Archive for the ‘Leadership’ category

The Week in Ethics: How Owning Purpose Tames the Unexpected

December 30, 2016

Benjamin Franklin was brilliant, but in 1789 he forgot to include an essential element in his famous remark, “…in this world nothing can be said to be certain except death and taxes.” He should have said “nothing can be certain except death, taxes AND dealing with the unexpected.”  leadership definition photo from istock

We use religion and spirituality to deal with death. CPAs with taxes. However, what helps us deal with the unexpected – the obstacles, setbacks and disappointments that throw our professional (or personal) world into chaos? The unexpected can paralyze. It can ruin our best intentions and shut us down faster than a Nor’easter blizzard.

We should never allow the unexpected to get in the way of making real our best intentions. After some soul searching, here are three questions I use to guide me through the unexpected:

What do I stand for? What can I count on about myself? What can inspire me to move forward in spite of problems the unexpected is causing?

I first remember using these questions when the unexpected challenged my new business.

When I started my business, a timely introduction enabled me to get work from a new VP at a global company in Boston. I was a very small fish, living in Columbus Ohio. The new VP was facing his first management committee meeting where he would pitch the project I was helping him create. I developed the materials he needed and emailed them. However, on the morning he replied asking for some additional elements — that would require a lot more research — it was only two days before his meeting and I’d just returned from the doctor. My nagging cold had raged overnight into a severe case of bronchitis. If I went back to bed (so tempting) I wouldn’t make his deadline. I knew there wouldn’t be more work from him once he got acclimated into his new company’s resources. And the money, while needed, was not as vital then as going to sleep. So I rationalized, surely someone at his company could take over. But then, I turned to my three questions.

What do I stand for? (My response was helping leaders succeed.)

What strengths could I count on here? (When I was healthy, I cared about my work and I had the skills to do what he needed.)

I struggled with what could inspire me to do the work feeling so sick. I visualized him walking into his meeting unprepared but that didn’t move me. Then I visualized his having convincing materials, winning approval and using what I’d done to make a difference at his company. That inspired me. I cared about creating that outcome enough that I was willing to spend the next 8 hours at the PC. I sent back the plan. His project was approved. I felt a sense of exhilaration that my purpose was real. Knowing that distracted me from how sick I felt.

How do we deal with the unexpected? By being recharged by our purpose. So as 2017 is ready to launch, if you haven’t discovered your purpose yet, take time to think about what you stand for/believe in that creates meaning in your work and gives you great satisfaction. A sense of purpose creates its own inspiration, producing a lot of positive energy.

Leadership expert Simon Sinek, in his TED talk “How Great Leaders Inspire Action,”  says purpose is the WHY behind what we do. It is what inspires others to follow us.

Most companies have mission or purpose statements. However when leaders’ actions don’t inspire employees in how they demonstrate it, we can’t let that stop us from taking our own and the organization’s purpose seriously. Research indicates that having a deeper sense of purpose creates engagement and satisfaction with one’s job. Everyone deserves that and we control the ability to have it.

Starbucks’ mission, for example, is “to inspire & nurture the human spirit – one person, one cup, and one neighborhood at a time.”  A Starbucks I visit often has amazed me with how its employees show up. A barista called “hello Gael” after only my 3rd visit. Another barista, I didn’t remember waiting on me more than once, recited my drink order specifications when I reached the counter before I could order to see if she had it right. These simple acts created a sense of being part of a community there, something I’ve never experienced in any other Starbucks. No matter what unexpected problems might be going on in their personal or work lives, these baristas consistently make me (and others) feel valued, which is the essence of nurturing the human spirit.

When in our jobs or personal lives, the unexpected throws up roadblocks consider the power of your answers to these three questions.

What do you stand for? And what does your organization stand for?

What can you count on about yourself?

What can inspire you to move forward in spite of problems the unexpected is causing?

Then visualize the best that can happen when you own your purpose. Visualize the positive impact you can have on your team, company, customers or community.

And then feel the magnificent energy when you commit to making your purpose real.

The Week in Ethics

Gael O’Brien, December 3o, 2016

Gael O’Brien is an executive coach, presenter and leadership columnist. She publishes The Week in Ethics and is a columnist for Business Ethics Magazine where her December column  is Where Wells Fargo Goes from Here

Please follow The Week in Ethics FB page which provides ongoing updates of news items with ethical implications.

The Week in Ethics: What We Can Learn About Optimism & Leadership from Simon Sinek

December 13, 2016

“A good leader doesn’t only inspire us to have confidence in what they can do. A great leader inspires us to have confidence in what we can do.”  Together is Better: A Little Book of Inspiration (Simon Sinek, 2016)

The adage “what we focus on, we get more of” is as true in leadership as anything. And, conversely,  when we don’t focus on the right things, crises inevitably occur.

