Upstanding. Frank A. Calderoni

Upstanding - Frank A. Calderoni


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values cohesion, inclusion, and shared purpose for the company. I saw this as an opportunity to leverage my experiences with the lessons I have learned along the way—lessons I now feel compelled to share with you, especially today.

      Company character is the core that grounds culture and strategy—it is the persistent through-line of fundamental beliefs and values uniting people and teams working with a shared purpose. While our world and business environment are in a constant state of flux and change, the qualities that constitute good character never change. They're timeless.

      Character comprises the qualities and behaviors that define us as people—such things as empathy, courage, authenticity, integrity, honesty, and respect. They are embodied in how we work every day, how we treat others, and how we treat ourselves. Organizations that internalize and live and demonstrate upstanding company character in every interaction are the organizations that will win today—and into the future.

      1 1. https://archive.fortune.com/magazines/fortune/fortune500_archive/full/1979/

      2 2. https://www.ibm.com/ibm/history/history/year_1962.html

      3 3. https://www.cambridge.org/core/journals/business-history-review/article/change-and-continuity-at-ibm-key-themes-in-histories-of-ibm/DADE64DDC8569B2F9046B4CF47DFA814/core-reader

      4 4. https://www.economist.com/news/2008/07/28/downsizing

      5 5. https://www.cnet.com/news/ciscos-chambers-cuts-salary-to-1/

      6 6. https://www.bloomberg.com/news/articles/2003-11-23/ciscos-comeback

PART I It's a New World

       “I came to see, in my time at IBM, that culture isn't just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”

       —Louis V. Gerstner, Jr., former Chairman and CEO, IBM

      Today, peak performance requires a dual focus on culture and strategy, especially in this new era of doing business. We are in a unique environment marked by instant gratification, pervasive social media influence, and fast-changing global political and economic forces that require every business to be agile and ready to shift at a moment's notice. In addition, the forces of digital transformation and disruption are exerting tremendous pressure on entire industries—and the executives who lead them.

      On top of all that, we've all witnessed the tremendously negative impact the COVID-19 pandemic has had on people, businesses, and the global economy—surpassing the downturn of 2008. While many companies have recovered from the severe and unexpected disruptions to their business operations, many others have gone bankrupt or have closed their doors permanently. Major companies filing for bankruptcy during the COVID-19 pandemic include Neiman Marcus, JCPenney, Virgin Atlantic, Hertz, 24 Hour Fitness, Pier 1 Imports, Brooks Brothers, Stein Mart, Sur La Table, and even the Cirque du Soleil circus arts live entertainment company. The list goes on.

      It seems that change is all around us.

      Leaders intuitively know a great culture enables great business results, and a significant amount of research confirms this. However, that same research shows that most organizations are falling short when it comes to culture.

      According to Gallup, which has been regularly surveying the state of employee engagement for almost two decades:

       65 percent greater share-price increase;

       26 percent less employee turnover;

       100 percent more unsolicited employment applications;

       20 percent less absenteeism;

       15


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