Leaders: Hold Yourself Accountable

April 29, 2012

Several managers I know are fond of saying “we have to hold our people accountable.” I think the process of making sure people need to step up to responsibility is a good one, but it really needs to start at the top. Unfortunately, I see many top leaders failing to hold themselves accountable first.

Let’s envision a plant manager who has a problem of extremely low morale in the factory. The supervisors are telling the manager that people are upset because of no raise in 3 years and the threats of layoffs. They are tired of being abused and kept in the dark. The productivity is at an all time low, and the only way to take cost out is to further reduce the workforce. If you were that manager, how would you go about engineering a rapid turnaround in the performance of your plant?

One interesting strategy is push your chair back from the desk, stand up, walk down the hall, go in the bathroom, look in the mirror, and ask yourself some tough questions like the following:

• Morale is terrible in this plant, and as the manager in charge, how have you been contributing to this problem?
• What is preventing you from fully holding yourself accountable for this awful situation?
• In what ways have you been trying to lay the blame on the supervisors, employees, bad economy, suppliers, business downturn, competition, etc., and how can you deal with the current situations and business environment in a more empowering and effective way for all concerned?
• What fundamental changes in the structure, behaviors, values, and vision are you going to make to completely change the environment?
• What behaviors do you need to change, starting right now, to build a culture of higher trust?
• In what ways can you change the attitudes of the workers by changing your own attitudes and behaviors?
• Since bonuses, or picnics, or parties, or hat days are not going to have much impact on long term motivation, how can you find out what really will inspire people and then implement the proper changes to the environment?
• How can you be a better mentor for your supervisors as well as train them to be better mentors to their own staff?
• How are you going to find a way to quadruple the time you have available to communicate with people?
• Do you need assistance to solve these issues? If so, what kind of help could you use and where can you find it?
• How can you know if or when it is time to pursue other opportunities and let someone with a different skill set handle the turnaround?

Yes, that is tough medicine, and yet I believe if the cold realities in these questions were internalized by some top leaders, conditions might start to change. It is only through the behaviors and attitudes of the top leaders that real changes can be made in an organization. Once top leaders step up to their own accountability, then the rest of the organization will quickly become enrolled in a new and positive vision for the enterprise.


Trust Seeds

April 22, 2012

We are all aware that interpersonal trust is precious. Trust is fragile; it is difficult to build, and easy to destroy. Most people believe it takes a very long time to build up trust with another person. There is an alternate view; if certain conditions are present when people first meet, a “seed” of trust is created upon which further trust will grow if both people continue to nurture it.

In his book “Blink,” Malcolm Gladwell describes the “Thin Slices” we humans use to size up other people within seconds of meeting them. We absorb an enormous amount of data instantly in the body language and the first words uttered by a new acquaintance.

I can recall meeting two influential men last year within seconds of each other. The first one gave me a solid handshake and a smile. He made great eye contact and asked me a question about my family. The second individual gave me a half-limp handshake while his eyes were scanning the room to see who else was there. He did smile, but it was forced and phony. Since that time, I have effortlessly developed a relationship of high trust with the first individual, and I have felt uncomfortable to be in the same room as the second one. The relationship with the first man took several months to develop, but the seed was planted in the first 5 seconds. With the second man, there was nothing for trust to grow on, so a relationship never kindled.

There are numerous things people instantly assess about us. Here are five conditions that allow you to plant a seed on which trust can grow.

Competence – People must be convinced that you know what you are doing to view you as being trustworthy. If they sense that you have the ability from a knowledge and skill set to deliver on your statements, then you pass the competence test. If they have doubts that you can deliver, then they will remain skeptical until there is enough time to test you.

Integrity – Do you have the character to do what is right? People need to feel that you are not duplicitous and that you will stand up for what you believe is right. It does not mean that you always need to agree with others on every point, but people need to see you as a person of high moral and ethical fiber before they are going to trust you.

Reliability – People need to be convinced that you will do what you say. This characteristic normally takes people a long time to test, but it actually can happen quickly. People can discern your reliability through the way you phrase intentions and even the body language you use to chat with them. The ability to follow through with intended actions or at least get back to the other person if conditions change is easy to spot, just as it is easy to observe a blowhard who says nice things but has no intention to actually do them.

