COVENANTS AND COMMITMENTS

(thoughtful) By C. William Pollard,Chairman--The Service Master Company

One great value that flows from doing business is the value of covenants and commitments as a basis for combined efforts and group action. Plainly said, it is the value of a kept promise. A firm cannot function to its capacity unless its people can rely on each other and on the covenants and commitments they give each other and to the customer.

Some are formalized in written agreement, such as an employment contract or a contract of providing service. Others, usually more important, are represented by oral promises or statements generating reliance or action by another. People need to keep their word and promises to others, even if it is at their own personal sacrifice.

If your firm places a premium on people, the influence and binding characteristics of the covenants and commitments...extend to those groups of people who are relying on you for their future, and it is to those groups to whom you are truly bound...to provide momentum and opportunities for them to develop and grow.

Often the promises we make involve both our customers and our people. When these promises are not fulfilled, there is real pain. I remember the time when Chuck Stair, our Vice Chairman, and I visited a customer who felt we had broken the promise of service and also the promise of supporting our team members in the account. In their minds, we had let them down---

we were not people of our word. Our only response was to admit our error, fall down on our knees, and ask for their forgiveness---not an easy thing to do in the business world. I am thankful for their grace, because they did give us another chance. And as we---two of the leaders of the business---personally got involved in helping to fulfill this promise to the customer, we also confirmed our continuing commitment to our team members.

More was involved than saving an account. Being honest with our customer and working to correct a wrong also saved jobs for employees and their families. What could have been a loss turned out to be growth, all because we decided to keep our word. The decisions you make as a leader do not affect just the bottom line of your company. They affect people---employees and their spouses and children.
From "The Soul of the Firm" (edited)