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Performance & Hotrod Business - Mar. '15

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March 2015 n Performance & Hotrod Business n 79 The Case Against Putting Profit First Balance at a company creates a syn- ergetic relationship. Each supports and reinforces the other. If one area fails, it contributes to the failure of the other. Going back to the "Worst CEOs" research, leaders like Al Dunlap (Sunbeam) made profit-enhancing decisions that deeply impacted employees, reduced prod- uct quality and squeezed vendors and sup- pliers. In many instances, these destroyed the companies' emotional bonds with each key constituency (employees, custom- ers, products), while refocusing on their emotional standing solely with the board and stockholders. In other words, these companies lost by putting profits above all else. While in the short-term their leaders were hailed as tri- umphant heroes and celebrated by inves- tors, in the long-term they undermined the cohesiveness of legitimacy, validity and critical emotional bonds that make a busi- ness successful over the long haul. Ultimately, performance suffered and they lost their emotional standing with the stockholders as well. Once this occurred, they were removed from their positions— if they didn't have the foresight to prema- turely depart—while leaving a mess for someone else to clean up. Analysis validates that emotional con- nections tend to begin early and continue throughout the leader's career as they develop a personal standing with each Learn more at hypertherm.com/powermax PLASMA | LASER | WATERJET | AUTOMATION | SOFTWARE | CONSUMABLES Why use plasma? " My Powermax ® plasma does much more than cut metal. I can trim off broken bolts, burn away spot welds, easily cope round tubing, and more. Powermax systems are like nothing else out there. These systems save me time and put fun into all my projects." – JoAnn Bortles Custom painter and fabricator AD_HotRod_4.625X7.375_00080.indd 1 2/11/15 9:37 AM

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