Attitude – To gain trust, you need to project a positive attitude when another person is meeting you and ensure that it comes from the heart. Depending on the contextual background of the meeting, a smile is the usual way to show a positive attitude toward another person. Caveat: putting on a false smile is the kiss of death, because it pegs you as someone who cannot be trusted at all. In a different context, a look of concern or sympathy might be a more appropriate way to show a positive attitude toward the other person. Your attitude and demeanor must be heartfelt and congruent with the situation.

Care – It is vital to project that you really do care about the other person. People might say it takes years to know if someone else really does care about you. In reality, care can be displayed in hundreds of small gestures, just as selfishness can be easily spotted. Giving deference to the feelings of others is an important component of Emotional Intelligence. The interesting observation about this is that the people who have low Emotional Intelligence have the biggest blindspots, according to Daniel Goleman. Translated, if you come across as a phony in terms of really caring about other people, you will not have the ability to detect this in yourself, but others will see it instantly.

On the back of my business card, I have a picture of a pile of various seeds. The words say:

Seeds for Growing Leaders
Plant in an environment of trust,
Sprinkle daily with humility,
Weed out negativity,
Place in the light of truth,
Be patient,
Enjoy the fruits of great leadership.

It does take a long time of consistent performance for a very strong bond of trust to build, but the first seeds of trust can be established quickly upon meeting someone. Make sure when you meet a new person that you genuinely project the five conditions above, and you will be well on your way to a trusting relationship.


9 Steps to Rebuild Trust

April 1, 2012

I believe trust between people is like a bank account. The balance is what determines the level of trust at any point in time, and it is directional. I might trust you today more than you trust me. We make deposits and withdrawals in the trust account nearly every day with the things we say and do. Usually the deposits are made in small steps that add up to a large balance over time. Unfortunately, withdrawals can be massive due to what I call “The Ratchet Effect.” All prior trust may be wiped out quickly. Nobody is happy when trust is lost.

I believe trust withdrawals can lead to a long term higher level of trust if they are handled well. Just as in a marriage when there is a major falling out, if the situation is handled well by both parties in a cooperative spirit, the problem can lead to an even stronger relationship in the long term. Let’s investigate some steps that can allow the speedy rebuilding of trust.

Act Swiftly

Major trust withdrawals can be devastating, and the trauma needs to be treated as quickly as possible. Just as a severe bodily injury requires immediate emergency care, so does the bleeding of emotional capital need to be stopped after a major letdown. The situation is not going to heal by itself, so both parties need to set aside normal routines in order to focus significant energy on regaining equilibrium.

Verify care

Both people should spend some time remembering what the relationship felt like before the problem. In most cases there is a true caring for the other person, even if it is eclipsed by the hurt and anger of the moment. It may be a stretch for some people to mentally set aside the issue, but it would be helpful to do that, if just as an exercise. If the problem had never happened, would these people care about each other? If one person cannot recognize at least the potential for future care, then the remedial process is blocked until that happens.

Establish a desire to do something about it

If reparations are to be made, both people must cooperate. If there was high value in the relationship before the breach, then it should be possible to visualize a return to the same level or higher level of trust. It may seem out of reach if the problem was a major let down, but it is critical that both parties really want the hurt to be resolved.

Admit fault and accept blame

The person who made the breach needs to admit what happened to the other person. If there is total denial of what occurred, then no progress can be made. Try to do this without trying to justify the action. Focus on what happened, even if it was an innocent gaffe. Often there is an element of fault on the part of both parties, but even if one person is the only one who did anything wrong, an understanding of fault is needed in this step. Sometimes neither party did anything particularly wrong, but the circumstances led to trust being lost.

Ask for forgiveness

It sounds so simple, but many people find it impossible to verbalize the request for forgiveness, yet a pardon is exactly what has to happen to enable the healing process. The problem is that saying “I forgive you” is easy to say but might be hard to do when emotions are raw. True and full forgiveness is not likely to happen until the final healing process has occurred.

Determine the cause

This is a kind of investigative phase where it is important to know what happened in order to make progress. It is a challenge to remain calm and be as objective with the facts as possible. Normally the main emotion is one of pain, but anger can accompany the pain. Both people need to describe what happened, because the view from one side will be significantly different from the opposite view. Go beyond describing what happened, and discuss how you felt about what happened. Do not cut this discussion off until both parties have exhausted their descriptions of what occurred and how they felt about it. Sometimes it helps in this stage to do some reverse role playing where each person tries to verbalize the situation from the perspective of the other.

