Leading with Trust

Got Ethics? The Five P’s of Ethical Power

Got EthicsThere is but one place where people without any problems reside—the cemetery. The only people without problems are dead, otherwise, for people like me and you…we’ve got problems! The question is, do we have ethics? Do we have the moral principles or values in place to guide our decisions when faced with ethical dilemmas or difficult situations?

One of my favorite books is The Power of Ethical Management, written by Ken Blanchard and Norman Vincent Peale. In their book, Blanchard and Peale discuss the five principles of ethical decision-making which they call the “Five P’s of Ethical Power.” I find myself returning to these principles time and again when faced with challenging decisions. Hopefully they can be as helpful to you as they have been for me.

Purpose—Your purpose is the road you choose to travel, the meaning and direction of your life. It’s the driving force of why you do what you do. For some it may be rooted in their spiritual faith. Others may find their purpose is something they feel called to do, such as serving those in need, raising responsible children, or leaving the world a better place than they found it. Aligning the activities of your life according to your purpose gives you a clear sense of direction, so when you’re faced with challenging circumstances or difficult decisions, you’re able to filter those occasions through the lens of your purpose and make choices that keep you on track.

Pride—Unlike false pride, which stems from a distorted sense of self-importance that causes people to believe and act like they are better than others, a healthy sense of pride springs from a positive self-image and confidence in one’s abilities. A proper sense of pride mixed with a good dose of humility is the balance you’re seeking. Being driven by false pride causes you to seek the approval and acceptance of others which can overly influence you to take the easy way out when faced with a tough situation.

Patience—Patience is in short supply in our culture. We live in a hyper-connected, instantaneous world where virtually anything we want is just a click away. Blanchard and Peale describe patience as having a faith and belief that things will work out well, as long as we stick to our values and principles. Giving in to instant gratification is one of the biggest temptations we face and it causes us to make decisions that aren’t in alignment with our purpose and values. Enduring the struggles and challenges life throws our way helps develop the strength of our character. Much like prematurely opening a caterpillar cocoon leads to a weakened and under-developed butterfly, choosing the path of expediency leaves us with an under-developed character and weakens our ethical power.

Persistence—This component of ethical power is about staying the course, staying true to your purpose and values. Persistence is about commitment, not interest. When you have interest in something you do it when it’s convenient. When you’re committed, you do it no matter what! One of my favorite “Yoda-isms” from the Star Wars movies is “Do or do not. There is no try.” When it comes to making ethical decisions, there is never a right time to do the wrong thing. Persistence keeps us on the straight and narrow path.

Perspective—All the other elements of ethical power emanate from the core of perspective. Perspective is about having the big picture view of situations and understanding what’s truly important. Too often we make snap decisions in the heat of the moment and neglect to step back and examine the situation from a bigger perspective. Maintaining the proper perspective is also about paying attention to our inner-self and not just our task-oriented outer-self. Taking the time to enter each day with prayer, meditation, exercise, or solitude helps foster self-reflection which is needed to help us maintain the right perspective about life.

Many people believe there is a huge gray area between right and wrong and they use that as rationale to operate by situational ethics. What’s right in this situation may be wrong in the next. I don’t agree. I believe in most cases we can distinguish between right and wrong if we take the time to examine the situation and rely upon our ethical power.

So I ask you: Got ethics? Share your feedback or questions by leaving a comment.

Four Strategies to Increase Organizational Trust and Transparency

In today’s fast-paced, globally-connected business world in which we live, an organization’s successes and failures can be tweeted across the internet in a matter of seconds. A knee jerk reaction of many organizational leaders is to clamp down on the amount of information shared internally, with hopes of minimizing risk to the organization. Many times this backfires and ends up creating a culture of risk aversion and low trust. For organizations to thrive in today’s hyper-competitive marketplace, leaders have to learn how to build a culture of trust and openness. Here are four strategies to help in this regard:

