The One Constant...Change
While working at Computer Associates, I developed some hiring practices that I found very valuable. Once I was ready to give someone an offer, I would bring them in and ask them, “Why do you want to come work here?”
They would tell me a bunch of favorable things about the company and the opportunity. I would then say, “well, let me tell you about some of the reasons you may not want to come to work here.” I then proceed to share with them things about the company, its culture, and its way of operating that some might not like. One of the things I would say is “the one constant here is change. If you are not comfortable with change, you should not work here.”
In 1998, as a Divisional Vice President of Sales, I hired a sales rep to come work for me. Once he started, we sent him off to a 4-week training program at corporate headquarters. While he was in away training, I decided that I was going to leave Computer Associates. Out of respect for my new rep, I called him to tell him personally. To say he was shocked is an understatement. When I asked why, he replied that he had just arrived.
I responded with, “Remember before I hired you, I shared that ‘the one constant is change.’ Well, this is change.”
He replied, “I didn’t expect it to happen this fast.”
Change doesn’t happen when we are thinking about it or ready for it. It just happens. Usually, it starts slow and gradually builds momentum. Personally, I am pleasantly surprised by the pace of change in the laws and acceptance of the LGBTQ community. To those in the LGBTQ community it likely seemed like it took a long time, however compared to the pace of change with accepting and treating Black and brown people equally, the change was quick. The problem is we humans fundamentally don’t like change, unless of course we are the ones pushing change.
We certainly don’t like change if it's perceived to favor one group over another.
Recently, the Governor of the State of Georgia signed a bill designed, they say, to instill voter confidence. Many do not see it that way, so much so, that corporate leaders, among many others spoke out against it. Mitch McConnell didn’t like that corporate executives spoke out against it and said they should stay out of politics. Of course, he didn’t really mean that, because doing so would mean they would have to stop donating to parties and candidates. He just didn’t want them speaking out unfavorably about laws being passed that people may view as objectionable. Doing so would create a level of attention and that apparently he isn’t interested in.
In the past, corporate leaders generally did stay out of politics with the exception of making those donations, and some, hiring lobbyists to influence congressional leaders to pass or prevent laws to ensure favorable conditions for their business or industry.
In 2019, the Business Roundtable changed the purpose of a corporation, something it hadn’t done for about 40 years, to “Promote ‘An Economy That Serves All Americans’.” This is the first time the macro view of the Business Roundtable’s statement of purpose reached beyond shareholders interests.
It begs the question: why did they make this change?
The answer is quite simple. Corporate leaders have realized that the environment in which their companies are working is changing. And it's changing faster than ever before. The younger generations in the workforce are demanding more from their employers. They want to work for companies with a purpose, companies that do good things, not just make money. They want their employers to care about the environment and take actions to minimize their company's negative effects on the environment. They are looking for a more equitable society, both socially and economically. They want and expect more from their employers and its leaders.
All this overlaid on the reality that there is a global war for talented employees. That means that US corporations are now battling foreign corporations for home-grown talent and vice versa.
CEOs today don’t have the luxury of just focusing on their business and the P&L. They have to speak out about what many view as social injustices because their employees, potential employees and customers or clients are watching and judging the leaders and the companies by how they respond.
They are expected to have a broader world view because their businesses are ever more vulnerable to the market's perception of their company. Social media not only democratized business, it also democratized the dissemination of information. Businesses can literally get crushed if they are on the wrong side of issues.
The CEO of Dicks Sporting Goods decided to stop selling guns in over half of its stores. They implemented a gradual process to assess the impact of the decision. Early returns of stores that removed guns, sales went up and when they made the announcement, the stock price went up. In the first full year since the announcement, revenue has gone up, even in the COVID year. It was clearly a good business decision, regardless of gun advocates’ discontent. I would also say the decision communicates something about the soul of the company. Oh and, by the way, shareholders have been richly rewarded as their stock price has more than doubled since the announcement.
This is why leaders in all areas of society are speaking about issues. It is good for business, whatever business you are in.
I’m proud that the Philadelphia 76ers hired Doc Rivers, not just because he’s an excellent coach, but because he’s known for speaking out about racial issues. And why shouldn’t he? He works in a business where nearly 75% of the players, employees, are Black.
Change is happening all around us. People like Mitch McConnell can choose to ignore or resist it, but they do so at their own peril. Most corporate leaders don’t have that luxury. The average tenure of a F500 CEO is now just five years. That’s less than one US Senators term. You see, CEOs are accountable in a way politicians are not.
I, for one, appreciate leaders who have a big platform from which to speak, and use that platform to take a stand for what they believe. It’s long overdue and, in my opinion, will accelerate change even more. If you want to thrive in the future, expand your worldview, observe and acknowledge the change happening around you and ask what’s going on and why? If we do, we too will act differently and it will make it easier to embrace change.
The one constant is change…lead, follow, or get run over; you choose.
Of course, you can always reach out to me and I can help you do this for you and for your team.