Oge Mazda Applied Ethics

Andrew L. Urich, J.D.Puterbaugh Professor of

Ethics & Legal StudiesSpears School of BusinessOklahoma State University

aurich@okstate.eduwww.andrewurich.com

Applied EthicsManaging Trust, Respect & Diversity

People Who Trust Other PeopleDavid Halper, British Sociologist

34% Americans 29% British 31% Mexicans up from 19% in 1983 60% Dutch 68% Scandinavians

Harris Poll on Trust

22% trust media 8% political parties 27% government 12% large corporations

Convicts vs. MBAs

Trust in BusinessEdelman Trust Barometer 2009 vs. 2008

US 38% down from 58% China 71% up from 58% Indonesia 68% even Brazil 69% up from 61% end

Take AwaysAwareness & Understanding

1. Organizational trust and respect are vitally important to optimizing human resources.

2. All aspects of diversity are crucial to organizational success.

3. Management has a tremendous impact on the level of organizational trust, respect and the embracing diversity.

Big Idea

Do you trust your boss? Productivity and ethical behavior Mercer Management Consulting– 60% of Americans do

not trust their manager to communicate honestly

People at work trust the same people Stacking photos

Good Management = Good Ethics

People even things out

You are the company

If someone is being defensive, you may be offensive

Mass IP & SSC

1

What Happened to GM?

GM History

1950’s - Half of all cars in the US

GM History

1980 - 853,000 to 243,000 worldwide

1st Q 2009Passenger cars

Toyota 19.4% GM 15% Honda 12.4% Nissan 10.2% Ford 10.0% Hyundai 6.2% Chrysler 5.2% Mazda 3.4% BMW 3.2% VW 3.2% Kia 2.6% Subaru 2.6%

Volvo 0.8% Saab 0.2%

JD Power Top 10 Reliability 2004

Buick 145 Lexus145 Cadillac 162 Mercury 168 Honda 169 Toyota 178 BMW 182 Lincoln 182 Subaru 192 Jaguar 197

Focus On What MattersBMW

“We don’t make automobiles [we make] moving works of art that express the drivers love of quality.”

-400

-350

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0

50

100

$ B

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1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Strategic Investments

0%

10%

Market Value

Strategic Investments at General Motors

$167 Billion or $332 Billion

Ross Perot

1999 “The most versatile vehicle on earth”“Lifestyle support vehicle”

1999 “The most versatile vehicle on earth”“Lifestyle support vehicle”

1999 “The most versatile vehicle on earth”“Lifestyle support vehicle”

Sequel: Fuel Cell 9/2006 Due 2010

“Leapfrog the Japanese” “A Game Changer”

Volt: Electric Car 12/2006

“A game changer” “Beat the Japanese at their own game”

Now

– Lost over 100 billion in last 5 years – no heads rolled

Market Cap November 2008 GM = 1.2 Billion Toyota + Honda = $146.3 Billion

Loss of Trust

Trust Issues– Consumers– Dealers– Workers– Banks, Public opinion– Shareholders - Bondholders

Truth doesn’t matter when trust doesn’t exist

Loss of Respect

Loss of commitment– Playing favorites– Keep you head down and get along– Stop working start having meetings

(Sr. VP of Nothing)

Beat up suppliers Lack of Fun

– Innovation– Creativity

Lack of Diverse Opinion

Group think– Stability over conflict– Continuity over disorder– Status quo over change

50 year old decision making structure– Conformity over rebellion

Same design centers Run off renegades

De Lorean fired at GM -- Iacocca fired at Ford

Lack of Diverse OpinionBob Lutz

Global warming “is a total crock of [expletive].” “Hybrids like the Toyota Prius make no economic sense.”

Global Product Development Tom Stephens, who runs the company's power-train unit Carl-Peter Forster London, Germany and Greece BMW, Opel

Distortion of RealityAsk Rick Wagoner why GM isn’t more like Toyota. (69/70)

“We’re playing our own game – taking advantage of our own unique heritage and strengths.”

Distortion of Reality

“No money” in small cars Fuel economy legislation in 80s Focus on financing cars Marketing & sales to Finance & penny

pinching Caught unprepared at the oil crisis of ‘73 Robot automation

Lack of Trust, Respect & Diversity

Why Does Trust Matter?

Showing Respect & Building Trust

Winston Churchill’s thoughts on the subject

You will never prove them wrong Admit to your mistakes

“My child choked on a chicken bone”

Showing Respect

Showing Respect

Showing Respect

Trust = Profits

Trust EquationsTrust = Efficiency Costs

Trust = Efficiency Costs

Sarbanes Oxley Negotiations Community Relations Crisis Management

Trust is CompetenceWarren Buffett, “It takes 20 years to build a reputation and five minutes to ruin it.”

I’m the manager, I can coast while others do the work.

What if we train people and they leave? Do you have 15 years experience or one year of

experience 15 times? What do you think of people who cover their

bottoms? Trust equals candor– if they trust you they will tell

you the truth.

