We Compete for Shareholders
I’m always encouraged when our employees ask me questions or offer comments about our corporate culture within Fortive. It’s great to see the engagement and start a dialogue around something that is so important in defining “Who we are” at PacSci EMC. So let’s continue the dialogue with some of my personal thoughts and reflections around the core value “We Compete for Shareholders.”
If you’re like most employees at the company, you probably don’t think too often about our shareholders. Sure – Fortive is traded on the New York Stock Exchange under the symbol “FTV” – but that might be as much as some of us know about the concepts of stock and shareholders. But let me attempt to sum up differently how I like to think about this core value: simply put: Results matter.
You may have heard expressions before like “Fortive Business System (FBS) for real results” or even something called “fake FBS” during your time at our company or at other FTV companies. For example, ‘fake FBS” is doing something that doesn’t ultimately deliver an improvement in a result that drives our underlying performance. There was even a brief time in our history at PacSci EMC where we used to have a metric around how many kaizens we did every month. Honestly, I hated that metric.
The purpose of kaizen is to drive improved performance that will ultimately make us more competitive. Our customers don’t really care if we do one, two, or even ten kaizens in a month or in a year – what they care about is quality, delivery, and cost. And since our customers care about these issues, so must we! Everything we do should be focused on driving improvements that customers care about. When we ‘win’ with our customers, we’re much more likely to grow as a business, and when that happens – our shareholders win, too. While we all know that winning is fun….winning consistently is never easy.
Winning consistently requires honoring commitments. Just like a baseball team has a number of different players responsible for different functions during the game; we too have different players on Team PacSci EMC, responsible for different aspects of what it means for us to win. We often times think about our on-time delivery (OTD) metric – and you think about our operations team and our dedicated operators. But what about all of the back-office functions that they count on? Does it matter that document change notices are processed on-time? Is it important that purchase orders to our supply base are issued on-time? Would you all mind if you weren’t paid on time? We can’t win as a team if each and every PacSci EMC team member doesn’t honor their commitment to on-time performance.
A great example of the inherent challenges within our culture is evident in our policy deployment (PD) practice. When we do PD, we do it as a team, and we do it to drive real results that matter. But just as important as the why we do it….is the how we do it. PD is about building process where we have none or our existing processes are immature. Teams that are great at PD can balance the demands of building or improving a process, while at the same time driving real results that matter to the business – and therefore our customers and shareholders! It’s not a choice between building process or driving results…it’s about doing both. Jim Collins sums up this concept in the book “Built to Last” as the Tyranny of the Or versus the Genius of the And.
At PacSci EMC and Fortive, how we compete for shareholders is by embracing the Genius of the And. It really is amazing when we find ways to embrace the positive aspects of both sides of two seemingly contradictory concepts, and instead of choosing either concept, we do both. And that’s how we ultimately compete for customers and for shareholders – and why we win.
Kaizen is our
way of life.
We Build Extraordinary Teams
for extraordinary results.