The Chief Executive magazine article linked below helps illustrate how deeply rooted tool-based leadership is in our enterprises. Well intended, the article’s author makes the argument that the key to creating shareholder value is an understanding financial accounting tools.
Wrong!
Think Paul O’Neill, who while Alcoa’s CEO made his singular leadership focus on radically improving worker safety. Over O’Neill’s 13-year tenure, Alcoa dropped from 1.86 lost work days to injury per 100 workers to 0.2. O’Neill’s focus on safety was part of a broader emphasis on creating “habitual excellence,” stemming from a belief that an enterprise has the potential for greatness if every person in the enterprise can say yes to three questions without reservation.
- Can I say every day I am treated with dignity and respect by everyone I encounter without respect to my pay grade, or my title, or my race, or ethnicity or religious beliefs or gender?
- Am I given the things I need – education, training, tools, encouragement – so I can make a contribution to this organization that gives meaning to my life?
- Am I recognized for what I do by someone I care about?
But what about shareholder value? Alcoa’s net income increased by five times during O’Neill’s tenure.
Success is never first found in the tools – it is always primarily about the people.
