Creating the Environment for Success with Mike Frantz

September 23, 2011 By Leave a Comment

Creating the Environment for Success with Mike Frantz

By George Dise

What is success?  How do you achieve it?  According to Mike Frantz, a company like Starbucks maintains success through brand awareness and loyalty.  Mike believes that since a single negative experience stands out five times larger in the mind of a customer than a single positive experience, the number one most important thing to consider is consistency of service.  Well-picked co-workers tend toward providing positive service, but can occasionally lapse or make a mistake; the key to customer satisfaction is consistently providing the same service on a bad day that you’d provide on a good day.  While it may be difficult to maintain consistency throughout an entire brand, let alone a single franchise, it helps to formulate products and train employees to provide services that are always positive.  This is especially important for law firms like Frantz Ward- think about all the times people complain about “the lawyers” on TV.  “The lawyers say we have to do it this way,” “the lawyers say we can’t do this.” Like every business, law firms have to avoid being tarred as the company of no.  That’s why Mike thinks of- and advertises his services as- “figur[ing] out ways to get things done, not throw up obstacles.”  His firm exists to promote new ways of thinking to help clients get things done –to avoid obstacles.

Mike thinks the best way a lawyer should act in order to create an environment for success is as a “consigliere,” or trusted business advisor.  As a consigliere, he focuses both on what a client expects, and what a client needs.  In some cases, expectations may not meld well with needs, and clients need to be advised so they receive the maximum possible benefit from your company’s services.  In these cases, you have to give clients what they need packaged in a way that it appears to be what they want.  That requires a service provider to actively listen and figure out what keeps a client awake at night, then take an open-minded reconnaissance of the marketplace to figure out what other options are available.  With a thorough understanding of possible options, service providers need to take efficient and effective steps to resolve the issue.  Even if your client never figures out that their expectations and needs didn’t coincide, if you served them effectively, they’ll still ultimately realize that they did the right thing by hiring you, because your services provided a lasting benefit. [Read more...]

Filed Under: Filling key positions, Leadership, Managing Change Tagged With: , , , ,

Recruiting the Not for Profit Executive Director

June 29, 2011 By 2 Comments

Recruiting the Not for Profit Executive Director: Avoiding Serious Pitfalls

By George Dise

Executive Director search committees fall into three common pitfalls: too many members on the search committee, dragging out the process, and seeking candidates just like the incumbent.  Here’s how to avoid getting tripped up.

How large should the search committee be?  Five members is good, since an odd number eliminates ties in voting, and there are enough members that two can be absent from interviews.  More than five increases the chance of personalities clashing and dragging out decisions.  Or, there’ll be too many opinions to balance, dragging out the process.

When you’re putting together a search committee, it helps to mix in people who’ve experienced a search committee before with people who haven’t.  You’ll have more people on the board at the end of the search who now have experience working on a search committee.  It has the added benefit of forcing experienced members to justify their methods to newer members, forcing them to evaluate whether they’ve been doing it right.  Any bad habits the experienced members bring with them from other committees will be diluted.  It also helps to include representatives from different groups within the organization in the search committee.  When I worked with a search committee for a local high school an alumnus and a teacher were included on the committee to help ensure that the candidates were compatible with the character of the school. [Read more...]

Filed Under: Filling key positions, Leadership, Managing Change Tagged With: , , , ,

Influencer: A powerful way to effect positive change

May 21, 2010 By Leave a Comment

I speak with business leaders every day, and everyone says they want change, but few move beyond lip service because few really know how to effect positive change.

And that’s a shame—because as a leader—there is nothing more important than can do than to lead—to purposefully orchestrate organizational change.

There are tremendous barriers and roadblocks to change: mostly rooted in fear…, people are worried about losing their jobs, losing their earnings, or reducing their prospects of promotion. Inertia is another major roadblock—the force of old habits that die hard.

But the future of companies and entire communities hang in the balance.

Many of the ways we’ve been trained to manage change don’t work because too complicated, and they rely on the same old top-down communications that have proven time and time again to be ineffective.

Introducing Influencer

[Read more...]

Filed Under: Leadership, Managing Change Tagged With: , , , ,

How to Identify and Keep your “A” Players

March 24, 2010 By Leave a Comment

Based on a dialogue of leading HR Professionals at the Senior HR Thought Leader Forum at the Union Club in downtown Cleveland

It’s a fact—towards the end of a recession, when the economy starts perking up—the most talented people start looking around for other opportunities.

