Archive for the ‘Credibility’ Category
Four Concepts Define Key Leadership Responsibilities
Managers learn the rules that define their basic responsibilities by responding to this question: “What’s wrong, and what specific steps do I need to take to fix it?” So, when senior management passes down mandates, timelines and goals, the manager’s job is to work within the prescribed corporate framework to produce results.
Leaders, on the other hand, self-direct, craft a vision, make plans, achieve goals, build cohesiveness and inspire others while holding themselves personally accountable for their area of the company. The question they respond to is: “What’s possible here, and who cares?”
A leader’s responsibilities are defined by a set of concepts and qualities that motivate people to “get on board” with his or her vision. In fact, there are four basic concepts that help leaders develop the creative energy needed to focus on everyone’s efforts, which guides all employees beyond routine thinking and performance.
Unlike a conventional manager, a leader’s responsibilities are not defined by one question. Generally, a leader’s central responsibility is to move his or her unit from a “mission impossible” to a “mission outcome” stance. This shift requires leaders to embrace multiple areas of skill and direction. To constantly move forward, they focus on specific concepts to help define their key leadership responsibilities.
Management and leadership responsibilities often overlap, but leadership is defined in a completely different context. Leaders’ responsibilities lie in four key areas: self-direction, goal achievement, flexibility and inspiring greatness in others. Leaders recognize that these responsibilities are taken care of through the four actions outlined below.
Related: Do You Have Faith in Your People?
Gain the Cooperation of Others
Establishing a cooperative spirit is the primary responsibility of leadership. This spirit drives an organization and its people to higher levels of productivity and accomplishment. For leaders to be effective they must build a cooperative effort by relying on the following techniques:
- Leaders understand basic human needs and desires and nudge people in the right direction. They know how motivation works to everyone’s benefit.
- They make emotional connections. An effective leader connects with people under their direction to build an interdependence that fosters more long-term gain than individual efforts would.
- They acknowledge the need for followers.
- Leaders understand their people. They take time to converse and ask questions that bring information, concerns, ideas and perspectives to the forefront. Then, they act positively upon them.
Listen and Learn Well
- Leaders never forget where they have been, and use their experiences to shape where they are going, and why. They place learning and listening at the top of the list in terms of building skills and ability. Learning from past errors in judgment prevents their repetition.
- They listen to everyone and everything. Leaders have their ears and eyes on every person, process and situation. They listen for ideas, impending concerns, problems, successes and unhappiness in their employees. They absorb everything and act on the knowledge gained to prevent major problems from occurring.
- Leaders seize all opportunities to make people feel successful, competent and comfortable in the work environment. Excellent leaders are not reactive, but proactive by nature.
Put the Needs of Others First
- Effective leaders separate themselves from the rest of the pack through self-sacrifice and by setting their egos aside. Good leaders are never afraid to work alongside their people to finish a project or resolve a situation.
- Leaders are flexible, slowing down or speeding up while assessing their employees’ productivity and efforts.
- Leaders understand that keeping tasks simple and obvious makes for a committed workforce. Employees desire to know precisely what is expected of them and how to complete their assigned tasks. A leader focuses on ways to make their assignments and projects more direct and clearly defined.
Performing Consistently
- By understanding that people are different, leaders solidify mutual respect and communication, and maintain openness and fairness with every employee.
- Leaders build cohesiveness through cooperative efforts by holding employees and themselves accountable. They know this is necessary to achieve their goals and ideals.
- Effective leaders realize that their actions and words must not send mixed messages. Leaders should stay the course, even under duress or in the midst of adversity. They must remain genuine and use discretion in all judgments they make. Excellent leaders will reinforce their motivation, inspiration and expectations to maintain a strong leadership position.
Related:
The Roadmap to Effective Leadership
Do You Have the Talent to Execute Get Things Done?