Develop a positive path forward

The next step is the mutual problem solving process. Often two individuals try to do this without the preparatory work done above, which is more difficult. The thing to ask in this phase is “what would have to happen to restore your trust in me to at least the level where it was before.” Here, some creativity can really help. You are looking for a win-win solution where each party feels some real improvement has been made. Do not stop looking for solutions just because it is difficult to find them. If you have gotten this far, there is going to be some set of things that can begin the healing process. Develop a path forward together. What new behaviors are you both going to exhibit with each other to start fresh.

Agree to take action

There needs to be a formal agreement to take corrective action. Usually this agreement requires modified behaviors on the part of both people. Be as specific as possible about what you and the other person are going to do differently. The only way to hold each other accountable for progress is to have a clear understanding of what will be different.

Check back on progress

Keep verifying that the new behaviors are working and modify them, if needed, to make positive steps every day. As the progress continues, it will start getting easier, and the momentum will increase. Make sure to smell the roses along the way. It is important to celebrate progress as it occurs, because that reinforcement will encourage continued progress. If there is a another set-back, it is time to cycle back on the steps above and not give up on the relationship just because the healing process is a long one.

In many cases, it is possible to restore trust to a higher level than existed before the breach. This method is highly dependent on the sincerity with which each person really does want the benefits of a high trust relationship with the other person. That outcome is really good news because it allows a significant trust withdrawal to become an opportunity instead of a disaster.


Getting Sach’d

March 18, 2012

Greg Smith wrote his scathing letter of resignation from Goldman Sachs, and it appeared as an op-ed in the New York Times on March 14th. He is out of Goldman Sachs for good, but I believe it was the firm that really got “Sach’d.”

Here we have an insider who was unable to play the game of duplicity and go against his own values. He revealed so much evidence of a corrupt culture that the entire organization is likely to continue its fall from grace. The ouster of CEO Lloyd Blankfein and President Gary Cohn is not assured, but I am willing to bet that they will not be there one year from now. Even before Smith’s diatribe, speculation about Blankfein leaving soon was becoming more prevalent.

The Goldman Sachs PR machine has tried to blunt some of the damage by stating Smith was just one of over 30,000 employees, and it is expected there are going to be some disgruntled employees in an organization that large. If Smith’s accusations are accurate, the Goldman Sachs defense, thus far, has been tepid at best.

Smith’s courage to leave and expose the corruption will cost him in the short term. As William Cohan, author of Money and Power: How Goldman Sachs Came to Rule the World, pointed out: “Smith is toast on Wall Street.” On the other hand, if Smith does not meet some mysterious demise or get run over by a taxi, he is likely to do well as an author himself and flourish on the speaking circuit as a competitor to Cohan. There is undoubtedly enough interest out there to support at least two authors and speakers for several years.

I am neither supporting or denigrating Smith’s claims. I am not close enough to the facts. Rather, I am marveling at the level of candor involved in his letter. Accurate or not, his resignation letter lit up the twitter boards for the last half of the week. It will be an interesting story to follow.

One basic truth stated by Smith in his letter will go down in history as a warning to all top executives who have let hubris or greed push fundamental values to the side. “It astounds me how little senior management gets a basic truth: If clients don’t trust you they will eventually stop doing business with you. It doesn’t matter how smart you are.”

Another favorite quote from his letter is, “Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and you are not currently an ax murderer) you will be promoted into a position of influence.” I am wondering how many of the managers who may be following the “Money over customer well being” philosophy are starting to shake in their boots. How can they change their methods in midstream and be able to look at themselves in the mirror?

I suppose enough money and power can help executives deceive themselves into believing wrong things are OK. After all, Smith himself was participating in the same kind of deception until his conscience could no longer bear it, or perhaps he was put under a kind of pressure he could no longer endure. Regardless, he was not blameless for tolerating the same kind of corruption for at least a few years. Perhaps this affair is a kind of wakeup call that a corporate culture can be a seductive force that enables people to accept and follow what they would otherwise know is wrong.

I am an idealistic soul who still believes in Superman and the premise that good eventually wins out over evil. It did take a lot of courage to do what Greg Smith did. MBA classes will be discussing his letter and its effect for many years to come. It is rare that a resignation can have such a high profile impact. If history shows his points were accurate, then Smith was really one of the good guys. So here’s to all the good people out there who are unwilling to do things they do not believe in just to make the most money possible. Greg Smith made sure they have a greater chance for their reward while still on this earth. For those who still believe in a duplicitous existence, you can look forward to a significant decline in your business, or even extinction.