The best are in demand

Think about your very best employee—either in management or in the field. There are probably several people who come to mind—and really stand out.

Now think about what you would do if these people were to walk into your office and give you two week’s notice today. It’s a scary thought, isn’t it?

Invariably, it is the best people who are recruited away. So now, as the economy is starting to show signs of life, you should take action to keep your “A” players productive, happy, and manage the risk that they accept an “opportunity” with a competitor.

Who are your “A” Players?

[Read more...]

Filed Under: Filling key positions, Leadership, Managing Change Tagged With: ,

You are better than you think you are

February 25, 2010 By 2 Comments

If you’re a Leader you need to combat negativity and maintain a positive attitude (no matter what!)

Based on a conversation with John Milgram and Ralph Dise

“It can be lonely at the top,” but it doesn’t need to be, and it shouldn’t be.

Many people would be surprised at the number of successful corporate executives who feel like fakes—these are highly successful people who attribute their success to luck, timing, or coasting by with a great personality. This includes CEOs of big, successful companies.

Many of these CEOs feel lonely and isolated – and that’s precisely the problem. As a Leader you should not let yourself get isolated in the first place.

It’s understandable though, how Leaders can become lonely and isolated. In our culture, starting from a young age, many children are told “don’t do this”, “don’t do that”. We spend the first couple of years of our children’s lives teaching them how to walk, and then the next sixteen years telling them to sit down and shut up. When and if you’re called upon, it’s a sign of weakness if you say you don’t know something.

But being a Leader doesn’t mean you have to be Superman. Leaders are human, made of flesh and blood, and put their shoes on one foot at a time—like everyone else. Many of the best Leaders are very hands off – they’ve learned to delegate everything to their colleagues and subordinates.

As Leaders, if we’re going to be open to new opportunities, one of the most important things we can do is to work to better understand our own personal strengths and weaknesses, and the strengths and weaknesses of our organizations, and then enlist others—from the HR department to the people who are working in the field—to fight the good fight against our ingrained culture, and tell everyone who works with us: “You are better than you think you are.”

“It’s up to you to build a positive culture.”

As a Leader you must maintain a positive attitude, no matter what. But attitude and affirmations are not enough. You need to show you mean it, because actions speak louder than words. Follow through to better understand your people’s strengths—and then find ways to put them to good use. With use, your strengths—like your muscles—will naturally get stronger and more resilient.

“The Geography of Nowhere”

In “The Geography of Nowhere” (Simon and Schuster, 1994), James Howard Kunstler offers a scathing critique of America’s urban and suburban landscapes, with our endless highways, bedroom communities, and strip malls.

It’s really a critique of our culture. Unfortunately when you compare many parts of the United States to other developed countries, which have put a great emphasis on developing livable communities, it rings true. It should make us think about what constitutes a good human habitat, a good community—and if you’re a corporate Leader—a good organization.

Kunstler received great praise for his work, and like others who’ve worked hard and suddenly achieved acclaim and success, he found acclaim and success somewhat unsettling.

In his own beautifully self-deprecating words, Kunstler says:

“‘The Geography of Nowhere’ was moderately successful. It seemed to help people understand their feelings about a subject that had long bewildered them. I became something of a low-grade guru. I received many invitations to speak to civic groups, professional organizations, and colleges around the country. My initial reaction was panic that people were looking to me for illumination. What could be more natural than to feel unworthy of other people’s esteem? I am aware that many successful figures secretly feel like frauds, including people far more knowledgeable and accomplished than myself. This is apparently a universal neurosis. Everybody feels inadequate. I’ve since formulated a social principle called Kunstler’s Law, which states that: “In any room containing 100 people, 99 of them each think that they are the only one in the room who doesn’t have his-or-her act together.”**

As a Leader you need to stop the negative self-talk and the negative feedback

Kunstler‘s observation is dead–on target. Many CEOs, Corporate Chiefs, and Leaders feel like fakes and frauds, and secretly think: “If only someone really knew ‘the real me’, they’d know that I am a fraud (or a loser, or a jerk).” If you’re ever going to succeed, you need to stop the negative feedback and the negative self-talk. Stop it dead in its tracks.

