Ever hear of a company having someone with the title “executive vice president of partner resources?”
That was a new one for me, but “partners” are what they call employees—aka, workers—at Starbucks. In English, that means the executive VP for partner resources is really the executive VP for human or employee resources. And, the new guy in that very HR-sounding position will “be paid a $400,000 salary plus $400,000 in stock options and eligibility for a bonus.”
This little bit of information comes from a story in the Seattle Post-Intelligencerabout a filing the company made with the Securities and Exchange Commission on Thursday. It details what Starbucks is paying some executives as well as what the company is giving to former company president Jim Donald to keep his mouth shut—a $1.25 million severance package as long as he doesn’t “utter negatives to the press or any individual or entity about Starbucks, its business, its activities, its shareholders, employees, agents or relationships.”
I always find SEC filings to be a fascinating read because of all the inside information you can glean about a company and its management team. For example, the Post-Intelligencer found that “Donald also agreed not to work for McDonald’s or Dunkin’ Donuts, because they are ‘companies that directly compete with Starbucks’ field of business,’ ” the filing said. “However, it notes, he is allowed to work for grocery chains, such as Pathmark, Albertsons and Safeway, and he also is allowed to work for other fast-food chains, including Wendy’s, Arby’s and Burger King.”
McDonald’s as a competitor to Starbucks? Although Starbucks CEO Howard Schultz has been dismissive of the new McDonald’s coffee strategy, he is clearly concerned enough to want to bar former Starbucks executives from going to work there and has vowed to “fight to the death” against his competitors for coffee dominance.
But it’s not all about the money. Launi Skinner, former president of Starbucks’ U.S. operations, not only got a nice severance package, but also “a lifetime of employee discounts on Starbucks products.” Given what they charge for a fancy coffee at Starbucks these days, Skinner’s discounts may turn out to be the best perk of all.
I try not to get too philosophical in this blog, but I found myself feeling that way when reading about the death this week of Irvine Robbins, one of the founders of the Baskin-Robbins chain of ice cream stores. He died in Rancho Mirage, California, at the ripe old age of 90.
The story of how he named the business he started with his brother-in-law, Burton Baskin, is uniquely American. As The New York Times recalled today in an obituary, “Although it was Mr. Robbins who opened the first store, at the intersection of Adams and Palmer Streets in Glendale, California, on December 7, 1945, and it was three years more before he and Mr. Baskin became partners, they took a carefully familial approach to deciding who would come first in the name of what eventually became a vast international enterprise. They flipped a coin.”
More important, in my book, is how the two brothers-in-law managed the company. “They worked closely on everything,” according to Robbins’ daughter, Marsha Veit. “They would come up with ideas for flavors based on what was happening at the time, like Cocoa a Go-Go, when go-go dancers were popular. They would sit in the kitchen tasting, making sure the best ingredients were used.”
Read enough of the obituaries of Irvine Robbins (such as this one in the Los Angeles Times), and you can’t help but come away with the feeling that his legacy will be about the great innovation and fun-loving spirit he brought to his work. I’m not sure Robbins ever spent a lot of time worrying about that, but it got me to thinking: Do any of us spend much time considering what we will leave behind when our days as managers or executives come to an end?
For example, I spend a lot of time here writing about memorable good, bad and crazy workforce management practices. But on a more personal level, what do I want people to remember about me as a manager?
I don’t have a glib answer for that. What I always say when people ask me about my management style is this: Ask the people I’ve worked with. In fact, I’ve done this in job interviews. I tell the interviewer to phone any company I’ve worked at and simply ask for someone who remembers working with me. I’m confident that whatever they say will be a good reflection on who I am and what I do. If that’s my legacy, it’s one I’m happy with.
So, what is your legacy as a manager? What would you like for people to say about you after you’re gone? I’d love to hear what you have to say—either as a comment at the end of this post or as an e-mail sent to me directly at jhollon@workforce.com. I’ll share the best in a future blog post.
What struck me about this article wasn’t the advice it offered, which was pretty straightforward and basic. What got me thinking were some of the statistics listed in the Tribune story, such as “Young workers face the prospect of changing jobs nearly nine times before they reach age 32, according to the Bureau of Labor Statistics, ” and that in March, “the average length of unemployment for all ages was nearly 17 weeks, [and] workers over 50 face longer job searches.”
