UC Berkeley Operational Excellence (OE)

Loyalty dead among Cal. Operational Excellence (OE) initiative survivors and fired loyal employees.

Businesses, Universities worldwide are into a phase of creative disassembly where reinvention, adjustments are constant while recovering from the greatest recession in 80 years. Hundreds of thousands of jobs are being shed by Lockheed Martin, Chevron, Sam’s Club, Wells Fargo Bank, HP, Starbucks, Yahoo etc., state, counties, cities. Even solid world class University of California Berkeley under the leadership of Chancellor Birgeneau, Provost Breslauer, Vice-Chancellor Yeary are firing employees, faculty via “Operational Excellence (OE) initiative”: 1,000 fired; 0 Vice-Chancellors (management) fired. Yet many employees, faculty cling to old assumptions about one of the most critical work relationship of all: implied, unwritten contract between employer, employee.

Until recently, loyalty was cornerstone of that partnership. Employers promised work security, a progress up the hierarchy in return for employees fitting in, accepting lower wages, performing in prescribed ways, sticking around. Longevity was a sign of employer-employee relations; turnover was a sign of dysfunction. None of these assumptions apply today. Organizations can no longer guarantee work careers, even if they want to. Senior managements paralyzed themselves with an addiction to “success brings success’ rather than “success brings failure’ and are now forced to break implied contract with their employees – a contract nurtured by management that future can be controlled.

Jettisoned employees are finding that their hard won knowledge, skills, earned while being loyal are no longer wanted in employment market place.

What kind of a contract can employers, employees make with each other?

The central idea is powerful, simple: job is a shared partnership. Employers, employees face financial conditions together, longevity of the partnership depends on how well the for-profit, not-for-profit meet customers and constituencies needs. Neither employer nor employee has a future obligation to the other.

Organizations train people.

Employees create the security they really need – skills, knowledge that enhance future employability.

The partnership can be dissolved without either party considering the other a traitor.

Let there be light!