Here are “Three things you can do to combat negativity“:

1. Surround yourself with positive people – Negative people and negative thinking will only bring you down. That doesn’t mean that you shouldn’t listen to bad news. You should just have a positive attitude when you hear it, and deal with it accordingly. It’s not what happens; it’s how you react to what happens that really makes the difference between a winner and a loser.

2. Listen to motivational tapes and read motivational books – You need to hard-wire your brain to think positively. Two of the best books ever written are ‘Think and Grow Rich’, by Napoleon Hill and ‘How to Win Friends and Influence People’, by Dale Carnegie. They’re classics. They’ve helped millions of executives and managers to get their heads on straight, so they can take advantage of the opportunities that lie in front of them.

3. Celebrate positive attitudes and open-mindedness – You should work always to have a positive attitude, no matter what. If you see someone maintaining a positive attitude despite the circumstances, especially when the going is rough, let that person know you really appreciate it. If one of your employees was faced with a difficult situation, and they work their way out of it, celebrate that success. If someone finds a new way to solve an old problem, praise him or her openly for looking at things with fresh eyes.

As a Leader you are responsible for your culture

If you are a Leader, you set the tone of your business, your household, your civic organization – whatever you do. If you’re a CEO, a division chief, a human resource Leader, or a father or a mother, you have people looking up to you. They will follow your lead, whether you’re leading by intention or by default—so be mindful of how you conduct yourself and the cues you’re giving them.

Do you create a culture of fear and intimidation? Do you tell your people what they should and shouldn’t do? Do you show them just how wrong they are? Or do you project confidence and tell your people that you trust them? Do you celebrate successes and tell your people that working together you can accomplish great things, that working together there’s nothing you can’t do?

If you’re a Leader, and there’s negativity in the workplace, it’s up to you to get rid of it. The tone of an organization is set by the CEO and the HR Leader.

“You really are better than you think you are—and if it’s feeling lonely at the top, it doesn’t need to be.”

Takeways:

• “A positive culture doesn’t just happen; you have to create it.”

• “Work on your strengths and make yourself stronger”

