On the 'Postcards' blog on Fortune.com, former Starbucks and Pathmark chief executive Jim Donald shares some tips for CEOs during hard times.
First, he emphasises the importance of communication, explaining: "Especially at a time of crisis, make sure your message reaches all levels, from the very lowest to the uppermost. When Pathmark was in dire straits, I began to send out my daily message to all employees. Make sure too that you give them an opportunity to reply."
Donald also urges CEOs to "reach deep for answers", recalling some advice given to him by Sam Walton of Wal-Mart, who said: “Jim, if you ever want to know what is troubling your business, ask your front-line employees. They know, and they will tell you.”
Finally, Donald warns that "success breeds risk aversion" and that people stop innovating when they become risk averse. "And we lose our best people because they become restless and even bored," he adds, pointing out that various studies show that the three things employees want most is an open and honest work environment, the opportunity to be stretched and valued and the ability to make decisions.
According to Donald: "Especially today, when so many companies are frozen by risk aversion, giving your people freedom to fail could be your competitive advantage."
Postcards: Former Starbucks CEO’s tips for tough times
Jim Donald, Fortune.com, 09/04/09