  1. Encourage risk taking – Leaders need to take the first step in extending trust to those they lead. Through their words and actions, leaders can send the message that appropriate and thoughtful risk taking is encouraged and rewarded. When people feel trusted and secure in their contributions to the organization, they don’t waste energy engaging in CYA (cover your “assets”) behavior and are willing to risk failure. The willingness to take risks is the genesis of creativity and innovation, without which organizations today will die on the vine. Creating a culture of risk taking will only be possible when practice #2 is in place.
  2. View mistakes as learning opportunities – Imagine that you’re an average golfer (like me!) who decides to take lessons to improve your game. After spending some time on the practice range, your instructor takes you on the course for some live action and you attempt a high-risk/high-reward shot. You flub the shot and your instructor goes beserk on you. “How stupid can you be!” he shouts. “What were you thinking? That was one of the worst shots I’ve seen in my life!” Not exactly the kind of leadership that encourages you to take further risks, is it? Contrast that with a response of “So what do you think went wrong? What will you do differently next time?” Garry Ridge, CEO of WD-40, characterizes these incidents as “learning moments,” where planning and execution come together, a result is produced, and we incorporate what we learned into our future work.
  3. Build transparency into processes and decision making – Leaders can create a culture of trust and openness by making sure they engage in transparent business practices. Creating systems for high involvement in change efforts, openly discussing decision-making critieria, giving and receiving feedback, and ensuring organizational policies and procedures and applied fairly and equitably are all valuable strategies to increase transparency. On an individual basis, it’s important for us leaders to remember that our people want to know our values, beliefs, and what motivates our decisions and actions. Colleen Barrett, President Emeritus of Southwest Airlines, likes to say that “People will respect you for what you know, but they’ll love you for your vulnerabilities.”
  4. Share information openly – In the absence of information, people will make up their own version of the truth. This leads to gossip, rumors, and mis-information which results in people questioning leadership decisions and losing focus on the mission at hand. Leaders who share information about themselves and the organization build trust and credibility with their followers. When people are entrusted with all the necessary information to make intelligent business decisions, they are compelled to act responsibly and a culture of accountability can be maintained.

Please take a moment to participate in the Leading with Trust poll that appears below. I’d like to hear your feedback on whether or not these four leadership practices are present in your organization and I’ll share the results in a future article.

People Have the Right to Remain Stupid – Three Principles for Over-Controlling Leaders

I would like to propose a workplace version of the Miranda Warning. You’re probably familiar with it, but if not, it’s the warning given by police officers in the United States to criminal suspects before they take them into custody and question them. The Miranda Warning (aka, Miranda Rights) goes like this:

“You have the right to remain silent. Anything you say or do can and will be held against you in a court of law. You have the right to speak to an attorney. If you cannot afford an attorney, one will be appointed for you. Do you understand these rights as they have been read to you?”

My workplace version of the Miranda Warning is to protect employees’ rights to make their own decisions and to remind over-controlling leaders to back off, quit grabbing control (because you think your way is the best and only way), and let people choose their own course of action. Here’s my workplace Miranda Warning that a boss should be required to give an employee before swooping in to take control:

“You have the right to remain stupid. Anything you say or do can and will have natural consequences involved for which you will have to assume full responsibility. You have the right to seek my advice prior to making this decision but you are in control of your own choices. Do you understand these rights as they have been read to you?”

I developed this workplace Miranda Warning after reading Tim Sanford’s book, Losing Control & Liking It. A few weeks ago I wrote an article based on Sanford’s approach to handling issues of control in relationships, the essence of which is learning to better understand who is truly in control of a situation and letting that person take responsibility for it, rather than engaging in a struggle for power and control.

Empowering your employees means letting go of control. You’ve hired them to do a job so they should have the appropriate amount of autonomy and control in performing their work within specified boundaries. Letting go of control means trusting your people to make the right decisions, yet understanding that ultimately the choice is up to them.
Sanford offers three principles for leaders to remember when giving up control to employees. These principles serve as a self-regulating mechanism for all of us when we’re faced with making decisions:

1. You live and die by your own choices. There are many people and circumstances that influence us on a daily basis, and many of those things are out of our control. Yet we have control over how we choose to respond to those situations. When my kids were younger I would always get a chuckle when they would say “You make me so mad!” which invariably was in response to me not letting them do something they wanted to. The truth is that I didn’t make them mad, they chose to respond in an angry fashion when they didn’t get their way. We all have the ability to choose healthy, life-affirming choices, or negative, destructive choices.

2. You can choose smart or stupid. Since we live and die by our own choices, we have to decide whether we want to choose “smart” or choose “stupid.” Sometimes the choices are easy – legal vs. illegal, moral vs. immoral – but sometimes choices come in shades of gray. It’s these gray areas where leaders often get uncomfortable and choose to step in, take control from the employee, and make the decision themselves. That only serves to demoralize employees, create resentment towards the boss, and bottleneck every important decision with one person. Leaders have to learn to trust principle number 3.