Don’t Do A Survey

February 26, 2012

In most organizations, when managers want to know how people are feeling, they do a QWL (Quality of Work Life) survey to find out. I there are more direct ways to identify what people are thinking. By simply discussing the need for a survey, the most insightful data is already spilled all over the table. To mop it up, you need to improve the level of trust in your organization.

Taking an employee engagement survey usually does not reveal trust weaknesses or their causes because in low trust environments people will either not be totally honest or be turned off by yet another survey to gather data.

Most people believe the data will sit in a desk drawer anyway, and it will not provide real change. How many times have you heard employees say, “They keep doing these satisfaction surveys, but nothing ever changes around here”?

Taking a survey feels like progress to a management team with their hearts in the right place. They believe they can dig in and really understand the problems in depth, but I believe there is a far easier and more accurate way to get the data in most cases.

In an environment of high trust, the information about what is working well and what needs to change is as ubiquitous as the air we breathe. People do not need to fill out boxes in a computerized screen to identify the most pressing needs. Improvement opportunities will be offered up continuously, and action can be taken immediately, not after 11 staff meetings to discuss the 27-page summary of the employee satisfaction survey.

The illusion of progress made by taking a survey happens in nearly every organization because managers are not thinking of alternative methods. Besides, the survey gives managers something to talk about and point at to demonstrate they care and are trying to understand.

A better way to make progress is to identify which management behaviors are causing people to hold back the truth out of fear for their job or something else. Rather than contemplating an employee satisfaction survey, Management should be asking themselves questions such as:

1. How can we change the culture to eliminate the need to take surveys in the future?

2. How can we modify the way we interact with people so we always know what is on their minds when problems are small and can be easily resolved?

3. How can we get more time in the workplace to chat with people rather than be cooped up in our offices composing e-mails, or sitting in boring meetings?

4. How can we continually test our understanding of what is happening in the hearts of people by listening and watching their body language?

5. Why do we have an insular management team? When we look around the room, why do we not see more workers in our meetings?

6. Why do the people think our values are not consistently practiced? We say people are our most valuable asset, but do we always make decisions that support that ideal?

7. Why are our goals not fully understood or supported by the people doing the work?

If management energy is focused on creating a real environment where people are not playing games with each other in order to survive, then improvement ideas will flow like water down a mountain stream. If the culture is frozen by fear, the resulting ice makes it necessary to have a blast from a survey in order to move the water, and the data will not be accurate due to fear or apathy.

The survey blast does not change the underlying cause and thaw things out to a more fluid state. It only temporarily provides questionable data so there is an appearance of progress. If managers and leaders would ask questions like the ones above and seek to gain information in those ways, the progress will be far easier to achieve and more robust.


Trust Avoids Miscommunication – Especially Online

September 18, 2011

Communication problems in e-mail are not hard to find. I often ask my students to cite an example of when they wrote something online that got an unexpected and unhappy reaction. I have yet to meet a student that cannot think of at least one major gaffe brought about by words online without being able to see the body language.

There are many antidotes to this problem. One that I find particularly effective is to have high trust. When people know each other and trust each other, the things that could set off hurt feelings, or e-grenade battles are often resolved quickly with little effort. The following story is a great example of how trust can prevent damaging misunderstandings.

Recently, an e-mail exchange between some Board members for a local professional organization got off track. Sally had been doing a wonderful job with her responsibilities as the VP of Membership. The roster had grown by about 25% in the previous year, and we were all praising her for a job well done. Sally took the opportunity to bring a prospective new BOD member named Sharon to the meeting. All of the existing BOD members were happy to welcome Sharon to the group since her expertise could fill a vacancy we had on the BOD.

After the meeting, Sally wrote an e-mail to the group thanking all of us for welcoming Sharon to the group so warmly. Sally’s main message was “thank you.” Tom, the VP of Technology wrote back to Sally the following message. “No…Thank You!”

When I read Tom’s note, I thought how odd he would be saying “No Thank you” to a critical new resource that would actually help spell him from trying to cover for the vacant player. I looked at the message again, because knowing and trusting Tom, I knew he could not have really meant it. Then, I noticed the ellipsis mark (three periods) between “No” and “Thank you.” The ellipsis mark indicates that some information was left out for brevity. It took only a few seconds to determine that Tom’s real message to Sally was, “Not at all Sally…We should be thanking you!” He had just left out the extra words to be efficient.

