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March 12, 2004

Transparency in the UK?

More accurately, Ireland. Donal O'Connor, a senior partner with PriceWaterhouseCoopers told a local Chamber of Commerce group that businesses should "tell it as it is" and cop to the fact that mistakes are a daily element of business life.

Rather than covering up, companies should encourage employees to feel confidence in bringing problems to their attention, and this required the fostering of trust between bosses and staff.

A fitting indicator that the topics and themes we've been discussing this week aren't solely an American phenomenon!

Posted by Heath Row at 5:10 PM | 3 Comments

Welcome to Wal-Mart - We're Mean to Our People

My daughter, Elizabeth, called one afternoon, but I couldn't talk to her, because my new Wal-Mart - 1 mile from my house - was having its grand opening. She'll tell you this didn't sound like her mother, who likes Neiman Marcus and never cooked until only recently.

This 39-year-old retail dynamo trails only Exxon Mobil in annual revenue and gives me the lowest prices in town for the best stuff. But admiration stops there.

Legal analysts estimate Wal-Mart is sued more than any American entity except the U.S. government. I'm not nearly as concerned about slippery floors, icy parking lots, or those injured in a 'Shopper's Stampede' as I am about this down home friendly business treating employees like trash. Rumors, allegations - call them what you want - but not getting an earned wage, working through lunch and rest breaks, applying inappropriate pressure to complete tasks...all this makes me want to ask my check-out person, "Are you okay?"

Continue reading "Welcome to Wal-Mart - We're Mean to Our People"

Posted by Barbara Pagano at 1:54 PM | 8 Comments

Guest Hosts: The Transparency Edge II

Barbara and Elizabeth will continue to contribute to FC Now for the rest of the day -- their stint as guest hosts isn't over yet! -- but I wanted to offer my thanks and appreciation for sharing their experiences and insights this week. I've created a category for this week's discussion so FC Now readers can easily access their entries and ideas. You can access all of the categories on the left-hand side of this page.

In about an hour, I'm going to leave for Austin, Texas, where I'll be covering -- and confblogging -- South by Southwest Interactive. The scheduled speakers and panel discussions will offer lots of ideas for FC Now readers, including looks at the open spectrum revolution, design for innovation, Google's innovation strategy, building buzz online, urban tribes, and social networking.

All here, Saturday through Tuesday, in FC Now.

Posted by Heath Row at 1:07 PM | 11 Comments

The Nine Faces of Leadership

One of the earlier stories I wrote for Fast Company considered nine qualities that FedEx uses to gauge potential leaders.

• Charisma
• Individual consideration
• Intellectual stimulation
• Courage
• Dependability
• Flexibility
• Integrity
• Judgment
• Respect for others

Let's compare that to the nine characteristics, qualities, and skills highlighted by Barbara and Elizabeth in their book.

• Be overwhelmingly honest
• Gather intelligence
• Compose yourself
• Let your guard down
• Promises made, promises broken
• Deliver bad news, and do it well
• Get ahead, say you're sorry
• Watch your mouth
• Don't hold your applause

Barbara suggests that honesty is the most important quality. What do you think? How do the lists compare? What would you add -- or remove to your own list?

Posted by Heath Row at 11:43 AM | 3 Comments

Who Has More Credibility, Men or Women?

Our work on credibility actually began because of the way women answered the question above. More than 80% felt men were perceived as more credible in the workplace. If women lacked credibility, even perceivably so, this was a huge handicap, so we set out to help them understand what all they could do to build and maintain their credibility.

But by the time we got around to writing the book, our audiences weren't just women anymore. Top executives and CEOs wanted to learn about the transparent behaviors that build and maintain a credible reputation, and a whole lot of those people were men.

Lisa Nuss wants us to consider "gender" in a credibility discussion, saying Martha, judged against the expectation of "women should be deferential" and was bound to look arrogant. But a jerk of a guy has a different, far more aggressive marker...so he can be really obnoxious, but still look like an okay ass.

But here's a question we asked that sheds a different perspective on gender: Who would be more likely to sabotage your reputation - a man or another woman? More than half of the women said (you guessed it) it would definitely be another woman. They wrote notes to us in the margins: "Women are catty." "It's in our blood." "We don't trust one another."

Woman trusting women. Looks like there might be some work to do.

