Get Passionate About Passion Driven Growth
t first glance, the guiding principles behind a company employing
thousands of people all over the world might not seem to have a lot to do
with much smaller organizations or even independent sales operations. The
concept of teamwork and functioning as part of a whole entity might not
seem to have much in common with the idea of working alone and competing
for business.
But "Clicks And Mortar: Passion Driven Growth in an Internet Driven World"
offers plenty of inspirational examples to prove that there are principles
of doing business successfully in the "old" brick and mortar world as well
as in the new virtual realm. Likewise, those same principles making big
corporations successful can be applied to businesses of any size.
There is a lot to appreciate, ponder and inspire in this book, co-written
by David S. Pottruck, Charles Schwab President and CEO, and Terry Pearce,
University of California professor and leadership communication consultant.
Between them, the two have many years of solid business experience, and
both share personal stories in the book to illustrate their theories on
what sets great companies apart from all the rest.
The idea behind the book, first published in April 2000 and reissued in its
present edition earlier this year, is that there are essential elements in
building a business successfully. Whether it's a more traditional, physical
operation or a virtual e-business, the same ideas hold true in either case
for "igniting the fire that is necessary to generate loyalty and
commitment" in employees and customers alike.
Part 1 covers the idea of "culture" - what it is, how it's created and
maintained, and why it's important. The authors maintain that in today's
business atmosphere, driven by the rapid and continuous need - created by
the Internet - to innovate to be able to compete, corporate culture is the
foundation, the central competitive advantage for any company.
Pearce defines culture "as a set of values, a shared purpose, a common
language, and all the actions that make the values real," and goes on to
define values "as the nonnegotiable tenets against which we measure the
worthiness of our choices."
When an inspiring corporate culture invites buy-in and participation by
employees, that enthusiasm is passed along to customers and clients.
Pottruck is adamant that incorporating values, responsibilities and
integrity into all areas of life and work is basic and begins by example at
the very top. Diversity of people and ideas only adds to the discussion -
and communication and the open exchange of ideas should be welcomed from
all in a culture.
Part 2 looks at leadership - leadership that inspires passion-driven
growth. Leadership communication should be informative and clearly
reiterate the culture's vision. Pottruck details the processes behind the
development of several of Schwab's internal and external customer-oriented
programs to illustrate successes and failures in the corporation's
communication style over the years.
Listening skills - listening to hear rather than to answer - are critical
to open communication all the way up the corporate chain. It's very
important to solicit comments from customers and employees alike and really
hear what they're saying. Pottruck points out that, ironically, those
employees with the most client contact usually have the least amount of
contact with the CEO - and they're the ones who often have the best ideas.
Part 3 covers branding, marketing and packaging the business' message. The
company's culture and leadership style are reflected in all communication,
including advertising and brand identification.
Pottruck says that marketing is an ongoing conversation. In today's
technology-based business world, everyone in the company, both on the
business side and technology side, need to be involved in that
conversation.
The Internet has not eliminated the need for interaction with customers but
has increased the importance of having systems in place to provide
excellent and instant service. There is a thorough explanation of
budgeting, establishing ratios, setting goals and measuring success with
the bottom line and with personnel.
The book's narrative style presents two distinct voices. Readers don't have
to wonder which of the authors is saying what - they get a separate
perspective from each with Pottruck's chapters and Pearce's recapping of
each one.
The book is really about Pottruck's leadership style and philosophy,
blending theory with his extensive personal experience. Pearce's chapter
summaries encapsulate those ideas and add to them with lists and how-to
information.
Pottruck's background includes serving as a senior executive with IBM,
Citibank and Shearson Lehman before joining Schwab in 1984. Pearce is on
the faculty of the University of California's Haas School of Business and
conducts business-communication workshops and presentations.
"Clicks and Mortar" is a fast read in a down-to-earth style but is full of
ideas to inspire change and ignite passion. It presents an interesting look
at how the Schwab Corp. has grown and evolved; Pottruck's descriptions of
the culture at Schwab might even inspire readers to apply for a job there.
Other business visionaries and writers, such as Tom Peters and Paul Hawken,
are quoted and well-footnoted throughout for future reference. The
narrative gets muddled on occasion, but there are enough useful tidbits to
make wading through them worthwhile. The ideas put forth here are useful
for the biggest of corporations as well as the one-person independent sales
operation.
What They Wrote About ...
Employee participation
"When you can create a field where people can contribute openly, you may be
amazed at the number of them that want to play."
Creating environment
"Talent is insufficient to ensure the best results of a team. It takes
generosity of spirit to bring out the spirit of the collective, and
therefore the best results for the team. A leader's job is to make sure
that atmosphere prevails by modeling it every day."
The Internet
"Customers want to be assured that their Internet link to your business is
as 'reliable as a dial tone.' Because every company has to manage its own
reliability, and because mistakes are now immediately obvious to customers,
technology management has become a critical skill for a business leader."
Goals
"Proper goals are set to inspire something more than just 'last year's
performance plus some' effort. Such goals have an impact on the individual,
not just the business. . I try to use the budgeting and measurement process
to stimulate inspiration, on my part, and on theirs. This is not always
comfortable, and it requires a high level of trust."
Commitment
"Filling a need is not just the way to make money, it is the way to create
commitment to any organization."
"People who are deciding to make a commitment to a leader need some
fundamental information, and they look for constant reinforcement of that
information throughout the life of the enterprise. Among their questions
are 'Who are you?' and 'Where are we going?' I would add a third question
that makes a significant difference in the potential for people's
commitment. It is 'Why are we going there?' "
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