When I asked Sally about the answer, she said that her reaction at first was also highly negative. Then, as with me, she quickly figured out Tom’s true meaning.

The point of this story is that if any of us did not know and trust Tom, it would have been very easy to misconstrue his meaning. That could have resulted in a lot of damage control with Sally and especially with Sharon, the new person on the BOD. It was that level of trust that allowed us to get by a possible problem without a hiccup. Think about all the other less obvious communication issues that are prevented when trust exists within a group.


Downsizing Mistakes

August 14, 2011

Every organization deals with downsizing occasionally in a struggle to survive hard economic conditions. These times are true tests of the quality of leadership. In many cases, downsizing leads to numerous problems in its wake, especially lower trust.

The most crucial shortage threatening our world is not oil, money, or any other physical resource. It is the lack of enlightened leaders who know how to build trust and transparency, especially when draconian actions are contemplated. We are at an all-time low in terms of the number of leaders who can establish and maintain the right kind of environment. The outrageous scandals of the past few years are only a small part of the problem. The real cancer is in the daily actions of the leaders who undermine trust with less visible mistakes every hour of every day.

The current work climate for leaders exacerbates the problem. The ability to maintain trust and transparency during workforce reductions is a key skill most leaders lack. Downsizing is a unique opportunity to grow leaders who do have the ability to make difficult decisions in ways that maintain the essence of trust.

Thankfully, there are processes that allow leaders to accomplish incredibly complex restructurings and still keep the backbone of the organization strong and loyal. It takes exceptional skill and care to accomplish this, but it can be done. The trick is to not fall victim to the conventional ways of surgery that have been ineffective numerous times in the past. Yes, if you need to, you can cut off a leg in the backwoods with a dirty bucksaw and a bottle of whisky, but there are far safer, effective, and less painful ways to accomplish such a traumatic pruning.

One tool in a downsizing is to be as transparent as possible during the planning phase. In the past, HR managers have insisted that disclosing a need for downsizing or reorganization might lead to sabotage or other forms of rebellion. The irony is that, even with the best secrecy, everyone in the organization is well aware of an impending change long before it is announced, and the concealment only adds to the frustration.

Just as nature hates a vacuum, people find a void in communication intolerable. Not knowing what is going to happen is an incredibly potent poison. Human beings are far more resilient to bad news than to uncertainty. Information freely given is a kind of anesthesia that allows managers to accomplish difficult operations with far less trauma. The transparency works for three reasons:

1. It allows time for people to assimilate and deal with the emotional upheaval and adjust their life plans accordingly.
2. It treats employees like adults who are respected enough to hear the bad news rather than children who can’t be trusted to deal with trauma and must be sheltered from reality until the last minute.
3. It allows time to cross train those people who will be leaving with those who will inherit their work.

All three of these reasons, while not pleasant, do serve to enhance rather than destroy trust.

Full and timely disclosure of information is only one of many tools leaders can use to help maintain or even grow trust while executing unpleasant necessities. My study of leadership over the past several decades indicates that the situation is not hopeless. We simply need to teach leaders the benefits of building an environment of trust and transparency and how to obtain them. My latest book, Leading with Trust is like Sailing Downwind was written to help fill this urgent need. It is full of ideas for creating and maintaining trust within organizations in good times and bad.


Don’t be Opaque

July 24, 2011

I was giving my talk on Trust and Transparency for a group recently, and the host had an interesting twist on transparency. He said that he knew certain members of management who were expert at being “opaque.” I really liked the use of the word opaque, which is the opposite of transparent. For this article, I wanted to explore the different forces operating on a manager which may lead to higher opacity and how being opaque destroys trust.

Fear that people will become enraged

If there is bad news in the offing, the managers might be concerned about letting the information out early because of fear of retribution or sabotage. If it becomes known that people will be losing jobs, then some people might (wrongly) feel there is not much to lose. Of course, there is a lot to lose any time we burn bridges with people: especially former employers.

My experience is that if people are treated with respect and dignity, even if the news is draconian, the vast majority of them will act like adults and actually be appreciative of the transparent information far in advance so preparations for a logical transition can be made. I have witnessed workers keeping a good attitude and being productive during a layoff process right up to the final hour at work and leaving with sadness coupled with dignity.