Strong as nails women at the top - some famous, like Anne Mulcahy, CEO of Xerox (BusinessWeek, "Anne Mulcahy has Xerox by the Horns," May 29, 2003), and AT&T's Betsy Bernard, who shows her trust in women by getting them to the top of her organization (BusinessWeek online, "AT&T's Betsy Bernard Goes the Distance," 5/29/03), and others you wouldn't know. But the people they work with say these women are yes - tough cookies - AND great bosses with oodles of credibilty.

Posted by Barbara Pagano at 11:01 AM | 5 Comments

Hey You...in the Cubicle, Driving the Car Pool, at the Front Desk... You ARE a Leader.

Kelleen Stine-Cheyne's question begs an answer from all of us interested in developing leadership excellence. If leaders are less than honest, credible and trustworthy, are they really "leaders"?

Stand in Barnes & Noble in front of the shelves in the "management" section, pull out books on leadership, and you'll find a good 50 definitions of leadership.

But I like this one: Leadership is the ability to influence a change in another person. This puts the leadership hat on everyone's head. You don't need an SVP title, a group of direct reports, or your name on the door to be a leader. All of us try at times to influence a change in others, whether it's a client, fellow board member, friend, or a child. We might want our partner in life to stop doing X and start doing Y, our client to choose us for the project, or a teenager to try being more agreeable.

We can talk about a CEO's honesty, composure, promise-keeping all we want. But we're leaders too, and we should be looking inward - finding ways to build and maintain our credibility.

I agree with Dr. Stine-Cheyne's idea that the rewards for choosing less that sterling behavior exist and always will. But there are so many fine examples of the boss "I'd go to hell and back for," so many leaders who are already good but trying to get great, and just plain folk working on being a better person. I'm optimistic.

Posted by Elizabeth Pagano at 8:38 AM | 1 Comment

Office Terrorism

I couldn't agree more with Alison's last Apprentice comment.

I've been around the managers who expedite the no-explanation firings. Those are the ones who like to do the Friday-at-5-clear-our-your-desk routine. You know....wait until the office starts to look thin, then just as the victim is getting ready to leave, call him into your office and tell him he won't be coming back on Monday. It's cowardly.

And incredibly offensive, not just to the one being fired but to all those left behind. No chance to say goodbye. No understanding of why. And then that nagging feeling that maybe I'm next, maybe the next bomb will drop right square in my cubicle.

Offering as much explanation as possible regarding a controversial action definitely makes one stronger - not weaker - as a leader. It's an act of transparency that shows you're taking care of your team and builds a reputation for respect and care for others....and credibility.

Posted by Elizabeth Pagano at 7:37 AM | 3 Comments

March 11, 2004

Transparency & Trust Bloom Great Ideas

Executives can talk on and on about how trust and transparency are a part of the company culture, but I have to see it in action before I believe it. Once in a while, I'm privy to those moments when great things happen in organizations, when values are lived and not just "banner-ized."

Recently I overheard a conversation while signing books at a strategy consulting firm with offices in the U.S., Europe, and Australia. Three people I couldn't see were discussing how to help a customer with a certain problem. One of these people seemed like the boss, because he did a little more of the talking. But he didn't sound like the boss. There was no "I speak then you speak" tone or inferences. Instead, the conversation sounded like an unstructured idea feast with three smart people shouting out solutions and showing the utmost respect for each other. Ideas were tossed and sometimes flipped by another person in mid-air like pancakes.

After fifteen minutes, the one I took for the boss said jubilantly, "How about if we do this?!" He went on to describe an idea that was instantly supported and praised by the other two.

But it was his last comment that made me smile. "Geez, I just thought of that now. Isn't that cool?"

It certainly is cool. Where honest and open cultures exist, unstructured collaboration thrives, and you get all the good stuff like innovation, productivity, and the best ideas to serve your clients.

What level of transparency exists where you work? Are you encouraging transparency by modeling it?

Posted by Barbara Pagano at 4:28 PM | 2 Comments

The Test of Transparency

In Harriet Rubin's column this month, Sam Christensen ("the hot go-to guy on power today") says: "The most charismatic thing about people now is public self-disclosure. It's people who say, 'I'm willing to take the risk of being entirely myself in front of you.'"

