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You are here: Home / Archives for 5 - Industries / Business

The True Meaning of Justice in the Workplace

December 12, 2011 by Matt Perman

Biblically speaking, to be just means to use your strength on behalf of the weak.

Justice most certainly includes an overall “fairness” and truth and integrity and honesty and refusing to show partiality.

But the essence of justice goes beyond that.

The essence of justice is that those with greater authority and influence are to use their stronger position in service of those who are in a weaker situation.

Helping those in a “weaker situation” might mean helping those suffering from poverty or sickness or some other harm, but it doesn’t have to be. It means helping anyone without the influence of formal authority you have. Which means, if you are a manager or leader in an organization (or in politics or anywhere), that it includes those who work for you.

Some people think that the biblical commands to be just in this sense and their corollary, radical generosity, do not apply inside the bounds of an organization. Inside an organization, “business rules” apply, which is interpreted to mean that people must be impersonal (a distorted notion of the concept of being “impartial”) and that doing things for your own advantage primarily is correct and right.

But this is wrong. The biblical commands to be generous and to be just apply in all areas of our lives, without exception. The Golden Rule (Matthew 7:12) and commands to be merciful as God is merciful (generous to all, especially the undeserving, Matthew 5:43-48) do not cease to apply at our jobs and in our work and in our organizations. They are not simply for the personal realm.

Their manifestation may look different in each area of life. But these principles of justice and generosity still apply in every area of life and we must be diligent to apply them in all areas.

So, here’s one example. Let’s take the workplace. Being just and generous in the workplace means that, if you are in authority over people, you use that authority in the service of everyone you interact with — including those in the organization who directly work for you, those around the organization who don’t work for you but you are in a position to influence, and those outside the organization that you interact with. It means you see yourself as the servant of all, and that you see your authority and position and role as existing not as some statement of how great you are or how hard you’ve worked, but rather as existing for the sake of those around you. Your authority exists to do them good.

Now, immediately here we run into “the fallacy of doing good,” which is the tendency of people to act contrary to the purpose and role of their vocations in in their attempts to “do good,” which ends up making things worse. One example might be a chef at a restaurant who gives away dozens of free meals every night out of a spirit of generosity, when it’s not his restaurant and the owner has not given him the authority to do that. In this case, the chef’s generosity of spirit is right, but the way he carries it out is not. (If he owned the restaurant or had been given the leeway to do that sort of thing by the owner, however, go for it!)

So, what does using your authority and role to “do good” at your job look like when done right? A lot could be said, but let me just say one simple, yet core, thing.

It means being for the people who work for you. Which means believing that they can excel and do good work and make a contribution, even when few other people might be able to see it. And it means using your influence to give them opportunities and, yes, advance their career whenever you have the chance.

Note I’m not saying you shouldn’t be smart and discerning. But I am saying that you should have a default belief in people and therefore do whatever you can to give them a chance, to give them greater opportunities, and to give them a break whenever you can and whenever it seems they will be able to meet the opportunity and succeed in it.

And it means, even when you aren’t in a position at the moment to help advance someone or given them an opportunity, that you are encouraging and always seek to be the type of person that builds others up and helps them get better at what they do.

So much here is about your spirit and attitude — the disposition you have and with which you carry yourself. You need to see yourself as existing for the good of others, and charged with the responsibility from God to use any influence, authority, and resources you have in service to others.

But note that I’m not simply saying “be for other people.” That is a critical thing. But it’s not enough, because it’s so easy to say that we are “for” someone but never take action. It’s easy to say words that we don’t back up with our behavior. The true disposition of a servant is to be for people and to be diligent and forward and effective in identifying ways to promote their welfare.

This is a call to give thought to improving in both our dispositions and our concrete actions. See yourself as existing in your role for the good of others, and be proactive in finding real opportunities to use your authority and influence and resources to serve others and build them up.

That’s a how true Christian operates in his job and lives his entire life.

Filed Under: Business Philosophy, Justice, Work

Google and Amazon on The Importance of Taking the Long-Term View

June 22, 2011 by Matt Perman

It is noteworthy that two of the companies that have made the greatest impact over the last ten years, and continue to do so, have explicitly rejected the common approach of focusing on the short-term over the long-term.

They have both done this in spite of the fact that, when becoming public companies, the pressure from Wall Street is precisely to focus on the short-term. Many companies give in to this, and thus fail to become great. Google and Amazon stated from the start that they would resist this temptation and continue to think long-term, in spite of the pressure. This is a good lesson that is applicable to all areas of life, and is essential to effectiveness: take the long-term view, even when it is challenging.