Leadership expert Simon Sinek refers to himself as an optimist. He studies and writes about what makes great leaders. He talks about vision, purpose, service and the “why” behind leadership: perhaps best known for his 2009

TED Talk “How Great Leaders Inspire Action” (which has had over 29 million views so far).

The cautionary tales of leadership gone wrong, like Wells Fargo’s current ethics crisis, are very troubling but don’t necessarily inspire us to be better leaders. Perhaps because we don’t see ourselves making the same choices. (And yet, too often those choices are made.) Sinek, in his new book, Together is Better, offers a fable of how optimism is possible — for leaders who want to make their leadership count as well as anyone seeking more meaning in their professional and personal lives.

The story line is simple and mirrors workplace challenges. The one or two sentence observations on life and leadership often fit the number of characters in a Twitter tweet. For example, “A team is not a group of people who work together. A team is a group of people who trust each other.” This wisdom may be dismissed as obvious. However, not so obvious to the number of leaders who talk about their people as a team (as former Wells Fargo Chairman and CEO John Strumpf did in his testimony before The U.S. Senate Banking Committee) when their team doesn’t trust each other or the company. Also consider how often leaders don’t realize trust is absent because they aren’t focused on ensuring trust is earned and present.

The leadership fable has nearly 50 Sinek observations that invite deeper consideration. He’s integrated and distilled themes from his work — including finding a vision, innovation, passion versus stress, success and what inspires — and put them into a tale that demonstrates how to take a leadership journey together rather than alone.

The vision, he explains in the preface, that drives him (and the fable) is that people working together “… build a world in which the vast majority of us wake up every single morning inspired to go to work, feel safe when we’re there and return home fulfilled at the end of the day.”

“What good is having a belly if there is no fire in it?” Sinek asks. “Wake up, drink your passion, light a match and get to work!”

The end of the year, and the beginning of the next, offer another window for self-reflection. An opportunity to turn the focus to our own leadership and consider what we stand for and what we are doing about it. Sinek’s fable and observations invite a focus on what enables our leadership to be more open to inspiration from those around us, as well as being more inspiring to others. It’s a catalyst for optimism.

The Week in Ethics

Gael O’Brien, December 13, 2016

Gael O’Brien is an executive coach, presenter and leadership columnist. She publishes The Week in Ethics and is a  columnist for Business Ethics Magazine where her December column  is Where Wells Fargo Goes from Here

Please follow The Week in Ethics FB page which provides ongoing updates of news items with ethical implications.

The Week in Ethics: Wells Fargo’s Next Move? 10 Suggestions

September 22, 2016

Update: See my 12/10/16 Business Ethics column on Where Wells Fargo Goes From Here .

Update: In October 2016 Timothy Sloan replaced Chairman/CEO John Stumpf, becoming CEO and President. The chairman role was split and given to independent lead director Stephen Sanger.

Update: September 27, 2016: Wells Fargo Independent directors issued a statement  they will lead an investigation into “the bank’s retail sales practices and related matters” with the Board’s HR Committee and independent counsel. Chairman/CEO John Stumpf to forfeit $41 million unvested equity awards and “will forgo salary during the investigation.” The U.S. House Financial Services Committee will hold a hearing on bank’s “unauthorized customer accounts” on 12/29/16.

How will Wells Fargo resolve the ethical and culture issues it faces? And, how will it move beyond a poor showing at the Senate Banking Committee hearing and start to rebuild trust? First some background. Then 10 suggestions.

The best thing a CEO with strong convictions about the “rightness” of his/her own position can do when embroiled in a crisis is to spend time with trusted sources (inside or outside their company) who see things very differently. Being open to these viewpoints and questions iphone-pictures2-222and multiple perspectives raised make it harder for  CEOs to stay wedded to their position. However, once a CEO is under fire the temptation to stick with like-minded people can increase. What’s lost then is stimulation to think deeply about different aspects of an issue to gain new insights and awareness that enable developing alternatives legitimately aligned with values. Being stuck in “rightness” can lead to error blindness, a term popularized by Kathryn Schulz  who points out, “Trusting too much in feeling you are on the right side of anything is dangerous.”

It can lead to decisions that put a CEO on the defensive in front of a U.S. Senate hearing, as John Stumpf Chairman and CEO of Wells Fargo experienced September 20, 2016 testifying before the U.S. Senate Committee on Banking, Housing & Urban Affairs.

Stumpf was questioned about the bank’s unauthorized accounts and allegations of a pressure-cooker sales culture which became public in 2013 (Los Angeles Times story) and continued. Wells Fargo has fired 5,300 employees, paid a fine, faces an investigation into its sales practices by New York and California federal prosecutors and can anticipate an upcoming hearing by the U.S. House Financial Services Committee in addition to follow up from the Senate Banking Committee. Earlier this month The U.S. Consumer Financial Protection Bureau filed a consent order outlining findings of the bank’s “improper sales practices”from 2011 to 2016.

