Leadership Acts Newsletter
October 2004

There are four sections to Leadership Acts this month:

  1. When Distrust Rules: Effects on Leaders
  2. 10 Strategies for Encouraging Honesty
  3. High Potential Leaders: Discovering Integrity
  4. Making the Most of Crisis Situations


  1. When Distrust Rules: Effects on Leaders

    If you have spent any time in and around organizations, and what leader hasn't, some of these examples may have a familiar ring:

    • A boss takes credit for the ideas of a subordinate; the employee reacts by talking to others about the boss' actions.
    • A supervisor "passes over" qualified candidates because she doesn't want to ruffle the feathers of her friend.
    • The executive makes several last ditch efforts to reward an employee monetarily, just as the employee is leaving the organization.
    • Your boss tells you, don't worry, there will be little travel (or little overtime, or plenty of promotions) and the reality is quite different from your boss initially told you.

    In all of these cases, trust is a central issue, and for one party or another, trust diminishes or evaporates. In the first example, the diminishment of trust leads to new behavior: revenge. Everyday, leaders have the opportunity to build trust. The ability to create and to garner trust is a key leadership quality; it also contributes to thriving organizations.

    Leaders have a duty to build a civic organization - to create corporate citizenship. Whenever they break the rules (as in example one) or breach a contract (example four) they diminish trust. Once broken, it is not easily replenished, and requires additional work at the heart of leadership.

    When we violate another's honor, we condone lying, cheating, stealing and other misfortunes of life in modern organizations. You don't have to turn very far to find examples of the breach of honor. Breaches of honor can occur even in the most casual conversation, for example, when we disclose the confidence that someone has given to us. The bestowal of confidence is a leadership mark that can easily be erased through these violations of honor.

    If you have ever worked for a bully or intolerable boss, the consequences of "we can do it my way" are enormous on performance. Bully bosses often can't see beyond their own self-interests, and that creates situations where it is virtually impossible for team performance. It takes real leadership development talent to turn those situations around and to optimize performance.

    There are many examples of erosion of trust in the workplace. Organizational climates often lend themselves to increasing distrust among co-workers. When you chief executive or other senior officer breaks trust with the organization, legal and social costs mount. The recovery of the social costs to the erosion of trust requires a swift and strong leadership development response.


  2. Ten Strategies for Encouraging Honesty

    1. Guard against a climate of expert and know-it-all. When people feel that they have to know it all, it creates the opportunity for cover-up. Performance standards should emphasize contribution and knowledge.
    2. Ask the presenter or the presentation team to turn-off their PowerPoint presentation for a few minutes. Ask the presenter or team the intent or meaning of their presentation. So much time is spent honing presentations that people often forget their intent.
    3. Be clear on your message and avoid sound bites. Sound bites can be distorted easily. Talk from the heart, not from the pitch.
    4. Give feedback, forget being "brutally" honest. Tactfulness and diplomacy are the hallmarks of leaders who generate positive energy.
    5. As many of us have told children, "Just tell the truth." There isn't any shortcut for the truth. One lie will often lead to another.
    6. Know when to tell the truth. Truth telling isn't a substitution for public rudeness. You diminish trust when you publicly admonish others. Choose the right times and places and act decisively.
    7. Don't forget to share the bad news and the good news. It rounds out your human-ness and reminds everyone that you are approachable.
    8. CEOs have told me that they often have difficulty getting good "honest" feedback. You need to seek it out; it may come from people your least likely to encounter daily or it may be someone as close as a family member.
    9. Establish trust with others. Trust enables confidence in leaders. When others trust you, they will speak confidentially to you. It will open new worlds for your care, concern, and action.
    10. Don't forget to say yes, as well as to say no. Managing your commitments contributes to honesty. As one of my mentors says, "My calendar keeps me honest."

  3. High Potential Leaders: Discovering Integrity

    As we enter the month of October, there are new reports of alleged corporate scandal. This time, the allegations concern executive behavior at one of the nation's leading housing institutions. What are we to make of the continuing scandals and what are their effects on developing leaders?

    A leadership development trainer in a prestigious telecommunications company reported a remark from one learner regarding leadership integrity. This particular telecommunications company has reduced in personnel size by more than half in the last few years. The company lost one CEO to a financial scandal, and after a long search, appointed another CEO to the positive reviews of Wall Street and internal employees. In the last month, this CEO resigned under a cloud of continuing financial mismanagement. The learner asked, "What leaders should I trust now?"

    The prevailing expectation is that new leaders come to organizations with high integrity. But how do you know, and do you have an obligation to develop integrity? The saga of corporate scandal over the last three years establishes the demand for integrity education and learning. The challenge for leadership developers and leaders alike are the two questions of "what" and "how." There are few off-the-shelf solutions and the four-hour ethics module in the leadership development program will not cut the mustard in developing integrity.

    At the least, integrity develops within climates of trust and honesty. Integrity is more than the flip side of the trust or honesty coin as it has its own currency. I haven't yet met a company or leader, who would publicly admit that they lack integrity, and yet the news reports regarding Martha Stewart or others tell us a different story. The good news is that we can take actions to develop integrity in leaders. The development of integrity has a long term value both in terms of branding strategies and the return on shareholder investment.

    As a leader or leadership developer, review climate information regarding the organization. Consider the events that shape leader integrity in your organization and use those as case examples. Explore outside of your organization for examples and illustrations of what is working in other organizations. Today's news illustrates the demand for a new look at leadership development with a focus on integrity.

  4. Making the Most of Crisis Situations

    • Studies of communication among emergency response workers in disaster situations indicate exceptional clarity of communication. Even under the least desirable situations, communication details and patterns are clear and effective. What happens in the "everyday" world of organizations? The challenge we have, to make the most of crisis, is to establish patterns of effective and efficient communication. Patterned responses generate habitual and ritualistic behavior during crises. Consider and examine the patterns of communication in your organization today.
    • Don't always think of "crisis" as something on a global scale. At times, a series or pattern of events contributes to short-term and temporary crises. Know your emotional responses to crisis situations so that you are ready to handle most situations that arise.
    • Prepare. In a word, that's one of the hallmarks for sustaining crisis. Disaster can wreak havoc on leadership succession when events are unplanned. Thoughtful leaders and performing companies consider the slate and pools of leaders ready to take the next steps in their organizational leadership careers.
    • Be a friend to others by acknowledging the personal effects of tragedy. Don't be afraid to pick up the phone, drop an email, or visit. These acts of kindness reveal the leader within. After all, leading and leadership, require more than taking care of business. To borrow and to update an old phrase, all work and no care make for managerial efficiency, not leadership.
    • Make the best of a bad situation. Despite all of the exhortations for planning for rainy days (and my encouragement to do so) draw on your internal and external resources to make the most of a crisis situation. All of the years of leader preparation, and leadership acts, come in handily during these crises. We're social creatures and others will comfort and aid; we have to ask.



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