Dark Clouds with Silver Linings

True leaders arise during difficult times.

by Linda Galindo

The unexpected promise of the recession is that it can produce CEOs that are true leaders — leaders who are willing to address their own inadequacies. Fortunately for many CEOs performing a self-assessment, the areas where they fall short usually do not come as a surprise.

Harmonic feedback

Receiving feedback about personal and professional traits that don’t measure up to the role of CEO often elicits a common response: “The people closest to me — spouse, family members and friends — tell me that all the time.” When times are good, an average CEO will rationalize that there is no reason to address what others wish they would fix, including insufficient skills in communication, accountability, decision making or problem solving. Tough times, however, magnify the weaknesses of the average CEO.

To take advantage of the learning that can come from hard times, a CEO must have the mindset that the leader is responsible when expected results are not being delivered, and be willing to look in the mirror and ask, “What’s not working?” The results of honest introspection could transform the CEO’s business.

A case in point: CEO Edward willingly admitted to waiting far too long to let go of two members of his executive team. Up until the economic downturn, the company could afford their underperformance. “I used not being able to find the right time to tell them where they were falling short as an excuse,” says Edward. “I was hoping the team would exert the needed pressure on them to step up. I now see the harm that did. I wanted to be liked more than I wanted to be effective. Now I see I’ve lost some respect and trust from thinking that way. Now, I’m not delaying anymore and I am having the needed one-on-one conversations. The response has been unbelievable. It’s as if everyone was wondering what took me so long.”

The road to realization has been difficult for Edward, but the results can’t be disputed — the company holds its own against competitors in an unstable market. He credits his ability to sustain forward momentum with a personal commitment to communication, accountability, alignment and trust. “Being more transparent and accountable for our results has changed everything,” he says.

To support accountability and transparency, CEOs gather as much information as possible to make effective decisions and to execute with alacrity. If this effort is performed through communication, alignment, accountability and trust, supporters are forthcoming and helpful. If the information gathering process causes fear, then self-protection and demoralization among staff are understandable and common. CEOs can easily discover whether their actions produce employees focused on finding the silver lining or looking for cover from the dark clouds.

CEOs do have this power

CEOs who step up and perform transparently can set the example for a new generation of effective leaders. Exceptional CEOs know that they cannot mandate accountability — they can only demonstrate it. Leadership without personal accountability is a bankrupt concept.

The CEO willing to look honestly at economic hard times can find the recession a rich opportunity for the sort of introspection that reveals true strengths and weaknesses and enables a course correction that can lead to not only surviving but also thriving.

Linda Galindo (www.lindagalindo.com) is president of Galindo Consulting, which provides keynotes, consulting and executive coaching on the topic of accountability. She helps leaders succeed by applying a transformational approach to personal accountability. Linda is on the faculty of The Governance Institute and is a board member of the NASBA Center for the Public Trust. She is the author of Way to Grow! and The 85% Solution: How Personal Accountability Guarantees Success — No Nonsense, No Excuses.