Last week Dr Carter asked the class to observe the culture of various organizations. Well, last Wednesday, Thursday and Friday, I had an opportunity to experience the death of one organization and the rebirth of another. The organization I was employed by my for 10 years, 11 months, 3 weeks and 5 days was dead, and its remains were consumed by a a very hungry entity–Kellogg. The deal was consummated at midnight last Thursday night/Friday morning. On Thursday morning the outgoing organization held a simulcast hosted by its outgoing CEO. He thanked a number of people on the transition team, said his farewells and he was gone. Do, I feel sorry for him? Absolutely not! He has 15 million green tissues with dead presidents printed on them to console him. At precisely 4p.m. last Thursday, the Tate Sign Company came to remove our old organization’s building sign. The next morning, all appearances of the name of the old organization had all but disappeared. I truly believe this was the moment that reality finally became apparent to some people that the transition of change has arrived, and the culture as they knew was drawing its last breath.
On Friday morning precisely at 10a.m., the new organization held the second of two simulcasts hosted by the CEO and his new executive leadership team. The first simulcast was held at 2a.m. for the benefit of our colleagues in Asia. The old organization never did that before. What I thought was interesting was when we entered our conference room to view the simulcast, there was a countdown clock showing the minutes before the presentation started. Hum, never seen that before. Then, we all received little goodies bags that had information on the new combined organization. The bags contained information on all of the presciption and over-the-counter products. There was also information on the new organization’s values, strategies, and culture. The little pocket card regarding the organization’s culture stated, “We are fast, flexible and focused[and aggressive]. Absolute profit growth drives our commercial decisions. We are entrepreneurial and we establish single points of accountability.” That is going to freak some people out. Old Champion people would rather be dipped in hot oil rather than experienced change. The simulcast started exactly on time and was put together very well. The presentation started with a digital story of how the organization’s primary goal is to “move forward.” The focus then shifted to the future that will include very tough decisions, and finally questions.
In order to understand this profound change, it is necessary to visit the culture of this defunct organization. When an organization such as Champion is stuck in neutral, it is like “quicksand” that allows the continuation of resistance while preventing change from occurring. When the change does occur, many of the organization’s competition has not only implemented that change months and years before and are so far ahead of the game that the organization stuck in quicksand cannot catch up. There are a number of reasons why Champion was acquired by Kellogg. The remindar of this post is dedicated to reflecting on what I feel were some of the causes and how the employees of Champion can move forward in Kellogg’s culture.
I believe there were a number of reasons why Champion was vulnerable to acquisition, however for the sake of time I will only discuss three. First I feel the organization was a “good ole boy” company. If you looked at the executive leadership of Champion, there was absolutely no evidence of diversity displayed on their senior leadership team. The only woman on Champion’s senior leadership team was the President of Human Resources. By not embracing diversity and inclusion within the organization, true culture with different perspectives was not injected into Champion. They continued to resist true change, and when change did occur, it was already extinct. This disengagement of diversity and inclusion was confirmed by a member of the previous organization who I will call Jim. Jim was a senior director for logistics and was based at one of the sites in the northeast. I have known Jim for a number of years and he is a very nice guy who loves to talk. In May of this year, Jim came to Richmond to complete the final tasks regarding the closure of the distribution center. When he was in town, Jim would take his staff (including my girlfriend and my daily lunch partner worked for one of his managers and later directly for him) out to lunch and I would tag along. During our last lunch together (my girlfriend was being laid off) Jim confided in us that he was really glad he had an opportunity to get to know us on a personal level. Jim ( who is white and in his mid-forties) stated that the culture at his site dictated that it was not only not in one’s best interest to fraternized with subordinates, but also not with people of color. Even in the military, there was a culture that allowed officers and enlisted to engage and interact without risking protocol. This culture was embedded with a very strong resistance to change. In the September/October 2009 edition of Diversity Executive magazine, there is an article written by Chuck Shelton entitled Engage and Equip White Men to Lead Diversity. Shelton gives two causes why white male leaders disengage from diversity and inclusion, “inclusion efforts have not included them and many white men have not learned how to include themselves.” Kellogg’s senior executive team embraces diversity and inclusion. For example, Kellogg’s Chief Medical Officer is an older African American woman. Additionally, there was so much nepotism displayed at Champion that after awhile it was no longer hidden. People with influence helped others obtain positions that they clearly did not possess the necessary qualifications. Now, there may be a possibility that some of these individuals may have to prove their worth to the new organization in order to keep their jobs by competing for their current positions.
The second reason is a result of the first. By practicing nepotism, Champion did not cultivate its people to become strong leaders. In the past, many people were promoted based on who they knew (also see my previous post). After these individuals were placed in these positions, many did not receive any type of mentoring or guidance on how to be an effective leader. For example, last Thursday I observed my Associate Director giving our members of our staff instructions on some changes involving the integration of Kellogg’s processes into our processes. She was not confident, unsure of the information she was trying to convey and did not have a handle on the situation. I did not blame her. She was never coached, mentored or even supported regarding how to manage a department. Kellogg on the other hand motivates their employees (referred to as colleagues) on how to become effective leaders. They know how to get things done quickly and get them done right. To give you an idea of how far behind the power curve Champion culture was, the organization did not have a Chief Learning Officer and were still using the word “training”. Their training departments were fragmented and outdated. Kellogg has a CLO and their intranet website saturated with learning opportunities. Kellogg uses updated learning software, Champion used an old antiquated training software system. It is important to develop people to want to embrace leadership roles. However, in order for that to happen there must be processes in place to coach and mentor as well as effective resources available for leaders to lead.
The final reason that contributed to Champion’s demise was the fact that the organization was not aggressive in seeking out new prescription and over-the-counter products. Research and Development, who were supposedly dedicated to developing new over-the counter products were very lackadaisical in their pursuit. There was no collaboration between marketing and research and development to understand the pulse of the needs of consumers. Champion had a number of prescription products within the pipeline however, the pace of t which the organization was moving was slow and cumbersome. Kellogg on the other hand is an aggressive company and moves to achieve their goals and objectives. They are about providing medicines that are effective and affordable. Kellogg wanted Champion’s bio-tech division, and is determined to acquire a strong return on investment of its 68 billion dollars.
How can Champion’s employees survive in Kellogg’s culture? First, they must understand that there is no more Champion. It’s dead, so mourn the lost, eulogize the lost and then find a way to move on. Second, learn about Kellogg’s culture and begin to adapt to it. Change is hard, but in the words of the Borg on the T.V. series Star Trek, The Next Generation, “resistance is futile.” Finally, if you cannot deal with the new culture, then find another job and leave. There is no such thing as loyalty to a company. That was during your parents’ time.
What do I think of Kellogg? Well, they are aggressive to the point that when they want something the organization goes after it. Champion is Kellogg’s their third acquisition so the organization has learned from its mistakes from previous acqusiti0ns and used that knowledge to acquire Champion. They display an environment of opened communication and do not shy away from the fact that they want to make profits (Champion would never admitted to anything like that). Many of Champion’s employees will not be able to survive in Kellogg’s culture. As for me, I have other aspirations I plan to pursue, so I am really not overly concerned with Kellogg’s culture. I believe if I wanted to stay, I would have no problem adapting the the new culture (after-all, I am a former member of the military) For all of those who wish to leave Kellogg, layoffs are eminent and I hope those who want to leave are chosen to leave. As for those who wish to stay with the new organization, I wish them the best of luck, many of them are going to need it especially if they cannot confirm to the new culture. Well, I think I will give Jim a call and see he is getting on learning the new culture.