Your Commitment to Others Defines You as a Leader
The Importance of Intellectual Honesty
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018
Copyright © 2014 Timothy F. Bednarz, All Rights Reserved
“Leaders Should Set a Clear and Decisive Tone at the Top”
The wealth, power and influence of the great leaders is widely known. How they achieved it is another issue unto itself. They were people of achievement, capability and resilience. They had their personal convictions continually tested as they faced countless and enormous difficulties and challenges. Yet, it was their character, ethics, morals and values that utterly defined them as great leaders. In the quest for wealth, fame and power, many individuals will tend to sacrifice these qualities on the altar of achievement.
Admiral Hyman Rickover in a 1977 speech stated, “There is abundant evidence around us to conclude that morals and ethics are becoming less prevalent in people’s lives. The standards of conduct, which lay deeply buried in accepted though for centuries no long are absolute. Many people seem unable to differentiate between physical relief and moral satisfaction; they confuse material success in life with virtue.” What distinguished the great leaders from typical ones was their refusal to sell themselves out, or to compromise their integrity for the sake of money, power or prestige.
Rickover was prophetic. Since his remarks, this country has seen corporate scandal after scandal occur, including a stable of well-known companies, such as Drexel Burnham, Enron, Arthur Anderson, WorldCom, Tyco International, Countrywide, AIG, and Lehman Brothers, just to list a few. The actions of a handful of wealthy and influential leaders threw the country into a financial panic, as well as a lengthy and deep recession. It resulted in costing millions of individuals and families their homes, savings and retirements. It destroyed trust and credibility within our society. This was further exasperated when many of the companies and leaders who were directly responsible for such pain and misery became isolated from the consequences of their actions and behaviors through government bailouts, generous “golden parachutes,” and performance bonuses.
Sharon Allen, Chairman of Deloitte LLP wrote in the introduction to The Deloitte LLP 2010 Ethics & Workplace Survey, “Regardless of the economic environment, business leaders should be mindful of the significant impact that trust in the workplace… By establishing a values-based culture, organizations can cultivate the trust necessary to reduce turnover and mitigate unethical behavior…. Ultimately, an organization’s most senior leaders should set a clear and decisive tone at the top.”
“Ethics and moral judgment are not new concepts for leadership. They have been identified as critical characteristics of leadership over the last century. An organization’s leaders help define the culture, values, standards, and moral character of the organization having ramifications both inside and external to the organization. Ethical leaders have been found to display pride yet reject selfish and conceited behavior… Ethical leaders are not normally high-profile charismatic leaders but are quiet leaders moving ‘patiently, carefully, and incrementally…’”
The great leaders are defined by who they are as individuals. They have all been shaped by their character, morals, values, integrity and ethics. These are the values that define them as being truly great and valuable, whether or not they actually achieved publically recognized pinnacles of success.
- Admiral Rickover H.C., Thoughts on Man’s Purpose in Life (speech presented at the San Diego Rotary Club, 1977)
- The Deloitte LLP 2010 Ethics & Workplace Survey (Deloitte LLP, August, 2010)
- Scharff M.M., WorldCom: A Failure of Moral and Ethical Values (Journal of Applied Management and Entrepreneurship, July 2005)
Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It. (Majorium Business Press, Stevens Point, WI 2011)
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018
Copyright © 2014 Timothy F. Bednarz, All Rights Reserved
Four Primary Leadership Roles and Responsibilities
A leader’s specific roles are determined through the four basic leadership responsibilities of directing, coaching, supporting and delegating. Specific responsibilities will fall into one of these four categories. In leadership practice, one must master skills in all areas in order to effectively lead others under their direction.
Effective leadership is not happenstance; it follows specific rules revolving around these four basic areas of responsibility. Leadership skills can be learned and developed, even if an individual does not have a natural tendency toward leadership. More importantly, once learned and applied, these rules make a leader more effective and productive as he or she learns to work, direct and guide others toward the mutual accomplishment of goals and objectives.
Developing strengths in each of the four leadership roles allows a leader to read specific situations accurately and know what communication style is best applied.
