To whom it may concern;
The following dissertation is an effort to enlighten corporate leadership of a perceived inconsistency of one of its U.S. Neuroscience leaders with the core values of the company.
“There are many great strengths in the Lilly legacy, attributes as relevant to the new environment as they ever were to the old. An obvious example is the very high value we place on people and the long list of all the things we do that demonstrate and affirm that value every day.”
“Even as they create change, good leaders model ethical constancy.” Sidney Taurel, On Leadership
Integrity by definition is a steadfast adherence to a strict moral or ethical code; the state of being unimpaired: soundness; or the quality or condition of being whole or undivided: completeness.
An employee, typically, only has to look as far as their direct report to see this quality modeled. In some circumstances, this exhibited behavior is a top down, driven example. This would be an ideal scenario, if, the behavior being modeled resembles positive attributes of the definition. But when the perception of a leader has been tainted, isn’t it fair to assume that people would rarely allow themselves to be influenced by those whom they do not trust or respect?
What happens when a leader is perceived guilty of being a phony, dishonest, openly critical of others, disrespecting the value of people, leading by fear and intimidation, and/or judging with an eye of negativity? You have a work environment instilled with discontent and fear.
One needs to look no farther than the Texas Neuroscience Area Director for a prime example of a “harsh task master” and how not to exhibit this core value by an area leader.
For some time now, district managers and field sales personnel, have been operating in an oppressive atmosphere. One that is rife with the inability or fear of making suggestions, offering up information, initiating practical business decisions, or providing constructive feedback.
One only has to make the mistake of committing that kind of infraction once to understand the repercussions heaped on them disguised as follow-up documentation, business case scenario requests, data tracking and justifications, power point presentations, followed by even more requests and follow-up scenarios. It reaches a point to where initiating communication or providing feedback is a more cumbersome process and avoiding these situations out weighs any benefits that could have accrued by initiating contact. Not to mention making that person open to the threat of retaliation.
This autocratic or authoritarian leadership style is not without its small circle of supporters. Unfortunately, those outside that sphere operate in fear of this Machiavellianism. The detached, calculated approach in interactions with other people only serves to show that this leadership is solely concerned with their own well-being and agenda; which is primarily achieving goals using micro-management techniques, deception, negative criticism, and veiled threats to manipulate others into doing their bidding.
The current philosophy of this area manager just gives lip service to employee development as evidenced by additional required readings regarding one’s ability to adapt to change or identifying one’s strengths and their interplay within a team. Workshops have been dedicated to these topics on employee development, yet this area director still forces district managers to identify and eliminate the bottom one-third sales performers without an opportunity to implement a strategic development plan for tenured, skilled employees. Interestingly enough, these same employees, without changing selling behaviors, could be in the top 20% of sales performers the next year given the cyclical nature of market trends and forecasted sales quotas. But according to this manager, it is just luck when a representative is having a good year because the quotas ‘caught up’ with them, but there must be a detrimental flaw in the representative’s selling ability if they are experiencing a downward sales cycle. Somehow that logic does not compute.
As an employee and a shareholder, I am quite dismayed with this area director’s management philosophy. According to Pricewaterhouse Coopers, a general approach to calculate employee replacement cost is to use 50% to 200% of an employee’s annual salary. So based on this manager’s philosophy of just immediately eliminating the bottom third sales representatives in lieu of implementing employee developmental opportunities, this practice can cost the company and shareholders approximately $40K - $160K per replacement employee. Or on a broader scale this could equal $400K - $1.7M just based on replacing one employee in each of the eleven office districts in the state of Texas. In just the year and half of under this area director’s tutelage, there have been 9 district manager positions turned over. That comes to an approximate cost of $2.25M in replacement value. As a shareholder, I expect sound financial decisions to be made to increase a return on my investment. As an employee, I demand Lilly management to live up to its philosophy on People, Integrity and Excellence to ensure internal loyalty and trust.
The political machinations involved to orchestrate these types of dismissals borders on questionable corrupt moral standards, not to mention poor financial judgments. The appearance of such activities only serves to reinforce the negative impressions flourishing in this work climate and further alienates the employees from upper management.
When and how does this kind of management style end and true leadership begin? This director exhibits none of the qualities a true leader should have. Why did 9 district managers in the Texas neuroscience division leave or step down from their positions? Truly this should send up a red flag that there are unfavorable activities flourishing under this leadership. This director uses an incentive tool that was intended to reward qualitative behaviors, independent of sales results, as a means to eliminate those who do not conform to his ideology. He also highly mandates district managers, when they are assessing their sales representatives, that the representative’s qualitative scores correspond to the sales results. Now, if I am not mistaken this was a device that was implemented to reward those individuals who exhibited the attributes required of their position when the quantitative expectations were off cycle, as a means to recognize and motivate their positive qualitative behaviors.
