Voices » John Baldoni » Failure to Accept Responsibility is a Failure to Lead
3:46 PM Tuesday December 2, 2008
It was caused by forces out of our control. That line is not from a 1950s sci-fi movie in reference to aliens taking over the world. Rather it seems to be the assessment of many senior leaders in the financial services industry as to the causes of the economic meltdown.
"Nobody was prepared for this" is what Robert Rubin, a senior official at Citigroup, told the Wall Street Journal. "Maybe there are things, in context of the facts [the board] knew then, we should have done differently," Rubin admits. Not acting "differently," however, caused Citigroup to lose $20 billion over the past year and to receive $45 billion in federal assistance. Although Rubin turned down his 2007 bonus, he has earned $115 million from Citigroup since joining the firm in 1999. As for "regrets," Rubin told the Journal, "I guess I don't think of it quite that way... If you look back from now, there's an enormous amount that needs to be learned."
One thing that may need to be learned (or re-learned) is a lesson in responsibility. It rests on three principles.
Be aware. Every leader needs to take a moment to drink up the action. You need to step back from the day to day flow and assess what is happening. Acknowledge what is going well as well as what is going poorly. Always be aware that things are not always as they seem and be prepared for surprises.
Accept consequences. Few executives need schooling in taking credit, but too many need some reminding about what happens when things go wrong. Accepting the consequences for failure is not a sign of weakness; it's a measure of leadership. While no one likes to fail, the sooner you accept what happened, the sooner you can move forward.
Resolve to improve. Some crises are too great for the current leadership to continue. We are seeing replacements of CEOs in nearly every business sector. But the majority of senior executives have their jobs, or new ones, and so they will need to discover ways to improve things. That starts with a resolution to make a positive difference. In crisis it means sacrificing short-term gains, e.g. bonus compensation, for long-term growth.
Behavioral scientists teach us that the first step in recovery is an acknowledgement of responsibility. But sadly too few executives are holding themselves accountable. This is not only bad for the future of our economy. It sets a poor example to younger managers and those about to become managers. Forget what you might have learned in school (or from your parents), these executives seem to say, do what you want to do and deny responsibility.
"The price of greatness," said Winston Churchill, "is responsibility." Something the all of us facing tough times need to remember.
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John Baldoni is a leadership consultant, coach, and speaker. His work centers on how leaders can use their authority, communications and presence to build trust and drive results. He is the author of six books on leadership, including Lead By Example, 50 Ways Great Leaders Inspire Results. In 2007 John was named one of the world’s top 30 leadership gurus by Leadership Gurus International. For more on John and his work, visit www.johnbaldoni.com.
Follow John on Twitter: twitter.com/johnbaldoni
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Comments
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- Posted by Jo
December 3, 2008 5:28 AM
Part of the reluctance to accept responsibility no doubt is a consequence of how litigious our society has become. Corporate lawyers preach to their executive staff not to admit guilt for fear of generating law suits. Of course that strategy puts the responsibility for determining guilt back in the hands of the attorneys in court which provides job security.
- Posted by Stewart Nelson
December 3, 2008 10:30 AM
Hi John,
At the end of every fire there is an opportunity to spell out the obvious and feel important!... there will be many more instances and still more…
What is required (one of the factors) is to unravel the mechanics of reflection, we require a plan and a set of activities to make this process a part of our work life
Some of the activities will be to actively ask for and get feedback, institute peer review when the impact of an initiative is not well understood. The peer review panel should have the responsibility similar to that of the ‘board of directors’… this way, the day to day actions are continually aligned to the short and medium term initiatives… priorities get continually reset based on relevant information and bounds… and the organisation moves in the intended direction… everyone is part of the decision and everyone takes responsibility because there are more wins, few losses and very few catastrophes
This may sound familiar to most of the Japanese executives and some of the smart ones who have instituted the philosophy of “Hoshin Kanri”… some may say that this process adds time to the decision making process… well I would argue that executives (worth their salt) can be ‘involved’ and ‘contribute’ meaningfully to an initiative ONLY at the planning phase, that is, before the decision is given the ‘go ahead’… there is very little anyone can do once the initiative is steaming ahead and heading in the wrong direction… towards a sure catastrophe that is bound to happen!
It is not by chance as the executives from Citi or even the auto giants (fast turning into dwarfs) want us to believe… it is not a fundamental problem for which a solution is hard to find… it is similar to lethargy and procrastination… executives will just not ask for feedback… there will be many more instances and still more…
- Posted by Raj Subramaniam
December 3, 2008 5:55 PM
Dear John,
Failure is actually an unpleasant word, with bleak connotations. But this is a word that comes to each one of us in our lives at some stage or other. And actually, no one is exempted from this word or experience. Everybody fails. I mean everybody. It is simply a reality of being human. It is certainly a state we work hard to avoid. And it is this fight to avoid failure that drives us forward towards our life accomplishments.
To accept responsibility for a very important reason comes with values or with maturity. My dad, who served the Indian Air Force for good 33 years told me about 25 years that if we don’t accept ownership of our own mistakes, who else will. It is about values, understanding and I think it is about guts.
- Posted by Kulwinder Singh - Head - Marketing, APAC MEIA, Satyam
December 4, 2008 9:04 AM
I agree that executive managers should own up to responsibilities, accept consequences, and resolve to improve. However, I think that there are several steps that leaders should take prior to failure. Too many leaders are in cloud nine and have lost touch with the people who perform the tasks to keep the wheel turning; I am referring to the employee on the lowest point of the pole.
