Editorials

We encourage our readers to submit relevant articles of interest to be published on this web site. Students, members, and companies are invited to take advantage of this opportunity! Please send your editorial to: Dick Forrest, CPIM dforrest@charter.net

Ira Smolowitz, Ph.D. Professor of Finance and Dean, Bureau of Business Research and Program Development at the American International College, Springfield, MA.

Some of Ira's past articles of interest:

• A View of Education From Both Sides: An Assessment of the American Education System
• Ramifications of the 24/7 Economy
• Work-place Gossip: A Reassessment
• The Disappearance of Courtesy in America: Implications for Business
• The Outlook for American Competitiveness
• Consumer Marketing: A Flawed Strategy
• A Healthy Workforce: The Driver of Corporate Financial Performance
• The Use and Misuse of Forecasts
• Decline in Ethics: Decline in National Competitiveness
• Promoting Prudent Corporate Growth
• The Dynamic of Successful Marketing
• The Monty Hall Paradox: Lessons for Management
• Improving American Competitiveness
• Get to the Root Cause of Factory Failure: Ask the Five Ways
• The Halo Effect: Proceed with Caution
• Improving American Competitiveness
• The Conflict Between Symbolism and Substance
• Virtual Teams: Identifying The Benefits and Problems
• Assessing Potential Management Talent
• Identifying and Avoiding a Common Decision Trap
• Pricing Decisions: Valuable Lessons
• Circuit City: A Flawed Cost-Saving Idea
• Sound Strategic Planning: Avoid Exclusionary Thinking

The Conflict between Symbolism and Substance

By Ira Smolowitz, Ph.D.

In my teaching, authorship of articles, etc., I have espoused the management principle that 'the symbolism of management will speak louder than the substance.' Frequently, the two concepts are in conflict. Employees of an organization are astute enough to discern the difference, a difference that is frequently in conflict. For example, the CEO of XYZ Corporation admonishes the organization's employees to strive to take the ethical high road. At the same time, many employees know that this CEO is charging personal expenditures (ex., home repairs to the corporation). He/she is charging what is essentially personal travel to his/her corporate account, etc. In my opinion, this symbolic violation of ethics will serve to undermine and negate the substance of any ethical mandate issued/promulgated by the corporation.

The catalyst for this article is a rather disconcerting development that was reported in the press. Background:

On January 27, 2005…as candles flickered in the snowy, winter gloom yesterday, world leaders and Auschwitz survivors remembered the victims of the Holocaust on the 60th anniversary of the liberation of the Nazi death camp. …Joining in the commemoration were Vice President Dick Cheney, and Presidents Alexander Kwasniewski of Poland, Vladimir Putin of Russia, and Jacques Chirac of France. German President Herst Koehler sat on the platform without speaking in recognition of his country's responsibility for the genocide, in which 6 million Jews died during World War II.

…Earlier in Krakow, Cheney noted that the World War II genocide did not happen in some far-off place, but “in the heart of the civilized world."

He said, “The story of the camps shows that evil is real, and must be called by its name and must be confronted.”¹

Disconcerting Development

I fully support the commemoration of the liberalization of the above death camp. However, consider the following:

…Surrounded by world leaders dressed in solemn black, Cheney looked like a fan at a Green Bay Packers game, clad in a green snow parka, brown hiking boots, and a knit ski cap that read “Staff 2001.” Seated between his wife, who wore a black hooded parka, and Israeli President Moshe Katsav, who donned a black fur hat and black overcoat, Cheney stood out like a sore thumb at Thursday's ceremony in Oswiecm, Poland. The Washington Post commented that Cheney's attire was more like what one “wears to operate a snow blower,” than what a world leader would be expected to wear while commemorating the liberation of a Nazi death camp. Although the weather was frigid, Post writer Robin Givhan said someone in Cheney's position “must endure a little discomfort” out of respect for the occasion.” …By contrast, at least week's inauguration ceremony in snow-covered Washington, Cheney was eyed wearing no hat or gloves and wrapped in a traditional, dark-colored overcoat…²

The above, unfortunate error in judgment serves to bring into focus the conflict between 'symbolism' and 'substance.' Whether one is Vice President of the United States, or vice-president of XYZ Corporation, there must be a strong, positive correlation between the individual's actions and official pronouncements.

A weak alignment between action and policy pronouncement(s) will serve to undermine the integrity and viability of the associated pronouncement(s). If an executive's written/verbal pronouncements are perceived as not coinciding with his/her actions, the executive is embarking on the path of non-credibility.

References
1 Gera, Vanessa “Candles Flicker at Auschwitz”, The Republican, January 28, 2005, p. D5.

2 Alpert, Lukas J. “Veep's Fashion Fur-pas”, New York Post, January 29, 2005, p. 15

---

Articles printed with the permission of Dr. Ira Smolowitz, Professor of Finance and Dean, Bureau of Business Research and Program Development at American International College, Springfield, MA.