Here is one of my favorite measures for the quality of a leader.
Build a SAFE Environment
In most organizations, there is a continual environment of fear. What we need to realize is that there are different kinds of fear. There is the fear due to market conditions or competition that may make a company go bankrupt.
We have learned over the past decade that just because a company is great now is no guarantee it will even exist in a year or two. There is really no such thing as lifelong job security anymore.
Longevity not guaranteed
As an example, look at Circuit City. In the early years of the 2000’s, it was on top of the heap, and even qualified as one of the “Great” companies in Jim Collins’ book Good to Great. By 2008, the company was history.
So, it is not surprising that few people feel the kind of job security that most individuals felt in the 80’s and 90’s. It is just a fact of life, and that kind of fear needs to be used to create the impetus to do better on a daily basis.
More common fear
The more crippling kind of fear is a nagging feeling that if I tell the truth about something to my boss, I am going to suffer some kind of punishment. It may not be an immediate demotion or dismissal, but eventually I will be negatively impacted in ways I may not even recognize.
So, I clam up and do not share thoughts that could be helpful to my organization.
Create the right culture
Great leaders create an environment where this kind of fear is nearly nonexistent. My favorite quote about this, that I note on my corporate website, is “The absence of fear is the incubator of trust.” In a culture where there is no fear, trust grows spontaneously, much like the mold on last week’s bread, only in this case, the mold is a blessing.
So, what is the mechanism by which great leaders create this lack of fear? They do it by “reinforcing candor.” They let people know they will not be punished for speaking their truth.
Reward rather than punish
On the contrary, these leaders show by words and deeds that people who speak up are actually rewarded for sharing something scary or just not right. That safety gives these leaders the opportunity to correct small problems before they have huge negative consequences for the organization.
That is brilliant leadership!
If you are a leader, focus on one thing when someone tells you something you did not want to hear. Focus your actions on making the person glad he or she brought it up. That behavior is the most constructive thing you can do to build a culture of trust within your organization.
Bob Whipple is CEO of Leadergrow Inc., a company dedicated to growing leaders. He speaks and conducts seminars on building trust in organizations. He can be reached at email@example.com or 585-392-7763.
If you have siblings, you remember the drill very well. Your mother comes in and says, “Who knocked over the lamp in the living room?” Of course, nobody knows. She looks around at the children, and each of them is playing dumb. Since she cannot determine whom to blame, she announces the punishment, “Then none of you will get dessert for the rest of the week.”
Group punishments for the sins of a single individual are more common than we think. It happens in the military on a daily basis. If nobody owns up to a misdeed, the entire platoon is penalized with the same punishment as the single guilty soldier would have received. The logic is that one person really is guilty, and the remaining people are guilty of covering up for him, so everyone suffers equally. The leverage is that it puts peer pressure on the guilty person to fess up. In some cases the ploy works, but in others the group solidarity is strong. In the end, the group will find other ways to punish the guilty individual that are not always obvious.
In our society, government has a similar tendency to punish the masses for the sins of the few. It has led to numerous infringements on privacy, like red light cameras, the TSA ordeal we all undergo when trying to get on a plane, gun control, and countless other well-meaning laws and policies that are meant to save the many from the excesses of the few.
Here is another example of the government punishing everyone for the sins of a few. Every publicly-owned company has been forced to spend large sums of money in order to comply with the Sarbanes Oxley Act. This extra cost is a direct result of some high profile unethical corporate abuses by a few corporations over a decade ago. All publicly-owned companies suffer for the prior sins of a few defective organizations and their leaders. This suffering is a lot more than meets the eye, because organizations outside the USA are not saddled with a Sarbanes Oxley Act, and have a competitive cost advantage.
You can see the same pattern in organizations. The boss notices that an individual is leaving work early a couple times a week, so he issues a reminder of hours of work for the whole organization. This leads one cynical employee to blow a bugle at quitting time to let people know when it is time to go home.
It is natural to want to fix the problem when trust has been broken, but we need to ask what price we pay when so many aspects of daily life are regimented and people are forced to pay for the mistakes of others. Does it make people want to be less accountable for their own actions? Does it demotivate them by stifling creative instincts? Does it discourage them from taking risks? Is it fair?
I think of what the world would be like if we did not have a tendency to punish the many for the sins of a few. What would happen if we encouraged personal responsibility and building trust and transparency by reinforcing candor. It would be a different place for sure. When you ask your children who broke the lamp in the other room, one of them would say, “I did, Mommy, and I am sorry.” It would be a kinder, gentler world with far fewer dumb rules we have to follow because a few unscrupulous people cannot be trusted to do the right things.
Over the past 20 years, I have taught Business and Leadership at seven universities, along with several hundred corporate and professional groups.
One thing that has disappointed me is the discussion of corporate culture in most of the MBA textbooks. They usually leave out the most important parts of culture. This topic has fascinated me for years.
The success and longevity of any organization is directly linked to its culture. We sometimes notice the parts that make up culture, but often they are transparent because they are just a part of doing business in a particular group.
If we stop to think about what defines culture and work to manage or influence it, we can uncover some powerful leadership leverage.
Most of the Leadership textbooks I have read describe the culture in terms of physical attributes that characterize an organization.
