Financial Reflections

Working as a “consultant” for over a decade has offered me a unique view into some of the world’s largest corporations.  I’ve been privileged to work a company that that can trace its roots back to the 1800’s, as well as at least one that has risen from nothing to the Fortune 500 within my lifetime.

To top it off, I’ve also worked with a couple of smaller companies who were struggling to make the leap to greatness.  They didn’t worry about quarterly results nearly as much as they worried about the next round of venture capital funding.

But throughout my experience, I’ve noticed one common thread among all these companies, be they old or new, large or small.  It was summed up by someone who worked for one of the older, bigger companies, right before they had layoffs.  It was directed at that company, but as I thought about it, I realized it fit every single company I worked for.  Ready for it?  Here’s Rule Three:

Every Company Has Empowered Employees.  They’re Called Directors.

I’ve also seen this rule make or break careers.  Employees who are either entrepreneurial-minded (a good thing) or just stubborn (not such a good thing) end up first in the layoff line, or just escorted to the door because they don’t understand that rule.  That happens no matter how talented they are.  If you’re a bottom-of-the-org-chart employee, you must realize that no one on the ground level can implement change.  Your job description is bleak, but simple:

1. Shut up.
2. Do what you’re told.

If you’re a first-level manager (what is arguably the hardest and least thanked job in any organization) you must realize that your plight is exactly the same.  Sure, you can hand out a few atta-boys (or girls) to your staff, but real change?  Forget about it.

It’s from the second-level (what I’ve called “director,” the name may be different in your organization) on up where the real decisions are made.  A director has enough headcount inertia to make a policy change and have it spread beyond his or her group.  That’s where a company can make real strides.  It’s also where mistakes are made that can screw up a company’s bottom line are made, so be careful, you directors out there.  People are depending on you.

Of course, it’s at the director level where the real bonuses and perks start in most companies.  That seems right.  It goes hand-in-hand with the responsibility given to upper management. Unfortunately, in my experience, the bonuses don’t very clearly correlate with a company’s long or short term performance.  The bonuses I see are much like the raises congress keeps voting for themselves.

So what hope is there for us terminally at the bottom?  Knowing rule three has helped me do my job - without tilting at windmills.  And that’s a big boost to my personal finances.  I do my job, and I’ve been rather well received in corporate America, where “sheep” and “team player” are often synonyms.  Of course, if I was asked to do something illegal or unethical, I’d leave.  I do have the right to vote with my feet.

But is this right?  Are corporations really moving forward by muting the voices of those who arguably power them?  I don’t think so.  There are corporations who’ve learned to break Rule Three, and have had great results.  They’ve learned to filter out the stubborn folks and let those who really want to create positive change do so.  Sadly, those companies are few and far between.

But what about those of us (including me) who want something more?  Well, I’m learning how to run my own show.  Someday, perhaps I will end up being the owner of a business and be the one taking all the responsibility, and reaping the rewards.  But until then, I’m going to keep doing my day job.

(This post is third in a series.  You can also see Rule One and Rule Two on this site.)