“We expect all employees to embrace the Lilly values. But we expect leaders to model them. Leaders, by their very behavior, should be able to teach the values to others.” Sidney Taurel, On Leadership – Model the Values
Unfortunately, I don’t believe the state of Texas is the exception to this type of management philosophy by the area directors. I am saddened and dismayed that the endorsement of such philosophy may be emanating from executive management.
According to our own Sidney Taurel, the culture of the organization starts at the top. So what’s it to be, a company culture based on moral fortitude or a pseudo governance giving lip service to the masses on people, excellence and integrity?
Checks and balances should be in place to identify and correct a leader’s behavior that is in contradiction with our core values. But too often, would be leaders demonstrate little more than consistent contradiction and destroy their ability to effectively influence others, while executive management gives the impression of shielding the offenders thereby perpetuating the status quo of such types of behaviors. Past corrective measures have had no impact on this person’s behavior. There is absolutely no credibility or trust in this person’s ability to lead with integrity and there is no trust in upper management to ‘walk the talk’ espoused by our own CEO.
True leaders have the ability to translate intention into reality and to sustain it with action and behavior. Positive implementation of empowerment and motivation is a true sign of a good leader. Someone who has the ability to inspire others and develop the skills necessary to achieve their goals is by far more valuable than someone who can effectively micro-manage the processes that forces individuals’ actions. Employee development opportunities are non-existent under this regime but are instead disguised in managers’ reviews as discussions on how to generate employee turnover of the bottom third producers. Here again, cost producing activities counter to shareholders expectations.
The current positive sales trend for the Texas Area is not the result of a good leader, but exists in spite of the current regime. Due in large part to a dedicated sales force that is faithfully serving Eli Lilly brand and implementing corporate strategies with speed, efficiency and integrity. These are the same sales representatives, who along with their sales roles, take on other champion roles in the district. But when did these once privileged leadership positions become the bane of existence and a detriment to a sales rep’s career? When the same such leader uses them to negatively impact a career. This has become a double edged sword for those representatives. These types of roles exists to be a conduit of information exchange from corporate to the district level, but as it stands, it has become a platform by which this director, via the champ managers, rate the representatives as being in the top, middle or third performers. These ratings are then required to go into the employee’s performance document. This is just another avenue by which this leader can de-motivate and negatively impact those who he wishes to eliminate.
Why is this communication being sent? As a check and balance to Lilly’s commitment to our stated core values – Integrity, Excellence and Respect for People. This less than stellar situation seems to be incongruent with the values that Sidney Taurel extols for our company, and should be brought to someone’s attention.
“Those attributes may no be claimed; they must be earned by saying what we mean by meaning what we say, and by proving both in what we do, day in and day out. In short, this fundamental ethical dimension of leadership is grounded in what our actions say about our values”
“So our concept of leadership has to start with the values that guide our organizational life…the core Lilly values of people, excellence, and integrity constitute an ideal foundation for a practical philosophy of organizational effectiveness.” Sidney Taurel, On Leadership
Can we afford to let this situation continue unchecked? What, if any, sanctions can be levied? How many previous complaints have been ignored? Why is this individual’s actions not scrutinized? Why have past interventions been ignored and this individual been allowed to go unchecked? Even more disturbing is the number of qualified, tenured district managers that have opted out of their positions under this regime, and on a broader scale, the proclivities of other area directors to implement same such strategies.
Should we not consider the negative impact on the large number of individuals affected by this type of leadership philosophy?
Is there a way to gather, anonymously, feedback related to this area leader? And if so, would upper management intervene to apply corrective action and/or dismissal or would it go unabated once again?
Does this Eli Lilly truly embrace the attributes necessary to reflect the philosophy of our values? Or once again, has this leader, and others, technically stayed within legal bounds while pushing boundaries of not so ethical and corrupt behavior?
Please consider this an official complaint against Wesley N. Sackrule.
A Concerned Employee and Shareholder
Cc:
Mr. Sidney Taurel, Chairman of the Board/CEO
Eli Lilly Board of Directors
Dr. John Lechlieter, President/CEO
Ms. Deirdre Connelly, President-US Operations
Mr. Enrique Conterno, VP US Neuro Business Unit
Mr. Dave Noesges, Executive Sales Director – Neuro West Region
Human Resources Department – US Operations