What really infuriates workers is to find out about a discontinuity on the day of the announcement, when they realize it has been in the planning stages for months. In that case, you might expect someone to throw a monkey wrench in the gears on his way out the door.

Using lack of perfect plans as an excuse

Managers often do not want to divulge information because the plans are not 100% set in stone. They reason that some information will lead to questions that cannot be answered, so they wait until all the details are known? One could always make that excuse, and yet people tolerate lack of specific details better than being kept in the dark wondering about the big picture.

Plans are always subject to revision, so it is far better to involve employees when the plans are not yet firm, because they would have the opportunity to help shape the future, even if only slightly. That involvement in the process normally leads to a higher level of acceptance in the end than if employees are kept in the dark then mouse-trapped with the bad news at the final moment.

Financial Embarrassment

Often in a transition, it becomes obvious that the people making the plans are the “haves” and the people impacted in the organization are the “have-nots.” Total transparency would mean that workers become painfully aware that they are being abused financially while the bosses are taking down huge stock options or other seemingly lavish benefits. Managers would rather not have everyone in the organization know their incentive packages or the size of their golden parachutes. It is just too embarrassing. While this reason to be opaque is actually reasonable, it does raise a huge caution flag. If management is hiding things they would be embarrassed about, isn’t there an ethical breach that needs to be addressed?

Another form of embarrassment that leads to opacity is that people may find out that the managers they work for are actually clueless. They do not know what they are doing, and are “winging it” on a daily basis. If everyone was aware of the stupidity of some corporate decisions, the managers might be subject to a lynch mob mentality among the troops. Since it is pretty difficult to “cure stupidity,” the only recourse is to figuratively hang the bastards out to dry once their lack of IQ or EQ becomes known.

Wanting to retain the best people

When there is bad news to share, it impacts everyone in the organization. The best people will have the greatest opportunity to pick up a job elsewhere for similar or even better pay and benefits. The dregs of the organization have less opportunity to go elsewhere, so if management lets out too much information too early, they are likely to end up keeping the people they want to lose and losing the people they wish to keep. Opacity seems like a strategy to forestall the exodus of needed top talent. Of course, this logic ignores the fact that the best people will be even more likely to leave once it is revealed they have been duped all along. Trust is built when information is shared freely and openly.

Needing time for cross training

Some managers will keep mum on an upcoming reorganization to allow a kind of preparation phase where people are cross trained on other jobs ostensibly for the purpose of building bench strength. Workers see through this ploy rather quickly, so the opacity cover is blown, and it becomes a kind of game environment for several months. The antidote here is to be transparent about cross training and have a continual process to keep skills broad and well sharpened. With that strategy, the need to be opaque about why training is being done vanishes, and people appreciate the variety as well as the opportunity to learn additional skill sets.

The other side of the coin

I do not claim that it is always bad strategy to be opaque in the face of changes. Usually there are legal restrictions on what information can be shared. Managers can go to jail if they divulge information about an impending move that will have a material impact on stock valuation. Also, it may be a disaster to have suppliers or the competition find out about a future move. Managers need to use good judgment as to when and how to divulge information. They also need to be aware that the rumor mill picks up on minute radar signals throughout the organization. It is not possible to truly hide the fact that “something is going on.”

When people are intentionally kept in the dark, they tend to make up stories of what is going on to fill the vacuum. The rumors are normally far worse than the action contemplated, so the beleaguered managers must do damage control on things that are not going to happen while trying to tiptoe around the truth. Trust is lost in such times because people feel managers are “playing games” with them.

My point is that it is far too easy to fall victim to some of the excuses or subterfuges mentioned above. It is usually wise to put a skeptical stance on any gag rule. Reason: Eventually the truth will come out, so any perceived advantage of not telling people is eventually lost along with the long-term damage to trust that comes with being opaque.


7 Reasons Bully Managers Last

May 29, 2011

A student in one of my graduate leadership classes posed an interesting question. If bully managers cause so much grief, why are so many of them allowed to remain in power? The question got me thinking of the many reasons bully managers, even the extreme ones, seem to hang onto their positions. Here are some of the reasons.

Weak Leadership Above – If a bully manager is allowed to remain in place, it means the leaders above him or her are not doing a good job. If those in charge look the other way while a manager is abusing people, then they are the real culprits. It is rather easy to spot a bully manager when doing a 360 degree review process, so once one is identified, if the person is allowed to stay in a management position year after year, I blame the top leadership.

