Podcast #13: Teleseminar on the power and practicality of integrity: doing what you said you would do, by when you promised, and the it was expected to be done or, as soon as you know you will not, communicating and taking responsibility for the breach. Just click here and either listen through your computer or subscribe through iTunes to have this and all new episodes placed on your device as they become available. You may also set up an automatic “feed” to non-Apple devices by using this link: click here for other devices.
Integrity is usually a major conversation when I coach groups of executives. It almost always comes up in the context of arriving at the meeting on time or returning promptly from breaks.1 This leads to a discussion of consequences, by which people mean punishments for not being on time: fines, humiliation, etc. This opens a powerful examination of monitoring, enforcement, and integrity throughout the organization.
[Philosopher Hannah] Arendt concluded that evil in the modern world is done neither by monsters nor by bureaucrats, but by joiners.
That evil, Arendt argued, originates in the neediness of lonely, alienated bourgeois people who live lives so devoid of higher meaning that they give themselves fully to movements. It is the meaning [Adolf] Eichmann finds as part of the Nazi movement that leads him to do anything and sacrifice everything. Such joiners are not stupid; they are not robots. But they are thoughtless in the sense that they abandon their independence, their capacity to think for themselves, and instead commit themselves absolutely to the fictional truth of the movement. It is futile to reason with them. They inhabit an echo chamber, having no interest in learning what others believe. It is this thoughtless commitment that permits idealists to imagine themselves as heroes and makes them willing to employ technological implements of violence in the name of saving the world.
The fraud triangle is a model for explaining the factors that cause someone to commit occupational fraud. It consists of three components which, together, lead to fraudulent behavior:
1. Perceived unshareable financial need
2. Perceived opportunity
3. Rationalization
The fraud triangle originated from Donald Cressey’s hypothesis:
Trusted persons become trust violators when they conceive of themselves as having a financial problem which is non-shareable, are aware this problem can be secretly resolved by violation of the position of financial trust, and are able to apply to their own conduct in that situation verbalizations which enable them to adjust their conceptions of themselves as trusted persons with their conceptions of themselves as users of the entrusted funds or property.1
1Donald R. Cressey, Other People’s Money (Montclair: Patterson Smith, 1973) p. 30.
Podcast #13: Teleseminar on the power and practicality of integrity: doing what you said you would do, by when you promised, and the it was expected to be done or, as soon as you know you will not, communicating and taking responsibility for the breach.
Just click here and either listen through your computer or subscribe through iTunes to have this and all new episodes placed on your device as they become available. You may also set up an automatic “feed” to non-Apple devices by using this link: click here for other devices.
Study indicates that employees who are trusted by managers do better work and are more loyal to their employer.
A Closer Look at Trust Between Managers and Subordinates: Understanding the Effects of Both Trusting and Being Trusted on Subordinate Outcomes
The authors propose that trust in the subordinate has unique consequences beyond trust in the manager. Furthermore, they propose joint effects of trust such that subordinate behavior and intentions are most favorable when there is high mutual trust. Findings reveal unique (more…)
At Accelerent, I was lucky to meet the commander of the USS Cole and hear his story of the day his destroyer was nearly sunk by al-Qaeda. Kirk Lippold made clear that his ship was saved mostly because of how he led and trained his crew in the years prior to the attack, rather than by any dramatic decisions or heroics on October 12, 2000.
He gave a thrilling and informative presentation. I particularly thanked him for illustrating the masterful use of chain of command, maximizing his impact as a leader by improving his officers rather than continually reaching down to personally resolve specific issues.
The Navy, unfortunately, tends to be rather unforgiving of officers whose ships are damaged so Kirk Lippold never made Captain. The military’s loss is our gain as he tours the country sharing his leadership lessons.
I was very pleased to be invited to a meeting with former MCI Worldcom internal auditor, Cynthia Cooper, sponsored by Accelerent. She is the employee who discovered and “blew the whistle” on the $11 billion financial fraud that, along with Enron, changed corporate governance in America. Unfortunately, similar frauds continue to be perpetrated. Her story, also told in Extraordinary Circumstances, illustrates an important principle of business integrity.
Business crimes are seldom committed by evil people searching for opportunities to lie, cheat, or steal. Most misdeeds, from pilfering pens and misusing the copier to billion-dollar stock frauds, are carried out by regular people who have rationalized small steps over the line. At MCI Worldcom, accountants reclassified some reserves into revenue because the CFO said (more…)
Why plan? So much changes, so many things are unforeseen. The world is unpredictable and out of our control. The people we depend upon are fallible and have free will. There is no telling what they will do, how they will react to us.
Any airliner spends most of each trip off course and pointed in the wrong direction. Wind, weather, and traffic are constantly diverting the vessel from the perfect path. Rather than being discouraged by the impossibility of staying on course, the pilot and the instruments are continually working to compensate for these random and unforeseeable influences. After a trip of “unplanned” but expected diversions, airliners almost always arrive at their intended destinations. What would be the result if the pilot did not declare where and when he would land? How would he react to the distractions and diversions? Would you buy a ticket on that plane? Rather, could that pilot enroll you in his project?
You have many choices each day–even if they don’t seem like choices–and a consistent target will give you a ready reference for making those choices. Your plan is useful not because it is a description of what will happen, but because it provides a reference point to evaluate and respond to the inevitable circumstances that differ from the plan.
Planning is not Predicting.
The value of a plan is not as a guarantee that things will happen exactly as you expected, but that when the unexpected does -inevitably- occur, you can notice and respond to the deviation.
Lying is the toughest part of being a salesman. No, not me lying, but people like you assuming that I–the salesperson–am lying. Expecting the worst of salespeople seems to bring out the worst in prospects.
Years ago, I heard that one of my clients had been put in charge of a major new project. Expecting more business, I went to his office and said, “Congratulations on getting Project X.”
He looked me in the eye–looked me in the eye!–and said, “That’s not my project.”
“Who’s got it?” I asked.
“It hasn’t been approved,” he said.
I was in a meeting a few days later where he reported on (more…)
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