Here’s what Google had to say in its founding IPO letter:

Our goal is to develop services that significantly improve the lives of as many people as possible. In pursuing this goal, we may do things that we believe have a positive impact on the world, even if the near term financial returns are not obvious. For example, we make our services as widely available as we can by supporting over 90 languages and by providing most services for free. Advertising is our principal source of revenue, and the ads we provide are relevant and useful rather than intrusive and annoying. We strive to provide users with great commercial information.

We are proud of the products we have built, and we hope that those we create in the future will have an even greater positive impact on the world.

As a private company, we have concentrated on the long term, and this has served us well. As a public company, we will do the same. In our opinion, outside pressures too often tempt companies to sacrifice long term opportunities to meet quarterly market expectations. Sometimes this pressure has caused companies to manipulate financial results in order to “make their quarter.” In Warren Buffett’s words, “We won’t ‘smooth’ quarterly or annual results: If earnings figures are lumpy when they reach headquarters, they will be lumpy when they reach you.”

If opportunities arise that might cause us to sacrifice short term results but are in the best long term interest of our shareholders, we will take those opportunities. We will have the fortitude to do this. We would request that our shareholders take the long term view.

And here’s what Jeff Bezos had to say in Amazon’s 1997 founding IPO letter (to get to it, just scroll down beneath the 2010 letter):

It’s All About the Long Term

We believe that a fundamental measure of our success will be the shareholder value we create over the long term. This value will be a direct result of our ability to extend and solidify our current market leadership position. The stronger our market leadership, the more powerful our economic model. Market leadership can translate directly to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital.

Our decisions have consistently reflected this focus. We first measure ourselves in terms of the metrics most indicative of our market leadership: customer and revenue growth, the degree to which our customers continue to purchase from us on a repeat basis, and the strength of our brand. We have invested and will continue to invest aggressively to expand and leverage our customer base, brand, and infrastructure as we move to establish an enduring franchise.
Because of our emphasis on the long term, we may make decisions and weigh tradeoffs differently than some companies.

Accordingly, we want to share with you our fundamental management and decision-making approach so that you, our shareholders, may confirm that it is consistent with your investment philosophy…

Among the many lessons from these, here’s one of the key ones: The path to effectiveness is often unconventional. The conventional approach is often the easy, risk-free, uninspiring path of low impact. It often seems safer, but actually isn’t. Organizations that make a difference are those that, in the words of Mavericks at Work: Why the Most Original Minds in Business Win, “stand for a truly distinctive set of ideas about where [their] industry should be going.”

Filed Under: a Leadership Style, Business Philosophy

TOMS Shoes

August 10, 2010 by Matt Perman

TOMS Shoes has a really good concept:

One for One
TOMS Shoes was founded on a simple premise: With every pair you purchase, TOMS will give a pair of new shoes to a child in need. One for One. Using the purchasing power of individuals to benefit the greater good is what we’re all about. The TOMS One for One mission transforms our customers into benefactors, which allows us to grow a truly sustainable business rather than depending on fundraising for support.

Why Shoes?
Many children in developing countries grow up barefoot. Whether at play, doing chores or going to school, these children are at risk:

•A leading cause of disease in developing countries is soil-transmitted diseases, which can penetrate the skin through bare feet. Wearing shoes can help prevent these diseases, and the long-term physical and cognitive harm they cause.

•Wearing shoes also prevents feet from getting cuts and sores. Not only are these injuries painful, they also are dangerous when wounds become infected.

•Many times children can’t attend school barefoot because shoes are a required part of their uniform. If they don’t have shoes, they don’t go to school. If they don’t receive an education, they don’t have the opportunity to realize their potential.

They are worth checking out.

Filed Under: Business Philosophy

Apple's Basic Philosophy

April 30, 2010 by Matt Perman

Steve Jobs, from an article in Fortune a few years ago:

“We don’t think in terms of power,” says Jobs. “We think about creating new innovative products that will surprise and delight our customers. Happy and loyal customers are what give Apple its ‘power.’ At the heart of it, though, we simply try to make great products that we want for ourselves, and hope that customers will love them as much as we do. And I think after all these years we’ve gotten pretty decent at it.”

This is another example of the importance of beliefs in an organization. It is yet another illustration (with the results that follow) of what Jim Collins and Jerry Porras found in Built to Last:

…truly great organizations think of themselves in a fundamentally different way than mediocre enterprises. They have a guiding philosophy or a spirit about them, a reason for being that goes far beyond the mundane or the mercenary.