Directing
Directing refers to how to keep work tasks and activities on the right track. A leader’s direction is what makes or breaks problem solving as well as determines the effectiveness of an approach to an assignment or task, the maintaining of momentum until its completion, and whether it is done by deadline. There are several ways to generate good direction techniques. These include:
Explain things completely and include the ‘why’s’
Leaders learn early on that the best way to gain support and trust from their employees is to explain all things in their entirety. Once people understand why something is important or necessary, they generally rally to the call of that which needs to be done or addressed.
Remain visible
Leaders understand the power of their presence at all times. Nothing deflates the workforce’s motivation and desire to achieve more than to be left on their own with no visible means of support or direction.
Objectively consider opposing points of view
Leaders consider situations, problems and solutions from various viewpoints, as the input from as many individuals as possible expands their capabilities to effectively frame their direction.
Coaching
Coaching refers to when a leader knows where he or she wants to go and remains in control of the task but needs to lead others in developing a mutual support network. Coaching instills the desire to achieve and builds a dialogue bridge between the leader and those under his or her charge. This motivates employees and positively changes attitudes toward the work assignment. To do this effectively a leader must make an effort to:
Incorporate the word ‘we’ into all conversations
Effective leaders eliminate the word “I” because it denotes a singular rather than cooperative effort. The very meaning of the term “coaching” implies a team effort.
Listen for objections and areas of misunderstanding
Effective leaders who coach well develop the skill of eliminating objections by developing an effective dialogue and creating clear and concise responses.
Offer explanations addressing the ‘why’s, what’s and how’s’ of the problem or task at hand
Good coaching depends upon complete understanding. Motivation and confidence comes from understanding the expectations a leader has of those involved in a given task, assignment or problem solving situation.
Supporting
Managers cannot be effective leaders unless they actively hone their supporting skills. People look warmly on leaders who actively work to support them emotionally as well as physically. When leaders actively work to support the people under their charge they:
Acknowledge individual efforts with comments of praise and positive support
Leaders are not afraid to say “thank you,” or “you’re doing a great job,” or whatever it takes to instill confidence in an individual.
Disclose their own feelings openly and honestly
Leaders are not afraid to reveal their “inner self.” Trust and loyalty are built on disclosing inward feelings, concerns and desires. Readily and honestly opening up builds encouragement and perseverance on both sides.
Never hesitate to ask, ‘What’s wrong?’
Leaders allow themselves to get into the thick of a situation or task, and are quick to share the decision making responsibility, but know when to relinquish control in order to gain extra participation and involvement.
Delegating
Leaders know and understand their people. They know their strengths and weaknesses as well as what motivates and frustrates them. Effective delegating relies on the ability to select the proper person for the specific task or role. Leaders develop good delegation skills by:
Briefing the delegate
Leaders leave nothing to chance when they delegate. When delegating, it is vital to explain exactly what expectations the leader has of the delegated individual.
Having confidence in the person they select
Leaders do not select individuals for an assignment according to their job descriptions or the salaries they command, they look for people with the skills, abilities, perseverance and motivation to get the job done and done well.
Not abdicating responsibility, but allowing individuals to decide a best course of action for themselves
Leaders monitor and weigh these individual decisions, but never advance their own leadership position for a particular course of action unless they assess it to be the best one.
Excerpt: Leadership Roles & Responsibilities: Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011)
Related:
You Are Judged by the Actions You Take
Emotional Bonds are a Reflection of a Leader’s Effectiveness
Six Ways to Enhance Your Personal Credibility
Can You Be Trusted? The Answer May Surprise You
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018
Copyright © 2014 Timothy F. Bednarz, All Rights Reserved
Anticipating and Handling Employee Fears of Change
Before managers can successfully lead their organizational units through a transformational change, they must overcome existing general fears and negative attitudes. Most of these fears and attitudes have been formed over the past two decades by actions and decisions organizations have made that have detrimentally affected individual employees.
From the 1980s on, businesses have faced the greatest overall restructuring since the Industrial Revolution. The depth and scope of this restructuring has been painful. Many employees have experienced downsizing, layoffs and a host of management fads, including the chaos, uncertainty and heightened frustration of reengineering. The methods used often resulted in covering and masking a number of management actions and mistakes.
