Credible Leadership and Management

"Once trust is lost, it's hard to get it back"

Given the choice, people prefer to work for people they trust and believe in.

It's even more true when an organization is under stress. When times are good, people are content and will overlook a lot. However, when profits are under pressure, jobs cuts are looming, the company is facing a scandal, or some other issue is threatening the company, the importance of credible leadership and management becomes apparent.

Therefore, it's best to establish credibility while times are good. Not surprisingly, this also happens to be the easiest time to establish trustworthiness.

If you're trustworthy when everything is going well, employees are going to give you the benefit of the doubt when the organization is confronted with major problems.

Conversely, if you're irresponsible through the good times, employees are going to be even more critical through the bad.

When companies face stressful situations, the problem is twofold. First, the situation itself puts a strain on the company, such as a sales downturn that causes the company to lose profits. Then, you also have to face the psychological impact on the business, which is the reaction to the sales downturn

Credible leaders are able to minimize the problems created by employee's reactions and deal with the issues themselves.

Imagine your company is in a situation where the water-cooler gossip takes on a life of its own. This type of behavior usually interferes with the process of solving the real problem. Everyone is distracted by rumors and hearsay. Left unchecked, things get worse and employees start crawling into foxholes. They become suspicious of just about everyone and everything.

I've seen this happen in almost every turn-around situation I've been in. When the problems reach this level, they become much harder to correct and it takes that much longer to turn the company around.

The moral of this story is: your company is going to face difficult circumstances at some point. The time to prepare for these issues is during the good periods.

Credibility is one of the most important leadership qualities necessary to both have and maintain. You might not always make the best decisions, but if you're an honest and trustworthy person, employees will cut you some slack. There is no attitude more despised then dishonesty. Whether it's a spouse, friend, salesperson, co-worker, or boss, everyone hates dishonesty.

A lot of people don't understand this. And there are many people who believe they can be selective with the truth. It could be anything from telling little white lies to out-right deceit.

One episode of deception can cast doubt over everything you do afterwards. That's why you can't act trustworthy sometimes and then bend or break the truth on another occasion.

Good leadership is about being 100% honest, all the time. I've always found it better to be honest up front and deal with whatever happens next. I sleep better at night knowing I won't have any secrets that are going to rear their ugly head and come back to bite me.

It might be difficult to be honest because you know there will be ramifications in certain circumstances. However, you'll feel better about yourself and your situation. And, your employees will have a lot more confidence in you. These two things will help you handle whatever comes at you.

This is such a rational approach to leadership and management, why are there people who just don't get it?

Many people are too narcissistic to ever grasp the concept. This mental defect can not be corrected. There's a place in the business world for people like this - you just don't want to work for them.

There are others who believe they are so savvy, they can get away with being dishonest. They go through life believing they have the game all figured out. As if they're so smart and clever they can manipulate any situation to their benefit. Of course, people eventually catch on, often without the culprit even realizing it.

I once had an employee who was one of the most manipulative people I've ever known. She would perpetuate countless lies about other people and what they where doing, I was amazed at her ability to keep most of them straight.

Naturally, everyone discovered who she really was, but it was still unproductive behavior. So one day, I sat down and discussed the problem with her. I was very candid, I told her there's not one soul who believes anything you tell them anymore, and the consensus is you can't be trusted. I further explained to her that her lies had become so obvious even the most gullible people in the company were proud of their ability to catch her.

I couldn't have been more straightforward and clear. To demonstrate how delusional some people perceive themselves, she walked away from our meeting thinking she needed to be better at lying. I fired her two weeks later.

The best leaders and managers see themselves as the world sees them. They build their self-image on reality, and not what they want to be. Those who see themselves as others see them always do the best in leadership roles.

A good exercise is to take some time to measure how close you actually are to how you perceive yourself. In philosophy, you are who you think you are, but in the world of business leadership and management, you are who other people think you are. It's their perception that matters.

This is why credibility is the most important virtue of leadership. You should always be looking for ways to improve your skillset and leadership abilities. You'll get the greatest benefit from your skills and abilities when employees perceive you as an honest person.

How do you show employees that you're honest? You need to have integrity at your core. Start by being honest with yourself about your strengths and weaknesses. No one's expected to know everything or to be perfect. The greatest and most respected leaders aren't afraid to admit imperfection when facing an important decision. Those leaders will look to other people within the organization for valuable input.

This is a powerful affirmation of integrity. One of the hardest things to do is admit weakness. People admire a manager who's secure enough to do so. They know that if you're honest when it comes to yourself, you're much more likely to be honest with every other issue.

The other half of being trustworthy is to always tell the truth, every single time. You can't be selective with candor. If you try to be, the only one who will know if you're telling the truth in a given situation is yourself. Everyone else will be under the shadow of doubt and have no choice but to err on the side of distrust. You'll essentially disprove your own credibility and severely handicap your ability to be a leader worth following.

The best advice I can give is to be honest. Look at a best and worse case scenario. If being honest is going to create another problem, then be honest and deal with the next problem. What you think might happen as a result of your honesty may not. That's the best case. If it does happen, deal with it appropriately and people will know you were honest, respect your decision, and you'll have credibility in the future.

If you're not honest with yourself, the dilemma could rear its ugly head again in some form. If that happens, you'll be unable to effectively deal with it because you don't have credibility necessary to garner the support of your subordinates.

Most of the problems you'll encounter are short-term problems. You have a long life and a long career. Don't jeopardize your whole career over something small. A lot of what you do on a day to day basis in your industry is insignificant.

We all like to think that we're important and our industry is important to mankind. Yet, most people could care less about you or what you do for a living; you're just another cog in the wheel. But you do have the power to cause small tremors in your community and the lives of your employees.

The answer to the question of how to be a great leader is honesty. Do what is right and be part of the solution instead of the problem.