Page 141 - The Bible On Leadership

Performance Management 127

nated them, and to the entire rest of the company is the same message
conveyed in 2 Timothy 2:6: ‘‘The hardworking farmer should be the
first to receive a share of the crops.’’ Or to put it more succinctly, ‘‘As
you sow, so shall ye reap.’’
Largely out of necessity, Jack Stack of Springfield Re has had to make
the business connection between reaping and sowing very plain to all
the employees. The division had been cut loose to stand on its own by
parent International Harvester, and it was in a highly leveraged debt
situation. Stack had to make all employees painfully aware of the effect
that their individual productivity (or lack thereof ) would have on the
company’s bottom line and, ultimately, survival.
Notes one Springfield Re line worker, ‘‘Every week you sit down
with your supervisor and he gives you the numbers. You can see how
your own work affects the statements. At first I was not interested and
did not think it was of benefit to us . . . But as you learn about it, it
becomes more beneficial . . . If you are not working up to standard, it’s
going to show up on that paper.’’
Stack has created an environment where employees see the connec-
tion between their actions and the bottom line. Everyone right down
to the lowest assembly worker can see the positive impact of controlling
costs and the negative impact of failing to do so. Employees now realize
that bonuses are not arbitrary, but are contingent on lowering costs and
maximizing productivity. They almost lost their bonuses when health
care payments went $60,000 over budget. Notes Stack, ‘‘It was the first
time that employees really understood that some insurance company
wasn’t paying their claims; that it was really coming out of their sweat
and equity. People got a sense of ownership that they could in fact
control health care costs and could make a difference.’’ 26

Firm but Fair Practices

The phrase ‘‘firm but fair’’ is one of the biggest cliche ´s in the business
world (not to mention education and sports). Everyone wants a boss (or
teacher, or coach) who combines structured, exacting behavioral and
performance guidelines with kindness and impartiality. This balance is