The late Robert Townsend, author of the management book titled, “Up the Organization: How to Stop the Corporation from Stifling People and Strangling Profits.” And, the 1980’s update, “Further Up the Organization: How Groups of People Working Together for a Common Purpose Ought to Conduct Themselves for Fun and Profit,” was my early guru and mentor. I was so affected by his words that my resume of that era contained quotations from his book, to which I subscribed concurrence and allegiance.
Townsend probably marked the beginning of the modern era of business management philosophy, at least as it had to do with manager and employee relations. What he had to say in these two books cut across many organizational management subjects, but what I want to focus on in this blog entry has to do with his take on mission statements.
The back story for this entry is that nearly forty years ago, ex-Avis CEO Robert Townsend's new book became an immediate bestseller and Townsend became a frequent guest on the TV talk shows of the day -- though he was banned from The Tonight Show after he hit a nerve in his criticism of NBC's management. He was also profiled in Playboy and became a popular speaker and consultant, as well as an executive with several gutsy corporations.
Townsend used his early experiences as a banker at American Express Co (1948–62) to redirect Avis Rent-a-Car. Under his direction as president and chairman, the firm became a credible force in the industry, fueled by their new advertising campaign (1962–65). After leaving Avis, he became senior partner of Congressional Monitor (1969), and published Up the Organization (1970), which advocated American business reform.
Many people remember the story of the corporate brand and the branding campaign initiated during his tenure. After advising incoming managers to fire their advertising departments and external agencies, Townsend tells of his own search for a new agency when he first came to the Avis car-rental company. Bill Bernbach, a leading ad executive of the day, was willing to comply with Townsend's request to receive ''five million dollars worth of advertising for one million dollars'' (a ratio based on Avis-rival Hertz's five-fold resources).
Bernbach stipulated, however, that Avis ``run every ad we write where we tell you to run it. Our people work to see how effective their ideas are. But most clients put our ads through a succession of Assistant VPs and VPs of advertising, marketing and legal until we hardly recognize the remnants. If you promise to run them just as we write them, you'll have every art director and copywriter in my shop moonlighting on your account.''
Townsend was reported to say, "We shook hands on it.''
The result was the famous ''We Try Harder'' campaign, which increased, according to Townsend the ''internal growth rate'' of the second-string Avis from 10 percent to 35 percent.
The crux of Townsend's philosophy and why it seemed so revolutionary in those days was that instead of ruling by fear or greed, businesses that hire people who are engaged in what they do and empower them -- or at least stay out of their way -- will succeed.
Revolutionary advice then; great advice now, but as a practical matter how do you get there. This is a less known aspect of Townsend’s philosophy at Avis, dealing with how you as a manager impart the purpose of the company to employees so that everyone can see the value of their work as part of a whole. First of all, Townsend said that the company’s mission statement should be equally understandable from the level of the CEO and Board, to the company janitor.
He explained (in so many words if memory serves me) that the purpose of the company was to be everyone’s a second car when they most needed it. The company was there to provided a second car for example if someone’s car was in the shop, they needed a car to use at their vacation destination, or just required a bigger vehicle to carry all the relatives that showed up on their door step for a visit. A certain satisfaction of purpose (if that is the proper description) issued from being there to provide the public with a needed service. As a result the employees of the company were engaged and could recognize the value of their work at all salary levels of the company.
At least, one of my previous blog entries touched on the purpose of mission statements, but I didn’t look at their meaning through the Townsend perspective we are now discussing. Anyway, my department’s mission statement is as follows:
To strategically partner with County departments to effectively attract, retain, develop, nurture, compensate, manage, and lead a world-class workforce.
The notion of Human Resources becoming a strategic partner is a relatively new role that has been evolving over the last 10 – 15 years. You have probably experience to some extent in your own work experience the challenge of broadening your own role to meet business challenges.
My department "s mission statement says that as professionals we take on an entirely new mindset, that of a valued partner with senior and line managers in implementing the individual department’s/County’s strategic plans. In this role what we deliver is the formulation of HR strategies, lined to the organization’s strategic goals, which help the organization to adapt to constant change, meet customer requirements, and achieve product/service/financial objectives.
One of the strategies HR has developed is to come up with a recruiting “brand” that communicates what we offer and why someone should consider Riverside County for employment. In,
“The new evangelism… what your brand?” blog entry I describe the process we went through to come up with our version of “We try harder” which is, “Riverside County: Beyond your expectations.” We have more to offer prospective employees than they might expect without giving us a closer look.
To rap up this lo-o-ong entry, let me just say that I am so glad that I work for a progressive organization, that isn’t stuck in what Townsend described as the “fear and greed” management style. If your employer is, you might consider clicking “Submit Your Résumé” on the left side menu.