Investor's Business Daily, May 17th, 2007
Some of the best ways to be an effective manager are the simplest.
One of those is being honest in virtually all situations, says James Dale, author of "The Obvious: All You Need to Know in Business. Period." That trait is becoming quite rare, he says.
"The truth is used so infrequently, it's like a secret weapon," he wrote.
People shy away from it mostly out of fear, he says.
Say they didn't get a product shipped on time. Instead of saying they messed up or fell behind, they tell the customer it's not in stock.
"People do it because other people do it," Dale, a business consultant and ex-chief executive of ad agency W.B. Doner & Co., told IBD. "Society has sort of blessed lying."
Dale argues it's a lot easier to tell the truth. You don't have to remember what you said or try to make something up. What's more, people would rather deal with someone who's honest.
Bosses can take steps to build a culture of honesty.
It starts at the top. Howard Schultz, Starbucks' chairman, recently said his firm plans to grow as long as customer service stays strong.
"So far, so good," he added.
That, Dale says, showed honesty. He didn't say things were perfect, and his words sent a message that employees had to stay focused on serving customers.
Do what you say you'll do. People tend to stay in jobs where they respect the company and trust their bosses to keep their word, Dale says.
"The company that tells the truth keep its employees and does well year after year," he said.
Assume there are no secrets. "That's why the cover-up is viewed more harshly than actually not keeping the promise," said Rob Galford, managing partner at the Boston-based Center for Executive Development.
BP BP Chief Executive John Browne found this out the hard way this month.
Galford contends that it wasn't Browne's sexual relationship with a man that cost him his job after 41 years with BP, but the fact that he lied about it.
The organization must have an appetite for it. Then it can open channels to clear the way for people to tell the truth, Galford says.
Companies also should recognize and reward honesty.
Why is it important to be truthful?
People won't want to work for you if you aren't.
"The No. 1 reason people leave their jobs voluntarily comes down to they've lost faith in their boss," Galford said.
Follow through. Newton's third law -- every action has an equal and opposite reaction -- doesn't apply to those who don't keep promises, Galford says.
"You can make one small promise and not live up to it, and it can have a huge impact," Galford said.
If the boss promises a raise and never gives it, the employee will be plenty miffed.
She'll also tell others that the boss doesn't keep his word.
"A person who tells a lie is a liar, and that becomes part of their reputation," Dale said. "I can't imagine a worse statement."