For example, here is a typical list of the things purported to make up a company culture.
1. Physical structure
2. Language and symbols
3. Rituals, ceremonies, gossip, and jokes
4. Stories, legends, and heroes
6. Values and norms
The above list is a montage of the lists in several textbooks. When you think about it, these items do go a long way toward defining the culture of an organization.
Unfortunately, I believe these items fall short, because they fail to include the emotions of the people. After all, organizations are made up of people, at all levels, interacting in a social structure for a purpose.
Let us extend the list of things that make up the culture of an organization to include how the people feel.
1. Is there a high level of trust within the organization?
2. To what extent do people have the opportunity to grow in this organization?
3. Do people feel safe and secure, or are they basically fearful?
4. How do people treat each other on their own level and on higher or lower levels?
5. Is the culture inclusive or exclusive?
6. Do people generally feel like winners or losers at work?
7. Is the culture one of reinforcement or punishment?
8. Are managers viewed as enablers or barriers?
9. Are people trying to get into the organization or trying to get out?
10. What is the level of satisfaction for people in this organization?
11. Can people “speak their truth” without fear of reprisal?
12. Do people follow the rules or find ways to avoid following them?
I could go on with another 20-30 things that relate to the human side of culture. I hope you agree that the items above are at least as important as the items on the first list in terms of describing the culture.
Why then do most textbooks on leadership not mention them when they discuss culture? It baffles me.
Perhaps the view is that these “people-centered” items are best discussed separately and only the “system-centered” items define the culture. Personally, I do not agree with that.
Let’s zoom in on just one item of my list above: item #1. The level of trust in an organization is actually the most significant part of the culture, in my opinion.
The reason I put Trust in the front and center of culture is that with high trust, all of the other things (rituals, ceremonies, values, language, etc.) work to engage people in the business. With low trust, you can have all the trappings, but people will laugh at you behind your back.
You are probably familiar with the CEO who spouts out the values at every chance, but does not live them, so there is no trust. The values are just a useless pile of words.
In fact, they are worse than useless, because every time the CEO mentions the values it reminds people what a hypocrite he or she is.
Why is Trust so powerful? Let’s contrast a few dimensions for a company with high trust versus one with low trust to view the impact.
All organizations have a steady stream of problems. If the culture is one of low trust, each problem represents a high hurdle to overcome. We have to stop everything and have a meeting to figure out who said what and try to unscramble the mess. We also have to contend with the interpersonal squabbles that are part of a low trust culture.
If there is high trust, first of all there will be fewer problems, but then the remaining problems are easily overcome, like pebbles in the road we kick aside with our shoe. We can focus energy on the vision rather than the problems.
Any problems will be resolved quickly, and the solutions will be of higher quality, because people will not be afraid to voice their creative ideas.
In groups with low trust, trying to communicate is like walking on eggs. Every word or phrase is a potential trigger for a sarcastic remark. Things are frequently taken the wrong way and create damage to control.
With high trust, communication seems easy. People have the ability to “hear between the lines” and the instinctively know the intent of the message even if the words come out wrong. Employees are not coiled and ready to strike anytime there is an opportunity.
In areas of low trust, people are focusing on protecting themselves or bringing other people down. Most of the energy is directed inward to the organization in numerous battles that really don’t help the organization succeed.
If trust is high, people are feeling aligned, so their focus is outward at the opportunities (customers) or threats (competition). This shift in focus from inward battles to outward opportunities is huge in terms of organizational success.
When trust is low, rumors spring up due to poor communication. Since there is nothing to retard them, they take on a life of their own. The rumors and gossip spread like wildfire all over the organization creating significant damage control for management.
In areas of high trust, there will still be rumors from time to time, but they will be easily extinguished before they do significant damage. This is because people believe management when they say something is not true.
Look at the people in an organization of low trust; what is their general attitude? Usually it is one of apathy. They need their job in order to live, but they dearly wish it wasn’t such a struggle.
Now look at the attitude of people in an organization of high trust. You will see passion and motivation to really help the organization succeed. The difference here is huge in terms of organizational survival.
For one thing, customers notice the difference immediately. You know the feeling of sitting in a restaurant where the trust level between management and the servers is low. You get an uncomfortable feeling and may net even realize why you decide to not patronize the place again.
With these differences, the result when workers have high trust has been shown by several authors is that they are between 2-5 times more productive than low trust groups.
Think of the number of organizations where managers are constantly feeling under-staffed. “We need more people,” is the common phrase. My retort is that it is a leadership problem. What you need is not more people, but better leaders who know how to build a great culture of trust.
We could go on with numerous more examples of the difference between a culture of high trust and low trust, and that is only the first item on the list above. I hope it is obvious that having the right kind of culture makes all the difference in the ability to survive in business. Take the time and energy to work on your culture; the ROI is astronomical.
The preceding information was adapted from the book The TRUST Factor: Advanced Leadership for Professionals, by Robert Whipple. It is available on http://www.leadergrow.com. Mr. Whipple is also the author of Leading with Trust is like Sailing Downwind, , and Trust in Transition: Navigating Organizational Change.
Bob consults and speaks on these and other leadership topics. He is CEO of Leadergrow Inc. a company dedicated to growing leaders.