Cingular is suing Hewlett Packard for hiring detectives that posed as law enforcement personnel to gain access to Cingular and its records. More lawsuits are expected to follow.
When the HP board replaced Chairman and CEO Carly Fiorina with Mark Hurd as CEO and independent board member Patricia Dunn as Chairman, Hewlett Packard was hailed as a leader in corporate governance. It was a gutsy move to show commitment to protecting shareholder interests and avoiding the scandals of Enron, Worldcom and others. It was also reported as a return to the HP way, the culture considered the foundation for Hewlett Packard´s success.
Who would have thought that within months "scandal" would be plastered all over the newspapers because the agency hired to investigate HP board leaks was engaging in illegal practices, which the agency says both Chairman Dunn and CEO Hurd approved.
Just as surprising was the board´s responses to Patricia Dunn, who was asked to resign as chairman but remain on the board, and Mark Hurd, who was promoted to Chairman in addition to retaining his CEO position, keeping both major players in the scandal and reverting back to a traditional board leadership structure. Ann Baskins, HP general council, didn´t fare so well as one of ten employees to resign from HP invoking the Fifth Amendment as they walked out the door.
If this had occurred in any other business, eyes would roll and heads would nod as if to say, "Here we go again." But it didn´t occur in just any other business. It occurred at Hewlett Packard, the place known for the "HP way" where ethics and integrity are supposed to be first, where observers expect that when an HP-er crosses into unethical territory, heads will roll.
Hewlett Packard´s statement on citizenship states: We conduct our business with uncompromising integrity and strive to live up to every one of our commitments to our customers, partners, employees and shareholders. When this statement was created, there was probably little thought given to "What if?" But what if leaders do compromise the integrity of the firm? What does their commitment demand that they do? No doubt, board members and leaders just assumed they were on track and would never have to worry about it. Now, they probably wish they had.
Not surprisingly, example and accountability are considered fairly basic elements that shape workplace culture. Last year, the Ethics Resource Center (ERC) reported that when top leaders behave ethically, employees are 50% less likely to see unethical behavior in the workplace. ERC also reports that employee satisfaction is 32% higher when employees see others being accountable for their unethical behavior.
In my work with leaders, I teach that leaders cannot lead someone who is not willing to follow. Leaders only become leaders when others choose them as such, not by virtue of being compelled to comply with leader wishes. That choice demands respect.
Adjusting expectations for living espoused values to fit circumstances, individuals or titles, destroys respect and commitment.
When leaders make mistakes, if they step forward taking full responsibility and immediate action to correct them, others are more willing to give the leaders a chance for redemption. But when leaders are allowed to excuse themselves and continue to serve in leadership positions, the workforce loses respect for both leaders and the system designed to support the values.
Leaders don´t have to be perfect, but they do have to act consistently with espoused values to be able to lead. In a rare situation where they slip, they will be remembered according to how they responded whether consistent with the values, or in spite of them.
If HP´s leaders are passionate in applying HP values to rectify the situation, something as potentially devastating as a scandal can become known as the epiphany that stimulated extraordinary change. Absent some dramatic show of support for the values, however, expect something similar to consultant Bob Quinn´s statement on workplace culture: Slow change, slow death.
Trying it on for fit: When establishing core values or principles, do so with the entire group including those who will be expected to live them, not just those expected to enforce them. Develop what if scenarios to explore mistakes and how to correct them consistent with the values or principles.
If a leader slips up and violates a value or principle, help the individual publicly explain what happened and state what powerful corrective action they will take to ensure it will not happen again. Make the event one that dramatically reinforces the significance of the values or principles as guiding forces for organizational behavior and demonstrates the individual´s commitment to them.
Create an organization of equals where all are invited and expected to live established values or principles, and all are equally accountable to shareholders and each other for living according to commitments. Nobody can be exempt from full accountability for the values.
Send an email and let me know what you learn from your experiences. I would love to hear from you!
Kevin Herring is co-author of Practical Guide for Internal Consultants, and President of Ascent Management Consulting. Ascent specializes in creating business solutions through effective management, workplace cultures and organization systems. Kevin is also co-founder of AVOTTE transforming organizations through company-wide values, effective operational integration and leadership for superior performance.
Kevin can be reached at 520-742-7300, kevinh@ascentmgt.com or www.ascentmgt.com.
©2006 Ascent Management Consulting, Ltd All Rights Reserved