3. There’s always somebody or something whose job it is to make your life miserable when you choose stupid. Whether you call it karma, cause and effect, reap what you sow, or just natural consequences, if we choose “stupid” there is eventually going to be a cost that has to be paid. Maybe the cost is an upset customer, a disappointed colleague, or a missed deadline. Those are difficult situations, but sometimes that is what’s needed for someone to fully grasp and learn from their mistakes. Leaders that habitually jump in to rescue employees to prevent or minimize mistakes can actually be creating a co-dependent relationship or excusing poor performance. Sometimes it’s best to let people experience the full consequence of their actions.

It can be scary giving up control, especially for a leader. We have a preconceived notion that we’re always supposed to be in control, but the reality is that there is very little that is directly under our complete power and control. That’s why we have teams. We need the diverse skills of many different people to complement each other and produce something better and greater than anything we could do alone. But that means letting go of control and doing our best to help people choose “smart” over “stupid.”

Trust and Consequences – Five Tips for Making Wise Decisions

December 7th of this past week marked the 70th anniversary of the attack on Pearl Harbor by the Empire of Japan. Every year around this time I’m reminded of the powerful, and sometimes largely unknown, consequences of the decisions we make. The reminder stems from a story that I heard my wife’s grandpa, Don Hadley, tell dozens of times about a decision he made 70 years ago that changed the course of his life.

In the summer of 1940, Don Hadley was a newly married U.S. Marine stationed in San Diego, CA. Returning from his honeymoon, he received a call from his Gunnery Sergeant informing him of his new assignment: Report to the USS Arizona in Pearl Harbor for a two-year tour of duty.

Not wanting to move his wife away from her Italian-immigrant family, Don asked if there were any other options. He was told he could go to Guam for 18 months, but it would be sea duty versus the two years of shore duty in Pearl aboard the USS Arizona. He chose Guam. Anyone familiar with the history of the attack on Pearl Harbor knows that the USS Arizona was sunk during the battle, resulting in 1,177 officers and crew losing their lives.

This one decision had a relatively few number of stakeholders directly affected by the outcome and the potential consequences seemed narrow in scope. Yet with the benefit of hindsight, we can see that generations of lives were impacted as a result of this one choice.

In a leadership capacity, this story has always reminded me of the importance of making good decisions. There may be consequences to our decisions that we can’t readily see on the surface so it’s vital that we make wise decisions. Here’s some tips and techniques to help you make good decisions:

1. Don’t overestimate your decision-making abilities – That fact is that most of us don’t receive much formal training in how to make decisions. Creating a list of pro’s and con’s is a good start, but there are many other decision-making tools that can help. Select the tools most appropriate for the decisions you need to make.

2. Be clear on the decision you need to make – There is a difference between problem-solving and decision-making. Problem-solving usually deals with a more complex set of variables whereas a decision is a subset of solving a particular problem. Dig into the root issues of the situation you’re involved with and determine what exactly it is you’re trying to decide. You don’t want to spend time making a decision about an issue that isn’t at the core of the situation.

3. Gather the facts – It seems like a no-brainer, but it’s amazing how many times we rush to decisions because we assume we know all the facts. Do research, talk to people familiar with the situation, and get advice from unbiased advisers. One of the quickest ways to erode trust with your followers is to make rash decisions that come back to haunt you because you didn’t take the time to thoroughly vet the situation.

4. Understand the impact on the stakeholders – Consider the needs and desires of those affected by the decision. Does your decision promote the welfare of those involved? Is it fair and just? Is it in alignment with your personal values and those of the organization? Try to step into the shoes of those on the receiving end of the decision to understand how they may perceive the outcome, and if possible, solicit input from those affected and incorporate their feedback into your decision if it makes sense.

5. Make the decision and follow through – In their classic Harvard Business Review article, The Smart-Talk Trap, authors Jeffrey Pfeffer and Bob Sutton explain that in business, “When confronted with a problem, people act as if discussing it, formulating decisions, and hashing out plans for action are the same as actually fixing it.” Trusted leaders do more than talk – they actually make a decision and follow through by implementing it. Sometimes it’s easy to get caught in “analysis-paralysis,” always wanting to discuss it a little bit more or gather just a few more facts. At some point you have to make the decision and move forward. If it ends up being the wrong decision then change course and try again!

I’m glad that Grandpa Don made the decision to go to Guam. If he didn’t, I almost certainly would never have had the opportunity to marry my wonderful wife Kim and have the beautiful family that I’m blessed with today. Trusted leaders take time to make wise decisions and then move forward confidently knowing they did their best.

