What I learned from other people’s mistakes
If you google “The Dark Side of Business,” you get 1.2 billion results. Everything from the rise of narcissism and greed to complacency and sleazy competition tactics. But what seems glamorous and enticing, where anybody with an idea and a garage can make it to unicorn status, has a dark side.
The winds of fortune made fast are shifting with stories of fraud, inequality, data manipulation, and tracking. People have started to notice big tech’s domination and the dark underbelly of lousy behavior like Amazon’s recent decision to fire whistleblowers. But the problem doesn’t pertain to just the big boys. Small companies are guilty, too.
Let’s look at eight common problems and the Leadership Questions that can repair foolish mistakes, improve business success, put ethics at the top of mind, and launch grander diversity and inclusion plans.
Eight Leadership Questions you Need to Ask
1. Improve Emotional Intelligence
When I studied Organizational Development, I learned there are four types of people in the workplace. The Analytical, Driver, Amiable, and Expressive. There are other names, other studies, and other assessments, but often overlooked is how prevalent psychological disorders are in the workplace. In 2016, nearly one in five working adults reported mental illness, and 71% reported at least one stress symptom. With COVID-19, I’m sure those numbers will increase.
Think about it. You spend 90,000 hours at work over a lifetime and are likely to spend it with co-workers suffering from one or more disorders. If you aren’t educated or prepared to deal with mental health disorders in the workplace, you could end up feeling stressed. Make it a priority to provide EI (Emotional Intelligence) training or other programs to help your employees enhance their mental health and wellness.
Leadership Question: How can we address mental health issues in the workplace to reduce health care costs, improve job performance, engagement, and productivity?
2. Focus on Leadership Development
I think there is a real lack of leadership in small businesses, especially in the tech industry. Maybe poor leadership also stems from a decision to avoid diversity (see #6 below). I’ve witnessed a lack of leadership in founders who can’t make decisions and flounder with failure to execute. Many don’t have the skills and mindset needed to build high-performing teams because they are too busy thinking about what they need or are too focused on other problems they believe are more critical. Being a good leader requires insight, awareness, and the ability to keep a pulse on every aspect of the company.
I founded and managed a team of professional engineers, and my background is in Fine Arts. It worked because I could bring some softer skills required to handle the business’s administrative side and rely on my staff’s technical expertise. But my focus was always on how I could make the individual and the team succeed because if they are successful, I’m successful, and the company is successful.
Leadership Question: What will it take to bring out the best in others and build top-performing teams engaged and invested in the company’s growth?
3. Invest in Employees
I worked for a company with an office overlooking the pacific ocean. It was prime real estate, but clients never came to visit. Among other costly extravagances, The CEO had fresh organic fruit flown in every Friday. When the business shut down for reorganization, The CEO stiffed the employees out of a month’s pay.
Some companies mistake investing in things that don’t give any return on investment. They spend money on themselves or on creating a successful image. A company that doesn’t invest in its employees is losing money. Employee development is not an expense; it’s an investment. The well-trained employee is loyal, does better work, will help you build a better reputation, and save you more time, money, and headaches in the long run. Think of a good employee like mailbox money. The investment pays off every month.
Leadership Question: How can we prepare for rapid growth and invest in and support our staff to help them get ready for more significant roles and responsibilities?
4. Pay Attention to the Small Stuff
Neil Blumenthal, CEO of Warby Parker says, “A Startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed.” The Ellen Show isn’t a true Startup, but I think it’s important to talk about how her business became the poster child for an insidious toxic culture. At first, the lousy press spotlight on Ellen seemed trivial, but more and more people began to share their less than heartwarming stories.
I think bad behavior starts slow as people test how far they can push boundaries. One nasty comment or overlooked action can activate a chain reaction and cause a shift in related behaviors. If left unchecked by leadership, the toxicity creeps like kudzu, invading all aspects of the organization. And it doesn’t help that the pyramid shape of the traditional hierarchy of businesses makes employees feel like mere peasants without any personal power.
People are motivated by different things. Some will put up with a ton of shitty behavior because they live paycheck to paycheck. Others get status and power by being aligned with the company and are too afraid to speak up or rock the boat. Develop steps to counter toxic behavior. Seek regular feedback from your staff. Lead by example, set clear guidelines, honor cultural differences, and uncover shared values.
Leadership Question: How can we help the team cope with high expectations without falling into unhealthy and toxic behaviors?
5. Have Integrity
Believing in your dream is important but not as crucial as being in touch with reality. I’ve witnessed founders who get so caught up in inflated forecasts and selling their pitch that they cross the line between honesty and fantasy. It’s like exaggerating on your resume, but much worse. Misleading investors is a severe and deceptive practice and will only come back to bite you. If you can’t be trusted to know your numbers, how can you be trusted with anything else in the business?
Leadership Question: How can we maintain integrity, convey greater authenticity, and build trust with investors, vendors, and clients?
6. Focus on the Big Picture
I wish somebody would have told me to have a solid MVP (minimal viable product) before spending a lot of time and personal savings on an idea that was never going to launch. I was stubborn, and I couldn’t give up on my dream. I believed that if I stayed with it and persisted, I would eventually get traction. But timing is everything, and I was too early in the game. I had a good idea, but you can’t sell something nobody wants to buy. Prevent tunnel vision by staying focused on the longer-term, bigger picture.
Leadership Question: How is the company articulating a clear and compelling vision for the greater mission and purpose to be quickly adopted by everyone involved?
7. Make Diversity a Priority
A couple of years ago, I interviewed for a CEO position with a company. They chose someone else “because they needed someone younger since VCs think anybody over the age of 40 is too old.” Yep, they said that.
I read a post recently that said, “I get tired of “under 40″ lists. Show me someone who got their Ph.D. at 60 after losing everything. Give me the 70-year-old debut novelist who writes from a lifetime of love and grief. Give me calloused hands and tender hearts.”
Running a company with 95% white men under 40 is short-sighted and sad. Picking people that think like you, look like you, always say yes, laugh at your jokes, and never challenge you is boring and will not help you or your business grow. Companies need disruptors, breakthrough agents, and novel thinkers, and those people come in many colors, genders, and religions.
Leadership Question: How can we make our company and executive team be a leader and set a good example in diversity and inclusion?
8. Share the Limelight
Did you know 76% of workers have been exposed to a toxic boss? The Monster.com poll found the four top types of toxicity:
- The Power Hungry Boss, —only looks out for themselves.
- The Micromanager Boss —don’t trust others to do their jobs.
- The Absentee Boss —don’t provide direction or guidance.
- The Suck at their JobBoss —don’t inspire confidence.
I remember when I started my own business. I didn’t know what I was getting into, but all I could think about was having a business card with ‘President’ as my title. Whether you have a big or fragile ego, getting caught up in the need for control and the ego-ic nature of being a boss can be a heady trip. You can get drunk on the attention and status when you are the one everybody looks up to for all the answers. Learn how to be humble, delegate, and share the limelight. You’ll be glad you did because I guarantee you, being on top doesn’t last forever. One day your phone may stop ringing.
Leadership Question: How can I let people do their jobs and be more open to others’ opinions?
