J&J Credo Starts with Price & Value

Business Insider: In 1943, “Robert Wood Johnson, son of the company’s founder … wrote the company’s ‘credo,’ a 309-word mission statement published ahead of Johnson & Johnson’s initial public offering … The credo opens with, ‘We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices’.”

“It then lists responsibilities the company has to suppliers and distributors, for making a fair profit; to employees, for respecting their dignity and paying fairly; to communities, for supporting charities, paying taxes fairly, respecting the environment, and fostering health education; and to stockholders, for making profits and continually growing the business.”

“The credo is in front of every J&J office in the world. And each year, all 140,000 employees answer a 100-question survey that assesses the leadership team’s performance agains the credo’s values … The resulting ‘credo scores’ then influence individual promotions and the allocation of resources to different teams.” Here’s a link to the Johnson & Johnson credo.


Tattoo, Ink.

The Wall Street Journal: “While job-hopping is rampant, a surprising number of American workers are expressing a bond with their employers in permanent ink. Employees at such companies as tech’s Red Hat Inc. and sportswear icon Nike Inc. have brand logos plastered on their ankles, shoulders and arms … Like pulling an all-nighter at the office, a company tattoo can signify devotion in a way that impresses colleagues and breeds trust with clients.”

“Paul Bosneag, a manager who works with franchise-holders of the Anytime Fitness gym chain, said he opted for the needle in 2010 as job security. At the time, he said, he recalled thinking, ‘What kind of a jerk would fire an employee that has the logo tattooed on him?’ It turns out Chuck Runyon, chief executive of Anytime Fitness, has fired around seven people who got company tattoos. Performance, he said, is more important than loyalty.”

“Red Hat tech worker Thomas Cameron got reimbursed for his $100 tattoo by filing it as an office supply expense. ‘It’s ink, right?’ he said, ‘and you need ink in the office.’ Mr. Cameron plans another trip to the tattoo shop soon. The company recently announced it was changing its logo.”


1916: When Department Stores Featured Hospitals

The New York Times: “Lord & Taylor, New York’s oldest luxury department store, founded in 1826, boasted ‘one of the most attractive and completely equipped of the small hospitals in New York City,’ according to an article in The Modern Hospital magazine in 1916. The store operated the hospital when it was located on Broadway and East 20th Street before moving to its new building on Fifth Avenue between 38th and 39th Streets in 1914. On Fifth Avenue, the entire 11th floor was devoted to employee health and welfare, from the hospital to various medical and dental clinics, a roof garden, gymnasium, a schoolroom for boys and girls and an employee restaurant.”

“B. Altman, between Fifth and Madison Avenues and 34th and 35th Streets, operated a 12th-floor emergency hospital that by 1916 was handling as many as 18,000 cases a year, according to Hospital Management magazine. A 1914 brochure celebrating the store’s expansion said, ‘The 12th floor of the new addition has been given over in its entirety to the use of the employees.’ Separate dining rooms served men and women, and a physician and two nurses oversaw a large medical suite and surgery. Also, in a sign of those times, there was a men’s smoking room.”

“Welfare services for department store workers began with John Wanamaker … He wanted to keep his workers healthy and happy, and so in an era of rapacious capitalism, child labor and male privilege he introduced half-day-Saturdays off, medical benefits and a retirement system … His competitors soon followed with medical facilities, employee exercise and lunchrooms, educational training, vacation programs and medical clinics. When Macy’s on West 34th Street expanded in 1924, the new 16th floor included an employee dental clinic with chairs for six dentists.”


Richard Montanez: Flamin’ Hot Innovator

The Washington Post: “Flamin’ Hot Cheetos — the spicy red version of the classic cheese-flavored snack — are something of a cultural phenomenon … They were invented by a janitor, the son of a Mexican immigrant who dropped out of school because he struggled with English … His name is Richard Montañez, and Fox Searchlight Pictures is making a movie about his life … When he was about 12 years old in 1976, Montañez landed a job working as a janitor at a California Frito-Lay plant. One day, as he told Lowrider magazine, he saw a company-wide video of then-CEO Roger Enrico saying, ‘We want every worker in this company to act like an owner. Make a difference. You belong to this company, so make it better’.”

“Montañez took these words to heart … As he tells it, one day an assembly line at the plant where he worked broke down. A batch of Cheetos didn’t receive the orange, cheesy dust that make them so popular. So he took a few home to experiment. He had formed an idea while watching a street vendor in his neighborhood make elote, or grilled Mexican street corn — corn on the cob covered in cheese, butter, lime and chili. ‘What if I took the same concept and applied it to a Cheeto?’ he thought, according to his memoir.”

“So he did. His friends and family loved the result. Thinking back to the video and figuring he had nothing to lose, he decided to call Enrico to pitch the idea. Enrico took his call and told Montañez to present his product in two weeks … Against all odds, it worked. Enrico loved the idea, and a new line of spicy snack food was born — with Flamin’ Hot Cheetos as its flagship. Montañez has since served in various positions throughout the company, including as an executive vice president.”


