A couple weeks ago, a good friend asked my opinion on the expected failure of Hostess Brands Inc., the 85 year-old maker of Wonder Bread, Twinkies, Hostess CupCakes, Ho Hos, and Ding Dongs. His question prompted a flashback to regular visits my college buddies and I made decades ago to the 24-hour lunch counter at the Hostess bakery in South Miami after some, ah-hem… late night studies.
Without putting too fine a point on it, I suggested to my friend that the company was probably doomed on at least two basis:
- They found themselves trapped in an ultra-competitive industry, making products that fewer and fewer people were willing to buy and eat.
- It is clear that, for quite some time, Hostess customers, employees, and owners had been failed by an under-performing management.
Many have suggested that the straw that broke Hostess’s back came in the form of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union’s refusal to accept the pay cuts contained in the company’s final contract offer. The union’s recalcitrance didn’t help matters, but as much as we might like to put the lion’s share of blame on them, this unfortunate saga didn’t begin, or end, with the unions.
Hostess was like a cow that was being milked every day, with no thought whatsoever given by dairymen to the condition of the pasture or feed lot, the need for veterinary treatment, milk production technology, or even the market for their products. Whenever management got in a pinch, they sold the cow, renamed her, or filed bankruptcy. The end result in this case, after three changes of ownership since the 1980’s and two bankruptcies, is that some 18,000 people got the ultimate pay cut, the “turn-around” managers get court approved bonuses, and the bakery will be liquidated, one slice at a time.
Are there lessons in this sad affair for the rest of us? Sure. Here are but two of them:
- Stay away from any organization that is bereft of a cogent, convincing long term strategy, and is being run instead purely for near term financial gain. If management can’t credibly explain with something as simple as a crayon, what their business stands for and where it’s going for the long pull, run.
- Have the courage to say no, when it matters, not after the fact… to employees, to unions, and bankers. Otherwise, you end up like GM and Chrysler, circa 2008, and yes, Hostess.
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A pathfinder in the arena of leadership and employee engagement, Bill Catlette is a seminar leader, keynote speaker, and executive coach. He helps individuals and organizations improve business outcomes by having a focused, engaged, capably led workforce. He is co-author of the Contented Cows leadership book series, and Rebooting Leadership. For more information about Bill, his partner Richard Hadden, and their work, please visit their website, or follow him on Twitter at http://twitter.com/ContentedCows

Once again, the sports world is abuzz over the treatment of an injured player who, at least so far, has been kept on the bench despite being cleared to play. The player in this case is Alex Smith, quarterback of the San Francisco 49’ers. Since being cleared to return to play following a concussion injury, Smith has been kept on the bench by 49’ers coach, Jim Harbaugh, in favor of Colin Kaepernick, a rising star who has performed well in game situations. Nevertheless, tensions are rising.
For some time I’ve resisted the urge to excoriate a term that has been taking more prominent space in the lexicon of HR professionals. I’ve done so largely on the basis that there didn’t seem to be much harm in the emergence of new-agey alternative vocabulary among knowing professionals. I’ve resisted until now, that is. The term – “talent acquisition.”
Managing employees is, in some ways, like parenting children. Every parent with more than one offspring has probably been fairly accused of playing favorites at one time or another. At home and at work, inadvertent or not, favoritism creates problems, and it’s something managers (and parents) would do well to be aware of, and guard against. Since this is a management and leadership site, and not a parenting one we’ll just talk about favoritism at work.
Anyone who has spent even fifteen minutes genuinely listening to the current “debate” about health care reform can’t help but conclude that, as with most things insurance related, there is a whole lotta ignorance goin’ on. Sadly, most of us couldn’t find our insurance card with both hands in a full moon. We don’t really understand our own health care coverage (assuming we have it), and haven’t the faintest idea how the present health care business model, payment system, and having 47 million uninsured using the local hospital ER as their primary care physician impacts each and every one of us.
Today’s managers go thru life feeling as if their lips are wrapped around an information fire hose, a condition we refer to as “Data Waterboarding.” Indeed, various sources have suggested that email volume alone has now reached a level of 100 billion messages per day worldwide, a majority of which is, guess what… spam.
In a June 30 column in the
Professional speaker and trainer,



