LL Bean began with a dream to build a better hunting shoe (Reed,
2009). With a unique design he began selling his product, using mail order
catalogs (Reed, 2009). Bean was so confident in his product he gave a hundred
percent guarantee on all hunting shoes sold (Reed, 2009). Bean sold one hundred
pairs of shoes and ninety pairs were returned for being faulty (Reed, 2009).
Bean remained true to his word and gave refunds to all individuals that
returned his product (Reed, 2009). Bean
used his first failure to go on to perfect his invention (Reed, 2009). The
military became interested in his hunting shoes, in World War two and Bean’s
company was born (Reed, 2009). Bean established his company on the belief that
employees are what created a great company and by treating staff well, the company
would prosper (Reed, 2009). The strong moral character, resiliency, and ethics
of Bean, would go on to build a company that has remained relevant for nearly a
century (Gomez- Mejia, Balkin, & Cardy, 2012). “But whoever keeps his word,
in him the love of God is perfected by this we many know that we are in him (1
John 2:5).
God gives Christian leaders clear directive on building a
prosperous business, Bean used many of these principles to build his company
and they later became the foundational ideologies of the organization. God
calls all Christian leaders to use all that has been given to them to glorify
God. “Work for the Lord not men, since you know that you will receive an
inheritance from the Lord as a reward, it is the Lord Christ you are serving (Colossians,
3:22-2). Bean used the product and services of his company to serve his employees
and his customers (Reed, 2009). Christian leaders can transform lives and
society with the organizations they create. It is a misconception by many
leaders, that at the beginning of creating their business that they do not have
the resources to provide benefits and services to the employees of their staff.
Bean demonstrated that with innovation, imagination and honesty, God has given
a Christians all they need to accomplish any endeavor God has called them to
accomplish “If you want favor with God and man, and a reputation for good judgment
and common sense, then trust the Lord completely, don’t ever trust yourself he
will direct you and crown your efforts in success” (Proverbs 3:4 -6).
The LL Bean Company had much strength that allowed it to overcome
obstacle that may have ruined another company. Mr. Bean began a company right
after one of the most devastating times in history the great depression and at
the beginning of the Second World War (Reed, 2009). It took great character to
take his first failure with his product and ask his brother for money and use
that product malfunction to improve on his invention (Reed, 2009). Furthermore
he used a very devastating time of a beginning of a war not only to help his
fellow man but, to create an opportunity for himself and jobs for others (Reed,
2009). This takes great courage. “He who walks righteously and speaks uprightly
who despises the gain of oppression, who shakes his hand, lest they hold a
bribe, who stopped his ears from hearing of bloodshed and shut his eyes from
looking on evil, he will dwell on the heights, his place of defense will be the
fortress of rocks; his bread will be given to him; his water will be sure” (Isaiah,
33:15-16). The next fundamental reason for Beans success was he put the others
under his leadership ahead of himself; he was a servant leader (Greenleaf, 2002). He
realized as a leader that his support, appreciation, and guidance were
necessary to build a strong company (Greenleaf, 2002)
Bean has enough vision in creating his business to realize that
the values, beliefs and character that he brought to his company would create
its culture and how it would impact the world. To create a organizational
design that is successful a company’s values and goals must align (Daft,
20013). Great leaders understand that
their companies impact society (Greenleaf, 2002). The LL Bean organization through
actions demonstrates to the world, the society that it wants to create with its
product. It aligns it human resources to promote its beliefs of protecting the
environment by sponsoring charities that help protect nature, animals and
recycling paper (Reed, 2009). It promotes the respect and value it places on
human life by enforcing human rights in overseas companies and supporting the United
Way (Reed, 2009). Anyone can create a product by a true leader can build a
lasting brand (Boone & Kurtz, 2006).
Furthermore the founder of LL Bean was a true leader because his
successor that he handed his company down to showed the shame values and grit
(Greenleaf, 2002). In 1995 for the first time in history the company was seeing
a loss of revenue (Miller, 1997). Many companies would have lay- off employees
and cut their losses. The leadership of LL Bean continues with its commitment
to who they believe build their company, the staff (Reed, 2009). The leadership
looked at the obstacle that was holding it back and realized that a new
technical age was emerging and this required them to change from a catalog
company to a web based company (Miller, 1997). This took a leap of faith by
leadership, to provide expensive computer training to staff, of an already
struggling company (Miller, 1997). Leadership also offered quality early
retirement packages, and severance packages (Miller, 1997). Furthermore they
engaged in a hiring freeze and cross trained employees (Miller, 1997). The
company also allowed several employees to take unpaid sabbaticals (Miller,
1997). This was the only year that employees did not receive their annual
bonuses (Miller, 1997). By engaging in these
practices the company was able to financially stay afloat, while staying true
to the values in which it was created. The leaders then began to look for new
opportunities. They decided to expand into overseas markets (Miller, 1997).
This move proved to be very lucrative for the company, it created new jobs and
many of the old employees returned (Miller, 1997). Great leaders prepare for
obstacle, find opportunity in trouble and do not depart from their principles
(Greenleaf, 2002). “Count it all joy, my brothers, when you meet trails of
various kinds, for you know testing your faith builds steadfastness” (James
1:2-4). By continuing to put the employee first and provide compressive
benefits that showed the valued their employees, the company was able to
transcend hardship (Miller, 1997). The value they placed on their staff was
show in loyalty and the ability to recruit top talent in uncharted business
territory (Miller, 1997).
