Bob Lane, Chairman of John Deere
Tone at the top, a much discussed term, is vital and necessary, but it is not sufficient for an ethical culture. For that, a strong tone needs to be reinforced, up and down the corporation, with defined processes, procedures and examples. The ethical fiber of a company does not rest solely in words or codes of conduct, but in the actual behavior observed by suppliers, dealers, customers, and employees. At John Deere this is summed up in a highly visible, frequently referenced shorthand known as “the how.”
Observers need jolting evidence of the tone at the top, often a resolute willingness on management’s part to miss revenue or earnings targets — or even lose key talent — in order to do things the right way. Typically, in a high performance culture like John Deere, under these conditions no stone is left unturned in finding alternative ways to get the job done properly. Thus, in the end, rigorous performance targets are met squarely in the right way.
Ironically, the unmistakable linking of words and deeds in all aspects of the business is one of the best ways to assure that ethical tone is matched with actions. At John Deere, for example, people came to realize that management was talking seriously about dramatically improving asset turnover, not an ethical issue per se. Skeptics reasonably thought that when a sale was potentially at risk, Deere would abandon its tough talk and revert to the standard industry practice of shipping an overabundance of product, even without firm evidence of retail activity. In the end, Deere’s actions did match its words, and the business improved dramatically.
In the same way, ethical talk requires the muscle of deeds, such as changing a supplier or avoiding business opportunities in certain countries when business cannot be conducted in the right way. In these cases, words are backed up with documented practices, processes, and procedures, all understood around the globe.
In a widely published internal interview on only his second day on the job Sam Allen, the new President and CEO of John Deere, was asked, “What are you going to change?” His response, very succinctly and wisely, was, “It’s too soon to tell what we’re going to change. But what we’re not going to change is ‘the how’ and the way we do business.”
A strong tone also means that company leadership is regularly engaged with the compliance function. At John Deere, Sam Allen, as CEO, meets one-on-one, every quarter, with the chief compliance officer and the chief internal control officer. They also meet separately with members of the Deere board. As a director, I am also privileged to observe similar strong practices at General Electric and Verizon Communications.
At John Deere and other premier companies, high performing ethical leaders – increasingly from all parts of the world – continue to emerge, trained in proper global processes and practices. As they blossom, we can be optimistic that their words of integrity will be unequivocally backed by their actions.
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August 20th, 2010 at 9:17 am
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July 29th, 2010 at 8:36 am
Ericka Zalar
July 3rd, 2010 at 7:22 pm
Though this post is somewhat dated, Bob Lane has pointed to a vital leadership quality. I would like to concur and expand on his point. What he has called “strong tone” I suggest, based on the illustrations provided, strong behavioral leadership.
He is so correct that mere words are the empty husks until we fill them by daily interactions that demonstrate we are people of character, integrity, consistency, and, yes, reliable strength.
In a sense, that is a tone, and it invites harmonious respect and cooperation from those who, day by day, come to see the executive’s communications–official and informal, spoken and written–come from a deep and consistent moral spring and world view. That kind of tone creates a symphony of players following the conductor.
So thank you, Bob, though I am unsure at this late date you will read these remarks. Keep on communicating and leading. JDW
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April 17th, 2010 at 3:11 pm
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April 10th, 2010 at 1:39 pm
The true L’Oreal’s etic
A Court of First Instance of the City of Alcobendas in Madrid, Spain, has admitted for processing a lawsuit against L’Oreal. The complaint was filed by the Spanish company Favidema and it is based on the disloyal conduct of the French multinational that ended unexpectedly a successful business contract that was signed by both companies several year ago, falling to fulfill the most elementary moral principles leaving Favidema near the bankruptcy
April 10th, 2010 at 1:39 pm
A Court of First Instance of the City of Alcobendas in Madrid, Spain, has admitted for processing a lawsuit against L’Oreal. The complaint was filed by the Spanish company Favidema and it is based on the disloyal conduct of the French multinational that ended unexpectedly a successful business contract that was signed by both companies several year ago, falling to fulfill the most elementary moral principles leaving Favidema near the bankruptcy
March 24th, 2010 at 9:10 am
“…revert to the standard industry practice of shipping an overabundance of product, even without firm evidence of retail activity.”
hmmmmm……
January 16th, 2010 at 1:44 am
excellent writing!
January 6th, 2010 at 11:30 am
[...] observed by suppliers, dealers, customers, and employees,” writes John Deere Chairman Bob Lane in a recent column. “At John Deere this is summed up in a highly visible, frequently referenced shorthand known as [...]