The Tribune story makes the point that today’s workers always need to be preparing for the worst and that “there’s little excuse these days for not being ready to kick a job search into high gear at a moment’s notice.” That’s great advice to keep in mind, because no matter whether it is called a layoff, buyout, cutback or “Productivity Transformation Program,” the stability of the job you’re in today is a tenuous illusion at best.
I’ve learned this the hard way, as I’m sure many of you have too. It’s always great to hope for the best, but you’ll be better off and sleep better at night if you also make sure to prepare for the worst, because it generally happens when you least expect it.
I worked in San Francisco during the wild and crazy dot-com boom of the late 1990s, and as crazy as things were then, the strangest thing that happened was having another employee’s paychecks deposited in my bank account—for three months in a row.
While this may sound like a good deal, someone always discovers such discrepancies—and then you have to pay the money back. The funny thing about my situation was that I didn’t figure out I had a lot more money in my bank account (thanks to direct deposit and working insanely long dot-com hours), but neither did the CEO’s administrative assistant—the one who’d had her paychecks diverted to my account. How she paid her bills for the three months I was getting her salary was a mystery I never solved, but the end result is that I had to write a check for more than $5,000 to straighten it all out.
When I was “overpaid,” I didn’t know about it until someone told me. I was spending so much time at work that I just wasn’t focused on how much was in my checking account. When someone did finally tell me, I was embarrassed that I hadn’t figured it out sooner. And I quickly wrote a check to make it right.
That’s not the case in Atlanta, where “auditors found three months later that seven still had not repaid. Today, two still owe the city a total of nearly $40,000. Officials said some employees have been reprimanded but no one has been fired.”
“I was astonished,” city auditor Leslie Ward told the Journal-Constitution. “I don’t know how else to describe it. This seems like it would have to be some violation of employee conduct, ethics or law.”
It may be some or all of the above, but it also may simply reflect our working world in the year 2008, and the lack of any real bond between workers and employers. Yes, this probably could have happened in just about any day and age, but the more workers are made to feel like disposable parts, the less they may feel morally bound to do the right thing.
I don’t fly on Delta or Northwest much these days, so I don’t really have any personal insight into whether the proposed merger of the two airlines makes much business sense. One thing I do know, however, is that making one strong and profitable company out of two struggling ones is near impossible if you don’t get the workforce to buy in.
And, that’s where this one may have a struggle. A story in The Detroit News headlined “Wary workers cloud Delta-Northwest merger” talks about the challenge of merging the workforces of union-dominated Northwest (with about 22,500 union employees out of 32,000 total) with primarily nonunion Delta (where 6,300 pilots and a small number of dispatchers out of 47,000 employees are represented).
“Delta’s an interesting company in that it’s been able to maintain a decidedly nonunion culture while staying on relatively good terms with its employees,” said Michael Boyd, president of the Boyd Group, an Evergreen, Colorado-based consulting firm. “Even through bankruptcy, management has succeeded in convincing employees that their best representative is themselves.”
But, The Detroit News points out, “selling that culture to Northwest’s entrenched unions won’t be easy. Even before merger talk began, the Association of Flight Attendants got enough signatures on a petition requesting a unionization vote of 12,000 Delta flight attendants. Neither Delta nor the union has speculated on the outcome of the current election.”
If they can make this merger work, the combined airline would be the largest in the world. “The new Delta,” says The Detroit News, “is expected to employ about 75,000 people after the two companies are fully integrated. [But] employees worry: Will management follow through on promises not to cut jobs or close hubs? If the companies are in such dire financial straits because of fuel prices, will they be looking to cut wages next?”
Those are all good questions, because those are all reasonable worries for workers to have. Delta has promised that no frontline workers will lose their jobs in the merger, but is that realistic given the huge and unrelenting rise in fuel prices?
I question that promise, and so does Joe Tiberi, spokesman for the union that represents 9,500 Northwest baggage handlers. “There’s no way they can combine without massive losses of jobs,” Tiberi told The Detroit News. “We’re also worried about merging our unionized workforce with Delta’s nonunionized workers. We have pensions, but they don’t. We have no guarantee Delta wouldn’t want to get rid of our union.”
It’s hard enough to make one good airline out of two struggling ones when everyone is on board. But it is damn near impossible if you have union squabbling and critical workforce issues to hurdle. The only saving grace here is that Delta’s management seems to be driving this deal, and frankly, Delta’s management seems a lot more sensitive to worker issues than Northwest’s does . That raises the odds of success, but not enough for me gamble my next trip on Delta. I’d be surprised if a lot of other frequent travelers don’t feel the same way.