I’ve been a manager many times throughout my job history. There’s a trap that most managers fall into - the trap of control. Basically, you want to lead your organization and guide them to shared success. What better way to do that than to optimize them around a shared objective? After all, once everyone is on the same page with what you’re trying to accomplish, then you can all march in lockstep to making it happen. And as an added bonus, since you’re one person trying to manage many, there’s a convenience to having one simple goal. You can say the same thing to everyone.
Unfortunately, this approach only goes so far.
You can rally a team this way, you can achieve goals this way, you can even have fun this way… for a time. But, in my experience, it’s not sustainable.
Less obvious, but more effective (in my experience) is the bottoms up approach. This means that your team or company isn’t about the goal of maximizing shareholder value, delighting customers, earning profit, raising the stock price, etc. It means that your company exists primarily to keep its employees happy.
Blasphemy? Yes. The good kind.
How many companies can you think of right now where management is being very clear about the shared goals they all must achieve (a good thing… right?) and yet a significant chunk of the employees are somewhere between discontent and miserable?
Happy employees don’t want to leave a company. Happy employees know the company needs to be profitable to move forward. Happy employees know a company needs financial stability so they can get paid and keep their jobs. Happy employees are happy to work together cause they’re not worried about covering their ass or looking good for an employee review process that pits them against each other.
Given that there are only three shareholders at Jackson Fish who also happen to be the only full-time employees, it’s easy for us to talk about focusing on employee happiness as opposed to shareholder value. Our test will come someday. But we’re not without some current examples.
We’ve come across projects that would have been great for us as shareholders, but not great for us as employees who had to do the actual work. Guess what… we passed. The employees won out over the shareholders.
In the meantime, the folks at WholeFoods and The Container Store are saying the right things:
“Simultaneously we hit upon the philosophy that I think will be the dominant philosophy in business in the 21st century,” Mackey says. “It’s this principle that the purpose of business is not primarily to maximize shareholder value.” That’s a little like saying the purpose of religion isn’t to achieve salvation.
What are your thoughts?