Killing the goose

You've probably heard Aesop’s fable of the goose that laid the golden egg: a poor farmer finds that his goose lays solid gold eggs, producing a new gold egg every day. The farmer becomes very rich but also very greedy and decides that he doesn't want to wait for an egg a day - he wants all of the eggs, right now. So he takes an axe, lops off the goose's head, reaches down its neck to get the eggs and finds... nothing but goose guts! Next day, what does he find next to the goose? Nothing: the farmer has killed the goose that laid the golden eggs.

I've told that story to hundreds of people and we can all chuckle at the farmer's greed and stupidity. When I ask people what they would do if they were the farmer, they say they would take care of it, on the basis that if they take care of it, it will continue to produce the eggs. We can see the stupidity of doing anything else - like, for instance, treating it badly or not feeding it enough. Yet businesses all over the country are in danger of doing just that – they're actively considering trying to kill, or at least injure, the goose that lays their golden eggs. Why is this so?

The primary "goose" for all businesses is its employees. Without employees, businesses cannot produce their golden eggs – their products, their services, their profits. It's easy to forget, when looking at spreadsheet and company accounts, that employees are people. So often, businesses trumpet the line that people are their greatest asset but where, in their accounts, are employees listed? In the liabilities column - assets are things like plant, machinery, buildings. While they say people are their greatest asset, they treat them as a liability, as their biggest cost and costs are there to be cut.

Employees, like the goose in Aesop’s fable, need looking after in order to perform at their best. This includes ongoing investment in them as people, providing them with ongoing training and development, and a sense that the company sees a long-term future with them. When businesses face tough times, such as now, it's only natural that they look for opportunities to reduce their spend and save money in some way. While no one knows when the current credit crunch will end, everyone knows one thing - it will eventually end. The question for businesses is what shape they will be in when it does. Treating your employees as expendable things – opportunities to cut costs, luxuries to have only when you can afford them – won't help them compete in a global market; it won't help them give of their best to your business.

If you treat people as expendable things, they will inevitably withdraw their commitment, passion and enthusiasm. After all – don't you do the same when you're treated like a thing and not like a human being? They might do what you tell them but will they do it well? Will they do just what you tell them and nothing more? Will they effectively retire on the job, each day doing as little as possible just to get through another day? And in order to compete with and beat your competition, don't you need them to be volunteering their best efforts, their commitment, passion and enthusiasm?

There's no doubt that the current economic climate is tough, but ultimately it is a short-term situation. Taking a short-term view in your approach to it might give you short-term benefits but won't pay off longer term. Smart farmers know that starving your goose might save you money in the short term but it won't help you get more golden eggs in the long term.