Pain was further increased by the visible unfairness and callousness of many employee layoffs. The result left for managers to deal with is an employee mindset that translates into a lack of willingness to contribute personal initiative and productive work. This reflects itself in less effective teaming efforts and a lower output of quality decisions and products, as well as decreasing the loyalty leaders require from their unit members to lead their organization through the ongoing transformational process.
This is important for managers to grasp because organizations competing in the twenty-first century need the willing help and assistance of intelligent, motivated, collaborative and enterprising employees. This presents leaders with a real challenge: they must first work with their employees to overcome the problems and sentiments of past organizational actions before moving forward into an active transformation. Organizational stakeholders and investors who want to see increased results and overall improvement further complicate the process.
The International Survey Research Corporation, which tracks employee satisfaction for Fortune 1000 companies, reported that since 1989 employees:
- Feel that management fails to provide clear direction.
- Do not believe what management says.
- Are less sure about keeping their jobs.
- Worry about their company’s future.
- Fear being laid off.
- Feel overall morale is lower.
These facts frame the starting point defining where many leaders find themselves in the face of transformational change in their organizations. While time heals all wounds, most managers do not have this luxury in the face of the chaotic events and issues.
The most practical answer to overcoming these fears and attitudes is increasing employee empowerment. However, this is not likely to work without the total commitment of everyone holding a leadership position. Leadership can come from the ranks of senior managers or from organizational unit and team leaders. Any major transition will not work without a commitment from each level.
In addition to employee empowerment, managers need to establish working teams to tackle ongoing problems and concerns. It is better to establish multiple teams than to create one involving every employee in the organizational unit; the best workable size is between five and six members. In many instances, teams can work on the same problems. This furnishes a method of developing multiple solutions and alternatives. A collaborative team can be established to select the best solution and then assign specific aspects of it to each team to address and implement.
Employing a team approach demands specific leadership skills, including:
- Goal setting
- Planning
- Effective follow up procedures
If managers fail to develop one of these three skills or eliminate them from their leadership contributions, the team will break down.
Managers furthermore cannot assume that if they simply form a team, participants will decipher what needs to be done and how things need to be accomplished. They must train unit members in working together in teams, focusing on the important issues, dealing with other teammates, and getting results.
In order for this training to be successful, managers must make sure the following team elements are adhered to, including:
- Clarity of goals
- Good communications
- Effective dissemination of business objectives so the team understands how it fits into the general business plan
- An effective process to guide and direct the actions of the team
While empowerment and an effective team approach will not immediately resolve many of the nagging employee problems and attitudes a manager must actively deal with, it does establish a foundation for improved performance and participation. As leaders initially start the process, they will need to develop strategies to cope with and address the emotional baggage issues brought to the table by their employees. They must allow the venting of frustrations and criticisms, then eliminate each of these issues in turn until full participation is achieved.
Excerpt: Facilitating Change: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 17.95 USD
Related:
Managing Change: The Transition From Chaos to Order
Barriers to Integrating Change
When the Process of Change Spins Out of Control
Managers as Facilitators of Change
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018
Copyright © 2013 Timothy F. Bednarz, All Rights Reserved
Five Strategies to Build Trust
The actions and behaviors of individual leaders impact trust within the organization. Many fail to understand the elements of a trusting work atmosphere and the strategies used to build and establish a firm foundation for trust and leadership.
There are five key elements a leader must focus their efforts on to develop a comprehensive atmosphere of trust in their workplace. While the concept of trust implies participation by both leader and the people they deal with, including their superiors, associates, peers and employees, it must start with the individual leader. It is counterproductive for leaders to withhold their trust until they are able to trust the other party. In most cases trust is mutually developed by both parties and balanced by the commitment each brings to the relationship. Typically, employees and other individuals will reciprocate the trust placed in them by leaders.