Word of the Day: Convenience

Tim Wu: “Convenience is the most underestimated and least understood force in the world today … In the developed nations of the 21st century, convenience — that is, more efficient and easier ways of doing personal tasks — has emerged as perhaps the most powerful force shaping our individual lives and our economies. This is particularly true in America, where, despite all the paeans to freedom and individuality, one sometimes wonders whether convenience is in fact the supreme value.”

“Convenience has the ability to make other options unthinkable. Once you have used a washing machine, laundering clothes by hand seems irrational, even if it might be cheaper. After you have experienced streaming television, waiting to see a show at a prescribed hour seems silly, even a little undignified. To resist convenience — not to own a cellphone, not to use Google — has come to require a special kind of dedication that is often taken for eccentricity, if not fanaticism.”

“For all its influence as a shaper of individual decisions, the greater power of convenience may arise from decisions made in aggregate, where it is doing so much to structure the modern economy. Particularly in tech-related industries, the battle for convenience is the battle for industry dominance … The easier it is to use Amazon, the more powerful Amazon becomes — and thus the easier it becomes to use Amazon. Convenience and monopoly seem to be natural bedfellows.”


AI Machines as Managers

The Wall Street Journal: “There is evidence computers may be better suited to some managerial tasks than people are. Humans are susceptible to cognitive traps like confirmation bias. People using intuition tend to make poor decisions but rate their performance more highly, according to a 2015 University of New England analysis of psychological studies. And in an increasingly quantitative business world, managers are asked to deliver more data-driven decisions—precisely the sort at which machines excel.”

Tomas Chamorro-Premuzic, a professor of business psychology at University College London, comments: “What managers do mostly is identify potential, build teams, assign tasks, measure performance and provide feedback. Generally speaking, humans aren’t very good at these tasks. Someday, we might not need managers anymore.”

“Companies that make and use workforce-management software … say machines are no substitute for human judgment and ability to manage interpersonal relations. Instead, they say their software speeds up administrative work and uses data to help human managers improve decisions they previously made only by drawing upon gut instinct and experience … Sue Siegel, GE’s chief innovation officer, said she wouldn’t rule out one day working for a machine.” She comments: “If the robot has personality and a sense of humor and can understand the human condition, hey, who knows?”


Alacrity Matters: Rise of the 5-Minute Meeting

The Wall Street Journal: “Agile-management techniques embraced years ago by tech companies are bringing brief daily check-in meetings to marketing, e-commerce, advertising and other fields. The move is shattering some workplace rites and routines: Long-winded monologues and PowerPoints are out. There’s no time for small talk, and less tolerance for 30- or 60-minute meetings when five to 15 minutes will do. Participants must learn to distill their ideas and requests to the conference-room equivalent of an elevator pitch.”

“Employees at Scrum50 start brief daily meetings right on time and finish some in as little as four to six minutes, says Chris Parker, managing partner of the South Norwalk, Conn., digital marketing agency. ‘If you’re five or six minutes late, you’ve missed it’ … Creative professionals used to making polished presentations must briefly explain mere seeds of ideas or works-in-progress instead.”

However, Lyde Spann of Netamorphosis, a New York e-commerce company, notes: “An adverse effect of this kind of efficiency is that meetings used to be a time to connect. You’d ask people how their weekend was. You build relationships. We run the risk of missing that.”


Clubhouse Culture: How Houston Solved Its Problem

The Wall Street Journal: “Under Jeff Luhnow’s stewardship, the Houston Astros developed into the industry’s most analytically driven organization, relying almost entirely on data to navigate through a full-blown rebuild … But for all of their bold ideas, the Astros too often forgot about one important aspect: their players.” However a willingness to embrace “the value of chemistry and culture paid enormous dividends in 2017: The Astros won the World Series, their first since the franchise’s creation in 196.”2

“It represented a subtle, but crucial shift in the Astros’ thinking. Though numbers remain their focus, the driving force that propelled them from the bottom of the standings to the pinnacle of the baseball universe, Luhnow learned a lesson along the way: To deny the significance of chemistry ignores a critical component of the equation that equals a championship roster.”

“For sure, the Astros didn’t revolutionize the concept of caring about chemistry. The Chicago Cubs, the World Series champions in 2016, also prioritized traits they could not measure in players. Few expected the Astros to do the same. Now, however, they will parade down the streets of downtown Houston as champions.” Luhnow comments: “Culture is a hard thing to really quantify. But when you see it you know it’s there.”


Three Traits of Successful Leaders

Adam Bryant: “After almost a decade of writing the Corner Office column, this will be my final one — and from all the interviews, and the five million words of transcripts from those conversations, I have learned valuable leadership lessons and heard some great stories … Are there some qualities — beyond the obvious, like hard work and perseverance — that explain why these people ultimately got the top jobs? I’ve noticed three recurring themes.”

“First, they share a habit of mind that is best described as “applied curiosity.” They tend to question everything. They want to know how things work, and wonder how they can be made to work better. They’re curious about people and their back stories. And rather than wondering if they are on the right career path, they make the most of whatever path they’re on, wringing lessons from all their experiences.”

“Second, C.E.O.s seem to love a challenge. Discomfort is their comfort zone. The third theme is how they managed their own careers on their way to the top. They focus on doing their current job well, and that earns them promotions. That may sound obvious. But many people can seem more concerned about the job they want than the job they’re doing.”