Mitch Levin, CEO, Corporate Finance Solutions
A Wall Street Journal cartoon from 1969 showed an executive saying to his stockholders: “Even though your company faced spiraling labor costs, exorbitant interest rates and unconscionable government interference... management was able to show a profit that, in all modesty, can only be described as excessive through a combination of deceptive marketing practices, false advertising and price fixing, to show a profit which, in all modesty, can only be called excessive.”
A corporation with a highly personable president would not be a good fit for an arrogant dictator. As a result, the majority of management employees in most organizations or divisions tend to match the boss’s characteristics. Over time, the company takes on that personality. Since you are likely to be that leader, your people will behave more like you over time. That is usually great.
You have the power to shape the character of your organization and how people perceive it. Your identity. Consider the personalities of the members of your firm’s management team and how those personalities align with how you want the company to be regarded by others. Your image. Then determine which corporate qualities are important to you, your organization and its many stakeholders. Ensure that every member of your company’s management team is aware of those qualities and why you believe they are vital.
Clarify how you want the outside world to perceive your company and its character when employing new management. Make sure any new hires are as near to that character as possible.
Imagine a company with high personnel turnover and poor levels of corporate loyalty. This leads to trouble staffing up for expansion, especially during high activity periods. To address this issue, make your company the employer of choice in your market area.
Begin apprentice training and craft accreditation programs. Implement a project-specific bonus program for all field personnel who worked on jobs that exceeded profit targets. Publish an employee newsletter on your website and make sure that all field employees are aware of it. Interview numerous employees about their work environment and how you could improve it on a regular basis. Although you may pay more compensation, including bonuses, project execution and profits should improve. Your ability to staff those growth projects becomes a competitive advantage.
Ask some of your customers about your company’s personality in a survey or hire an outside expert to conduct a survey like this once or twice a year. Employ a similar surveying strategy with your suppliers. In addition, encourage your employees to fill out a questionnaire about their impressions of your company as a place to work and its market reputation.
Combine the findings of all the surveys to create a description of your company’s corporate personality. Then consider what modifications you would want to make to your character perception. If your company’s management team recognizes how important that perception is to their stakeholders, they may work collaboratively to change it.
You may not only improve the nature of your firm, you can also choose what it should be and then attain that goal. The end outcome should be appealing to your company’s consumers, employees, suppliers and shareholders.
Mitch Levin, CEO, Corporate Finance Solutions, specializing in mergers and acquisitions, succession planning, strategic planning and financing. For more information, visit www.cofinsol.com or call 888-885-5656.
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