As leaders attempt to build trust, they will experience reluctance in the form of employees who have felt betrayed by the organization in the past. Consequently, leaders must signal a change by making the first steps to initiate and demonstrate trust in their employees. Once employees see that a true change has occurred, they will begin to slowly form the bonds of trust needed for leaders to be effective.
Leaders who wish to establish a complete environment of trust with their superiors, associates, peers and employees must consider employing the following strategies:
Establish Professional and Personal Credibility
If leaders are credible, they are trusted and believable to their employees. Employees consider a credible leader to be one who does not advance a personal agenda but has the best interests of the organization and his or her employees at heart.
Employees and other individuals view credibility from differing perspectives. Often credibility can be confused with personal competence. If the leader is knowledgeable and possesses both personal expertise and experience, they are considered credible. Conversely, leaders who maintain positions in which they demonstrate professional incompetence exhibit a lack of professional credibility, with employees viewing their direction, judgment and leadership as suspect.
The other aspect is the leader’s own personal credibility. This involves the employee’s ability to personally trust what a leader says or does. An individual may possess professional credibility and not possess the personal credibility to lead the organization. Strategies leaders must apply to develop and foster personal credibility include:
- Making themselves available to their employees and easy to talk with. Good leaders do not wait for their employees to approach them, but seek them out on a regular basis. Many will walk around and talk with each employee several times a day to discuss everyday concerns and issues. This proactive approach allows them to monitor the pulse of their organization while facilitating open communication with their employees. They instantly answer questions with straight responses and openly make their expectations of the organization and their employees known.
- Trusting their employees to handle their jobs and responsibilities without regularly looking over their shoulders and micro-managing their activities.
- Being completely reliable and always delivering on their promises and commitments without fail, enabling employees to know without question that they can count on the leader.
Fairness
Trust is built when employees know their leader is fair and consistent in his or her actions, decisions and judgments—no matter who is involved and what the circumstances.
Fairness is comprised of both equity and consistency. Leaders can use the following strategies to develop a strong sense of equity including:
- Ensuring all employees are treated in the same manner.
- Making sure all actions, judgments and decisions are fair to all parties concerned.
- Avoiding any favoritism among employees, especially where rewards, recognition and promotions are concerned.
Effective leaders make certain their actions, judgments and decisions are consistent and not based upon specific circumstances. Only when leaders demonstrate consistency over time can they build trust with employees, who then know they will always be treated fairly.
Respect
Trust is built upon a foundation of mutual respect for one another. If respect is absent, trust can never be achieved. Leaders can develop and foster respect by:
- Demonstrating a personal regard for individual employees’ experience, expertise, knowledge, insight and perspectives concerning their jobs.
- Actively seeking feedback and employees’ insight, perspective and opinions regarding important decisions.
- Actively involving employees in the decision making process.
- Demonstrating appreciation for employees’ personal contributions to the success of the organization.
- Providing the training, resources and support employees need to competently perform their jobs.
- Demonstrating care and concern for employees’ lives outside of the workplace.
Pride
Trust is fostered and nurtured by a sense of mutual pride in the work, quality and accomplishments of the organization. This builds organizational cohesiveness that bonds all employees together and strengthens trust in all involved. As workplace cohesiveness increases, so does a sense of trust in the organization and its people. Everyone feels they are working together, and each can be trusted to fulfill his or her role and responsibilities.
Leaders can encourage the development of pride by using the following strategies:
- Helping employees understand their individual role in the organization and how their efforts contribute to its success.
- Helping them understand that they personally make a difference within the organization.
- Exhorting employees to take satisfaction both in their organization’s accomplishments and its contributions to their community.
Comradery
Comradery is not normally associated with the concept of trust, yet it does contribute to the organizational cohesiveness established by trust. As cited above, the stronger the organizational cohesiveness, the stronger the bond between leaders and employees. All involved feel linked by common goals, experiences and successes. They have a sense that everyone is “in it together” and work as a unit rather than as individuals.
Leaders can use the following strategies to build comradery with their employees:
- Creating a workplace where a common concern is demonstrated and employees feel they can “be themselves.”
