AT&T CEO Demands Behavior Shift: Performance Over Loyalty

Legacy Telecom Giant Navigates Cultural Overhaul

Corporate titans are shedding diplomatic language, with AT&T CEO **John Stankey** issuing a stark directive to his 140,000 employees. His message underscores a fundamental shift away from traditional workplace values toward a results-driven culture.

Executives Abandon Sugarcoating Change

In a comprehensive memo, **Stankey** left no room for ambiguity regarding expectations. He explicitly stated that those prioritizing flexible work schedules over company objectives might find it challenging to align their career aspirations with the firm’s evolving cultural landscape.

“If a self-directed, virtual, or hybrid work schedule is essential for you to manage your career aspirations and life challenges, you will have a difficult time aligning your priorities with those of the company and the culture we aim to establish,” **Stankey** wrote.

This direct communication style mirrors trends seen across major corporations. Amazon’s CEO, **Andy Jassy**, previously informed his staff that a refusal to embrace in-office work could jeopardize their future at the company, a stance he later reinforced by expanding a return-to-office mandate to five days a week.

Performance Ascends: The New Corporate Metric

**Stankey** signaled a definitive departure from AT&T’s historical emphasis on loyalty and tenure. The nearly 150-year-old company is now prioritizing a market-based culture over what he described as “familial cultural norms.”

“This shift can be characterized as moving away from an orientation on hierarchy and familial cultural norms and towards a more externally focused and competitive market-based culture,”

—John Stankey, AT&T CEO

Microsoft’s Chief People Officer, **Amy Coleman**, recently communicated similar directives, detailing new tools designed to enhance performance management and address underperformance swiftly. This indicates a broader corporate movement towards accountability and explicit performance metrics as key indicators for career longevity.

Data-Driven Accountability for Employees

Managers at AT&T will now utilize aggregated data and behavioral patterns, alongside traditional performance reviews and peer feedback, to evaluate employee contributions. **Stankey** noted that identifying and addressing behavioral outliers is crucial for fairness and maintaining organizational priorities.

Similarly, Amazon’s **Andy Jassy** has focused on streamlining management structures to foster greater individual ownership and operational agility. As of May 2024, companies are increasingly implementing AI tools to monitor and manage employee productivity, with AI adoption in the workplace projected to grow by 40% by 2025, according to a report by Grand View Research.

Collaboration Drives Return-to-Office Mandates

The impetus for AT&T’s push for in-person collaboration stems from the need for enhanced inter-departmental coordination on complex projects. **Stankey** emphasized that “predictable presence” is vital for team execution and achieving collective goals.

Starbucks CEO **Brian Niccol** has echoed this sentiment, advocating for in-office work to facilitate idea sharing, problem-solving, and accelerated progress, framing it as essential for a company built on human connection.

Addressing On-the-Ground Return-to-Office Challenges

Despite the strategic rationale, some AT&T employees have reported practical issues arising from the return-to-office policy, including a shortage of available desks and parking spaces. **Stankey** acknowledged these concerns, stating that employees “deserve tools, processes, and capabilities that help you serve our customers effectively, without being hindered by internal process friction or system constraints.”

Dell experienced similar logistical hurdles after its January return-to-office mandate, leading to internal friction and challenges in office space allocation for employees. This highlights the complexities companies face in balancing strategic objectives with the on-the-ground realities of implementing such significant workplace changes.