Management In Print:

“Driving Change: The UPS

Approach To Business,”

By Mike Brewster and Frederick Dalzell;

Hyperion, New York, New York;

2007; 289 pages; $24.95.

 

Apparently 2007 was the year that business writers turned their attention to UPS. A bit earlier in the year the book “Big Brown: The Untold Story of UPS” gave an overview of UPS from the “10,000-foot” level. Then the book “Driving Change…” gives the reader a lot closer look with a manager’s eye-view of the company.

“Driving Change” authors Brewster and Dalzell set the stage for their close-up view by offering examples of how the elements of the UPS branding identity also became the foundation of their corporate culture. UPS Brown is the same color as Pullman railroad “sleeping” cars. This accomplished two things: it identified UPS with first-class service and served to mask the accumulated dust of a day’s deliveries on UPS “package cars.” Of there was rarely much dust to clean. UPS “package cars,” as they’re called, never collected much dust. They were (and continue) to be washed every night and inspected daily. In the early 20th Century, the cars’ interiors were also steam cleaned and varnished weekly.

The uniforms worn by the package car drivers were expected to be clean and neat, including the caps. To facilitate shined shoes, shoeshine kits were placed in the drivers’ locker rooms. During its early days, employees at UPS knew they were fighting for a niche with competing express package delivery firms, some of whom were industry giants at the time such as the Pennsylvania Railroad. Employees were picked for their desire to serve customers, their attention to detail, and a their fair degree of competitive spirit. These are still valued attributes of prospective employees.

Among the many reasons why UPS still attracts employees with these traits are the company’s policy of promoting from within whenever practical and possible, and offering shares in the corporation so that everyone in the firm has a sense of ownership.

The overall result today is a customer-oriented organizational culture that continues to seek improved effectiveness and is always on the lookout for the “big idea” that will give them the edge on competitors. UPS’ founder, Jim Casey, coined a phrase for this aspect of the company’s culture, calling it “constructive dissatisfaction.”

During the past few years UPS has gone far beyond surface and air package deliveries. They have become an integral part of the supply chain of their customers. One of the instances of how this works is the relationship between UPS and Toshiba computers. They note:

“Toshiba laptop owners calling in a technical problem reach a UPS call center and are directed to drop off their computer at the nearest UPS Store. The UPS Store ships the machine Next Day Air to a UPS facility in Louisville, and by 5:00 A.M. the laptop is in line to be repaired. If the customer is lucky, the problem can be fixed that very day for next day arrival.”

As the authors point out, it’s not just laptops being fixed in Louisville. The list includes a digital media projector and digital camera manufacturers. UPS also pioneered the use of its warehousing facilities to store customers’ products for subsequent distribution to retailers or end-users that make their purchases through the Internet.

There is a negative element to the book, though not fatal. The book appears to be more than a bit of public relations on behalf of UPS. Although a few adverse items during the company’s history are noted, they are put in the light growing pains or dealing with new technology rather than procedural or technical errors that should have been foreseen. In fairness, however, UPS has suffered fewer major issues than most modern American corporations and they have reacted more quickly and more efficiently than most. Certainly the company’s skill at team building is outstanding and in some ways beats any of the teams in the NFL.

One area where the book doesn’t quite meet its competitors in analyzing the development of the “Brown” brand is its de-emphasis of how the company did it. There’s certainly a considerable amount of information about what UPS did to achieve its Fortune 500 standing, but there should be more about how did they did it.

                                                                        -- Henry Holtzman

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