Research has demonstrated that the greatest attribute that an
entrepreneur can have, that will ensure success is altruism (Popescu, 2014). By
serving a high purpose an individual shows a greater capacity to adapt to
change and to overcome adversity (Popescu, 2014). Christian leaders have a
moral and ethical responsibility to promote the welfare of their fellow man.
“This is my commandment, that you love one another, just as I have loved you”
(John, 15:12). God expects Christians to build a society that honors Him, with
the blessing that have been given to us.
The compensation that is provided by a business is one of the
fundamental actions a company can take to recruit and maintain the top
performing employees in the labor pool (Gomez- Mejia, Balkin, & Cardy,
2012). LL Bean’s belief is that employees are what create superior
organizations (Reed, 2009). Research has demonstrated that Bean’s beliefs are accurate;
one of the most important assets of top performing business is the people employed
for the organization (Gomez- Mejia, Balkin, & Cardy, 2012). Great organizations often have base
compensation that include salary, health benefits, retirement, as well as pay
incentives, such as profit sharing and indirect benefits (Gomez- Mejia, Balkin,
& Cardy, 2012). LL Bean has many
tradition benefits such as health care and performance based bonuses (Reed,
2009). Bean was well known to include
surprise bonuses in his employee’s weekly salary, when the company had increase
profits (Reed, 2009). Bean used this non -traditional employee benefit to
compensate his employee’s for superior performance, prior to this being popular
(Reed, 2009).
Studies on profit sharing demonstrate that companies that engage
in the practice of profit sharing significantly protect the investment the
business has made in human capital (Bellmann & Moller, 2010). Profit
sharing increases productivity, staff retention, profits and improves hiring (Bellmann
& Moller, 2010). Research has also concluded that companies that use profit
sharing have significantly lower rates layoffs within their organizations
(Bellmann & Moller, 2010). Layoffs are commonly used by business to control
costs, increase profits and overcome economic downturns (Gomez- Mejia, Balkin,
& Cardy, 2012). The problems with this theory is studies have concluded in
the long-term, laying off employees cost the company significantly more money
in the future, in recruitment, hiring and training cost (Gomez- Mejia, Balkin,
& Cardy, 2012). Furthermore research that companies that are able to retain
staff long-term can see millions of dollars in savings every five years
(Fandral, 2000). Successful companies hire the best staff and the investments
they place in their human capital become the life blood of the organization
(Fandral, 2000). If you want to build a successful business hire great staff
and empower those employees to perform their job well (Fandral, 2000).
Ultimately a leader must be able to prove the investment in benefits is
lucrative and science demonstrates that it is (Fandral, 2000).
Another indirect non - traditional benefit provide by the LL Bean
company is the use of outdoor equipment by company personal and organizational
sponsored outdoor adventure that include staff and their families (Reed, 2009).
By allowing employees to use outdoor equipment on off duty hours, is a very
effective marketing tool (Boone & Kurtz, 2006). Research demonstrates that positive
experience has a greater impact on ones feeling of happiness and perception of
a product (Boone & Kurtz, 2006). By
providing equipment and adventure the company is receiving free positive
advertisement, while promoting work life balance for employees (Boone &
Kurtz, 2006).
The LL Bean Company was
ahead of its time in this area. Studies indicate one of the top concerns of
twenty-first century employees in work life balance (Gomez- Mejia, Balkin,
& Cardy, 2012). Bean permitted his employees to use company outdoor
products that allowed his staff to spend time with their families and he
received free advertisement. Advertising has to be a priority of any business,
without consumers being aware of a product it cannot be sold (Boone &
Kurtz, 2006). For a product to be
relevant for the long-term it must be more than a goods or services, it must
become a feeling or idea that is greater than itself (Boone & Kurtz, 2006).
Great companies build more than merchandise they create society (Boone &
Kurtz, 2006). Bean was encouraging his
product to be part of the everyday life of the consumer (Boone & Kurtz,
2006). By using this non-traditional method of
compensation, LL Bean was able to help build the company, while promoting
family values. Strong families build a better society and future customers (Boone
& Kurtz, 2006). LL Bean was in essence not only marketing to the direct
public, with this perk he gave his employees, Bean was building the next of
consumer? This LL Bean Company has been so successful in part because, it understands
that physically and mentally healthy employees provide better customer service
(Reed, 2009).
Outdoor physical activity has been linked to decreased chronic
health problems, better mental health and stronger long-term relationships
(Sandu, Shafig, & Singh, 2013). The connection that company has with
consumer is going to build a lasting product (Boone & Kurtz, 2006).
Research clearly demonstrated that organizations that encourage healthy
lifestyles within their organization save significant health care cost per employee
have increase productivity and improve customer service (Daft, 20013). When
designing a business not accounting for employee health is a costly mistake
(Daft, 20013). Employee compensation proves to create greater economic gain for
the company then is invested (Gomez- Mejia, Balkin, & Cardy, 2012).
The creation of a company that is going to have staying power requires a
leader with vision and a strong unswayable moral foundation (Greenleaf, 2002).
A business has the opportunity to impact society in a negative or positive
manner and can have long-term consequences that can impact future generations
(Greenleaf, 2002). Many times individuals underestimate the true impact of
seemly small actions. As Christian leaders it is our personal responsibility to
use whatever we have been given to glorify God. The study of the LL Bean Corporation makes it
clear that when leaders refuse to compromise their principles despite great
obstacles, it will create a more enduring organization that serves a greater
purpose.
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