Washington Mutual survived the Great Depression and a crisis that wiped out a quarter of all U.S. thrifts in the 1990s. It became a national brand. With such endurance, how is it possible this once stalwart institution ended up as the largest bank failure in American history? Within the answer to that question are important lessons for leaders about building and maintaining successful organizations.
This spectacular collapse has been reported to be the result of extraordinary loan losses followed by a massive run on deposits. What really killed WaMu, however, was a change in the company's century-old culture and values — a misguided move that marginalized its historic regard and care for employees and customers in the interest of driving an ever-expanding bottom line for shareholders.
In 2006, the bank experienced an extraordinary 50 percent turnover in its key customer-facing positions. Customer complaints soared.
A senior-level employee-relations manager said, "Employees rarely depart for more money. They leave because they believe the company they work for has lost its heart." In confirmation, exiting workers routinely told Human Resources, "My manager doesn't care, you don't care and the company doesn't care."
Washington Mutual was in no way unique in choosing to rip the heart out of its culture. The bank is just another example of how we collectively seek to motivate human performance in the American workplace. According to a 22-year ongoing study, 55 percent of all American workers hate their jobs. They've made it very clear that all they want is to feel valued, appreciated and cared for — to work for a company they respect and to feel their contributions matter.
Story in Seattle Times by Mark Crowley: http://seattletimes.nwsource.com/html/opinion/2016301121_guest25crowley.html
Oldest story in the corporate book. When are we going to learn? Why is it so difficult to care in business settings? Good call to action, Mike.
ReplyDeleteThanks for checking in, Bradley. The slant of my posts must get on your nerves sometimes. I don’t know why I keep finding the worst, when I am currently happy with my job and the project management. The unsettling thing about this story for me is the long-term study that found more than 50% of American workers 'hate their jobs'. Even at my most cynical I wouldn't have estimated so high a number.
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