Self-disclosure is a big part of transparency and crucial to building trust. People can't trust you if they don't have a sense of who you are exactly. That's why the old-schoolers who have hung on to the attitude of "I keep my personal and professional lives separate, thank you" may not have particularly stellar work relationships. They're not being personally transparent.

So how transparent are you? Take our quiz and find out. It only takes about 3-5 minutes.

Posted by Elizabeth Pagano at 1:45 PM | 1 Comment

Executives As Students of Leadership - It Works!

I often ask "How have you learned to be a successful leader?" Answers vary from "I had a good boss once (or a bad boss)and I learned fast" to "I spent a week at an executive education program" to a shrug followed by "don't know." My coaching experiences often have a "study" element. People get better at leadership not just with on-the-job training but by becoming students of leadership.

Books work for some executives, especially Lencioni's fable formats in The Five Temptations of a CEO, The Five Dysfunctions of a Team, and The Four Obsession of an Extraordinary Executive. I'll be sending a CEO my earmarked and highlighted copy of Leading Quietly by Baccardo tomorrow.

Given their schedules however, chapters from books and articles work better for most. Goldsmith's column (All of Us Are Such Suckups, Dec. 2003 FC) got emailed to an executive who's having trouble asking for feedback and Chapter 7 of The Transparency Edge is sent to all those who are forgetting about how valuing and appreciating others builds a credible reputation. Chapters in Why CEO's Fail: 11 Behaviors That Can Derail Your Climb to the Top and How to Manage Them are stand-alone fodder for taking a look at what might be getting in an executives way.

But it's not an avalanche of material that makes this work. Every decision is tailored to the needs of each individual. Then they decide what's best for them.

The learning happens with our follow-up discussion. What did you learn? What ideas can you adapt? What are the barriers and how can you overcome them?

Leaders need to learn about what works and what doesn't in leadership any way they can. Earlier comments still have me thinking about a weekly TV sitcom that I'd probably call, "The Boss." I'd like to direct that! Imagine executives all over the world programming their Tivo's for their weekly "learning assignment"!

Posted by Barbara Pagano at 10:55 AM | 3 Comments

Leadership Excellence? Just Be a Better Person.

"So," I asked the COO of a major healthcare institution, "how would your wife score you on showing appreciation for her as a partner in your marriage?" Hesitantly, he replied, "I think a 2 maybe."

He knew a "2" on a scale of 1-5 (with 5 being the best score) wasn't too hot. After 15 minutes of debating and defending himself against low scores from his direct reports on "showing value and appreciation for others," he had finally gotten the point. Executives who learn about themselves as leaders sometimes also come to a better understanding of themselves as fathers, mothers, wives, husbands, parents, and friends.

Transparent behaviors that build credibility and generate trust aren't just for the leader-follower relationship. They are important in any relationship. "How would your kids see you in keeping promises?" "What would your brothers and sisters tell me about your willingness to admit mistakes?" Sometimes an executive's developmental plan for improving his leadership also addresses issues with his family, his marriage or his personal life.

I cheered with a VP in Englewood, CO, who arranged for a babysitter, made dinner reservations, and drove his wife 20 miles to downtown Denver for a Saturday night stay. Sure, he needs to show more appreciation for his direct reports, but right then he wanted to start with those people a little closer to him.

An executive at a book signing a couple of weeks ago said, "I liked what you had to say about being a better leader, but if I do these things, I think it will really make me a better person."

That was BINGO for me.

Posted by Barbara Pagano at 9:01 AM | Add Comment

First-Time Callers and Striking The Right Tone

Doug Sutton asked in a recent entry: "Do you have any suggestions, other than the obvious, for presenting a positive first impression that relys on a telephone call, email or letter? This relates to cold calling for sales and also for getting in for a competitive career interview?"

It's a good question. A solid reputation of credibility that precedes the call or email would be best....but if it's truly a first impression, here are our thoughts:

• We love it when someone inquires at the beginning of a phone call whether it's a good time to talk. Something like: "I'm calling about X. Is this a good time for you?"
• Fancy colors or fonts and too many exclamation points or smiley faces in emails are turn-offs. If I get an email in purple Harlow Solid Italic, I picture a guy who wears really white tennis shoes, Tommy Hilfiger crests, and maybe even an umbrella hat.
• One of the biggest challenge in emails/letters is striking the right tone. You don't want to be curt but you don't want to be overly bubbly, either. You want to show enthusiasm in a sincere way - in your own style. Sometimes if you read the email outloud to yourself - or better yet, have someone else read it outloud to you - you may catch places that need rearranging or massaging.