A few days before the Senate hearing Stumpf, in an interview, disputed Wells Fargo has a culture problem. He maintained that stance with Senate committee members, while indicating changes the Bank planned to make. However, the bipartisan committee was united in criticism that Stumpf, the Board and senior leadership hadn’t gone far enough, fast enough and weren’t showing accountability. From the Republican Committee chair to Democratic challengers, Senators didn’t buy that the bank’s culture isn’t an issue.

Where does this leave Wells Fargo? Anyone who has been through corporate crises — as I and many others have — knows that criticism from outsiders is hard to take. However, there are huge pitfalls if Mr. Stumpf stays locked in the “rightness”of his position (in spite of his 30 plus years service at Wells Fargo, presiding over several of its acquisitions and knowing his industry and company better than outsiders).

His performance at the Senate hearing this week indicates his time has been spent with legal and public relations teams and like-minded insiders. Getting out of a crisis, turning around a culture and re-earning political and public trust, doesn’t happen by working harder with the same mindset. (The much touted definition of insanity is doing the same thing over and over and expecting different results.)

I’ve limited myself to 10 suggestions for Wells Fargo to support the start of a turnaround:

  1. The board should appoint a new chairman — an independent director — separating the role from the CEO for many reasons including signaling stronger board governance.
  2. The board should immediately decide about claw backs related to compensation of former head of community banking Carrie Tolstedt, Stumpf and any others. As part of re-earning trust, all their actions should be transparent and well communicated.
  3. The board should direct Stumpf and his team to meet with Wells Fargo’s ethics and compliance teams and risk officers to discuss/evaluate ethics, compliance and risk operations for strengths, weaknesses and safeguards to better integrate sales and all business strategies with corporate values and prepare a report for the board.
  4. The compliance and ethics leaders (and C-suite leader to whom they ultimately report) should initiate meetings with leaders of the Ethics & Compliance Initiative and the Society of Corporate Compliance and Ethics to address best practices, implementation challenges and examples where ethics and compliance leaders weigh in on business strategy discussions in sales and all areas.
  5. The board and senior management should identify outside experts to discuss how to  realign authentically culture around values. A place to start is the nearby Markkula Center for Applied Ethics.
  6. Stumpf and his management team should become acquainted with Margaret Wheatley’s concept of self seal (the rightness of one’s position), Kathryn Schulz’ TED Talk (error blindness) and Margaret Heffernan’s  Willful Blindness for starters. These are lenses that encourage conscious and unconscious unethical behavior.
  7.  A cross-functional team of senior leaders with ethics and compliance leaders should review the company’s five primary values; for each, identify five or six specific expected behaviors to be incorporated into company policy and discussed in ethics training and performance reviews. Currently, the values are too abstract.
  8. Under the value “Ethics” the company says “We strive to be recognized by our stakeholders as setting the standard among the world’s great companies for integrity and principled performance. “This should become a business objective with Board and CEO focus to keep this commitment at the center of the turnaround’s activities.
  9. At the upcoming House Financial Services Committee hearing, Stumpf and those testifying can start rebuilding trust by being fully prepared to answer questions directly and completely, having with them information relevant to committee questions. Stumpf should also make himself available to Senate Banking Committee leadership to make sure information provided since that hearing addressed open questions.
  10. Trust is a relationship where “integrity” and “principled performance” are realities, not marketing slogans. In relationships with employees, customers, customers affected by unethical actions, employees pressured by aggressive sales tactics, Wells Fargo leaders have to admit what went wrong and make systemic changes. A start is to amend the vision statement that says “We want to satisfy our customers’ financial needs and help them succeed financially” and add “in ways that build lasting relationships of trust and integrity.”The Week in EthicsGael O’Brien, September 22, 2016Gael O’Brien is The Ethics Coach columnist  for Entrepreneur Magazine. She is also a columnist for Business Ethics Magazine where her September column is “One man’s Leadership Toward a Goal: ‘The Great Mission of Business Ethics.'”

Please follow The Week in Ethics FB page with ongoing updates of short items in the news with ethical implications.

 

 

 

 

The Week in Ethics: Women Leaders Galvanize Detroit Around Justice

November 8, 2015

photo gold key in puzzle doorWhen things fall apart for lack of human and financial resources, becoming overwhelming, the key that enables leaders to transform the impossible to solvable is a compelling sense of greater purpose that is shared.

An illustration is the story of how Kym Worthy, Prosecutor of Wayne County, Michigan raised, and is a catalyst in efforts to continue to raise, the millions of dollars needed to process over 11,000 rape kits that were unopened and untested, found in Police storage; some there as long as 30 years. The move to solvable is often slow, demanding resilience. For Worthy, who began this effort in 2009, it evolved from personal and professional commitment and actions to enlisting others in the goal that justice be available to each rape victim.

