Category: Management

Stefan Stern

Two big industrial disputes have erupted in Britain today. First, talks between British Airways and the Unite trade union broke down, meaning that this weekend’s strike on BA seems almost certain to go ahead. Second, the Rail, Maritime and Transport (RMT) union announced that signal-workers on the railway have voted, by a small majority, to go on strike as well.

The only frustration for newspaper headline writers is that, since spring has finally burst into life this week, these two strikes cannot be characterised as constituting a “winter of discontent”. But it is an opportunity to ask if the so-called British disease – industrial unrest – has reappeared.

Ravi Mattu

Last week, Jason Hirschhorn and Mike Jones, the new co-chief executives of MySpace, gave their first interview since taking over from Owen Van Natta. They are the second duo to gain some prominence in recent weeks. Last month, SAP, the technology company, announced its own double-headed form by appointing co-chief executives to replace a single one.

Schumpeter, the management columnist at The Economist, made the point that last week that such a model works much better in technology companies where there is a definable split between the innovation and technology functions and the sales and marketing role.

Today’s Judgment Call, the SAP heads, an academic and a PR guru all weigh in on how it can be made to work – and how it can easily go awry.

Stefan Stern

Upsetting news in from Milan last night, where the English soccer superstar David Beckham tore his Achilles tendon, almost certainly putting him out of this summer’s World Cup.

At the age of 34 Beckham is clearly not quite the player he was. It seems unlikely that the England boss Fabio Capello would have picked Beckham to start matches in his ideal first eleven. But his presence in the squad would have lifted his fellow players. And he was likely to make several appearances coming on to the pitch from the substitutes’ bench. He remains a brilliant crosser of the ball, and can still deliver a deadly free-kick.

Optimistic English football fans – there are a few out there – will console themselves with the thought that, in 1966, England won the World Cup without the apparently irreplaceable Jimmy Greaves playing in the latter stages.

There may be another reason for the optimists to reinforce their sunny outlook. Football, obviously, is a team game. Individuals have to step up and take responsibility, playing complementary roles. There is no time to look wistfully over to the substitutes’ bench waiting for the saviour Becks to work his magic, as he did at Old Trafford in 2001 and Sapporo in 2002.

No: the players who are on the pitch will have to do the job. There will be no David Beckham (or Michael Owen, for that matter) to rely on. What an opportunity for the next generation of players to grab. All they have to do now is beat Brazil or Spain and the cup’s theirs!

Stefan Stern

You may have missed this story by my colleague Jonathan Soble in Tokyo last week. The basic thrust of it is that employee representatives at Toyota had informed senior management in 2006 that they were concerned about falling quality at the company. “We fear that processes vital to safe automaking have been cast aside in the name of competitiveness,” one union leader said.

It is true that this leader came from the “All Toyota Labour Union”, a break-away from the more established in-house union. But this story tells us two things. First, listening to employees (consultation) may take time but can save you from greater problems in due course. And second, staff associations or “approved” unions, while more polite and restrained, may not give you the independent feedback managers sometimes need.

Last month I wrote in this blog: “I expect that, down on the production line, Toyota employees could see exactly what was going on. That is the Toyota way.”

I am glad that, in this sense at least, my faith in the company has been confirmed.

Stefan Stern

Tricky things, partnerships. Their great advantage is that you have to proceed by consensus if you want to get anything done. Their great disadvantage is that you have to proceed by consensus to get…

An interesting letter appeared in this paper today from Ashley Unwin, a partner at PwC. Mr Unwin was responding to a report from the Management Consultancies Association, which stated that consultants are, by and large, doing good work that represents value for money.

But Mr Unwin wants to go further. Firms should consider accepting fees based on “realised value” – that is, tangible, measurable results. This has been talked about for some time, but is practised only rarely. Before joining PwC Mr Unwin worked for the private equity group Terra Firma, where he was a managing director, and spent 18 months at EMI (seems to be the average tenure there these days).

His letter ended with this challenging kicker: “It remains to be seen whether any firm is brave enough to adopt this [approach], ours included.” [My italics] Might there be some lively conversations going on at Embankment Place just now, d’you think?

Ravi Mattu

If Canada’s gold medal in ice hockey wasn’t enough to convince you of the country’s love of the sport, an Ontario company has taken it to another level. IT Weapons has installed a hockey rink in their office as a way both to satiate the bosses’ love of the game but also as a way to attract and retain talent.

According to Jason MacBean, the company’s chief architect: “One of our biggest challenges is retaining young, smart people, and young, smart people need a blend between their personal lives and work. The people we want to attract are people who will appreciate this,”

Ravi Mattu

John Lewis, the UK department store that also owns supermarket chain Waitrose, has reported annual pre-tax profits of £306.6m. I wouldn’t normally write about profit margins on this blog but John Lewis is unusual in that it is a high street brand that has done relatively well in the downturn despite being a relatively pricey option.

John Lewis is notable because its employees own the company, and partly because of that, the customer service is miles better than many of its competitors. These employees will share £151m bonus. More than that, as my colleague Michael Skapinker wrote earlier this year, it has made this ownership model work where others such as United Airlines have failed.

Stefan Stern

So the charming and energetic Elio Leoni-Sceti is leaving EMI at the end of the month, to be replaced by new executive chairman Charles Allen. I met Mr Leoni-Sceti at the FT’s innovation conference in London last year, where he gave an impressive presentation. He seemed to have grasped how serious EMI’s problems were, and how radical the company needed to be if it wanted to recover. He was full of interesting, revenue-generating ideas about how an old media company could transform itself into a new media one.

Stefan Stern

The UK’s Association for Graduate Recruiters has published a pre-election “manifesto” today, which argues, among other things, that the government’s drive to get 50 per cent of all under 30s to go into higher education should be abandoned. The AGR has repeated some now familiar concerns about falling standards, and university degrees of dubious quality.

Recruiters are right to be concerned about the quality of graduates they are hiring. It would be a worry if students are emerging from three years at university deeply in debt but only imperfectly educated. In my experience, employers are usually at least as concerned about new recruits’ attitude to work and “job-readiness”, as well as their academic qualifications.

All the same, while the AGR’s forceful comments have won them some publicity, it seems odd to send a message to the nation’s young that higher education may not be for them. What sort of future labour market does the AGR expect to see young people entering? Should we really be bracing ourselves for a lower skilled, less well educated future? Is that what young people in China and India are being told?

Stefan Stern

I don’t know if many members of the Academy of Motion Picture Arts and Sciences knew that March 8, the morning after the Oscars ceremony, was International Women’s Day. I’m guessing not. But as it is, in awarding the best director award to Kathryn Bigelow for her work on The Hurt Locker, they gave a green light to campaigners to launch 1000 press releases pegged to her victory.



About the authors

Stefan Stern writes a column on Tuesdays on management. He is winner of the 2010 Towers Watson award for excellence in HR journalism, and has previously won awards from the Work Foundation and the Management Consultancies Association.

Ravi Mattu is the editor of Business Life, the FT's management features section, and a former editor of the Mastering Management series. He joined the FT in 2000 from Prospect magazine

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