A couple of other sources that may help answer the question are Email Etiquette: Why Is It Important? and What Are the Etiquette Rules?

Anybody else have thoughts for Doug?

Posted by Elizabeth Pagano at 8:07 AM | Add Comment

March 10, 2004

Bosses Who Don't Handle Poor Performers

So you're sick of carrying Susie's weight and you're even more fed up with your boss turning his cheek....

In chapter seven of our book -- "Deliver Bad News, and Do It Well" -- we include the following list of "Eleven Things We Tell Ourselves to Avoid Giving Bad News."

• I don't think she can handle it.
• I'll hurt his feelings.
• She will get emotional.
• He will get defensive.
• I'm sure that she already knows.
• He should already know.
• She will think that I'm singling her out.
• It's only my opinion.
• He will think that I do not like him.
• It will ruin our relationship.
• The situation may take care of itself.

Any of these sound familiar?

Posted by Elizabeth Pagano at 4:19 PM | Add Comment

Martha's Reputation Rehab

I've enjoyed following the different opinions on Martha's situation. From Martha-philes like Rayne who continue to admire Martha for her "can do" approach ... to Rusty who says reputation isn't the problem - but her lack of character is. I just finished reading this week's TIME magazine account of Martha Stewart's woes, which ends on an interesting note. It says Americans love to rehab our celebrities after they've been trashed and that Martha has a chance for a comeback.

Continue reading "Martha's Reputation Rehab"

Posted by Barbara Pagano at 3:46 PM | 2 Comments

Changing Perceptions and The Value of Follow-Up

Can you really change people's perceptions about you?

Business leaders are getting better at asking for feedback. That's a good thing. Some have the knack for asking for it personally ("Hey, by the way, how am I doing at XYZ?"). Others feel more comfortable with a formal - and anonymous - 360-degree process.

But what do you DO with the feedback?? Well, you start by thanking the person who gave it to you. "Thanks for taking time to give me some feedback. I learned a lot." Then you make a plan for change and work the plan.

And here's the part that a lot of folks forget: follow-up. That means you go back to your team, your boss, (wife!?) etc. every 30-45 days and say, "Hey I told you I was going to work at getting better at XYZ. How am I doing? Anything else I can do to be better?"

Our research (p. 203 of our book) shows that people who follow-up have a significantly higher PERCEPTION of improvement as compared to those who do not follow-up. Why is that? Follow-up allows you to continually gather information about how you're doing...and it sends a clear message that you're committed to improvement. It also tells people to LOOK for improvement, because you're in their face about it every few weeks.

Once you follow that formula - asking for feedback, making a plan for improvement, work the plan, and follow-up - and get better in a particular area, then pick something else and start the process over again. And remember you don't have to be bad to get better.

Posted by Elizabeth Pagano at 3:23 PM | Add Comment

Reputation Devastation

Barbara's recent writing about Martha Stewart and credibility came to mind while reading the 47th edition of Deon Binneman's Powerlines newsletter this noon. Based in South Africa, Binneman -- who also just started a blog -- offers the newsletter as a bulletin of strategic reputation and communication insights.

One item in the current edition resonates with Barbara's comments on credibility:

Continue reading "Reputation Devastation"

Posted by Heath Row at 1:13 PM | Add Comment

March 9, 2004

Overlooking Our Peers

Alison Overholt's mention of our co-workers' first impressions of us reminds me....one of the interesting threads we've seen in our coaching work is that many executives tend to over look their peer relationships and concentrate more on their relationships with their boss and their direct reports.

A leader's effectiveness with those three groups - direct reports, peers, and the boss - can be distinctly different. For example, a 360-degree report may reveal that a leader's boss and direct reports think he's a fantastic listener and problem solver, while his peers perceive just the opposite.

So often, we think of leadership as a vertical relationship. You manage up or down. Yet leaders who invest in building strong relations across the conference table will be more likely to experience collaboration and get better results.

