOW department lead by Dr Wow and this where all the praising
emails, letters and call go to. WOW Awards Ceremony – employees
walk down a red carpet and are given trophies from the CEO

‗Kill the Stupid Rule‘ – if employees suggest a better way of doing
things they are paid $100.

―You are all cult members and if you can‘t
buy in, this isn‘t a place for you.‖
Vernon Hill


The CommerceWOW!Zone is a financial literacy program that teaches children about the
value of money. By reading stories and participating in activities and games, your child will
learn financial skills that are applicable in the real world.

The CommerceWOW!Zone.com is a safe site for your child to explore, and is fully
compliant with the COPPA laws outlining Internet safety for children. If you'd like to
learn more about COPPA, please click here.

Additionally, we provide parents with worksheets that help you introduce the concepts of
money and the principles of saving, banking and investing to your child.

Commerce Bank can also create a program or provide a tour of your local store for your
civic or community group.


New Balance Foundation
Our core focus is the prevention of childhood obesity, an important endeavour we believe
will significantly contribute to the overall health and well being of our communities.

At the same time, we recognise the additional needs of our local communities and
strategically contribute to other program areas primarily targeting underserved youth.

Our secondary program areas include Education & Athletics, Health & Human Services,
Arts & Culture and Environment.

The Foundation also responds to Disaster Relief around the globe as needed.


Nike Values New Balance Values

Winning Improvement of self

Roar of the crowd Inner harmony

Extreme effort Balanced effort

The smell of sweat The smell of nature

Physical development Spiritual development

Nike appeals to the youthful masculine, New Balance appeals to the feminine
narcissistic self others-centred experiential self


Core values: togetherness, enthusiasm, constant desire for renewal,
humbleness, will power, cost consciousness, simplicity, leadership,
diversity

No travel on week ends

Managers to mentor staff through challenges and regular surveys to
gauge morale levels of staff

Suppliers of wood must meet the global standards they have set, they
relate to environmental standards – elimination of harmful chemicals,
appropriate packaging.


Our responsibility
Low prices are the cornerstone of the IKEA vision and our business idea - but not at any
price. At the IKEA Group, we believe that taking responsibility for people and the
environment is a prerequisite for doing good business.

Working conditions
IKEA products must be manufactured under acceptable working conditions by suppliers
who take responsibility for the environment. IKEA's code of conduct defines what suppliers
can expect from IKEA and specifies what IKEA requires from its suppliers.

And more . . .
Climate Change . . . Forestry . . . Child Labour . . .Global Community Involvement . .
National & Local Community Involvement . . .Partnerships with Stakeholders.


The employees:
1. Respect for employees – they treat the staff member as a whole person & not part of the
production. They show this be allowing decision making, regardless of their position in the
company.

2. Transparency – FoE‘s have open book management, there is no paranoia.

3. Team building.

4. Empowerment – FoE employees generally have the authority to spend whatever to fix a
customers problem or make them happy.

5. Fun & balanced – promoting a fun, productive environment is great for current staff but
an attractive feature for new staff.


The employees:
6. Balance & flexibility – FoE believe that if employees can continue to meet their
personal needs & obligations while fulfilling their professional commitments by the
FoE being flexible then everyone wins.

7. In regard to training FoEs are exemplary on their focus on helping employees
maximise their potential and to do so they run their own ‗Corporate Universities‘

8. Celebration-intensive cultures – it all about having a party when the FoE succeed!

9. Believe in Jim Collin‘s statement of ‗the right people in the right seats on the bus‘ but
FoE‘s believe that if they have the right culture then the right people will beat your
door down wanting to work for you.

10. FoE‘ are superb recruiters, managers, developers, & motivators of human talent. They
know how to and do build empathetic bridges to their people‘s minds.


The culture of FoEs
• Culture of Learning – dedication to be a learning environment.
• Culture of Trust – trust is the lubricant that allows companies, employees, customers
and other stakeholders to operate with minimal frictions and maximum harmony.
• Culture of Interdependency – the working together of all stakeholders, so every one
wins and everyone is strengthened.
• Culture of Integrity – only the highest level of integrity will be accepted by FoE‘s.
• Culture of Transparency – in a world that allows easy access to information, FoE‘s
welcome this and are comfortable with sharing their business with all stakeholders.
• Culture of Loyalty – Fred Reichheld said in his book the ‗Loyalty Effect‘ that ―major
companies replace half their customers in 5 years, half their employees in four and a half,
and their investors in less than one.‖


The culture of FoEs
• Culture of Respect – FoE‘s respect all stakeholders and do what it takes to ensure that
respect.
• Culture of Belonging & Oneness – Abraham Maslow placed this as number 3 in his
hierarchy of human needs – above physiological & safety needs. Average companies satisfy
the physiological needs & safety needs but the FoE‘s create an atmosphere of ‗love' between
employees, customers and stakeholders so they all feel a sense of ownership and belonging.
• Culture of Caring – nurturing of all stakeholders as if they are members of an extended
family
• Culture of Fun – there is an emotional bond between all stakeholders when they laugh with
each other.


And where are you?
Management salaries are relatively modest?  Yes  No
Open door policy at the management level?  Yes  No
The employee‘s remuneration & benefits are significantly greater than the industry
standard?  Yes  No
You devote a more time and money into training staff than your competitors?
 Yes  No
Your employee turnover is far less than industry averages?  Yes  No
You empower staff to make sure customers leave with a fully satisfied experience?


And where are you?
You make a conscious effort to employ people who are passionate about the you & the
product of health & fitness?  Yes  No
You try to ‗humanise‘ the company experience for customers & employees?
 Yes  No
You project a genuine passion for customers & emotionally connect with them?
 Yes  No
Your marketing costs are much lower and customer satisfaction & retention is higher
compared to others in their industry?  Yes  No


And where are you?
You view the supplier as a true partner and encourage them to help move the company
forward?  Yes  No
You honour the spirit of the laws not just the letter of the law?  Yes  No
You consider their corporate culture to be the greatest asset and primary competitive
advantage?  Yes  No
You are innovators & breakers of conventional rules for the industry?  Yes  No

___ Yes ___ No

Here is the challenge for you . . .
―The real leader is not the person with the most distinguished title, the highest pay, or the
longest tenure. The real leader is the role model, the risk taker. The real leader is not the
person with the largest car or biggest home, but the servant; not the person who
promotes himself or herself, but the promoter of others; not the administrator but the
initiator; not the taker but the giver; not the talker but the listener.

Servant leaders believe in the people they lead and are always ready to be surprised by
their potential. Servant leaders make themselves available. Servant leaders are committed
– they are not simply holders of position. They love and care for people they lead.

Leadership is both an art and a science. Everyone is a leader and everyone can also be a
servant.‖

William Pollard, Chairman of ServiceMaster,1997


Justin Tamsett
B.Ed (Phys & Health Education)
Feel free to contact JT: jt@activemgmt.com.au
Follow JT on Twitter: @JTActiveMgmt
To read JT‘s blog: www.justintamsett.com
Become an Active Management Fan on Facebook: www.facebook.com/activemanagement
And for more information on Active Management helping your business go to: www.activemgmt.com.au

"What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others."
Pericles


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