Mackey, Tindell, yoga, Abe Lincoln and corporate branding vs. reality
My column on and Q&A with John Mackey of Whole Foods and Kip Tindell of the Container Store, who were housemates in college and now both run companies on the principle that employees and customers come before shareholders, has been generating some intriguing responses.
I heard from another of their University of Texas housemates, an economist-turned-yoga-association-director (a career path to emulate) who knew all about Mackey but had no idea Tindell had turned into some kinda big cheese too.
I heard from a reader who wrote:
Tindell and Mackey might be interested that Abe Lincoln had this to say about their business philosophy. "Inasmuch as most good things are produced by labor, it follows that all such things of right belong to those whose labor produced them. But it has so happened in all ages of the world that some have labored and others have without labor enjoyed a large proportion of the fruits. This is wrong and should not continue. To secure to each laborer the whole product of his labor, or as nearly as possible, is a worth object of any good government." I wonder how many business leaders and others who venerate Lincoln as an icon to emulate, including Mr. Bush, know this was his view. I wonder if Tindell and Mackey know it...even though they practice it.
And via the magic of Google Alerts, I heard from my long-ago Fortune colleague Rob Walker (Hi Rob!), who wrote in his Murketing blog:
Maybe these companies are exceptions, but I think there's some value in at least considering the idea that Fox is writing about. And also about the broader idea underneath it, which is one I've thought about a lot lately as I've been out and about talking to some manager-and-executive-type people about Buying In. That broader issue is that I think a lot of companies that sense the need for a change are way more focused on changing their image (via marketing) than in changing their business practices.
Then Rob quoted something he'd written elsewhere:
There's a widespread tendency to think “branding” just means logos and slogans and ads. I see branding more broadly, as the process of attaching an idea to a product. That idea lives in consumers' heads and can come from an ad campaign—but it can also come from direct experiences. It doesn't matter if the advertising for a drugstore chain depicts kindly pharmacists going out of their way to help—and the actual experience you or I have at that chain in real life involves a dirty store and a rude pharmacist who makes you wait around for no reason and screws up your prescription—well, the idea that gets attached to that drugstore chain's brand is going to be the one that comes from real life.
,
-
1
While I like the idea of branding in terms of loyalty and service, with so many industries today the only time you really need customer service is when something goes wrong. Take a grocery store, between prepackaged meats, pre-sliced deli meats and cheeses, self scans, the only time you need to interact with a person is when the price was wrong or you need to return something.
Is the customer going to differentiate between good and excellent service in this case? I believe they'll notice and punish bad service, but there's no adequate reward for outstanding service, when the only time one needs service is when something goes wrong.
-
2
Let's not forget Dean Kamen; employees of DEKA have no titles or responsibilities other than what they claim through the force of ideas and leadership. In individual circumstances, I think the concepts that Mackey espouses (other than posting on financial boards using false names) work well, but ultimately, you also have to reward those with the ideas and leadership, and those who provide capital. Are those rewards disproportionate? In some cases, probably.
A good example of where employees get the bulk of the rewards of their labor: GM. I'm not sure that's the role model we want to emulate.
-
3
What a completely ridiculous quote from Lincoln.
The concept of "secure to each laborer the whole product of his labor" leaves know room for capital risk, intellectual property, art , etc.
Are we to expect that the guy that works the machine that stamps out DVDs should make more than the screenwriter who writes the movies that end up on the DVD?
Do we expect the guy who runs the DVD machine to make more than the independent producer who risks $10 million of his own to make the movie?
Simply dumb.
-
4
Please vet sayings attributed to historic figures before you quote them. I think the "quote" assigned to Lincoln is not one of his. He was much too smart to say something that stupid.
As a man who knew business, Lincoln knew if each laborer were to be given the value of his output, why would the laborer be hired? There would be nothing left for the person who hired him. Lincoln, as an attorney for railroads before he ran for public office, knew that the system would not work without a sharing of the profits of the organization. He knew the sharing would not be equal because the contributions were unequal.
-
5
The following Lincoln quotation is much more familiar:
“Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration. Capital has its rights, which are as worthy of protection as any other rights. Nor is it denied that there is, and probably always will be, a relation between labor and capital producing mutual benefits.” - Abraham Lincoln
-
6
Thanks, Adam! And I've asked my e-mailer for a citation for the other Lincoln quote. Will let y'all know when and if I hear something.
-
7
Okay, here's the word. He got it "from the cover of a publication called The Nonpartisan Leader, National Edition, February 7, 1921. It is a farmer oriented weekly of that era oriented towards increasing farmer income from their work. I find nothing in the issue that states where and when he gave that view."
Editors of The Nonpartisan Leader were not available for comment. But given that Adam's much-better-known quote--which is from a speech by Lincoln to the Wisconsin State Agricultural Society in Milwaukee, September 30, 1859--tends in a similar direction, I'm going to let it stand.
Most Popular »
- Tennessee Mayor Accuses Barack Obama Of Hating On Charlie Brown, Peanuts
- Wii Fit Plus Review
- Obama Shifts Date of Copenhagen Visit
- NV Sen Poll: Reid In Trouble
- The PlayStation Turns 15, We Reminisce
- 'Forgotten Man' II: Two-Thirds of Jobless Blue-Collar
- 135 Money-Saving Resources and Tips, Special Holiday Season Edition
- False Economy: Think You're Saving Money? Think Again
- Twitter App Showdown: Echofon Pro vs Tweetie 2
- Loving The Joke
- How Strong Is the Evidence Against Amanda Knox?
- Will Federal Spending Mistrust Mean the End of Obama's Audacity
- Amanda Knox, Convicted of Murder in Italy
- Nicolas Sarkozy: A French Paradox
- India, Pakistan and the Battle for Afghanistan
- Hate Your Job? Here's How to Reshape It
- Amanda Knox Testifies: The Murder Trial That Has Gripped Italy
- Helicopter Parents: The Backlash Against Overparenting
- Astronomers Spot Planet-Like Object GJ 758 B in Orbit
- Foxy Knoxy Case Still Roils Italy













RSS