As with any leadership act once it taps into others’ shared beliefs, momentum builds that can overcome obstacles. Worthy’s efforts got on the radar of Detroit businesswoman Joanna Cline who involved other Detroit businesses in raising funds, awareness and donating services. A public-private partnership called Enough SAID (Sexual Assault in Detroit) has been created.

Meanwhile, Detroit had its own problems filing for, and then emerging from, bankruptcy. This could have derailed the business leaders’ efforts. However the fundraising continued. As an outcome of ethical leadership, the stakeholders had grown to include the city of Detroit as well as the rape victims.

“The business community has rallied around us,” said Peg Tallet, chief community engagement officer at Michigan Women’s Foundation in an interview, “particularly businesswomen who are saying this can’t happen here if we are going to make this the city we’re all working to make it.”

Worthy’s office “has been able to identify 625 people suspected of being serial sexual assault offenders.” According to one of the businessmen involved in Enough SAID, “…you can’t have economic development if you can’t feel safe walking to your car after work.”

Those involved in Enough SAID provide a crucial teachable moment for other cities, governments, chambers of commerce, businesses and communities in general.

The Week in Ethics

Gael O’Brien, November 8, 2015

Gael O’Brien is The Ethics Coach columnist  for Entrepreneur Magazine. She is also a columnist for Business Ethics Magazine where her September column  is “Volkswagen’s Next Challenge: Keep Scandal from Happening Again.”

The Week in Ethics: How Market Basket’s Board Misread Employee Engagement

July 26, 2014

In a battle of cousin against cousin, how important is the culture of a family owned business?  Thousands of voices among the 25,000 employees and the customers who shop at the 71 New England locations of Market Basket (a supermarket chain with $4 billion in annual sales) have made clear in their rallies and online petitions that culture does trump everything.

They are demanding the reinstatement of former CEO Arthur T. Demoulas ousted last month by his cousin Arthur S. Demoulas and a majority of the board now controlled by him.

It is hard to imagine employees of Goldman Sachs, or most other companies for that matter, taking to the streets and putting their jobs on the line in support of an ousted leader. Or that customers would also stand up to fight for the value they received.

However, employees on a Save Market Basket Facebook page align with customers and vendors saying “Together We are Market Basket.” They took to Facebook to make clear they will refuse to work for anyone beside the ousted Demoulas. While the impact of the protests has huge business implications (reports indicate business was down 70 percent this week), it also demonstrates what employees are willing to risk for jobs they love and a leader who inspired the culture behind it.

As a result of protests this month, store shelves are depleted, deliveries aren’t made, and customers are staying away at the request of employees to put pressure on the board to rehire Arthur T. Demoulas. The drama continues to escalate as the board already hired two co-CEOs to replace him, the new leadership team has fired some employees for their role in the protest, and the ousted CEO made an offer to buy out his cousin and other family members. The board said in a statement July 25, 2014 that it will review Arthur T. Demoulas’ bid and others they receive, but they expect all employees to return to work (promising there will be no retaliation for the protests).

Current and former Massachusetts and New Hampshire state and local elected officials praised the company as a leading corporate citizen with most announcing support for the employees’ position:  The Lowell Sun reported that a statement by a number of officials said in part: “…the leadership of Arthur T. Demoulas is the reason Market Basket has been able to keep prices low while delivering quality products to mainly under served areas. The current actions of the board and officers is one motivated by greed and will only serve to destroy the legacy the Demoulas family has worked generations to establish.”

The “good guy” stories that employees have shared about the former CEO reaffirm what they say it felt like to work for a company where they felt respected — paid more than industry average — and part of a culture where they were seen, heard and cared about. Employees give Arthur T. Demoulas high marks for walking the talk about what it means to be a family business.

Interviewed at rallies, employees gave examples of things Arthur T. Demoulas had said or done that mattered: he remembered employee names, knew who had a child or spouse with a health crisis and would seek that employee out in store visits to see how things were going and then remember the conversation the next time.

Customer and employee loyalty is in short supply in most businesses, especially where relationships are simply transactional. When a leader makes it more than that, he or she can inspire trust, allegiance and transform how those who work and shop there experience a business. It can feel like community.

Market Basket under Arthur T. Demoulas apparently demonstrated it was a business that had soul.

In a tug of war of competing visions, Market Basket’s new board majority misread how compelling soul was to employees and customers. Or without it just what it is they will have to sell.

The Week in Ethics

Gael O’Brien, July 26, 2014

Gael O’Brien is The Ethics Coach columnist for Entrepreneur Magazine. She is also a columnist for Business Ethics Magazine where her July column is “American Apparel: Sex, Power and Terrible Corporate Governance.”