Roger, a good friend and an ethical individual, was at a business conference last week with a co-worker, Sam, who decided to take a few of his subordinates out for an evening of entertainment not sanctioned by the company. The next day, Roger noticed that Sam was submitting the receipts for his prior night’s activities—and noticed that Sam’s description on the receipts was inaccurate. Sam flat-out lied on his expense report.
To become an effective leader, you need to understand what makes leaders behave badly. When we understand bad leadership, we learn how to be good leaders.
Effective leadership has undeniable business value. In one study, Jack Zenger and colleagues showed that “extraordinary leaders” actually double profits. They examined the best (top 10%) and worst (bottom 10%) leaders at a large commercial bank. On average, the worst leaders’ departments experienced net losses of $1.2 million, while the best leaders boasted profits of $4.5 million. Now, that’s bankable leadership!
Most HR and line leaders dislike their performance management process (PMP) and are convinced that a better solution exists. They say things like “throw out the performance review” or “only focus on development” or “eliminate ratings.” Often their search for new alternatives is an attempt to dodge the tough realities of making PM successful.
Maybe you recognize this situation: You’ve worked hard with your team, and you feel like a winner—until you see a team from the competition seemingly effortlessly surpass your numbers. Suddenly you are the best of the worst. You’re still winning at your own game, but someone has done something better, and jumps to the top of the league. What’s going on here? Escaping from being the best of the worst and becoming the best you can be has to do with leadership based on trust and cooperation.
Often I hear the lament, Loyalty is dead—and it is usually aimed at younger professionals who seem to hop from job to job almost annually. There’s truth to the perception that workers don’t like to stay put anymore, but the finger can also be pointed at their employers who don’t give them enough cause to stay.
Ethics and values are eroding worldwide. Bribes, cheating, criminal behavior, sexual abuse and harassment are becoming common. One survey on workplace ethics opened with this startling statement, “We expect workplace ethics to decline.”
In an era of dramatic change, we’re hit from all sides with lopsided perspectives that urge us to hold nothing sacred, to dynamite everything, to fight chaos with chaos, to battle a crazy world with unfettered craziness.
You need a hierarchy to get things done efficiently. But hierarchies don’t always produce optimal solutions to complex and challenging problems. To be both efficient and effective, sometimes you need to flatten a hierarchy for a short time. You need to speak freely across and around prescribed channels, not through them.
Several leaders recently used the phrase behind the eight ball when describing their current situation. It is a curious phrase, so I looked up the meaning: a difficult position from which it is unlikely one can escape; in trouble, in a weak or losing position; broke.