Authentic Communications Blog – CEO in 'relationship' with …
Cynthia Passmore, CEO of Enesco Group Inc. surprised a group of employees last week with the revelation that shes having a personal relationship with a consultant she hired to help turn around the struggling knick-knack company.
Ms. Passmore delivered the news at a hastily called meeting with middle managers on Thursday, according to an employee who was there. After revealing that she is going through a divorce and apologizing for being distracted at work, Ms. Passmore disclosed that she has become involved with someone who makes her happy, according to the employee who was there.
After revealing that she is going through a divorce and apologizing for being distracted at work, Ms. Passmore disclosed that she has become involved with someone who makes her happy, according to the employee. She then identified that person as Andy Rolfe of Keystone Consulting Group LLC. Mr. Rolfe and Keystone were hired last June to help the Itasca-based company cut costs.
Looking back over the previous news related to this company we find that:
In January 2005 the Itasca-based distributor of Precious Moments figurines and other collectibles, finally filled the chief financial officer position vacant since August with Paula Manley, CFO at Oak Brook-based Follett Higher Education Group, a supplier to college bookstores. She assumed the CFO position at Enesco on January 24.
One of her first tasks was to help the company transition to a new computerized inventory system. Enesco blamed problems with the previous system for shipping delays and losses in 2004.
In June of 2005 the Itasca-based manufacturer of giftware Enesco Group, Inc. said after markets closed that it was eliminating 12 percent of its payroll including the position of its chief operating officer. The company expected the move to save $2 million annually and anticipates recording a charge of $340,000 in the second quarter.
The majority of the salary expenses in the Chicago area were eliminated in operations and information technology, the company said. The 12 percent reduction in salary costs included the elimination of open positions.
In July 2005 the company announced that its chief financial officer, Paula Manley, was resigning for health-related reasons. Ms. Manleys resignation came less than three weeks after the Itasca-based giftware and home dcor company announced a massive downsizing, including the elimination of the chief operating officer position.
Enesco hired Chicago-based Keystone Consulting Group LLC last June to help it cut costs. Ms. Passmore told a group of middle managers on Feb. 2, 2006 that shes in a relationship with Keystone founder Andy Rolfe, according to an employee in attendance.
A company spokeswoman last week told Crain Chicago Business that the relationship began after Enesco hired Keystone and that the board evaluated the situation and decided it was a non-issue. Enesco continues to retain Keystone.
My question is: If this is a non-issue, then why did the company amend their code of conduct? In a filing with the Securities and Exchange Commission, the company said it updated the code in connection with managements periodic review to reflect developments in employment laws, including such areas as equal employment opportunity, affirmative action, sexual harassment and other workplace harassment issues.
Bentley Colleges Mr. Hoffman, says “the change in the section on conflicts of interest ‘seems like a retroactive, doctored attempt to avoid this conflict of interest that the CEO and consultant have.’
I agree wholeheartedly. Corporate employees of Enesco Group. Inc. surely are wondering why the rules are changed to accommodate the CEO. Corporate leadership has now lost their credibilitiy. This action sends a negative message to staff and customers alike that the organization’s ethics are questionable.
While Ms. Passmore, CEO is distracted at work, who is minding the store? With this distraction, what is the current level of productivity for Enesco Group?
I teach leadership topics all across the country and the foundation of corporate leadership is their credibility. People first listen to the words, then they watch the actions. They listen to the talk then they watch the walk.
A judgment of ‘credible’ is handed down when words and deeds are consonant. If people don’t see consistency, they rightly conclude that the leader is at best not really serious, or at the least is an outright hypocrite.
That’s my 2 cents. What do you think?
Whether it’s burnt toast in bed from your kids or a beautiful spring bouquet from your spouse, Mother’s Day gifts are important and the weak economy won’t have a big impact, local retailers say.
Q: I bought an oak buffet from a neighbor who moved out of state. The label in the back of one of the drawers pictures two Windsor chairs and says, “Windsor Chair Shop, The Owen Sound Chair Co., Ltd., Owen Sound.” The bottom corner of the label is torn off. Any idea where this company was?