2. WillHutton, The Observer: ModernCapitalism is at moraldeadend.. Chiefexecutivesmaketoomuch money 47 timesavg. workerpay in 2000, 81 times in 2010 And havelostsight of what’simportant Ove Arup: excessivepersonalpaydivideratherthanunitecompanies – dividedorg. Collapse John Lewis: Differences of rewardmustbelargeenough to encourage to perform, butpresentdifferencesaretoogreat (in 1957) Arup, Lewis: Firmsaremoralenterprises, point of profitserves the business purpose of the firm
3. ProfessorJeffreyPfeffer (Stanford)in Newsweek American business practicesaregoing to the wrongdirections Companiesweakenthemselvesbyfiringpeople as problemsolving Workmoralegoesdown, harder to hire new people After 9/11 americanairlinesfired a lot of people ExceptSouthwest - no peoplefired in 40 years* Nowbiggestairline in U.S. and doeswellunlikeothers Employeeswellmotivated, strongcompanyspirit * due to productivityorefficiencyreasons
4. John Hagel III, John Brown, Lang Davison: AreallemployeesKnowledgeWorkers? Executivesidentify the talent in theirfirm Top tiers of management and knowledgeworkers When the focus is in knowledgeworkers, the sight in rutinizedjobimprovization is lost Fasttalent and performanceimprovementhasbeenmeasured in outsourcedjobs Callcenters and manufacturing in India and China Whenworkersarepart of firmsthatviewthem as core to createvalue, verycreatingproblemsolving Japanese Auto manufacturersseeemployees as knowledgeworkers and problemsolvers
5. Jim Collins: How the mightfall: And WhySomeCompaniesNeverGive In The fall of mostsuccesfulcompaniesstartsfrom the success and escalates in fivesteps Step 1: arrogance in top management Step 2: trying to grow to areaswherethere’s no competenceand forgetting the core business Step 3: badsignals, butcompanystilldoes OK Top management blames the environment Step 4: problemsarise- new management changemanagerstry to find a ”silverbullet” Step 5: Managers and employeeslosefate Company is ruined According to Collins, this is whathappened to GM
6. ResilientPhilosophy WasedaUniversitylecturerNaoshiTakatsuhad a coursenamedcreatingvalue in business Some main pointsfrom the course Onlycompanieswithresilientphilosphyprevail in the long run (Checkforture 500 from the 70’s) Philosophyhas to behighergoalthanprofits Philosophy and itspurposehas to beactivelystrengthened and communicated Philosophywillunite the company, and keepit in the righttracks
7. Conclusion I donotknow the rightlevel of compensation for top executives whenit is the rightdecision to firepeople whenclassification of employees is beneficial How to recognize a downfall for a companyhasstarted But I dobelieve Thatorganizationhashugeproblemsifitsdivided Thatbestresultsareachievedwheneverybody in the organization is trying to achieve a common goal Thatthiscanbeachievedbystrongorganizationalphilosophy And thatthisappliesalso to otherorganizationsthan just companies, i.e. Universities