Effective leaders are expected to be of good character. Ask any ten people what "character" means and you will hear ten different answers. That is because good character is a composite of many qualities in a person. Honesty is certainly one of those qualities.
How does honesty play out in the business setting? Take as a given that habitual thieves, criminals, and liars are not leadership material. Even putting morality aside in the discussion, it is simply bad business for the boss to be crooked: bad business in that it exposes the company to liability, it breeds mistrust and deceit by way of response, it gives the company a bad reputation, and it destroys employee morale.
So how does the quality of honesty come into play in business leadership? The easiest way to say it is that the leader needs to be a straight shooter: communicate clearly and accurately. Communication can be spoken or written. If you are the leader you will want those you lead to trust that what you say is the way it is. You will also want all those associated with your business, whether customers, clients, vendors, creditors, board members, colleagues, regulators - no matter who might in any way deal with you or the business - to know that when you communicate you are telling the truth.
It all sounds so simple. But to achieve honesty in business requires a great deal of thought and composure. For example, before imparting information to anyone you must consider whether the person has a right to the information. When a member of your board or a financial partner asks you what the gross revenue was for the last quarter the requested information is proper. When a competitor asks you that same question the requested information should not be given. As the leader you may be asked for information many times a day. Each time it is important to consider whether it is appropriate to give the requested information. That means you must also consider how to refuse the request. It is perfectly proper to reply that the information requested is confidential or that you are not at liberty to disclose it or that the request needs to be in writing. The point: as a leader it is important to think before speaking!
One habit that builds trust in a leader is that the leader does not talk overly much and that the words spoken and written are thoughtful. When you choose your words carefully people around you become better listeners!
"Telling all" is not the only way to be honest. The opposite of honesty in communication is lying and deception. Effective leaders do not deceive. Neither do they "tell all". They communicate what needs to be communicated. Those they lead develop trust that the leader communicates what information needs to be communicated and takes responsibility to protect privileged information. Of course everyone expects the leader to know more than anyone else knows about the business, to act wisely on that information, to stay well-informed, and not to be a blabbermouth!
By the same token everyone expects the leader to be honest, not to deceive, and to let it be known when information is being withheld for good reason. That is a sign of responsibility. It assures one and all that any information they give the leader will be used and guarded in a responsible manner: that is to say, it is "safe" to talk to the boss.
Here are a few rules of thumb that help the leader be honest and look honest in communicating:
- think before communicating.
- speak less and listen more.
- be comfortable in letting people know you are withholding information when that is necessary, and state the reason.
- let people know what you will do with information they furnish you.
- whenever possible communicate in writing: that way the information can be read over and over, and everyone has the same words in front of them.
- remember: the leader who wants to be heard must first listen!
The leader's toolbox needs to include a great many communication skills. Come join Ted Knight and myself for a two-day training that addresses this issue, among others, in ways that quickly allow you to add more tools to your communication toolbox and sharpen the skills you already possess. We hope to see you in North Carolina in May, Michigan in June, Tennessee in July, Minnesota in August, Las Vegas or Tulsa in October or Las Vegas in November!
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