- Openly and regularly celebrating special events and mutual successes.
- Consistently and openly recognizing, rewarding and celebrating individual successes in a warm and genuine manner.
Excerpt: Building and Nurturing Trust in the Workplace: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $16.95 USD
Related:
You Are Judged by the Actions You Take
Emotional Bonds are a Reflection of a Leader’s Effectiveness
Six Ways to Enhance Your Personal Credibility
Can You Be Trusted? The Answer May Surprise You
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018
Copyright © 2013 Timothy F. Bednarz, All Rights Reserved
You Are Judged By The Actions You Take
Of all the leaders surveyed, the great ones were individuals who consistently displayed their integrity and character. No matter what happened in their lives: adversity, controversies, failure and defeat, their character shined through. It established deep personal credibility with each of their constituencies, as well as all others that came into contact with them.
First and foremost, leaders are judged by the actions they take. Today’s high profile leaders are prominently visible to all of their key constituencies. They make speeches and presentations to employees, shareholders, financial analysts, and the public in general.
Herb Kelleher (Southwest Airlines) exemplifies this. “He’s totally true to himself and totally consistent between his private life and his public life. He’s totally consistent between his public speeches and his private speeches. You could look at a speech that Herb gave to the annual shareholders meeting of 2002 and compare it to his message to the field in 1992 and compare it to a letter to employees in 1982 and find tremendous consistency in terms of adherence to core values. So the absolute adherence to extraordinarily high professional principles of ethical conduct and fair dealing, is just remarkable over time. So he built up a reservoir of credibility not only among employees but other people.”[1]
Many leaders may sound impressive, but simultaneously undermine their credibility since their actions fail to mirror their words. In some instances, leaders’ actions contradict their company’s mission statement, resulting in confusion within their organization. In either case, their personal actions become corrosive to the organizational culture, as well as their own individual credibility.
As a high profile leader, Carly Fiorina’s (Hewlett Packard) actions were highly scruntized and undermined her credibility. “Fiorina came in with a mandate of change, but didn’t make any effort to build trust between herself and the company. Indeed, she sullied her image by exalting herself without regard to her employees’ reactions. Buying a personal jet in front of a distrustful and alienated workforce is one example. Freezing employee salaries while giving herself and her executive ilk bonuses is another. Doing these things in light of nearly 18,000 employee dismissals (2003) is just plain callous.”[2]
Leaders’ actions set the tone for their organization, whether they realize it or not. They can either inspire or generate resentment in their employees. Fred Smith (FedEx) inspired his organization by setting a tone where all his employees felt they could share in the success of the company. He stated, “One of the biggest principles is that you’ve got to take action. Most large organizations reach a static point. They cannot take any action, because there are all types of barriers to doing so. There are institutionalized barriers that weren’t there when the company was considerably smaller. What changes is your knowledge and your appreciation of how to deal with those institutional barriers, to eliminate them or use them to your advantage in achieving those changes. There are myriad number of changes that have to take place in the management style for the company to continue growing.”[3]
“’Andy [Grove][Intel] has always been a teacher – often by example,’ says Ron Whittier, senior vice president in charge of content development… Yet I don’t think he wants to be remembered as a great visionary – but as someone who made things happen and created a great company.’”[4]
All constituencies expect leaders to be fair, just and consistent. Any perception of cronyism and the use of internal politics to develop an advantage for one individual or group generates unintended consequences, as these policies and actions are replicated at lower levels. Yet, for certain types of leaders, potential gains are too tempting not to employ these practices. Their focus on personal gain, however, becomes transparent to the rest of the organization. This destroys trust and channels of openness and honesty throughout the company. Fredrick Joseph (Drexel Burnham) created a dysfunctional culture when he ignored the unethical practices and securities violations of high-powered Michael Milken, and his creation of the junk bond business. The insider-trader scandals surrounding Milken ultimately led to the largest bankruptcy in Wall Street history at that time.
