LEADERSHIP: AVENGING ANGELS OR GADARENE SWINE

Published: 2009-03-25   please add a comment below

Dramatic economic downturns inflict pain both widely and deeply.  People lose their jobs, homes and self-worth.  No wonder they join in seeking scapegoats.  Tearing into Bernard (Ponzi) Madoff in America or Fred (the Shred) Goodwin in Europe deflects our own pain.  But, as a leader, how much time do you spend reviewing your own responsibility for what you've experienced recently - for your own organisational and systemic failures?

I've been prompted by a couple of our Potshot readers to say something about the importance of ethics in leadership.  But, I fear my comments may not be what they hoped.

As I look back over my own career and investment history, my main conclusion is that the real stuff-ups have been my own fault.  At the time I was angry with others: the employee, who failed to deliver; and, the fund manager, who made dumb decisions.  But, with time, I recognised I'd made the key decisions: to employ, to invest, etc.  And, I'd done insufficient due diligence and compounded this with inattention to warning signals.

So, what annoys me is that today's Avenging Angels in the media, politics and government, who're deriding Madoff and Goodwin, failed to comment, regulate and control when the party was going on.  Instead they feted people like this.  A police force that doesn't fine speedsters and drink-drivers must surely take some responsibility when accidents happen.

And it's not as though there were no Cassandra's - crying their warnings.  Warren Buffett (dubbed "the Sage of Omaha" by the media) was highlighting "weapons of financial destruction".  Unless you're a believer in alchemy, there was no way the mortgage "lead" could suddenly become other than fools' "gold".

And, let's remember, much of what happened took place between consenting adults.  If I gamble or overdose on drugs, who's to blame?  And, how are margin loans any different?

So, in our roles as leaders, what's the way forward?  Yes, it's about ethics; but, first and foremost, ethics for ourselves.  If I want the world to change, first I must change.  Having the courage to think independently, do due diligence, and say "no" when needed.  Demonstrating ethics in everything, eradicating the corner-cutting: not over-stating expense claims or deductions; not cheating on our employers or families; being open about decisions and their basis; owning our mistakes.  And, holding to rationality: not believing "it's different this time"; or, trusting that Father Christmas or the Good Fairy will ensure a soft landing.  These are three lodestars to keep in mind not only as you plan your leadership actions.  But, above all, as you implement them.  They are central to what you do - and how you do it.  In sum, who you are.

When things go wrong, the first and best place to look is in the mirror.

Dr. Timothy Pascoe AM
PhD (Cambridge), MBA (Harvard), BE & BEc (Adelaide)
Creator, V|E|C|T|O|R Leadership^®