I’m an idealist I sort of imagined a world that’s different to the world that
world that’s different to the world that
world that’s different to the world that we live in now I imagine a world in
we live in now I imagine a world in
we live in now I imagine a world in which the vast majority of people wake
which the vast majority of people wake
which the vast majority of people wake up every single morning inspired to go
up every single morning inspired to go
up every single morning inspired to go to work feel safe when they’re there and
to work feel safe when they’re there and
to work feel safe when they’re there and return home at the end of the day
return home at the end of the day
return home at the end of the day fulfilled by the work that they do and I
fulfilled by the work that they do and I
fulfilled by the work that they do and I believe this thing called fulfillment
believe this thing called fulfillment
believe this thing called fulfillment the ability to say that I love my work
the ability to say that I love my work
the ability to say that I love my work that I love what I do I believe that it
that I love what I do I believe that it
that I love what I do I believe that it is a basic human right and not a
is a basic human right and not a
is a basic human right and not a privilege we treat it as a privilege you
privilege we treat it as a privilege you
privilege we treat it as a privilege you know you go out with your friends and
know you go out with your friends and
know you go out with your friends and somebody says I love my job and the rest
somebody says I love my job and the rest
somebody says I love my job and the rest of us go oh my god you’re so lucky like
of us go oh my god you’re so lucky like
of us go oh my god you’re so lucky like it’s a lottery that they had won or
it’s a lottery that they had won or
it’s a lottery that they had won or something and and so I just believe that
something and and so I just believe that
something and and so I just believe that fundamentally that we as the workforce
fundamentally that we as the workforce
fundamentally that we as the workforce are we have the right to demand that the
are we have the right to demand that the
are we have the right to demand that the places where we work provide us that the
places where we work provide us that the
places where we work provide us that the irony is it’s actually good for them
irony is it’s actually good for them
irony is it’s actually good for them that’s the big joke we’re more engaged
that’s the big joke we’re more engaged
that’s the big joke we’re more engaged when we offer more discretionary effort
when we offer more discretionary effort
when we offer more discretionary effort we offer our big ideas simply because
we offer our big ideas simply because
we offer our big ideas simply because they said come here and enjoy yourself
they said come here and enjoy yourself
they said come here and enjoy yourself and feel safe and have a good time and
and feel safe and have a good time and
and feel safe and have a good time and let us help you grow many of the
let us help you grow many of the
let us help you grow many of the traditional business practices that are
traditional business practices that are
traditional business practices that are considered normal today are left over
considered normal today are left over
considered normal today are left over from the 1980s and 90s remember the 80s
from the 1980s and 90s remember the 80s
from the 1980s and 90s remember the 80s and 90s were boom years most companies
and 90s were boom years most companies
and 90s were boom years most companies grew it was a time of relative peace and
grew it was a time of relative peace and
grew it was a time of relative peace and it was a kinder gentler cold war we
it was a kinder gentler cold war we
it was a kinder gentler cold war we weren’t practicing hiding under our
weren’t practicing hiding under our
weren’t practicing hiding under our desks in school and a lot of the
desks in school and a lot of the
desks in school and a lot of the business philosophies that were being
business philosophies that were being
business philosophies that were being espoused and proposed were for those
espoused and proposed were for those
espoused and proposed were for those times so the concept of shareholder
times so the concept of shareholder
times so the concept of shareholder supremacy for example was a theory
supremacy for example was a theory
supremacy for example was a theory proposed from Harvard in the late 1970s
proposed from Harvard in the late 1970s
proposed from Harvard in the late 1970s just a theory the concept of using mass
just a theory the concept of using mass
just a theory the concept of using mass layoffs to balance the books was a
layoffs to balance the books was a
layoffs to balance the books was a practice that did not exist in the
practice that did not exist in the
practice that did not exist in the United States prior to the 1980s did not
United States prior to the 1980s did not
United States prior to the 1980s did not exist right the concepts of rank and
exist right the concepts of rank and
exist right the concepts of rank and yank where you
yank where you
yank where you stack your employees based on the
stack your employees based on the
stack your employees based on the performance and their contribution to
performance and their contribution to
performance and their contribution to the stock price you fight you you
the stock price you fight you you
the stock price you fight you you promote the top 10% and fire the bottom
promote the top 10% and fire the bottom
promote the top 10% and fire the bottom 10% and you create an environment in
10% and you create an environment in
10% and you create an environment in which people compete against each other
which people compete against each other
which people compete against each other inside the company right by the way
inside the company right by the way
inside the company right by the way that’s what dictators do you keep the
that’s what dictators do you keep the
that’s what dictators do you keep the people divided and you stay in power
people divided and you stay in power
people divided and you stay in power because dictators fear the people right
because dictators fear the people right
because dictators fear the people right so say it’s the same thing these are all
so say it’s the same thing these are all
