People come before moneyFeb 27, 2020
I am an idealist I envisioned a world that is different from the world we live in now I envision a world in which the vast majority of
peoplewake up each morning inspired to go to work feeling safe when they are there and return home at the end of the day made by the work they do and i believe in what is called fulfillment the ability to say i love my job i love what i do i think its a basic human right and not a privilege we treat it like a privilege you know you date your friends and someone says I love my job and the rest of us are like oh my gosh you're so lucky like it was a lottery they won or something and I just fundamentally believe that we as a workforce have the right to demand that the places we work provide us that the irony is it's actually good for them that's the big joke we are more engaged when we offer more discretionary effort than we offer our great ideas simply because they said
comehere and have fun and feel safe and have fun and let us help you to grow boom years most companies grew it was a time of relative peace and it was a kinder cold war we weren't practicing hiding under our desks in school and many of the business philosophies being advocated and proposed were for those times, so the concept of shareholder supremacy, for example, was a theory proposed by Harvard in the late 1970s.
Just a theory. The concept of using layoffs to balance the books was a practice that did not exist in the United States prior to the 1980s. against you, you promote the top 10% and fire the bottom 10% and create an environment where
peoplecompete with each other within the company. btw that's what dictators do they keep people divided and stay in power because dictators are afraid of people so say it's the same thing. These are all fantastically good theories for the boom years, and in the near term, we'll be dismantling Glass-Steagall as well. in this time period it's not a republican or a democrat thing because you had a republican and a democrat president during this period and glass-steagall was the law that was passed after the great depression to prevent another great depression from happening, among other things, one of the things that he did was ban investment banks and retail banks that existed in the same institution, which is what was allowed before the Great Depression, do you know how many stock market crashes we had before the dismantling of Glass-Steagall zero we had zero stock market crashes for 50 years, then they dismantled Glass-Steagall in the 1980s and 1990s and we had the 2009 I was at 87 dot-com crash and 2008 we had three, but it was actually leaders like Jack Welch who promoted these theories du jour for a very different time and they have be
comeso normal today that we don't actually realize how backward they are we talk about layoffs that we announce them on the news as if in fact it's nothing worse when a company announces layoffs the price of stocks goes up and if you're incentivized based on stock value uh huh a few years ago Citibank announced record layoffs the exact same year they announced record average bonuses figure one is ok and the point is these systems, while they may be normal they are wrong and broken and go completely against the basic human right to which we are all entitled and by the way GE needed a $300 billion bailout in 2008 because the theories they espouse are not good in the long run , they are good for the short term, so for me to know a company like next jump, a company that when it talks about growth refers to its people, not its bottom line and a company that understands that, although
moneyis important, It is the fuel for the organization, of course
moneyis important because the more money you have, the more fuel you have to make the organization work.
This is not a hippie commune, but the point is that people come before money. I sit in the audience at many corporate events. I have never met a CEO on the planet who doesn't believe that people are important. The problem is that the decisions they make would be contrary to the things they say. They're there with their priority list and it says number one priority. growth. priority number two. shareholder. value number three priority customer number four priority employee see our people are important number four even when they say customer comes first that means your employee is minus number two right and the irony is that when you take care of your employees your employees take care of their customers their customers take care of their shareholders and then and the big joke is that the numbers show it the numbers show it you look at the people focus on companies they outperform the numbers focus on companies in the long run dramatically GE vs.
Costco Costco criticized year after year by Wall Street for maintaining a flat stock price, but if you compare Costco's stock price to GE's over the course of the last thirty years, you'll see that GE won 600 percent. percent of your money the same year you invested the year in Costco in public I would say 600 percent S&P 500 600 percent Costco 1,200 percent double 2x is good for the shareholder I can no longer be accused of being a crazy idealist if what I imagine it exists in reality that is why companies like this are very, very important that we study if they have everything right, of course, they do not have a trend, they are in the right direction, absolutely, they compare the performance completely against what we consider this to be the normal business practice of the day. and here's the best part, their numbers prove it, so for all you cynics out there who think numbers matter, numbers come first and performance comes before people guess what outperforms your competitors year after year of the year , you surprise even yourselves, study that book and study. this company because mark my words if we have anything to do with it in 10 or 20 years we will completely undo all the bullshit that bass like Jack Welch promoted in the 80's and 90's that's enough ok
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