October 17, 2014
Two Unlikely Finds
Fred Koch started an engineering firm, which led to the present day Koch Industries. His son, Charles, has taken it to new heights by simply having an attitude of building, rather than playing it safe. Charles and his brother David have actively sought “to train each of the company's 60,000 employees to act as if they own the portion of the business they oversee” (Fisher, D., 2012). They call it Market Based Management, which encourages everyone to think of ways to innovate, which can lead to even assembly line workers earning big bonuses.
Contrasting Koch’s ideas to Home Depot’s mission and values, one gleans similarities. (California Sate University, 2011).
“The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight core values include the following:
- Excellent customer service
- Taking care of our people
- Giving back
- Doing the "right" thing
- Creating shareholder value
- Respect for all people
- Entrepreneurial spirit
- Building strong relationships
Further research, however, reveals ongoing complaints by customers and employees at Home Depot. Taking into account all factors, the problem seems to lie with leadership. The lack of oversight, discontinued promotion of the original vision, top heavy attitudes, and cut backs on employee benefits have all contributed to this negative portrayal, which now exists at Home Depot. Contrary to the current CEO’s thrust that “returned the focus to the customer by dedicating more workers to the sales floor and increasing store employees’ compensation” (Townsend, 2014) employees continue to suggest that that is not the case.
Koch, on the other hand, has pursued a unique upgrade into its employee compensation packages and one sees a new investment into philanthropic work specifically targeting conserving America’s traditional values. Millions are being spent by Koch to educate young adults how to be future leaders, entrepreneurs, and on supporting conservative political actions (Koch C., 2001). Even on advertised job sites, Koch uses the words “servant leaders” to describe their key requirements (simply hired, 2014).
Media loves to hate the Koch brothers. Unfortunately for the attackers, there is rarely any truth to the media attempts to discredit the Koch's. As far as one can tell, these brothers have brushed such frenzied biased attacks off and continue to pursue a more Americana United States. They have even learned to go green and take responsibility for innovations that may potentially harm the environment. The CEO of Georgia-Pacific (a Koch company) is quick to enforce the idea that innovation and change must occur to bring sustainability to the environments they operate in (Smith, 2014).
Koch has a great mission statement but what is so impressive is their added keys to success:
Our success is determined primarily by how well we utilize our combined knowledge to anticipate and meet
changing customer needs. Full use of this knowledge requires we create a culture in which people:
•are open and receptive
•treat each other with care and respect
- are provided the necessary education and information, and
- are given the opportunity to make meaningful contributions.
- We strive to transform our knowledge into profitable activity by improving decision-making processes. This includes:
- clearly articulating individual responsibilities based on each person’s comparative advantages
•providing incentives for everyone to focus on advancing the mission. (sec.gov)
Education, is a key factor for Koch’s success and they want all their 60,000 employees to utilize that in a way that personally helps them be innovative. Personal note to self: Send Koch Industries your resume!
Home Depot on the other hand continues to mislead towns with their “do the right thing” persona. Their lack of maintaining the grounds they build brick and mortar Home Depot stores on has led to townships attempting to close down stores in their area. However, one must acknowledge the philanthropic giving of many Home Depots throughout the nation, especially when natural disasters hit and with their generous partnership with Habitat for Humanity enabling the less fortunate to live in new homes.
Home Depot’s CEO, Robert Nardelli, was let go in 2007 but given $210 million dollars as a severance. In 2012 he was named “one of the worst CEO’s of all time” (Tobac). While at the helm of Home Depot he would stringently limit shareholders from talking in a meeting (Toronto Star) and take bonuses during low sale years. The new CEO got Home Depot back on top, as far as market sales go, but online complaints by employees are quick to say the leaders have taken work hours and benefits away by putting more of the workload on the least paid employees. Instead of building a better work atmosphere for the employees, Home Depot has concentrated on profit only. On November 1 of this year, Craig Menear will take over as the new CEO (Townsend, 2014). One wonders if he will implement a more servant leader environment.
Home Depot would do well to learn from the Koch brothers’ true incentives geared toward its employees and the bonuses given for innovation. Both companies are givers to their communities but Koch is spending a large sum of its wealth on the future of America and does not seek personal gain, so much as freedom for all. Many years from now history will show Home Depot’s corporate greed and, comparatively, give the Koch brothers their well earned place as one of the most prophetic and creative leaders in the modern world.
References
Fisher, D. (n.d). INSIDE THE KOCH EMPIRE. Forbes, 190(11), 84-+. Retrieved from
http://library.gcu.edu:2048/login?url=http://search.ebscohost.com.library.gcu.edu:2048/
login.aspx?direct=true&db=edswss&AN=000312235400027&site=eds-live&scope=site
Jensen, D. P. (2006). Home Depot agrees to clean up its act for permit. Salt Lake Tribune, The
(UT), Retrieved from http://library.gcu.edu:2048/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=nfh&AN=2W62W63191257062&site=eds-live&scope=site
Koch, C. (1978). Business Can Have Free Enterprise--If It Dares. Business & Society Review
(00453609), (28), Retrieved fromhttp://library.gcu.edu:2048/login?url=http://search.ebscohost.com.library.gcu.edu:2048/login.aspx?direct=true&db=bth&AN=4648339&site=eds-live&scope=site
(n.d). Costly victory for shareholders. Toronto Star (Canada).,http://library.gcu.edu:2048/login?
url=http://search.ebscohost.com/
login.aspdirect=true&db=nfh&AN=6FP1212946913&site=eds-live&scope=site
Smith, Tricia 2014http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=10&ved=0CGEQFjAJ&url=http%3A%2F%2Fwww.shermanassociates.com%2FMarketNews%2Fmarket%2520reports%252009-08%2FQ%2520and%2520A.docx&ei=_tk6VKOgI5awyATspYHAAQ&usg=AFQjCNEMlyygE5wqoyEFxf6wPK7Ad0pK0g&sig2=Jc1iyqH07wKU9YlZm4VZXw&bvm=bv.77161500,d.aWw
Tobac, Steve. 2014. Retrieved from, http://www.cbsnews.com/news/americas-worst-ceos-where-are-they-now/
Townsend, Matt. 2014. Retrieved from, http://www.bloomberg.com/news/2014-08-21/home-depot-names-craig-menear-to-succeed-blake-as-ceo.html
https://www.csub.edu/~ecarter2/CSUB.MKTG%20300.Fall%2011/Mission%20Statements.doc.
http://www.homedepotsucks.org/Top_Home_Depot_Complaints.php
http://www.consumeraffairs.com/homeowners/home_depot.htm
http://www.glassdoor.com/Reviews/Employee-Review-Koch-Industries-RVW4390684.htm
http://www.simplyhired.com/job/jpwzud3ljn
http://www.indystar.com/story/opinion/2014/03/20/evil-koch-brothers-spread-wealth/6660393/
Koch Industries Mission Statement (n.d.) http://www.sec.gov/Archives/edgar/data/41077/000119312505225697/dex9910.htm
http://ontd-political.livejournal.com/10567246.html
http://www.freerepublic.com/focus/news/3133524/posts
No comments:
Post a Comment