{"id":1253,"date":"2019-03-12T13:00:34","date_gmt":"2019-03-12T20:00:34","guid":{"rendered":"https:\/\/addison.lwh.dev\/insights\/executives-communication-failure\/"},"modified":"2019-03-12T13:00:34","modified_gmt":"2019-03-12T20:00:34","slug":"executives-communication-failure","status":"publish","type":"post","link":"https:\/\/addisongroup.com\/insights\/executives-communication-failure\/","title":{"rendered":"Out of Touch Executives"},"content":{"rendered":"\n<p>Are executives really out of touch?   Internal communication failures is the main reason leadership executives lose touch with their employees, according to a <a href=\"https:\/\/www.amanet.org\/news\/10427.aspx\">survey<\/a> conducted by AMA Enterprise, a division of American Management Association. <\/p>\n\n\n\n<p>A recent <a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2018-08-24\/why-german-corporate-boards-include-workers-for-co-determination\">Bloomberg\nOpinion article<\/a> &nbsp;poses the concern\nthat U.S. corporations might be required to institute co-determination governance.\nThis would require large companies to allow employees to elect 40 percent of their\ndirectors. <\/p>\n\n\n\n<p>The rationale for this\nproposal is:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>U.S. income\ninequality<\/li><li>A belief that workers\nare well positioned to make corporate decisions that place worker, customer,\nand community interests equal to those of shareholders. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">How Does Co-Determination Affect Corporate Function?<\/h3>\n\n\n\n<p>The shift in decision-making\nthat occurs with co-determination potentially results in:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>More power and\nfiscal interests for workers, with less for managers.<\/li><li>Improved income\ndistribution, though the author notes that there is mixed evidence of this.<\/li><li>Improved worker\nengagement and performance related to pride and shared ownership.<\/li><li>Concerns that\nco-determination will:<ul><li>Reduce\nproductivity<\/li><\/ul><ul><li>Make businesses\nless nimble during economic challenges<\/li><\/ul><ul><li>Affect corporate\nability for rapid growth or new product development<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Does this Imply That Executives are \u2018Out of\nTouch\u2019?<\/h3>\n\n\n\n<p>The Bloomberg article does\nnot state that executives are out of touch. Rather, it makes subtle suggestions\nof the need for corporate leaders to learn from other countries\u2019 governance experiences.\n<\/p>\n\n\n\n<p>Here are two:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Germany\u2019s Example<\/h3>\n\n\n\n<p>Germany uses a\nco-determination system that:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Is supplemented\nby a worker council system that represents labor interests; and<\/li><li>Has been shifting\ntoward a shareholder value system because of laws implemented within the last\ntwo to three decades.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Japan\u2019s Example<\/h3>\n\n\n\n<p>Japan has never had a system\nof co-determination. Instead it:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Has had boards\nwith high management presence and low profit margins because of a passive\napproach to shareholding; and<\/li><li>Is now\nimplementing a new corporate code to focus on shareholder returns by improving\nexternal control of management.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Steps to Stay \u2018In Touch\u2019<\/h3>\n\n\n\n<p>The opinion author suggests\nthat as the U.S. and other nations have gone too much in one direction or the\nother related to governance, there are prudent steps to take now, regardless of\nlegislation. He suggests creation of a government framework that includes the\nfollowing points:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Representation of\nworkers on boards, funded by tax incentives; and<\/li><li>Gradual\nexperimentation and implementation by U.S. companies to evaluate and compare\nperformance.<\/li><\/ul>\n\n\n\n<p>What do you think? Are you \u2018in touch\u2019 and ready to move ahead in the direction of increased worker input on corporate decisions, regardless of governmental influence?<\/p>\n\n\n\n<p>Executives, to learn how you can be more in touch check out: <a href=\"https:\/\/dlcinc.com\/qualities-that-make-great-leaders\/\">Qualities that Make Great Leaders.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are executives really out of touch? Internal communication failures is the main reason leadership executives lose touch with their employees,<\/p>\n","protected":false},"author":9,"featured_media":1254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"post_function":[],"post_audience":[],"class_list":{"0":"post-1253","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-article"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Out of Touch Executives - Addison Group<\/title>\n<meta name=\"description\" content=\"Internal communication failures is the main reason leadership executives lose touch with their employees, according to a survey conducted by AMA Enterprise\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/addisongroup.com\/insights\/executives-communication-failure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Out of Touch Executives - 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