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Speaking of Leadership®, Vol. 2, No. 21
Phil Holberton

This week's newsletter has two sections:


Ethics 101

Generally, leaders are value-based individuals whereas managers are more rules based. However, as a response to the Enron and WorldCom fiascos, the US Congress and other regulatory bodies are tightening the rules regarding corporate governance. Because ethical values are missing, corporate ethics have been newly defined by rigorous rules, ones that have teeth in them and will scare the living dickens out of every executive. Although rules will help, it is the underlying values that we, as leaders, need to state, foster, and inculcate into our culture. Rules are like the sidelines to the field—they let us know when we are out of bounds. Yet, we should never have to get close to those lines. Our values should click in more quickly and help us “do the right thing.”

I find it hard to believe that corporate officers intentionally set out to break the law and conduct unethical acts, but somehow they end up there. Maybe after all is said and done, one of them will write a book and ‘tell all' as to what happened. No matter what their reason, however, corporate leadership needs to set the tone for the organization and see that the tone is fully embraced within all levels of the organization.

What are some of the activities that the leadership team can do to help develop a culture of high ethics?

  1. Have a written policy – stress the values of the organization

  2. Post the policy on the website – make it a public declaration

  3. Communicate with employees – early and often

  4. Provide mechanism(s) for whistle blowing without reprisals

  5. Have an independent review each year

  6. Report the findings to the audit committee

I challenge our corporate leaders to work just as hard on the values of the organization as they do the policies and procedures (the rules) side of the business. Yes, managers need to have rules from which to operate, but leaders need to be the keeper of the values and ensure that all in the organization understand the values and will live by them. The rules will just make it much easier to accomplish.

Each corporate leader has a responsibility to develop and implement a code of conduct that will establish the highest level of ethical behavior conceivable. Code of conduct management is like quality management. It needs to start at the top and it's not one of these concepts that it is “good for everyone else, but doesn't apply to me.” The code of conduct needs to be established according to the laws of the country where business is conducted and must conform to those ethics that your stakeholders would conceivably expect of the organization. By stakeholders, I mean stockholders, employees, customers, suppliers, etc.

Recently, I wrote about integrity and one of my readers asked a question about a specific example of goings-on that are occurring in their business setting. I felt the example is not too distant from what actually occurs in our business environment. I'm opening the question up to any reader who has an opinion on how to handle the situation. See Reader Question below. Most of the time, especially in international business dealings, there are many shades of gray in ethical dilemmas. What advice would you give to this individual?

Are you doing all you can to foster high ethics inside your organization? Are there guiding principles that can be improved? Do you know which ones need to be improved and do you have a plan to attend to them?

Now ask yourself... Am I a Leader?


Helping Your Employees Grow Through Coaching

As corporate leaders, we evaluate our employees and expect them to do the job up to our standards. Sometimes our standards are out of sync with their ability or training. After all, these individuals have not traveled in the same shoes as we have and may not have the skills or cognitive preparation to achieve what we expect. Therefore coaching becomes an integral part of helping employs grow to the next level.

In my experience, the most effective leaders shine when they are helping others day in and day out. This is where coaching enters the picture. Those corporate leaders who are really performing up to their capability (in a leadership capacity) are consistently coaching their colleagues (and not trying to micro-manage their activities). Individuals don't appreciate being managed. But, they are more open to coaching if the coach immediately establishes his or her desire to help the individual meet established goals.

Coaches need to acquire or develop critical skills to really be effective as a coach. Don't always think about coaching in terms of Bill Parcells, former coach for the New York Jets football team, who coached by yelling at his players. Instead, consider Joe Torres, the New York Yankees baseball manager who is able to work with each team member in a singular way and help the player achieve maximum performance.

The first and most important coaching skill is to be in the moment, not distracted by six different things on your mind. Coaching is about respect for each other. There is no more predictable way to show lack of respect as not being “present” or “engaged” during a conversation. I once had a boss whose eyes would become “fish eyes” during our conversations. Do you think I was being heard? Do you think I respected him?

Secondly, a good coach will seek to understand by asking open-ended questions. It is very difficult to understand what is going on in someone else's head if we ask simple yes/no questions. Questions need to be open-ended so we fully understand the complexity of an individual's state of mind.

A third critical skill is the need for the coach to suspend judgment and remain reflective and objective. Being contemplative shows that you understand the thoughts or feelings in the conversation. These first three skills will help develop understanding, balance, and respect—all very important ingredients in a successful coaching relationship.

The fourth critical skill is affirming the conversation. This action brings into focus the individual's desire to move ahead, whether it's an improvement in performance or learning new skills and growing as a professional or human being.

These skills, when practiced and used daily, will help you become the most effective leader imaginable.

Help your team grow. Be a coach not a boss!


         

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