so say it’s the same thing these are all fantastically good theories for boom
fantastically good theories for boom
fantastically good theories for boom years and for the short term we also
years and for the short term we also
years and for the short term we also dismantle glass-steagall in this time
dismantle glass-steagall in this time
dismantle glass-steagall in this time period it’s not a Republican or Democrat
period it’s not a Republican or Democrat
period it’s not a Republican or Democrat thing because you had Republican and
thing because you had Republican and
thing because you had Republican and Democrat president over this period and
Democrat president over this period and
Democrat president over this period and glass-steagall was the act that was
glass-steagall was the act that was
glass-steagall was the act that was passed after the Great Depression to
passed after the Great Depression to
passed after the Great Depression to prevent another Great Depression from
prevent another Great Depression from
prevent another Great Depression from happening amongst other things one of
happening amongst other things one of
happening amongst other things one of the things that did was it prohibited
the things that did was it prohibited
the things that did was it prohibited investment banks and retail banks
investment banks and retail banks
investment banks and retail banks existing in the same institution which
existing in the same institution which
existing in the same institution which is what was allowed prior to the Great
is what was allowed prior to the Great
is what was allowed prior to the Great Depression right do you know how many
Depression right do you know how many
Depression right do you know how many stock market crashes we had prior to the
stock market crashes we had prior to the
stock market crashes we had prior to the dismantling of glass-steagall zero we
dismantling of glass-steagall zero we
dismantling of glass-steagall zero we had zero stock market crashes for 50
had zero stock market crashes for 50
had zero stock market crashes for 50 years
years
years then they dismantled glass-steagall in
then they dismantled glass-steagall in
then they dismantled glass-steagall in the 1980s and 90s and we had the the
the 1980s and 90s and we had the the
the 1980s and 90s and we had the the 2009 I was at 87 dot-com crash and 2008
2009 I was at 87 dot-com crash and 2008
2009 I was at 87 dot-com crash and 2008 we’ve had three right but it was really
we’ve had three right but it was really
we’ve had three right but it was really leaders like Jack Welch who promoted
leaders like Jack Welch who promoted
leaders like Jack Welch who promoted these theories of the day for a very
these theories of the day for a very
these theories of the day for a very different time and they have become so
different time and they have become so
different time and they have become so normal today that we don’t actually
normal today that we don’t actually
normal today that we don’t actually realize how backwards they are we talked
realize how backwards they are we talked
realize how backwards they are we talked about layoffs that we announced them on
about layoffs that we announced them on
about layoffs that we announced them on the news as if it’s nothing
the news as if it’s nothing
the news as if it’s nothing in fact worse when a company announces
in fact worse when a company announces
in fact worse when a company announces layoffs the stock price goes up and if
layoffs the stock price goes up and if
layoffs the stock price goes up and if you’re incentivized based on stock value
you’re incentivized based on stock value
you’re incentivized based on stock value uh-huh a few years ago Citibank
uh-huh a few years ago Citibank
uh-huh a few years ago Citibank announced record high layoffs the exact
announced record high layoffs the exact
announced record high layoffs the exact same year that they announced record
same year that they announced record
same year that they announced record high average bonuses figure that one out
high average bonuses figure that one out
high average bonuses figure that one out right and the point is is these systems
right and the point is is these systems
right and the point is is these systems though they may be normal are wrong and
though they may be normal are wrong and
though they may be normal are wrong and broken and go completely contrary to the
broken and go completely contrary to the
broken and go completely contrary to the basic human right that we all are
basic human right that we all are
basic human right that we all are entitled
entitled
entitled and by the way GE needed a 300 billion
and by the way GE needed a 300 billion
and by the way GE needed a 300 billion dollar bailout in 2008 because the
dollar bailout in 2008 because the
dollar bailout in 2008 because the theories that they espouse are not good
theories that they espouse are not good
theories that they espouse are not good for the long-term they are good for the
for the long-term they are good for the
for the long-term they are good for the short-term so for me to meet a company
short-term so for me to meet a company
short-term so for me to meet a company like next jump a company that when they
like next jump a company that when they
like next jump a company that when they talk about growth they mean their people
talk about growth they mean their people
talk about growth they mean their people not their bottom line and a company that
not their bottom line and a company that
not their bottom line and a company that understands though money is important it
understands though money is important it
understands though money is important it is the fuel for the organization of
is the fuel for the organization of
is the fuel for the organization of course money is important because the
course money is important because the
course money is important because the more money you have the more fuel you
more money you have the more fuel you
more money you have the more fuel you have to make the organization run this
have to make the organization run this
have to make the organization run this isn’t it’s not a hippie commune but the
isn’t it’s not a hippie commune but the
isn’t it’s not a hippie commune but the point is is that people come before not
point is is that people come before not
point is is that people come before not money I sit in the audience’s of lots of
money I sit in the audience’s of lots of
