Page 240 - An Indispensible Resource for Being a Credible Activist

competitive corporate governance presented here will guide you to implement a corporate
infrastructure that will automatically prevent fat and increase muscle.
Here is only one example of the value of knowing the difference between fat and muscle:
In 1998, Blue Cross Blue Shield Illinois pleaded guilty to eight felony counts and paid $144 mil-
lion after admitting it concealed evidence of poor performance in processing Medicare claims
for the federal government. The company admitted it was guilty of conspiracy to obstruct a
federal audit and of obstruction of a federal audit. It also falsified and destroyed documents.
In order for Blue Cross Blue Shield Illinois to have engaged in practices deemed felonies,
many people had to approve those practices. Who came up with the ideas to defraud the gov-
ernment in the first place? Who supported and approved those ideas? Who believed that break-
ing the law was worth risking having to plead guilty to eight felony counts? Any employee who
believes that legal risk is worth it is fat. Any employee, regardless of executive authority, who
approves that risk, is fat—not muscle. Any employee who wishes to stop such practices is mus-
cle. However, most employees who wish to stop illegal practices are afraid to come forward.
How are you, as the HR leader and credible activist of your company, going to ensure that you
know who is the fat and who is the muscle? How will you encourage employees who are aware
of risk and liability to come forward?
In these challenging times, workplace leaders and HR credible activists need to know how
to strategically supersize the muscle and downsize the fat in their workforces and operations.
To survive now and remain sustainably competitive, business leaders need to look beyond the
seemingly obvious cost-cutting measures of the past. The world has changed. The OD field has
taught us that there is a direct link between competitive corporate governance and profits.
We now know how to do this from an OD perspective, which unsurprisingly mirrors
those areas that are now scrutinized by prudent investors. There is often ultimately a direct
relationship between governance and profits. Quality is more important than quantity, and
cutting back does not have to mean extreme suffering. In fact, this economic downtown is an
opportunity for businesses to become more efficient, more effective, and more profitable. Yes,
more profitable. Implementing crucial changes in operations to ensure safety, legal compli-
ance, efficiency, competence, and improved processes will save money and increase profit and
productivity.
Can you afford risking convictions in civil court, criminal court or the court of public opin-
ion? Think about these examples. Which aspects of your corporate governance might be the
fat and which might be the muscle? As you consider the questions in the paragraph that fol-
lows, think of answers regarding your own company as well as the companies that have been
in the news because of fraud allegations.
Who is responsible in the company for hiring and ensuring there are no citizenship
issues either regarding legal eligibility to work in the United States or regarding discrimina-
tion and harassment based on citizenship? What would happen if an employee came for-
ward and went to you or a member of your staff to say that he or she believed that the
company was taking a big risk regarding citizenship issues? How would that person be
responded to? In what way are you as a leader responsible for this? How do your current
policies and practices support competitive corporate governance? Are there any gaps
between your policies and practices? As an HR credible activist, how can you influence the
necessary decision and policy makers in your company to ensure that all of the stakehold-

CHAPTER 14 • What Matters? Accurately Discerning Muscle from F at 223