Are Your People Ready to Stage an “Occupy” Protest? Four Ways to Build a High-Trust Culture

If given the chance, would the people in your organization stage an “Occupy” protest? Do they have feelings of inequity, spawned by the perception that the top 1% in your organization receive a disproportionate amount of the rewards at the expense of the 99%?

Unless you’ve lived under a rock for the last few weeks, you’re probably familiar with the “Occupy” movement that has spawned social protests on Wall Street and various cities and venues around the world. Underlying these protests of social and economic inequality, corporate greed, and the influence of money and lobbying in politics, is a profound lack of trust between leaders and those being led.

What can we learn from the Occupy movement to help us build organizational cultures of high-trust? I think the following four areas are good places to start:

1. Share information liberally
We live in an information age, where just about anything we want to know is but a few keystrokes or mouse-clicks away. Yet in many of our organizations, leaders withhold information as a way to maintain power and authority over others.

A lack of information sharing about the compensation system at the Mayo Clinic had created perceptions of inequality and just a 17% satisfaction level in 1999. By increasing the frequency, clarity, and transparency of communication about all compensation related matters, the Mayo Clinic was able to raise the level of satisfaction to 82% in 2011, with very little change to the fundamental structure of the compensation system itself.

In the absence of information, your people will make up their own version of the truth. Share information openly so that your people know the facts about what’s going on in the organization and trust that they will use and respond to that information responsibly.

2. Increase employee involvement in decision-making
My friend, colleague, and organizational change expert Pat Zigarmi, likes to make the point that contrary to popular opinion, people don’t resist organizational change; they resist being controlled. When people are shut out from contributing to decisions that will directly impact them, they develop a sense of distrust and skepticism toward the decision makers.

After the terrorist attacks on 9/11, my organization suffered a loss of over $2 million dollars of booked business due to clients eliminating corporate travel. Our company had to make immediate moves to reduce expenses, but rather than making the easy and obvious decision to layoff staff, our leadership engaged everyone across the organization to generate ways to decrease costs or increase revenues in order to avoid layoffs. Hundreds of ideas were surfaced and many were implemented which resulted in the company being able to not only survive the economic downturn, but continue to make a profit and avoid eliminating jobs.

Involving your people in making decisions will lead to higher levels of trust and commitment. Remember, those who plan the battle rarely battle the plan.

3. Give people what matters most – your time and attention
Google is legendary for the perks that it offers its employees. At the Googleplex, Google’s corporate headquarters in Mountain View, CA, team members have unlimited access to free haircuts, massages, meals, dry cleaning, and even on-site medical care.

Yet when Google undertook a study to determine what employees valued most, they overwhelmingly said “even-keeled bosses who made time for one-on-one meetings, who helped people puzzle through problems by asking questions, not dictating answers, and who took an interest in employees’ lives and careers.”

Just like workaholic parents who fool themselves into believing they can make up for their lack of presence in their kids’ lives by spoiling them with all the latest toys and gadgets, leaders often fall prey to the same line of thinking by believing corporate perks and benefits can make up for the lack of intimate one-one-one leadership. Developing genuine and authentic relationships is a primary way to build a culture of trust.

4. Have an ethical and equitable compensation system
Economic inequality is one of the primary platforms of the Occupy protest movement. According to research done by Kevin Murphy at USC’s Marshall School of Business, in 1971 the ratio between the average CEO’s salary and that of an employee was 30.6 percent (averages of $212,230 vs. $6,540). In 2009, the last year of his research, it was 264.4 percent ($8.47 million vs. just over $32,000).

Although research has consistently shown that money is usually not a primary motivator for employees, it would be a huge mistake to discount the negative effect of unfair compensation. In a recent HBR blog article, Teresa Amabile and Steve Kramer, authors of The Progress Principle, make three excellent points about the importance of fair compensation.

First, compensating your employees fairly is simply the right thing to do. Second, fair compensation creates a more positive “inner work life effect” – the positive flow of emotions, thoughts, and motivators about the employee’s perception of their work. It’s confirmation of Ken Blanchard’s old saying that “people who feel good about themselves produce good results.” And third, compensation is more than a paycheck. It’s a signal to employees about their value to the organization and the importance of the work they do.

If we’re willing to pay attention, we can learn several important lessons from the Occupy movement. Sharing information liberally, increasing employee involvement in decision-making, nurturing one-on-one relationships, and compensating people fairly will lead to higher levels of trust, commitment, and engagement in our organizations.

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