Leaders, such as CEOs and upper management, often ‘forget’ to consult lower level employees about issues that might affect the bigger picture. A lot of times these employees are well educated or have been with the company/industry for so long that they have an in value wealth of knowledge not easily replaced. I believe that the ‘microwave’ way of life is going to convert back to a slow cooker way of living eventually. People’s greed is getting in the way of common sense and humanity. Everyone wants everything done now therefore they choose to over look the small stuff that adds up to the big stuff.
My suggestion for every level of leadership is to:
1. Consult the ‘small people’, they will feel valued and you may actually get something worth well from their input.
2. Slow down! The most valuable items do not appear out of any where overnight. Learn to appreciate the processes that make your services unique and valuable.
- Posted by Larrissa Scruggs
December 16, 2008 4:43 PM
In theory, the second principle of accepting the consequences of a negative action is an excellent opportunity to learn from one’s experience. However, in practice (on the job) accepting the consequences of a negative action is oftentimes met with reprimands, accusations and punitive results. It sounds nice when “real” leaders admit to wrongdoing but if “real” leaders were to actually admit to any wrongdoing they may find themselves unemployed. Our society seems to pride itself on the concept of learning from one’s mistake, but what is the cost of these lessons?
Stewart Nelson’s posting spoke about the litigious nature of our society, hence, we have coined terms such as CYA, Cover Yourself Always (the PG version). His point is a clear example that the intended lessons from our mistakes are not how do we grow and perhaps avoid the same mistakes. The true lessons are how to avoid admitting our wrongdoing and what measures could have been taken to better hide our mistakes.
- Posted by Ali Downes
December 17, 2008 12:51 PM
I agree wholeheartedly with the notion of acknowledging the responsibility. The key question still remains is that why do leaders fail to do so? If 'W.Churchill say's that the price of greatness is responsibility' one might ask themselves that if you are a leader are you looking for greatness or are you making sure that you help the company overcome turbulent weather.
CEO's can become great leaders only when they act in the best interest of the company an old cliche' but to execute decisions effectively is where the trick is. So, what makes the CEO avoid the responsibility trap, what makes them deny those very responsibilities they are hired to do so.
We can do research after research and dissect the human behavior to the nth degree; but the fundamental question still remains, and that is 'What is that we need to do overcome the obstacles'?
Some things to ponder:
1. Scan the past, present and future
2. Look for Golden Opportunities
3. Be aware of the 'Black Swans'
4. Check your pulse regularly or gut feeling if the decisions you make are the most effective or not
5. Scan the environment for Risks (Political, Economical, Cultural)
6. Have a clear 'Focus' of where is that you want the company to be and work backwards by clearly identifying the barriers
7. Keep communications open with Internal and External stakeholders
Finally, Think, Lead, and Sacrifice your self interests for the company. There is no greater good in sacrificing yourself for others or the company. That is where true greatness lies. If the CEO is cognizant about the fundamental notion of 'Sacrificing' she will know deep within her soul that whatever she does, is to protect her company and her people. It is easy to say, but hard to implement.
'If you let go of your fears, for one moment, to bravely confront the reality of life or business, your soul will lead you to the righteous path' and that my friend is the ultimate greatness.
- Posted by Vinay Dattu
January 20, 2009 10:24 AM
Responsibility start with individuals. The big problem with the society now is people are fast tracked to manage and be responsible after a very short success in departments, or have been carrying and following the footsteps of CEO. Society needs to learn that if you replace some with a similar ideas and beleive to a preceding CEO, the lagacy still continues good or bad. You need leaders who are unique, innovative, collaborative and responsible through their actions.
If a CEO who lacks responsibilty is appointed to run a company, surely is those that vote to put him in that position that should be responsible for the dyer appointment and subsequent decline of comepany due to lack in simple leadership skills.
- Posted by Japhet Simon
January 20, 2009 5:15 PM
Interesting dialog going on here.
As a Global Executive Coach with most of my clients working in Europe for U.S-based corporations, we often start by looking at corporate values, then we need to make sure the translations exist in my clients language.
Sense of Urgency, Accountability, Responsibility, Ownership are great values, but who is responsible for "walking the talk", leading the way, showing that lessons learned are also valuable and not punishable?
Maureen Rabotin
- Posted by Maureen Rabotin
February 2, 2009 6:56 AM
Everyone wants to be in charge, to lead, but few are willing to bear the responsibilities that come along with the territory. I have watch executives who have endured stress, trials and tribulations to get to the top, and as a result they as well as people around them feel leadership is “naturally” warranted. The pursuit of becoming a leader and being a leader require overlapping, still different skill sets. While much thought is given to getting to the top and the benefits of being there, less attention is given to the cost of staying and succeeding in positions of leadership.
As a young professional it has become painstakingly clear that leadership is not a right, but rather a responsibility. Winston Churchill said the price of greatness is responsibility; I understand the price of leadership is sacrifice, but most leaders sacrifice the wrong things. Irresponsible leaders sacrifice organizations, people (employees, clients and citizens) because of their “right to lead”. It is incumbent upon aspiring leaders to, as Baldoni suggests, be prepared for the responsibilities of leadership, accept the consequences and resolve to improve.
- Posted by Keya T. Burks
May 8, 2009 1:55 PM