• “Stop listening to the negativity of the news media—and start consuming positive thoughts from other sources”

~~~

Written by Les Proctor, Marketing Consultant to Dise & Company, based on conversations with Ralph Dise, CEO of Dise & Company, and John Milgram, CEO of Aexcel Corporation.

**Excerpted from “Home from Nowhere”, Simon and Schuster, 1996.

Filed Under: Corporate Values, Leadership, Managing Change Tagged With: ,

Going With Your Gut: When Instincts Override Data

January 19, 2010 By Leave a Comment

Which “A” player is best for you?

By Bill Marshall, Vice President of Executive Search

Wedged between a recession and a recovery, most organizations have reduced their workforces to save money and remain viable. Many corporate bosses are evaluating talent to identify and retain top performers, and recruit the “A” players who will position them to be competitive in the years ahead.

Employers will be faced with higher turnover as the economy recovers. Good talent always leaves for what it perceives to be better opportunities as the economy pulls out of recession.

The Fed is reporting that recovery is underway, yet the labor market remains stalled—with unemployment hovering around 10%. This suggests that there will be many more qualified candidates than there are jobs available for the three to six months.

Then we must still have a buyer’s market, right? Yes and No.

There is a problem that every “buyer” must consider. With an abundance of seemingly qualified candidates, how can you determine which “A” player is going to be the best for your job? The risks and costs of choosing the wrong person for your company can be expensive – in terms of lost money, lost time, and lost opportunities.

It is critical to get it right.

Skills, values, and chemistry

At Dise & Company, when we conduct an executive search for a client, we evaluate candidates primarily for job fit and cultural fit.

Job fit and cultural fit are critical—that a candidate’s skills and experience are relevant to the job—and that the candidate finds the position’s activities and responsibilities satisfying. It’s critical that the individual and the organization possess shared values. Without good job fit and good cultural fit, you don’t have a good candidate. But what is the deciding factor when you have several qualified candidates for the same position?

“Sometimes the best candidate for the job doesn’t look that way on paper”

In my two and a half decades in Executive Recruiting, I have learned never to underestimate the importance of going with my gut, especially when faced with multiple candidates vying for the same position.

This is the “It” factor of hiring in a crowded marketplace.

The right hire is a combination of skills, values, and the elusive “It” factor.

When Instincts should override the data

Your gut instinct is a deep, subconscious voice inside that tells you: “This individual does not have the best track record, but she brings a package that makes her uniquely qualified for the opportunity—this is the person you need to hire. Don’t let this person get away.”

While the old adage that “Past performance predicts future behavior” holds true, there are exceptions to the rule, and you need to be prepared to recognize and capitalize on them.

“A” Players come in all shapes, colors, and sizes.

Sometimes a big setback can be the motivation to succeed in the next position. Sometimes you can find a diamond in the rough—a person who is hungry—and anxious to prove himself after what appears to be a failure or a mediocre-looking performance—“an underdog.”

If a candidate fell down in a previous position, the questions should be: “Did she get back up and dust herself off?” “Is he passionate about the industry?” “Did she learn from her mistakes?” Did he maintain his sense of humor?” “Does she emphasize practice over theory?” These character traits illustrate resilience and determination in the face of adversity—essential traits for success—no matter what the industry.

It all boils down to the chemistry between the candidate and the need. Going with your gut can be the deciding factor that will help you choose the right people to lead your organization and strengthen your competitive position in the years ahead.

Bill Marshall is the Vice President of Executive Search for Dise & Company. You can contact Bill directly at the People Page on Diseco.com.

Filed Under: Corporate Values, Filling key positions, Hiring trends, Leadership, Managing Change Tagged With: ,

Blind spots: What you don’t see could hurt you

December 8, 2009 By 2 Comments

Why you should enlist others to help you identify opportunities for change

By John Milgram, President, Aexcel Corporation

Even the best leaders develop blind spots—areas in which you do not see yourself or your organization’s situation realistically.

These blind spots, or lack of awareness, could potentially cause great damage to your company and all the people who depend on it.

When things are going well … life is easy.  But when we’re faced with a difficult business environment and there is a real need for change, too often we hang on to old activities.  We hope that what made us previously successful will make us successful again in the future. Yet clinging to old ideas is possibly the last thing we should be doing.

Very often as leaders, we’re completely invested in the things that got us where we are.  We are slow to recognize the need for change. We’re in denial for longer than those who look upon us.

“What can we (or I)  stop doing today to become more productive?” ~ John Milgram, Aexcel Corporation

If your organization could benefit from a change, how are you supposed to recognize it? And if you do recognize a need for change, where are you supposed to go for advice?  

Several years ago, feeling that our company could do better, we came to the realization that the activities of our company were grounded on what had been done in the past, instead of what needed to be done to meet the company’s real business needs.