Approach to Trust

Paul English credited to Robert Fisher

Selling the Bug

2

Trust Busters

Flaunt the Privilege of Leadership Rely on Your Authority Fail to Give Power Away Fail to Show Appreciation Avoid Making Hard Decisions Exhibit a Self-Serving Nature Deal in Partial Truths Use a One Size Fits All Leadership Style Take Yourself Too Seriously Be Unwilling to Admit a Mistake

Why Do We Believe What We Believe?

The Bubble Boy

www.andrewurich.com

Selective PerceptionLimit the Impact of Your Point of View

Single out information to support your prior beliefs.

Filter out information that does not confirm that belief.

This process perpetuates halo effect and stereotyping.

Don’t Worry!I’m Not Going to Talk About Politics

The Brain’s Inner WorkingsThe Wiring

100,000,000,000 neurons (brain cells) 15,000 synaptic connections each

By age 15 half are gone and the super-highways are up and running.

These mental pathways become the filter–producing recurring patterns of thinking, feeling and behavior.

Examples: Empathy–confrontation–authoritarian–dogmatic–emotions–tolerance for uncertainty.

The Brain’s Inner WorkingsThe Wiring

Here’s what we can change!Core beliefsNew skills and knowledgeAlter your valuesDevelop self-awarenessGreater capacity for self-regulation

The Brain’s Inner WorkingsThe Parts

The brain is full of zero sum games Ever find yourself feeling conflicted? Competing modules MRI research

Stanford study on aging Buy now pay later Railroad switch

Parts of the brain– Amygdala-fear responses– Prefrontal cortex–recently evolved–controls voluntary actions– Limbic system-oldest physical part of the brain

The Rat Brain Impulses and gut reactions The Rat Brain loves short cuts (heuristics)

Beliefs Are Acted Out

Where do our beliefs come from?

How do we know they are true?

Where do other’s get their beliefs?

How do we know they are wrong?

Punch-line

Early in life we get theories of the world–the theories make sense–but making sense is not the same as being correct.

"Common sense is the collection of prejudices acquired by age eighteen." (Einstein)

Beware of your Brain’s wiring!– Letting the tape run in your head is not living your life – The Frog and the Scorpion

The Consulting Conundrum

3

Management Practices

Management has a tremendous impact on trust, respect and diversity.

Show Respect & Build TrustInfluence NOT Authority

Use competence and commitment instead of position and status.

Team building and leadership are not based on authority.

We are influencing all of the time – positively or negatively.

The sign in PS 101 My daughter wants to go to Vegas Authority at Tinker Air Force Base

Show Respect & Build TrustAvoid De-motivating

Lou Holtz at Notre Dame, “It’s not my job to motivate my players…”

Should you treat everyone equally?

Show Respect & Build TrustDealing With Irrational People

Step 1: Assume the person is rational.– Is there a misunderstanding?

– Have you hurt their feelings?

– Do they feel powerless?

– Are they just cranky?

Show Respect & Build Trust Win/Win Attitude

Show Respect & Build Trust Keys to Showing Respect

Everyone wants to be appreciated.

Focus on the issue – don’t make it personal.

Be very considerate.

Promote Diversity You Will Never Prove Them Wrong

Have you ever done it before?

Would you rather be right, or would you rather be happy?

How would you feel if someone proved you wrong?

Promote DiversityDiversity of Worldview

Open-mindedness

Things are exactly as people choose to see them.

Is it important enough to care?

Bloomberg (meetings, titles, contrarian)

Priorities of ManagementAndy Roddick

Work Hard Have fun Be a good teammate Learn from mistakes Win

www.andrewurich.com

Most people end up where their behavior indicates they want to be.

“The best time to plant a tree is 20 years ago. The second best time is today.”

Chinese Proverb

Top 10 Action Items

Show respect Seek to accept – if not understand Avoid trust busters Don’t “de-motivate” others Adopt a “big pie” world view Help others to prosper Foster a sharing of diverse ideas and perspectives Question your beliefs – they drive actions Acknowledge your selective perception Heighten consciousness and awareness

www.andrewurich.com

Thank You

Please keep in touch.aurich@okstate.edu

www.andrewurich.com

www.andrewurich.com

References

Cialdini, Robert B. Influence: Science and Practice. 3rd Ed. New York: Harper Collins, 1993. Covey, Stephen R. The 7 Habits of Highly Effective People. New York: Simon & Schuster,

1989. Covey, Stephen C.R. The Speed of Trust, New York: Simon & Schuster, 2006. Fisher, Roger and William Ury. Getting to Yes. New York: Viking Penguin, Inc., 1981. Johnson, Spencer. The One Minute Sales Person. William Morrow, N.Y, 1984. Karrass, Chester L. Give and Take. New York: Harper Collins, 1993. Karrass, Chester L. The Negotiating Game. New York: Harper Collins, 1992. Kozicki, Stephen. The Creative Negotiator. Pyrmont, Australia: Gower, 1993. Lewicki, Roy J., et.al. Negotiation. 2nd Edition. Burr Ridge, Il.: Irwin, 1994. Nierenberg, Gerald 1. The Art of Negotiating. New York: Barnes & Noble, 1995. Paul, Richard. Critical Thinking. Santa Rosa, CA: Foundation for Critical Thinking, 1993.