And while we’re at it, here’s another example from A.G. Lafley of Procter & Gamble, in Harvard Business Review:

I learned many things from Peter [Drucker] over the years, but far and away the most important were the simplest: “The purpose of a company is to create a customer” and “A business…is defined by the want the customer satisfies when he or she buys a product or a service. To satisfy the customer is the mission and purpose of every business.”

At P&G we keep Peter’s words in mind with every decision. We declared that the consumer — not the CEO — is boss, and made it our purpose to touch more consumes and improve more of each consumer’s life. When we look at the business from the perspective of the consumer, we can see the need to win at two moments of truth: First, when she buys a P&G brand or product in a store, and second, when she or another family member uses that product in the home….By putting customers first, we’ve nearly doubled the number served, from 2 billion to 3.8 billion; doubled sales; and tripled P&G profits in the first nine years of the twenty-first century.

Filed Under: Business Philosophy

Drucker: The Essence of a Company is Making a Difference

April 30, 2010 by Matt Perman

Here is a very good summary of Peter Drucker’s thinking on “the essence of a company,” by Oscar Motomura in a recent issue of Harvard Business Review:

When I first met Peter Drucker, 15 years ago, he shared with me ideas that have deeply influenced my work ever since. Chief among them was that beyond just making a profit or creating wealth for stakeholders, the essence of a company is making a difference, being really useful, and creating something the world truly needs.

That higher purpose, Drucker pointed out, has to be something grand — like General Electric’s ambition to be, as he put it, “the leader in making science work for humanity” — and not superficial, like so many of the mission statements that companies have nowadays.

Why is such a creed so important? Because without a compelling raison d’etre, a company can’t hope to tap the full potential of its employees. “The number of people who are really motivated by money is very small,” Drucker told me. “Most people need to feel that they are here for a purpose, and unless an organization can connect to this need to leave something behind that makes this a better world, or at least a different one, it won’t be successful over time.”

Filed Under: Business Philosophy

Advice for Every Airline, Except Southwest and Perhaps One or Two Others

March 18, 2010 by Matt Perman

Filed Under: Business

Why Acknowledging Mistakes Increases Trust

March 2, 2010 by Matt Perman

From What Would Google Do?:

We are ashamed to make mistakes — as well we should be, yes? It’s our job to get things right, right? So when we make mistakes our instinct is to shrink into a ball and wish them away. Correcting errors, though necessary, is embarrassing.

But the truth about truth itself is counterintuitive: Corrections do not diminish credibility. Corrections enhance credibility. Standing up and admitting your errors makes you more believable; it gives your audience faith that you will right your future wrongs.

When companies apologize for bad performance — as JetBlue did after keeping passengers on tarmacs for hours — that tells us that they know their performance wasn’t up to their standard, and we have a better idea of the standard we should expect.

Also: “Being willing to be wrong is key to innovation.”

Filed Under: Business Philosophy

A Window into Facebook's Culture

February 26, 2010 by Matt Perman

Filed Under: Business, New Economy

More on the Importance of Beliefs in an Organization

February 22, 2010 by Matt Perman

“…truly great organizations think of themselves in a fundamentally different way than mediocre enterprises. They have a guiding philosophy or a spirit about them, a reason for being that goes far beyond the mundane or the mercenary.” — Built to Last

It is eye-opening to realize the critical role that beliefs play in organizations. For we typically think of beliefs mostly at the individual level. But it is the shared beliefs and values in an organization that play the biggest role in making the organization effective and meaningful, and a place where people want to contribute.

Filed Under: 4 - Management, Business Philosophy

The Importance of a Basic Philosophy to Every Organization

February 22, 2010 by Matt Perman

“The basic philosophy of an organization has far more to do with its achievements than do technological or economic resources, organizational structure, innovation and timing.” — Thomas Watson, Jr.

Who was Thomas Watson, Jr.? From Wikipedia: “Thomas John Watson, Jr. (January 14, 1914 – December 31, 1993) was the president of IBM from 1952 to 1971 and the eldest son of Thomas J. Watson, IBM’s first president. He was listed as one of TIME Magazine’s 100 most influential people of the 20th century.”

Filed Under: 4 - Management, Business Philosophy

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Matt Perman started What’s Best Next in 2008 as a blog on God-centered productivity. It has now become an organization dedicated to helping you do work that matters.

Matt is the author of What’s Best Next: How the Gospel Transforms the Way You Get Things Done and a frequent speaker on leadership and productivity from a gospel-driven perspective. He has led the website teams at Desiring God and Made to Flourish, and is now director of career development at The King’s College NYC. He lives in Manhattan.

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