BizJournals Portfolio
Feb 08 2010 1:04pm EDT

The Management of Waste

As President and COO of Waste Management, Larry O’Donnell thought he knew how to run his $13 billion business. But he was intrigued when CBS offered him the chance to go into the field and find out first-hand what it takes to actually work at entry-level positions with his company and see how some of the corporate policies that he and his executive team have put into play affect people all the way down the ladder in the premiere episode of Undercover Boss.

Born out of the growing frustration main street was developing for high-flying CEOs they deemed "out of touch" with what's actually going on in their own companies, the network decided to let the executives "find out the truth" by putting them anonymously into different jobs within their organizations and have them learn what's working, what's lacking and what needs to change.

Among the executives CBS is following are 7-Eleven President and CEO Joseph M. DePinto, Coby G. Brooks, President and CEO of Hooters, White Castle owner and executive board member Dave Rife, and the COO of Churchill Downs, William C. Carstanjen.

But having the daunting task of following the New Orleans Saints beat the Indianapolis Colts in the Super Bowl was O'Donnell, whose episode posted an impressive 20.3/33 household rating/share, according to TV by the Numbers' Robert Seidman, the best numbers since Grey’s Anatomy in 2006.

Donning the code name Randy Lawrence to ensure his anonymity, his brother's name, he had to report to five different entry-level jobs in as many days. His tasks included picking up trash, spearing garbage on the side of the road, sorting at a recycling plant, cleaning toilets, and shadowing an admin assistant with multiple other unpaid job requirements.

What he learned along the way was that:

  1. He knows how to give good head—that is, the entry-level job he excelled at was cleaning “non-flushing toilets” at a Texas carnival.
  2. Cost-cutting helps the company’s bottom-line, but it’s often difficult to bordeline unmanageable for those employees who have to make a company run on less manpower and more demand.
  3. That people—and morale—matter most. After all, it’s people who make a company run and making them adhere to a productivity number that’s thought up in a conference room can translate to less consumer satisfaction and more employee resentment.
  4. Getting fired can happen to everyone. O’Donnell didn’t think he’d have a hard time sorting through garbage on a conveyer belt, or picking up trash in a garbage truck, or spearing litter on the side of the road. But as his litter supervisor Walter told him: “I’m glad you’re here at Waste Management, but you just don’t have it.”
  5. Management oversight can backfire and actually lower productivity rather than boost it.

The point of the experience was to show America that executives are not just overpaid suits but people who deeply care about their companies and the people who work there. And Waste Management benefits from appearing in the premiere spot, before skeptics can snicker about what a great marketing ploy this is: an hour of free publicity, showcasing their product for free and showing a caring executive to boot.

And while the stories are heart-wrenching—did corporate communications find the most-likable and most-troubled people in the company to follow?—O’Donnell faces each task, and each criticism with grace.

But the most valuable aspect of the show is not just highlighting his trials and tribulations, but turning the mirror onto corporate America and giving businesses small, large and enterprise-sized, insights into what really matters to their employees.

Arguably the most important lesson any executive can walk away with is that spending time alongside the people who do the most difficult and labor-intensive jobs in the company can be a huge morale booster and give them a sense of ownership in the business. In these tough economic times when employee retention is a challenge at every level, these small and cost-effective ways of giving workers more responsibility while not necessarily adding on more tasks, is a key method to keep them happy and productive.

Will the changes help Waste Management run any better? That remains to be seen when the company next reports earnings. Shares of the company were trading at $31.87 at the open of Wall Street, up 0.3 percent from Friday’s close.


Romy Ribitzky is an associate editor at Portfolio.com.

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