Also, weak leadership might look the other way because the bully has powerful allies. Bully bosses intimidate people at their own level and higher in the organization. They know the buttons to push or people to pressure in order to get their own way. If a weak leader is afraid of the bully, that can be a reason this person is allowed to continue.

If the bully is the top dog and not beholden to anyone, there is no force from above to curtail the negative behaviors.  In this case, barring some kind of epiphany, the bully will keep on with the same conduct until he or she leaves. Attempts from below to enlighten this person will usually be fruitless; they may even exacerbate the problem.

Sufficing – A bully manager does elicit compliance because people are fearful. The unit reporting to this manager will perform at a credible level, even though people are unhappy and underutilized. The crime is that the unit could be so much better, and the lives of the workers could be richer if the manager was replaced by someone with higher Emotional Intelligence. Many units get by sufficing on a culture of compliance and avoidance and do not even realize the huge potential they are missing.

Being Clueless – I have written on this before. The idea is that most bullies simply do not see themselves accurately. They would view themselves as being tough or having high standards of conduct. My observation is that most bully managers are genuinely proud of their prowess at getting people to behave. They have no impetus to change, because their twisted logic reinforces the behaviors that elicit compliance. They often view themselves as smarter than the people working for them and bark out orders because they sincerely believe they know best.
Another clueless possibility is that the entire corporate culture is stuck in this Ebenezer Scrooge mentality. Hard as it is to fathom, there are still old style companies where management likes to terrorize. The same holds for family businesses where one generation intimidates the next.

Lack of trust – A bully manager trashes trust on a daily basis without realizing it. When trust is low, all other functions in the organization operate like a car would run on watered-down gasoline. The irony is that when the bully manager sees things sputtering and not working well, the logical reaction is to jump in with combat boots on to “fix” the problems. That bullying behavior perpetuates the problem in a vicious cycle of cause and effect. If there is no external force to break the cycle, it will just continue.

Short term focus – Most bully managers have a fixation on short term actions and do not see the long term damage being done to the culture. They would describe “culture” as some squishy concept that is for softies. If you propose ideas to improve the culture to a bully manager, he or she will start talking about performance and accountability. Holding people accountable is a very popular phrase in management these days. Imagine a world where there was less need to talk about holding people accountable because the culture they worked in was one that automatically extracted their maximum discretionary effort. If the vast majority of workers in a unit habitually performed at the very peak of their potential because they wanted to, then accountability would take care of itself.

Lack of skills – Bully managers often have not had good leadership capabilities built in through training and mentoring. You cannot blame a tyrant if he or she has never been shown a better way to lead. Bully managers are often accused of having a “my way or the highway” attitude toward people, but I would contend that many of these misguided individuals simply feel “my way is the only way I know how to get things done.” For these leaders, some intensive reprogramming can be an effective antidote only if they come to the table eager to learn new ways.

Fear means people will not challenge – Most workers are not going to be willing to challenge a bully boss. The fear of getting their heads chopped off for leveling with the boss makes the prospect of telling the truth feel like knowingly walking into a lion’s den. Every once in a while there is a person so foolish or confident that he will just walk into the lion’s den because there is little to lose. This person can help provide shock therapy for bully leaders by providing data on how the behaviors are actually blocking the very things the leader wants to accomplish. These people might be called “whistle blowers” because they provide an errant manager, or the leadership above, with knowledge of what is actually happening.

Occasionally, a bully manager is so extreme that he or she must be removed and replaced by a more people-oriented manager. Unfortunately, it is also true that many bully bosses have the ability to remain in place for long stretches. This adhesion to power is extremely costly to the organization in terms of current and future performance along with a prime cause of high turnover. If you have a bully manager reporting to you, get him or her some help through training. If that does not work, move the bully out of a leadership role and put in someone with high Emotional Intelligence.


Rumors and Gossip – 7 Tips

May 15, 2011

Rumors and gossip can be debilitating for any organization. They create a kind of parallel universe that siphons vital energy away from important work. They cause a need for leaders to do the same damage control they would do if the rumors were actually true. Reason: What people believe is reality to them. If many people in an organization believe there is going to be a cut in salary, even if that is not the case, the leader must do the damage control as if it was actually going to happen. In the hyper-competitive global marketplace, organizations cannot afford to cope with distracting ghosts born through the rumor mill.