Operating on the notion that our business strategy was based on what we deliberately chose not to do, as much as what we chose to do, I started asking our people the question: “What should we stop doing?”

Acting upon the input from several key people, we phased out an entire line of business that was very time-consuming and cost-intensive. At the time, this line of business seemed off-limits and the thought of eliminating it caused many sleepless nights.

While the decision to phase out this line of business caused a great deal of anxiety, it eventually led to a dramatic restructuring of the way that we did business—lowering our costs, changing our customer base, expanding our distribution, increasing the volume of sales, and increasing our customer satisfaction.

As a result, our company is in a much better position today than it was 5 years ago, and we’ve been able to weather the downturn without laying off any employees—putting us in a much stronger position as the economy continues to improve, and we inevitably face a new competitive landscape.

Now we try to proactively identify those habits, actions, and assumptions that could potentially damage our business. And I rely on key stakeholders to help uncover blind spots and identify opportunities for change, including  (1) Customers (2) Managers (3) Employees (4) Trusted advisors (including my Board of Directors), and (5) Colleagues.

If you are a leader of a corporation, or the head of a division, or an employee who wants to get ahead, you might want to try this exercise. “What can we (or I)  stop doing today to become more productive?”

Coping with change is difficult. But not as difficult as coping with the kind of change you’ll have to cope with if you wait too long—and lose the opportunity to make the constructive change that will help your business thrive. 

If you take proactive measures to uncover your blind spots, you’ll be on the right path towards understanding the real issues facing your organization, and will be better able to adapt to the changes in your business environment.

John Milgram has been with Aexcel Corporation for twenty-one years, and President for sixteen of those years. Prior to that he earned an MBA from Columbia Business School, and worked in the financial services industry for five years. He obtained his BA from University of Pennsylvania in 1981, and graduated from Cleveland Heights High School in 1977

Ralph A. Dise, Jr. serves on Aexcel Corporation’s Board of Directors.

Filed Under: Leadership, Managing Change Tagged With: , ,

Achieving Work Life Balance

November 3, 2009 By 2 Comments

You really can do it all and still have a real life

By Ralph A. Dise, Jr.

Just because you’ve set big objectives doesn’t mean you have to sacrifice your home life.

On the contrary, the bigger the objectives, the more you need balance in your life. And you can’t do it alone.

Great leaders recognize the importance of working through others, whether they are employees, associates, vendors or customers.

Still it’s crucial to have a plan, and to work diligently at executing it. This applies to anyone seeking career success that must juggle multiple responsibilities of work and family.

How do you maintain balance in your life?

We’re all pulled in many different directions at the same time, children, employees, clients, school, community, church obligations…our kids’ activities (ask me about Irish Dancing some day). It’s nonstop.

The demands of running a professional service firm sometimes feel overwhelming. I have to be a leader, a manager, and a contributor. I have to sell, produce, and manage others. I have to give total, absolute concentration to my client’s needs. There are times when I feel I’m being hit from all sides. There are a lot of expectations from everyone—clients, colleagues, community and family. I want everyone to be happy and have what he or she needs (“good luck with that!” you’re thinking).

Communicate/keep it simple

The secret to running anything well is to prioritize your actions. You need to do the right things at the right time-those things that will help you win new customers, provide excellent service, and expand your sphere of influence.

All these actions must be executed in a timeframe that permits you to enjoy a normal life (this is a core value of Dise & Company. My colleagues and I respect one another and set aside time for our families, so that we lead balanced lives.)

Set an Annual Agenda

To ensure that I stay focused on the right things, I’ve developed an annual agenda that includes my top five priorities for the year. It’s simple, to the point and helps me decide what activities and tasks I should place on my calendar. It helps me be very clear about what to say “no” to.

My agenda for 2009-2010

  1. Build sales pipeline with qualified opportunities by setting a leading example for my colleagues
  2. Grow top line revenues through focused, disciplined business development management efforts
  3. Optimize profitability by disciplined management of expenses
  4. Grow my team’s professional capabilities by stretching them to learn new things
  5. Reserve nights and weekends for my personal life.

My agenda is the basis for all my decisions. If something doesn’t fit into my agenda, it doesn’t have a place in my day.

Try an Agenda for Yourself

To stay balanced, and continue to grow, you really you have to have an agenda to keep focused on your goals for the year, and then you have to have a plan to keep you focused on your daily goals.

The challenge is, particularly in our networked world, where a PDA is now a mini-computer, is to stay focused, avoid distraction, set big goals for the year, (underpinned by big goals every day), and take action every day.

The Daily To Do List