These actions hamper leaders’ abilities to instill their ideas, beliefs and values in others, and significantly hinder them when communicating sweeping strategies that are needed to move organizations forward. Rather than unite different factions, they splinter any existing unity, as different groups jockey for position. Leaders in this position typically tend to use their authority and power in a repressive rather than productive manner. It saps the company’s available resources and diminishes its productivity.
A notable and well-publicized example of this practice is Al Dunlap (Sunbeam). “In Dunlap’s presence, knees trembled and stomachs churned. Underlings feared the torrential harangue that Dunlap could unleash at any moment. At his worst, he became viciously profane, even violent. Executives said he would throw papers or furniture, bang his hands on his desk, and shout so ferociously that a manager’s hair would be blown back by the stream of air that rushed from Dunlap’s mouth. “Hair spray day” became a code phrase among execs, signifying a potential tantrum.”[5]
My research of some of the poorest performing leaders substantiated that many also made questionable and highly risky financial decisions that placed their companies at risk, and placed the well being of shareholders far above the interests of their customers.
“In the service of a quick buck, he [Al Dunlap – Sunbeam] imposed brutal pressure on honest people, placing their careers, incomes, health insurance, and pensions at stake. He made impossible, irrational demands that were ruinous to the long-term prosperity of companies. The leadership style he practiced was inconsistent with good business, thoughtful management, a strong economy….”[6]
Jon Huntsman (Huntsman Chemical) observed. “People often offer as an excuse for lying, cheating, and fraud that they were pressured into it by high expectations or that “everyone does it.” Some claim that it is the only way they can keep up. Those excuses sound better than the real reasons they choose the improper course: arrogance, power trips, greed, and lack of backbone, all of which are equal-opportunity afflictions.”[7]
The great leaders were committed to others and demanded excellence from all. They forged building blocks of growth and were proactive as they mastered execution of their plans within all levels of their organization. They demanded accountability on all levels and did not delegate this responsibility. They held themselves equally accountable, and adhered to the same standards as were established for the lowest level employee. This typically appealed to their personal sense of fairness.
“More than anyone, leaders should welcome being held accountable. Nothing builds confidence in a leader more than a willingness to take responsibility for what happens during his watch. One might add that nothing builds a stronger case for holding employees to a high standard than a boss who holds himself to even higher ones.”[8]
These leaders were passionate, and demonstrated a high level of personal drive and resilience. These factors made it possible to build emotional connections with key constituencies, especially needed during difficult periods.
Finally, one of the most notable distinctions of great leaders was found in their restraint and self-control. It inspired confidence in all key constituencies. A key example of this trait was the composure and stature James Burke (Johnson & Johnson) displayed during the Tylenol scare. His actions are attributed to saving that brand and securing the company’s impeccable reputation.
[1] Yeh Raymond T. with Yeh Stephanie H., The Art of Business: In the Footsteps of Giants (Zero Time Publishing, 2004)
[2] Knufken, Drea, 10 Reasons People Hate Carly Fiorina (Business Pundit) June 18, 2008
[3] Hafner, Katie, Fred Smith: The Entrepreneur Redux (Inc. Magazine, June 1, 1984)
[4] Sheridan John H., 1997 Technology Leader of the Year Andy Grove: Building an Information Age Legacy (Industry Week, April 19-21, 2010)
[5] Byrne, John A., Chainsaw (Harper Business, 1999, 2003) p 353-354
[6] Gallagher Bill, Once a Bum, Always a Bum (Niagara Falls Reporter, January 29, 2002)
[7] Huntsman, Jon M., Winners Never Cheat Even in Difficult Times (Wharton School Publishing, Upper Saddle River, New Jersey, 2008) p 35
[8] Giuliani, Rudolph, Leadership (Hyperion, New York, 2002) p 70
Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011)
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018
Copyright © 2013 Timothy F. Bednarz, All Rights Reserved
The Importance of Intellectual Honesty
Before leaders can assess risks they must be intellectually honest to completely comprehend the reality surrounding their circumstances. A noteworthy illustration of the practice of intellectual honesty is (IBM), who was appointed to turn around the floundering company. “He spent his first few months visiting all of IBM’s facilities all over the world taking the opportunity to explain to his concerned employees that his intention was to help the company recover, while at the same time preparing them for forthcoming tough decisions. He also spoke to customers, competitors, consultants, and analysts. Gerstner came to several conclusions:
- Customers wanted to be provided with solutions to their problems not sold hardware.