Posted by Elizabeth Pagano at 7:46 PM | 1 Comment

First Impressions... Then the Hard Work of Building Credibility

Alison Overholt brings up first impressions, and I applaud her colleague and the research being done. When working hard to build a solid reputation, it's important to understand the process of how first impressions are formed.

All of us make initial judgments about one another. In First Impression, Best Impression, author Janet G. Elsea says people focus on what they can see. In fact, there is a specific order by which others process information about you. While social scientists disagree on the precise sequence, that order generally appears to be:

• Color of Skin
• Gender
• Age
• Appearance
• Facial Expressions
• Eye Contact
• Movement
• Personal Space
• Touch

All of this processing happens before you open your mouth.

We all know a first impression can be wrong; it can be better or worse than the opinion people have of you six months later. Whatever that first impression is, your credibility is built on what others see you do. So, after you've made that first impression, what impressions are your actions making?

Posted by Barbara Pagano at 4:28 PM | 4 Comments

Trading Places: Let the Boss Do Your Work

TLC's new reality show, Now Who's Boss?, aired yesterday, transforming Jonathan Tisch, CEO of luxury Loews Hotels, into a bellman, line cook, concierge and housekeeper. Upcoming shows feature CEOs of Song Air Service, Estee Lauder, and California Pizza Kitchen taking on tasks of the rank and file in their organizations.

Improved employee relations, new respect for what they do, and deeper understanding of teamwork were cited as the valuable outcomes for CEOs. Loews Hotel has even created a Now Who's Boss? Day where senior management goes through a similar process.

Is this great or what?

Sometimes I have to bellow to get senior executives I coach to get out of their offices and into the halls. Now I want to write the manual for how to do this in every organization and not just with CEOs.

What do the rest of you think? Are there any great stories out there of positive and/or negative consequences of the boss stepping down a rank or two?

Posted by Barbara Pagano at 11:40 AM | 5 Comments

March 8, 2004

Likeability vs. Credibility

Has anyone read the story in today's Wall Street Journal (page one) about the chairman of Smith & Wesson resigning after a reporter uncovered that he was a convicted serial armed robber during his 20s?

James Joseph Minder, now 74, committed dozens of hold-ups, stealing getaway cars, disguising himself with a trench coat and dark glasses, and terrorizing bank employees with a sawed-off shotgun and even a Smith & Wesson.

A regular Butch Cassidy. But instead of escaping to a cabin in Patagonia, Minder turned himself around - he finished college and graduate school, married a nice woman (and is still married to her, 28 years later), and spent two decades setting up programs and group homes for delinquent, abused, neglected and developmentally disabled children and young adults in Michigan.

What a nice guy!! So nice and likeable that other Smith & Wesson board members "patted him on the back and told him they still backed him as the company's chairman" when Minder sat them down at his kitchen table and came clean about his past.

Continue reading "Likeability vs. Credibility"

Posted by Elizabeth Pagano at 2:54 PM | 3 Comments

Can Martha Get Her Credibility Back?

The domestic diva's bad Friday had immediate consequences - Martha's no longer a CEO or board member of anything, and her company's stock has gone to pot. The company's flagship magazine, Martha Stewart Living, slashed circulation because of lagging consumer interest and skittish advertisers.

Hard to judge what long-term consequences will evolve from this short-term fallout. Ultimately, Stewart's failing empire depends on one thing - whether her credibility can be restored.

When you've lost your credibility, what are your chances of full recovery? In our research, when 2,300 executives were asked, "If a person were to lose credibility with you how difficult would it be to get it back?" 97 percent said it would be "very" difficult.

Continue reading "Can Martha Get Her Credibility Back?"

Posted by Barbara Pagano at 10:42 AM | 6 Comments

March 6, 2004

Guest Hosts: The Transparency Edge

Next week, starting Monday, March 8, two special guest hosts will join contributors to FC Now to help expand the conversation about how credibility can make -- or break -- you in business.

Barbara and Elizabeth Pagano, coauthors of The Transparency Edge, this month's Readers' Choice selection, will explore the meaning of transparency -- and tell how to get there. Over the course of the book, the Paganos -- a leadership expert and business reporter, as well as mother and daughter -- outline nine behaviors leaders must cultivate.

I hope you'll join us. Next week in FC Now.

Posted by Heath Row at 1:47 PM | 9 Comments