Читать книгу Leading with Noble Purpose - McLeod Lisa Earle - Страница 6

When I grow up, I want to claw my way into middle management.

– Said no 10-year-old, ever

Do you remember the Monster.com Super Bowl ad?

Monster's iconic “When I Grow Up” campaign featured kids saying, “When I grow up I want to be a Yes-man” or “Yes-woman” “Yes, sir. Anything for a raise sir.” The Monster ads juxtaposed the dreams of childhood with realities of adult work. Watching an earnest 10-year-old boy say, “When I grow up, I want to claw my way into middle management,” reminded people, work was supposed to be better than this.

The rise and fall, and subsequent rebirth, of Monster.com illustrates why a profit focus erodes business, while a purpose focus brings the business to life. Monster.com was founded on the belief that helping people find jobs was a noble endeavor. In their iconic ads, Monster made it clear: “You deserve a better job, and we want to help you find it.” Monster founder Jeff Taylor's mantra was “It's half about a better job, and half about a better life.” In 2006, Monster.com was one of the 20 most visited websites in the world.

Yet by January of 2011, five years later, Monster Inc. was rated the worst stock of the year. By 2014, things were worse. In that year alone, Monster's shares dropped 43 percent.

What went wrong?

Analysts suggested that Monster's free fall was due to their inability to compete with newer, more nimble, connected solutions like Indeed and LinkedIn. The analysts were right about the outcome, but they missed the root cause. Lack of competitive differentiation and old technology were only symptoms. The root cause for Monster's free fall was they lost their purpose.

In 2007, after Taylor and his team had left, Sal Iannuzzi became the CEO of Monster worldwide. Iannuzzi preached a very different message from Taylor's. Iannuzzi didn't talk about job seekers, or helping people find better lives. Instead, he put the focus on earnings. Without a leader to champion the cause, over time Monster's original noble purpose – helping people have better lives – eroded.

Iannuzzi's Town Hall meeting in June of 2014 illustrates the problem. Monster's stock was at an all-time low. Iannuzzi was announcing the launch of a new strategy and a global rebrand that were intended to reverse their decline.

When Iannuzzi took the stage at Monster headquarters in Weston, Massachusetts, to announce his plans, 800 employees were sitting in the auditorium, and over 4,000 more employees dialed in via webcast from 36 countries around the globe. The employees knew their company was at a critical juncture. Would they be hearing about a new strategy that would jolt their business back to life?

As Iannuzzi began, he talked about the need to increase earnings saying, “Our number one responsibility and focus is increasing shareholder value. That will pay us, that's why we're here.” He hammered on the point saying, “That's what we're here to talk about. Everything you're going to hear [today], the emphasis is on how we're going to do that.”3

The rest of Iannuzzi's presentation was a blur of numbers that concluded quickly. Not once during the entire presentation did Iannuzzi talk about Monster's aspirations for job seekers. There was no mention of better jobs and better lives. Instead, he told his team, the single goal of their new strategy was to increase the stock price. Not help customers, not improve the industry, just increase the earnings. Afterwards, one attendee said, “It was as though the oxygen was slowly leaving the room.”

When original Monster.com founder Jeff Taylor talks about his time at Monster he says, “The pride of helping millions of people find jobs was real inside the company. We read testimonials from people all over the world at our meetings. It was meaningful.”

Iannuzzi's narrative about stock price never touched on pride they might derive from helping people. His presentation at the Town Hall was consistent with the way he routinely discussed Monster in the press. For example, he said to the Wall Street Journal in May of 2012, “I owe it as part of my fiduciary responsibility to increase shareholder value any way that I can. That's what the process is all about.” This was same story he emphasized on a daily basis to his employees.

Sadly, Sal Iannuzzi is not unique. He's an exaggerated version of what happens in conference rooms and boardrooms every day. How many other leaders have had the same conversation with their teams? How many board meetings and departmental meetings have been exclusively focused on earnings with few or no conversations about customers?

Iannuzzi's focus on earnings was understandable. Like all CEOs, he was under pressure to drive the numbers. He might not be a bad guy. Yet he made a common leadership error. He focused on profit instead of purpose. In doing so, he eroded the driving force that had once made Monster great. Their business was no longer about making people's lives better; it was about making money, end of story.

Monster serves as a cautionary tale. The same scenario could have just as easily happened elsewhere. In fact, it already has. Companies like Blackberry, Blockbuster, Sears, and Toys ‘R’ Us, who were once giants in their spaces, took gut-wrenching tumbles when they lost their sense of purpose. It wasn't a loss of earnings that caused the loss of purpose; it was a loss of purpose that caused earnings to decline. In each of these organizations, the leaders were so intent on making money from their existing business model that they lost sight of their companies' true purpose: to improve their customers' lives. With no lens on the customer's world, they were outinnovated, outsold, and outmaneuvered. By focusing on profit instead of purpose, they became dinosaurs.

Under Iannuzzi's leadership, Monster's stock value declined by over 90 percent. Between April of 2007, when he was named CEO, and November of 2014, when he departed, Monster lost 93 percent of its market capitalization, falling from 5.5B USD to under 400M USD. Analysts said he was fired for declining stock value. Insiders know the loss of purpose came first. Fortunately, the Monster story does not end there. Iannuzzi's successor, CEO Timothy Yates, a long-time Monster employee, is taking a decidedly different approach. Yates launched an “All the Jobs, All the People,” strategy focused on helping job seekers. Later in this chapter you'll learn how Monster is reigniting their true noble purpose.

The idea that a leader's primary purpose is to drive earnings is pervasive in many, if not most, organizations.