Vol. 54: The road to cost control

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The North Bay Business Journal, a publication of the New York Times, is a weekly business newspaper which covers the North Bay area of San Francisco – from the Golden Gate bridge north, including the Wine Country of Sonoma and Napa counties.

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Article published -November 30 2009larykirchenbauerhdr

Is fear or kindness the road to cost control? You decide

Strive not to be a success, but rather to be of value.”

– Albert Einstein

Last time I presented the dichotomy of two opposing cultures and posed the question: If measured by financial performance, how can dramatically different organizations be equally successful? In this continuing series, we’ll explore some of the combinations and permutations of sound business principles and cultural patterns that often collide within an organization’s walls.

In many ways, it doesn’t seem fair that both charitable and churlish cultures can thrive. It’s easy to embrace the benevolent culture created by Sid Rich (we’ll call it Company South, “S” for Sid) as profiled in my last column.

That company deserves to be successful. Wouldn’t it be great if that was the company I worked for? Contrarily, when you look across the aisle at the rough and tumble world of Company North (“N” for Nasty), highlighted by temper tantrums, public floggings and a petulant devotion to spending a dime on anything, we’re either glad we’re not working there … or wishing we didn’t.

Some powerful lessons are evident as we compare and contrast these companies, their styles and culture, although some lessons are not very inviting. (more…)

Continue ReadingVol. 54: The road to cost control

Incentives Rule!

Puzzle without partsIn his fascinating book, Freakonomics, Steven Levitt remarked that “Incentives are the cornerstone of life” … yet so many companies don’t pay more than cursory attention to them, and invariably, only with respect to the most mundane, traditional sales compensation plans.

There’s probably nothing you can do to more powerfully drive the performance of your employees than to carefully consider your incentive plans. If you think yours are working beautifully and don’t need any attention, check in with Steven Levitt to see how easily they go astray. (more…)

Continue ReadingIncentives Rule!