GS Logo
The Green Sheet, Inc

Please Log in

A Thing

Get Passionate About Passion Driven Growth

At first glance, the guiding principles behind a company employing thousands of people all over the world might not seem to have a lot to do with much smaller organizations or even independent sales operations. The concept of teamwork and functioning as part of a whole entity might not seem to have much in common with the idea of working alone and competing for business.

But "Clicks And Mortar: Passion Driven Growth in an Internet Driven World" offers plenty of inspirational examples to prove that there are principles of doing business successfully in the "old" brick and mortar world as well as in the new virtual realm. Likewise, those same principles making big corporations successful can be applied to businesses of any size.

There is a lot to appreciate, ponder and inspire in this book, co-written by David S. Pottruck, Charles Schwab President and CEO, and Terry Pearce, University of California professor and leadership communication consultant. Between them, the two have many years of solid business experience, and both share personal stories in the book to illustrate their theories on what sets great companies apart from all the rest.

The idea behind the book, first published in April 2000 and reissued in its present edition earlier this year, is that there are essential elements in building a business successfully. Whether it's a more traditional, physical operation or a virtual e-business, the same ideas hold true in either case for "igniting the fire that is necessary to generate loyalty and commitment" in employees and customers alike.

Part 1 covers the idea of "culture" - what it is, how it's created and maintained, and why it's important. The authors maintain that in today's business atmosphere, driven by the rapid and continuous need - created by the Internet - to innovate to be able to compete, corporate culture is the foundation, the central competitive advantage for any company.

Pearce defines culture "as a set of values, a shared purpose, a common language, and all the actions that make the values real," and goes on to define values "as the nonnegotiable tenets against which we measure the worthiness of our choices."

When an inspiring corporate culture invites buy-in and participation by employees, that enthusiasm is passed along to customers and clients. Pottruck is adamant that incorporating values, responsibilities and integrity into all areas of life and work is basic and begins by example at the very top. Diversity of people and ideas only adds to the discussion - and communication and the open exchange of ideas should be welcomed from all in a culture.

Part 2 looks at leadership - leadership that inspires passion-driven growth. Leadership communication should be informative and clearly reiterate the culture's vision. Pottruck details the processes behind the development of several of Schwab's internal and external customer-oriented programs to illustrate successes and failures in the corporation's communication style over the years.

Listening skills - listening to hear rather than to answer - are critical to open communication all the way up the corporate chain. It's very important to solicit comments from customers and employees alike and really hear what they're saying. Pottruck points out that, ironically, those employees with the most client contact usually have the least amount of contact with the CEO - and they're the ones who often have the best ideas.

Part 3 covers branding, marketing and packaging the business' message. The company's culture and leadership style are reflected in all communication, including advertising and brand identification.

Pottruck says that marketing is an ongoing conversation. In today's technology-based business world, everyone in the company, both on the business side and technology side, need to be involved in that conversation.

The Internet has not eliminated the need for interaction with customers but has increased the importance of having systems in place to provide excellent and instant service. There is a thorough explanation of budgeting, establishing ratios, setting goals and measuring success with the bottom line and with personnel.

The book's narrative style presents two distinct voices. Readers don't have to wonder which of the authors is saying what - they get a separate perspective from each with Pottruck's chapters and Pearce's recapping of each one.

The book is really about Pottruck's leadership style and philosophy, blending theory with his extensive personal experience. Pearce's chapter summaries encapsulate those ideas and add to them with lists and how-to information.

Pottruck's background includes serving as a senior executive with IBM, Citibank and Shearson Lehman before joining Schwab in 1984. Pearce is on the faculty of the University of California's Haas School of Business and conducts business-communication workshops and presentations.

"Clicks and Mortar" is a fast read in a down-to-earth style but is full of ideas to inspire change and ignite passion. It presents an interesting look at how the Schwab Corp. has grown and evolved; Pottruck's descriptions of the culture at Schwab might even inspire readers to apply for a job there.

Other business visionaries and writers, such as Tom Peters and Paul Hawken, are quoted and well-footnoted throughout for future reference. The narrative gets muddled on occasion, but there are enough useful tidbits to make wading through them worthwhile. The ideas put forth here are useful for the biggest of corporations as well as the one-person independent sales operation.

What They Wrote About ...

Employee participation

"When you can create a field where people can contribute openly, you may be amazed at the number of them that want to play."

Creating environment

"Talent is insufficient to ensure the best results of a team. It takes generosity of spirit to bring out the spirit of the collective, and therefore the best results for the team. A leader's job is to make sure that atmosphere prevails by modeling it every day."

The Internet

"Customers want to be assured that their Internet link to your business is as 'reliable as a dial tone.' Because every company has to manage its own reliability, and because mistakes are now immediately obvious to customers, technology management has become a critical skill for a business leader."

Goals

"Proper goals are set to inspire something more than just 'last year's performance plus some' effort. Such goals have an impact on the individual, not just the business. . I try to use the budgeting and measurement process to stimulate inspiration, on my part, and on theirs. This is not always comfortable, and it requires a high level of trust."

Commitment

"Filling a need is not just the way to make money, it is the way to create commitment to any organization."

"People who are deciding to make a commitment to a leader need some fundamental information, and they look for constant reinforcement of that information throughout the life of the enterprise. Among their questions are 'Who are you?' and 'Where are we going?' I would add a third question that makes a significant difference in the potential for people's commitment. It is 'Why are we going there?' "

Back Next Index © 2002, The Green Sheet, Inc.