Let’s explore several thoughts about the impact of rumors and how to prevent them from starting in the first place.

Trust is an antidote

Trust and rumors are mostly incompatible. If there is low trust, it is easy for someone to project something negative for the future. When trust is low, these sparks create a roaring blaze like tinder in a sun-parched and wind-swept desert. If trust is high, the spark may still be there, but it will have trouble catching on and growing. This is because people will just check with the boss about the validity of the rumor.

When trust is high, the communication process is efficient, as leaders freely share valuable insights about business conditions and strategy. In low trust organizations, rumors and gossip zap around the organization like laser beams in a hall of mirrors. Before long, leaders are blinded with problems coming from every direction. Trying to control the rumors takes energy away from the mission and strategy. Building high trust is not the subject of this article. I have written extensively on how to build trust elsewhere, and there are numerous other authors who write about it.

Rumors generate spontaneously

Just as a fire can be kindled spontaneously, so rumors and gossip can develop without any apparent external influence. I believe it is part of the human condition to speculate on what might happen. This tendency is greatly enhanced in a culture of low respect. Often it is a void of timely communication that causes a rumor to start.

Nature hates a vacuum. If you have a bare spot in the lawn, nature will fill it in quickly, usually with weeds. If you take a pail of water out of a pond, nature will fill it in immediately so no “hole” exists in the surface. We can hear the sound of air rushing into a coffee can when the opener first compromises the vacuum. So it is also with people. When there is a vacuum of credible information, people fill in the situation with information of their own invention – usually “weeds.”

Rumors wick energy away from critical work

Dealing with the reality and consequences of gossip is a significant tax that is paid by organizations that have a culture which breeds false information. My swimming pool is cloudy now because I did not maintain an environment inhospitable to algae. Now I must invest in pounds of expensive chemicals and do extra work that would not have been necessary if I had exercised the right ounces of prevention a few weeks ago.

Seven tips for leaders to reduce the impact of rumors:

1. Intervene quickly when there is a rumor and provide solid, believable information about what is really going to happen. It is best to have this intervention before the rumor even starts, but it is essential to nip the problem as soon as it is detected.

2. Coach the worst offenders to stop. Usually it is not hard to tell the 2-3 people in a group who like to stir up trouble. They are easy to spot in the break room. Take these people aside and ask them to tone down the speculation. One interesting way to mitigate a group of gossipers is to go and sit at the lunch table with them. This may feel uncomfortable at first, but it can be very helpful at detecting rumors early. Just as in fighting a disease, the sooner some treatment can be applied, the easier the problem is to control.

3. Double the communication in times of uncertainty. There are times when the genesis of a rumor is easy to predict. Suppose all the top managers have a long closed-door meeting with the shades pulled. People are going to wonder what is being discussed. Suppose the financial performance indicates that continuing on the present path is impossible. What if there are strange people walking around the shop floor with tape measures? There could be a consultant going around asking all kinds of probing questions. All these things, and numerous others, are bound to have people start speculating. When this happens, smart leaders get out on the shop floor to interface more with the people. Unfortunately, when there are unusual circumstances, most managers like to hide in their offices or in meetings to avoid having to deal with pointed questions. That is exactly the opposite of the most helpful suggestion.

4. Find multiple ways to communicate the truth. People need to hear something more than once to start believing it. According to the Edelman Trust Barometer for 2011, nearly 60% of people indicate they need to hear organizational news (good or bad) at least three to five times before they believe it.

5. Reinforce open dialog. If people are praised rather than punished for speaking out when there is a disconnect, they will do more of it. That mechanism is a short circuit to the rumor mill. It also helps build the trust level, which is the best way to subdue the rumor agents.

6. Model a no-gossip policy. People pick up on the tactics of a leader and mimic them on the shop floor. If the leader is prone to sending out juicy bits of unsubstantiated speculation, then others in the organization will be encouraged to do the same thing. Conversely, if a leader refuses to discuss information that is potentially incorrect, then it models the kind of self control that will be picked up by at least some people.

7. Extinguish gossip behavior. This may mean breaking up a clique of busy-bodies or at least adding some new objective blood into the mix. It might mean having a “no BS” policy for the entire team.

In today’s climate, it is essential to mitigate if not eliminate the impact of rumors and gossip in the workplace. It takes a strong and vigilant leader to do this well, but it has potentially huge benefits to the organization.


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