Fix it or changes will be made by Neal Patterson

Tl;dr: Neal Patterson, CEO of Cerner Corporation sent an email to light the fire under managers to get staff to work harder. It didn’t work out well for him

Neal Patterson, CEO of Cerner Corporation, frustrated by the relatively empty parking lot he found when he arrived at 7:45 a.m. on March 13, 2001, wrote the following email to more than 400 employees:

“We are getting less than 40 hours of work from a large number of our KC-based EMPLOYEES. The parking lot is sparsely used at 8 a.m.; likewise at 5 p.m. As managers, you either do not know what your EMPLOYEES are doing; or you do not CARE… I am tabling the promotions until I am convinced that the ones being promoted are the solution, not the problem. If you are the problem, pack your bags…I am giving you two weeks to fix this. My measurement will be the parking lot…You have two weeks. Tick-tock.” (Wong, 2001)

The only things missing from the office memo were expletives. It had everything else. There were lines berating employees for not caring about the company. There were words in all capital letters like ”SICK” and ”NO LONGER.” There were threats of layoffs and hiring freezes and a shutdown of the employee gym.

The memo was sent by e-mail on March 13 by the chief executive of the Cerner Corporation, a health care software development company based in Kansas City, Mo., with 3,100 employees worldwide. Originally intended only for 400 or so company managers, it quickly took on a life of its own. Leaks happen, baby.

From: Patterson,Neal

To: DL_ALL_MANAGERS;

Subject: MANAGEMENT DIRECTIVE: Week #10_01: Fix it or changes will be made

Importance: High

To the KC_based managers:

I have gone over the top. I have been making this point for over one year.

We are getting less than 40 hours of work from a large number of our KC-based EMPLOYEES. The parking lot is sparsely used at 8AM; likewise at 5PM. As managers — you either do not know what your EMPLOYEES are doing; or YOU do not CARE. You have created expectations on the work effort which allowed this to happen inside Cerner, creating a very unhealthy environment. In either case, you have a problem and you will fix it or I will replace you. NEVER in my career have I allowed a team which worked for me to think they had a 40 hour job. I have allowed YOU to create a culture which is permitting this. NO LONGER.

At the end of next week, I am plan to implement the following:

Closing of Associate Center to EMPLOYEES from 7:30AM to 6:30PM.

Implementing a hiring freeze for all KC based positions. It will require Cabinet approval to hire someone into a KC based team. I chair our Cabinet. Implementing a time clock system, requiring EMPLOYEES to ‘punch in’ and ‘punch out’ to work. Any unapproved absences will be charged to the EMPLOYEES vacation. We passed a Stock Purchase Program, allowing for the EMPLOYEE to purchase Cerner stock at a 15% discount, at Friday’s BOD meeting. Hell will freeze over before this CEO implements ANOTHER EMPLOYEE benefit in this Culture. Implement a 5% reduction of staff in KC. I am tabling the promotions until I am convinced that the ones being promoted are the solution, not the problem. If you are the problem, pack you bags.

I think this parental type action SUCKS. However, what you are doing, as managers, with this company makes me SICK. It makes sick to have to write this directive. I know I am painting with a broad brush and the majority of the KC based associates are hard working, committed to Cerner success and committed to transforming health care. I know the parking lot is not a great measurement for ‘effort’. I know that ‘results’ is what counts, not ‘effort’. But I am through with the debate. We have a big vision. It will require a big effort. Too many in KC are not making the effort.

I want to hear from you. If you think I am wrong with any of this, please state your case. If you have some ideas on how to fix this problem, let me hear those. I am very curious how you think we got here. If you know team members who are the problem, let me know. Please include (copy) Kynda in all of your replies. I STRONGLY suggest that you call some 7AM, 6PM and Saturday AM team meetings with the EMPLOYEES who work directly for you. Discuss this serious issue with your team. I suggest that you call your first meeting — tonight. Something is going to change.

I am giving you two weeks to fix this. My measurement will be the parking lot: it should be substantially full at 7:30 AM and 6:30 PM. The pizza man should show up at 7:30 PM to feed the starving teams working late. The lot should be half full on Saturday mornings. We have a lot of work to do. If you do not have enough to keep your teams busy, let me know immediately.

Folks this is a management problem, not an EMPLOYEE problem. Congratulations, you are management. You have the responsibility for our EMPLOYEES. I will hold you accountable. You have allowed this to get to this state. You have two weeks.

Tick, tock.

Neal …..

Chairman & Chief Executive Officer

Cerner Corporation www.cerner.com

2800 Rockcreek Parkway; Kansas City, Missouri 64117

“We Make Health Care Smarter”

You can read the rest of the memo collection here.