The Power of Taking Care of Employees
Let me tell you a story about a company that prospered under the worst circumstances because it took care of its employees. This one involves leadership in a crisis.
Before September 11, 2001, James Dunne III, one of three managing partners of the small investment firm of Sandler O’Neill & Partners, wasn’t that interested in the business. In fact, that morning he wasn’t at his office at the WorldTradeCenter. He was on a golf course trying to qualify for an amateur tournament. Being a goof-off saved his life. The other two partners, along with sixty-four employees, died in the terrorists attacks.
It looked like the firm was going to go out of business. Nobody believed that Dunne was capable of resurrecting it. But Dunne turned out to be one of those leaders who is born in a crisis. Not only did he bring the firm back, he made it larger, stronger, and better.
When I read about this guy, I was impressed by two things: one was his passion, and the other was the commitment to the people that worked in his company – including those who were lost on 9/11. The first thing Dunne did, before the smoke had even cleared, was tell the families of the victims that the firm was going to take care of them, somehow, some way. In 2001, he paid out salaries, bonuses, and the proceeds of trades as if the employees were still coming to work every day. He arranged full pensions, and set up a foundation to pay for the educations of all the children who lost their parents. He arranged for the psychological counseling for everyone in the firm.
When clients heard of the firm’s generosity, they flocked to it. When competitors found out, they lent a hand. Workers felt energized and motivated. The firm was more successful than ever.
I have to say, it makes me feel good to read stories like that, and I’ll bet it has the same effect on most people. When true leadership is being practiced, it never fails to make the heart soar. And, of course, we always like to see the good guys win.
And while we’re on the subject of sin and virtue, I’d like to say a word about redemption. You can be down so low that you think your life is over. But redemption is always possible if you choose it. Look at Mike Milken. In the 1980’s, Milken was flying high as the “Junk Bond King”. To a lot of people he personified the rampant greed of Wall Street. Then he fell hard when he was charged with ninety-eight counts of racketeering and fraud. Milken seemed like a ruined man. He served almost two years in prison and ended up paying $1B in fines and settlements. And to top it off, the same month he was released from prison, Mike was diagnosed with advanced prostate cancer. That was thirteen years ago. Today, Mike Milken personifies charity, not greed. His foundation has given hundreds of millions of dollars to medical research and education. Mike’s too busy to worry about whether his legacy will be as a sinner or a saint.
