Firms of Endearment
Firms of Endearment
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Firms of Endearment
How World-Class Companies Profit from Passion and Purpose
Second Edition
Raj Sisodia Jag Sheth David Wolfe
Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Executive Editor: Jeanne Glasser Levine Development Editor: Natasha Torres Operations Specialist: Jodi Kemper Cover Designer: Chuti Prasertsith Managing Editor: Kristy Hart Project Editor: Elaine Wiley Copy Editor: Bart Reed Proofreader: Williams Woods Publishing Indexer: Lisa Stumpf Senior Compositor: Gloria Schurick Manufacturing Buyer: Dan Uhrig
? 2014 by Rajendra S. Sisodia, Jagdish N. Sheth, and the Estate of David Wolfe Published by Pearson Education Upper Saddle River, New Jersey 07458
For information about buying this title in bulk quantities, or for special sales opportunities (which may include electronic versions; custom cover designs; and content particular to your business, training goals, marketing focus, or branding interests), please contact our corporate sales department at corpsales@ or (800) 382-3419.
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Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.
All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.
Printed in the United States of America
First Printing February 2014
ISBN-10: 0-13-338259-1 ISBN-13: 978-0-13-338259-4
Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educaci?n de Mexico, S.A. de C.V. Pearson Education--Japan Pearson Education Malaysia, Pte. Ltd.
Library of Congress Control Number: 2013954305
We dedicate this book to the memory of our dear friend David Wolfe--
a deep thinker, brilliant writer, and wise and caring human being. Our lives and those of countless others were greatly enriched by his presence.
--Raj Sisodia and Jag Sheth
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Contents
Forewords ............................................................................................ x
Prologue A Whole New World....................................................... xxi
Chapter 1
Building Business on Love and Care ................................1
The Power of Love................................................................ 4 What Is a Firm of Endearment? .......................................... 6 FoE Stakeholders................................................................ 11 Identifying the Original Firms of Endearment ................. 12 Firms of Endearment vs. Good to Great Companies ....... 15 Selecting Companies for the Second Edition.................... 16 The Unspoken Contract That FoEs Honor....................... 20 The FoE Way...................................................................... 22 Endnotes ............................................................................. 24
Chapter 2
New Age, New Rules, New Capitalism...........................27
The Self-Actualization of Capitalism.................................. 29 Shareholders versus Stakeholders ...................................... 34 Emotionally Intelligent Management in FoEs.................. 38 Finding the Will to Change ................................................ 40 Endnotes ............................................................................. 44
Chapter 3
Dealing with Disorder .....................................................49 The Communications Challenge........................................ 52 Endnotes ............................................................................. 57
Chapter 4
Employees: From Resource to Source ...........................59
FoEs Put Meaning into the Work Experience .................. 62 The Partnership Advantage in Management-Union Relationships ....................................................................... 65 Building Trust ..................................................................... 67 The Joy of Work.................................................................. 69 Training and Development Are Priorities in FoEs ........... 75 Recognition and Celebration Have High Priority in FoEs ................................................................................ 77 How FoEs View Part-Time Employees............................. 78 Connecting Top to Bottom................................................. 79
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