- Computer networking had the potential to transform the way people worked and required different hardware and software to that which IBM was producing.
- IBM’s products were not the best in the market.
- The existing plans to split the company were inappropriate because the company could gain many advantages through better integrating what it did.
- Cost cutting was essential and, despite a reduction of 20 per cent in the workforce over the last six years, more employees would have to go.” [1]
Before Gerstner could transform IBM, he had to face a foreboding sense of reality. The five conclusions he arrived at provided a sobering picture of the reality of what IBM was facing. Without being intellectually honest about what he was dealing with, Gerstner would not have been able to succeed to the degree he did at IBM.
John D. Rockefeller (Standard Oil) also exhibited a high degree of intellectual honesty. “Rockefeller’s greatest gift… was the ability to keep a clear head. Hope never skewed his calculations. ‘Look ahead,’ he advises. ‘… Be sure that you are not deceiving yourself at any time about actual conditions.’ He notes that when a business begins to fail, most men hate ‘to study the books and face the truth.’ ” [2]
David Packard (Hewlett-Packard) exhibited a similar characteristic. “Even though Packard is… remembered as a gruff, straightforward man who wasn’t afraid to point out what was wrong and suggest improvements. When he returned to HP in the early 1970s after his stint as deputy secretary of defense and found the company on the verge of borrowing $100 million to cover a cash-flow shortage, he immediately met with employees and gave them what came to be known as a ‘Dave Gives ‘Em Hell’ speech. Packard lined up the division managers in front of employees and told them, ‘If they don’t get inventories under control, they’re not going to be your managers for very long.’ Within six months, the company once again had positive cash flow, to the tune of $40 million.” [3]
Jack Welch (General Electric) made the following observations concerning investment opportunities, which are risks, since the outcomes are never known and can be difficult to accurately predict. He noted, “The facts are, not all investment opportunities are created equal. But some leaders can’t face that reality, and so they sprinkle their resources like cheese on a pizza, a little bit everywhere. As a result, promising growth opportunities too often don’t get the outsized infusions of cash and people they need. If they did, someone might get offended during the resource allocation process. Someone, as in the manager of a weak business or the sponsor of a dubious investment proposal.” [4]
Sam Walton (Wal-Mart) incorporated and institutionalized intellectual honesty into his company. He observed, “From the very start we would get all our managers together once a week and critique ourselves – that was really our buying organization, a bunch of store managers getting together early Saturday morning, maybe in Bentonville, or maybe in some motel room somewhere. We would review what we had bought and see how many dollars we had committed to it. We would plan promotions and plan the items we intended to buy. And it worked so well that over the years, as we grew and built the company, it just became part of our culture. I guess that was the forerunner of our Saturday morning meetings (where company managers get together and review what they’ve seen in the stores that week). When we made a bad mistake – whether it was myself or anybody else – we talked about it, admitted it, tried to figure out how to correct it, and then moved on to the next day’s work.” [5]
[1] Johnston Robert, IBM – Creating a Customer-Focused Organization (Warwick Business School, 2007)
[2] Baida Peter, Rockefeller Remembers (American Heritage Magazine, September/October 1988, Volume 39, Issue 6)
[3] O’Hanlon Charlene, David Packard: High-Tech Visionary (CRN, November 8, 2000)
[4] Welch Jack, Bosses Who Get It All Wrong (Business Week, July 23, 2007)
[5] Sam Walton in His Own Words (Fortune Magazine, June 29, 1992; from: “From Sam Walton: Made in America” by Sam Walton and John Huey)
Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011)
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
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