Every morning, before you do anything else, update your daily to do list:

  1. What are the two or three big things that will help contribute to your agenda?
  2. Recommit to your annual goals
  3. Ask yourself “ If I complete these things will it make it a good day?”
  4. Ask yourself “Am I being realistic?”
  5. Work towards completing the most difficult before you do anything else (especially before you check your email).

When you stop for lunch, look back at the morning, and ask: “How am I doing on my daily to-do list?” In the evening before you leave, take a moment to review your performance for the day. Assess your ability to stay focused and on-track. Did you open up your email too early? Did you spend the day being reactive and putting out fires?

Be Patient – but Selective

You are not going to get everything that you need to be done in one day. The average executive has 37 hours of work waiting for his or her immediate attention at any given moment. How you spend your time is a strategic decision.

Being selective about what you spend your time on is the key to taking back your power, getting control of your situation, and being in charge your life.

You can have it all. You can pursue big goals and still have a life. It just requires an eye on the big picture, a to-do list that is in sync with the big goals, and the ability to say “no” to things that don’t contribute to your agenda.

Ralph A. Dise, Jr. is the President of Dise & Company, the Director Emeritus of Lincolnshire International, and has worked in the field of Human Resources his entire career. You can contact Ralph directly at the Pro People Page on Diseco.com.

Filed Under: Corporate Values, Leadership, Managing Change Tagged With:

Just say "NO” to Mr./Ms. kNOw-it-All

July 14, 2009 By 1 Comment

Combat the negative person in your workplace

By Mark Gonska

Do you know anyone who is always looking for advice? But as soon as anyone offers up an idea or suggestion, his or her common response is: “NO – that won’t work!”

Do you know anyone who wishes they could be recognized for their brains and creativity, but have “NO ideas ” about how they could add value?

Do you know anyone who constantly complains about personal problems, the economy or global competition.  Yet, when it comes to professional development, additional training or any improvement that requires additional effort on their part, they have “NO interest”?

When asked to consider new people, new ideas, new line extensions, diversification – you guessed it… their answer is “NO!”

“Mr./Ms.  kNOw- it-Alls” are particularly common in today’s tough economy. 

Although doing exactly the same thing and expecting different results may seem unlikely, “Mr./Ms.  kNOw- it-All” sees NO need to entertain other possible solutions.  Because everyone “kNOws” they won’t work.

How do you combat the Mr./Ms.  kNOw- it-Alls? Just say “NO” to their negativity.

  • Challenge pessimistic thinking and negative beliefs. Don’t let assumptions go unchallenged.
  • Avoid negative people. They are their own worst enemy and could become yours.
  • Avoid being sympathetic. If you are forced, through your position in the company, to work with a negative person don’t buy in to their road to NOwhere.  Tough love for tough times.
  • If all else fails, talk to your own supervisor or human resources staff about the challenges you are experiencing in dealing with the negative person. Your supervisor may have ideas, may be willing to address the negativity, and may address the issue with the negative person’s supervisor.  

Note: Negative people will not bother to read this blog.  They already kNOw it’s just common sense.

Mark Gonska is Executive Vice President of Career Transition Services for Dise & Company. You can contact Mark directly at the People Page on Diseco.com

Filed Under: Leadership, Managing Change Tagged With: ,

The value of ethics

May 28, 2009 By 1 Comment

How Lubrizol implemented a Global Ethics Program to protect the value of the company for all the company’s stakeholders

For many years Lubrizol, through its Lubrizol Additives and Lubrizol Advanced Materials business segments, has been a global provider of specialty chemicals serving a wide variety of markets and end-use applications. 

Lubrizol’s products are used in gasoline and diesel engines, automatic transmissions, gear drives, marine engines, tractors, personal care products and pharmaceuticals, plastics, coatings, paints and inks, and industrial materials.

It has taken time and sustained effort from many people to attain this position. Founded in 1928 in Cleveland , Ohio,  Lubrizol has 7,000 employees worldwide, and  $5  billion sales per year.

The challenge

The new millennium marked a perfect storm for ethics and corruption problems that have resulting in the catastrophic failures of major American Companies.

Some of the companies that come to mind are Worldcom, Enron, and Adelphia. Not to mention Dynergy, RiteAid, Tyco, Global Crossing, ImClone Systems and many others.

Unfortunately, these  discrete failures were symptomatic of the looming systemic failure, and were followed by the sub-prime mortgage crisis, the global financial crisis, and the uncovering of other large Ponzi Schemes tied to Bernard l. Madoff ($50 Billion) and Alan Stanford ($8 Billion).

CorruptionThese failures were brought about for many reasons, including: a culture of arrogance in the companies, fraud, and conflicts of interest. These were complemented by accounting scandals, and the failure of:  independent auditors, rating agencies, regulators, senior management, corporate boards, and outside counsel.

 In such an environment, how does a  $5 Billion company, with 7,000 employees, operating in many different countries and different cultures around the world take steps to ensure that everyone is working together to create value for the company and its stakeholders, and that not one of their employees or vendors does anything to jeopardize the company?