money I sit in the audience’s of lots of corporate events I’ve never met a CEO on
corporate events I’ve never met a CEO on
corporate events I’ve never met a CEO on the planet that doesn’t believe people
the planet that doesn’t believe people
the planet that doesn’t believe people are important the problem is the
are important the problem is the
are important the problem is the decisions they make would be contrary to
decisions they make would be contrary to
decisions they make would be contrary to the things they say they stand there
the things they say they stand there
the things they say they stand there with their list of priorities and it
with their list of priorities and it
with their list of priorities and it says number one priority growth number
says number one priority growth number
says number one priority growth number two priority shareholder value number
two priority shareholder value number
two priority shareholder value number three priority customer number four
three priority customer number four
three priority customer number four priority employee see our people are
priority employee see our people are
priority employee see our people are important number four even when they say
important number four even when they say
important number four even when they say customer first that means your employee
customer first that means your employee
customer first that means your employee is least number two right and the irony
is least number two right and the irony
is least number two right and the irony is when you take care of your employees
is when you take care of your employees
is when you take care of your employees your employees take care of your
your employees take care of your
your employees take care of your customers your customers take care of
customers your customers take care of
customers your customers take care of your shareholders and then and the big
your shareholders and then and the big
your shareholders and then and the big joke is that the numbers prove it the
joke is that the numbers prove it the
joke is that the numbers prove it the numbers prove it you look at people
numbers prove it you look at people
numbers prove it you look at people focus companies they outperform numbers
focus companies they outperform numbers
focus companies they outperform numbers focus companies over the long term
focus companies over the long term
focus companies over the long term dramatically GE versus Costco Costco
dramatically GE versus Costco Costco
dramatically GE versus Costco Costco year after year after year criticized by
year after year after year criticized by
year after year after year criticized by Wall Street for having stuck a flat
Wall Street for having stuck a flat
Wall Street for having stuck a flat stock price but if you compare the price
stock price but if you compare the price
stock price but if you compare the price of Costco stock to GE over the course of
of Costco stock to GE over the course of
of Costco stock to GE over the course of the past thirty years you’ll see that GE
the past thirty years you’ll see that GE
the past thirty years you’ll see that GE made 600 percent of its money when the
made 600 percent of its money when the
made 600 percent of its money when the same year that if you if you invested
same year that if you if you invested
same year that if you if you invested the years at Costco in public would I
the years at Costco in public would I
the years at Costco in public would I say six hundred percent S&P 500 600
say six hundred percent S&P 500 600
say six hundred percent S&P 500 600 percent Costco twelve hundred percent
percent Costco twelve hundred percent
percent Costco twelve hundred percent double 2x it’s good for the shareholder
double 2x it’s good for the shareholder
double 2x it’s good for the shareholder I can no longer be accused of being a
I can no longer be accused of being a
I can no longer be accused of being a crazy idealist
crazy idealist
crazy idealist if what I imagine exists in reality
if what I imagine exists in reality
if what I imagine exists in reality that’s why companies like this are very
that’s why companies like this are very
that’s why companies like this are very very important for us to study do they
very important for us to study do they
very important for us to study do they have everything right of course not do
have everything right of course not do
have everything right of course not do they have a are they trending in the
they have a are they trending in the
they have a are they trending in the right direction absolutely are they
right direction absolutely are they
right direction absolutely are they compare the operating completely counter
compare the operating completely counter
compare the operating completely counter to what we consider to be normal
to what we consider to be normal
to what we consider to be normal business practice of the day you bet
business practice of the day you bet
business practice of the day you bet they are and here’s the best part their
they are and here’s the best part their
they are and here’s the best part their numbers prove it so for all the cynics
numbers prove it so for all the cynics
numbers prove it so for all the cynics out there who believe that numbers
out there who believe that numbers
out there who believe that numbers matter numbers come first and
matter numbers come first and
matter numbers come first and performance comes before people guess
performance comes before people guess
performance comes before people guess what they outperform their competitors
what they outperform their competitors
what they outperform their competitors year after year of the year they
year after year of the year they
year after year of the year they surprise even themselves study that book
surprise even themselves study that book
surprise even themselves study that book and study this company because mark my
and study this company because mark my
and study this company because mark my words if we have anything to do with it
words if we have anything to do with it
words if we have anything to do with it in 10 or 20 years we will completely
in 10 or 20 years we will completely
in 10 or 20 years we will completely undo all the nonsense that basses like
undo all the nonsense that basses like
undo all the nonsense that basses like Jack Welch promoted in the 80s and 90s
”
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