The solution: The Lubrizol Global Ethics Program

Lubrizol has worked diligently over a period of years to create a culture where ethical decision-making is the norm. It purposefully cultivates leaders who produce exceptional results and who consistently make good decisions that benefit the company.

 As part of that effort, the role of Chief Ethics Officer was established.

LeadershipPartnering closely with the company’s General Counsel, legal community and internal audit staff, the ethics office is responsible for providing leadership on matters related to ethical and legal conduct through the development, implementation and interpretation of the Corporation’s compliance and education strategy.

Senior executives at Lubrizol decided to take a pro-active approach towards an ethics program many years ago. That approach has served them well in that ethical failures reported in the news clearly demonstrated that an excellent reputation can be instantly lost, and it was in the best interest of all Lubrizol  stakeholders to share accountability for protecting the company’s value.

Much time and effort is spent communicating with employees, educating them about their responsibilities as corporate citizens, so that ethics and legal understanding is integrated into everyday decision-making and behaviors.

The hallmark of the Lubrizol Ethics Program is “Shared Accountability”, supplemented with an “Ethics Helpline”-an 800 number used to answer questions and log ethics inquiries.

The Basic Ethical and Legal Conduct Guideline Policy

“Employees of Lubrizol and its subsidiaries, as well as members of our Board of Directors, must respect the laws, customs and traditions of each country in which they operate. At the same time, employees are not to engage in any course of conduct which, even if legal, customary and accepted in such country, could be deemed to be in violation of Lubrizol’s Ethical and Legal Conduct Guidelines.”

(A link to the complete Ethical and Legal Guidelines can be found below.)

Features important to the program’s success include:

  • The Chief Ethics Officer reports to the Audit Committee of the Board and reports on the progress of the program regularly
  • The support of the Executive Council is unwavering, as is that of the legal community and internal audit
  • The Ethics Office and its global network of regional coordinators support the effort on a part-time basis in addition to other functional responsibilities
  • The Corporation’s expectations have been communicated globally, in the languages of all employees, via Lubrizol’s Ethical and Legal Conduct Guidelines
  • A toll-free help line is in place to receive questions, concerns and reports
  • Employees are trained on the Corporation’s guidelines and its expectations of them; program results are also communicated regularly to all employees
  • All reports are recorded and investigated. Violations are dealt with swiftly and aggressively

Outcome

In the last year out of 300 Ethics Cases, 15% resulted in disciplinary action, and 5% resulted in termination.

All ethics inquiries are logged. Calls are analyzed by type, location, and severity. Reports are created for the Audit Committee, Executive Council, Senior Management, and General Employee Population.

Lubrizol’s Ethics Program has been cited as an industry best practice by the American Chemistry Council.  Additionally, the program has been shared nationally in programs sponsored by the Ethics Officer Association, the U.S. Government’s Federal Sentencing Commission and the U.S. State Department.

Conclusion

Lubrizol believes an ethics program is essential.  This is a reality that the executives of many leading companies face as communications are instant and everywhere.

The Lubrizol Ethics program (1) enhances shareholder value by minimizing financial and material risk to the Corporation (2) fosters and an environment of corporate confidence in its leaders, associates and systems (3) guides business decision and behaviors, and (4) enhances the organization’s ability to deal with its customers, suppliers, shareholders and employees with honesty and integrity.

Ultimately the success of the program is measured not by how many people who are caught, but by how many people who are helped. 

One thing is clear: Lubrizol is serious about ethical and legal conduct.

Takeaways

You can’t sit back and wait. It’s important to have a proactive approach towards ethics to protect the value of the company for all stakeholders.

Actions speak louder than words. It’s not enough to have an ethics program. There must be follow-through and the guidelines must be re-enforced with separation of company and employee if necessary.

This case study was adapted by a presentation by Mark Meister, the Vice-President of Human Resources, and former Chief Ethics Officer (a position he held for nearly 15 years) of Lubrizol Corporation, to the Senior HR Thought Leaders Forum, sponsored by Dise & Company at the Union Club in Downtown Cleveland, March 2009.

Supplement: The Fundamentals of the Lubrizol Ethics and Legal Conduct Guidelines

Fundamental #1

Insisting on honesty and integrity in dealing with customers, suppliers, all third parties and with one another.

Fundamental #2

Simply stated:

“We Don’t Lie”

“We Don’t Steal”

“We Don’t Cheat”

Simple Test for Ethical Decision-Making

  • How would I feel if my family or friends knew of my actions
  • Would I behave differently if I knew my actions would be reported on the evening news?
  • Does this meet “the treat others as you would like them to treat you” test?

 More on Lubrizol’s Ethical and Legal Conduct Guidelines can also be accessed at http://www.lubrizol.com/OurCompany/CorporateResponsibility/EthicalGuidelines.html

Filed Under: Corporate Values, Leadership, Managing Change Tagged With: ,
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