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Duck Tales

March/April 2005

The Credibility Factor

If you asked employees to describe the perfect leader, this is what they'd say, according to one study: someone who's honest, competent, inspirational, and forward thinking. Put those qualities together and what do you get? Personal credibility.

People want to believe in their leaders. They want to trust their words and to know that their leader is personally enthusiastic about the company's direction and has the knowledge and skills to lead. If they don't trust and believe in the messenger, how can they trust the message?

In this issue of Duck Tales, ™ we'll be looking at the issue of leadership credibility. It's the foundation for a healthy, thriving organization. Leaders set the standards in the organization. That means credible leaders make for credible employees and thus a credible company.

Everyday Trust

Just because CEOs must now swear under oath that their company's financial statements are in order, it doesn't necessarily follow that people will believe them. Earning the trust of employees, customers, and shareholders today extends far beyond federal mandates. Trust comes when you “take the long-term view, instead of worrying only about the short-term stock price,” says one expert.

Meanwhile, Charles Holliday, chairman and CEO of the DuPont Co., says a company president should be responsible to four constituents: investors, employees, customers, and the public. Holliday says that when businesses undergo change or restructuring, CEOs should emphasize what is not changing, such as core values, concern for employees, and safety. While shareholders are often concerned with bottom-line numbers, CEOs should help them understand that the company is more intent on doing the right thing, rather than resorting to a quick fix.

Take it from Trust E. Duck, ® gaining the everyday trust of the public comes down to the core values and examples set by the CEO. When customers and employees witness hard, honest work combined with open communication, an organization is inclined to earn the trust and confidence of those it serves.

Back to Basics

Too many people get caught up in the extrinsic rewards of leadership. The intrinsic reasons—really caring about the people and the purpose—can get lost in the shuffle. But, say authors Jim Kouzes and Barry Posner, leaders need to be mindful of these basics if they want to inspire confidence in their abilities:

Trust is fundamental. Our capitalist system is based on trust—not on an investment model or income statements or balance sheets, argue Kouzes and Posner. Case in point: CEOs of publicly traded companies must now sign a document swearing their financial reporting is truthful. If people don't believe in those supplying the numbers, the organization doesn't have a foot to stand on.
Your legacy is the life you lead. People judge leaders on how they spend their time, how they react in tough situations, the stories they tell, the questions they ask, and the language they use. Therefore, leaders must be vigilant about practicing what they preach.
Leadership matters. Despite everything that's happened over the last few years, people still want to believe in their leaders. They just want their leaders to respect their contributions, to value service, to put principles ahead of politics or profits, and to put others ahead of themselves.
You are what you do. Our actions define who we are. Perhaps this quotation by author Thomas Likona says it best: “Be careful of your thoughts, for your thoughts become your words; Be careful of your words, for your words become your deeds; Be careful of your deeds, for your deeds become your habits; Be careful of your habits, for your habits become your character; Be careful of your character, for your character becomes your destiny.”

Five Traits of Great Leaders

In his book What the Best CEOs Know, Jeffrey A. Krames identifies these five characteristics that great leaders share:

They have an “evangelical gene.” Great leaders demonstrate tremendous enthusiasm about their jobs, their companies, and their causes—they are secular evangelists. They possess that fire-in-the-belly excitement about a particular idea or product, which in turn motivates and inspires others.
They understand the importance of culture. Great leaders know it's not the type of corporate culture that is important, but that the culture is meaningful, strong, and authentic. An authentic culture takes years to develop, but it is key to enhancing performance and achieving goals.
They keep their eye on the future. Great leaders anticipate emerging needs and trends and create products, processes, or solutions to satisfy those needs.
They embrace the best ideas. Great leaders don't try to come up with all the solutions themselves. They encourage everyone to come up with new ideas and solutions and then implement them.
They advance the body of leadership knowledge. Great CEOs contribute to the leadership playbook, and sometimes they even rewrite it. Bill Gates developed a revolutionary way for individuals and companies to share information; Herb Kelleher proved that culture can be a tremendous corporate asset. All great leaders know that leading is about ideas, excitement, and having fun along the way.

In All Fairness

Trust is one of the most basic human values, but many believe it is sorely lacking in the workplace. According to a survey by Aon's Loyalty Institute, 13 percent of workers distrust their employers. Another study by Watson Wyatt Worldwide revealed that half of the workers surveyed distrusted their senior managers.

The absence of this basic human requirement may actually erode profits, according to the Watson Wyatt survey. According to their research, in companies where workers trusted executives, the businesses had 42 percent higher shareholder returns than organizations where distrust dominated. Employees say that more than anything they want leaders to be fair and honest.

In the book, Trust & Betrayal in the Workplace, authors Dennis and Michelle Reina say the rules of trust are actually very elementary. They include mutual respect, sharing of information, admitting mistakes, constructive feedback, avoiding gossip, and involving others in decision-making. To alleviate the problems associated with distrust, some organizations now train all levels of workers in respect, fairness, ethics, and honesty.

How Do You Handle Adversity?

A young woman confessed to her mother that life was too hard—she didn't see how she could continue struggling. As soon as she solved one problem, another one cropped up. Her mother listened quietly and then went to the kitchen, where she placed three pots of water on the stovetop to boil. Once all the pots were bubbling, the mother placed a bunch of carrots in one pot, several eggs in another, and coffee grounds in the third.

After about 10 minutes, she turned to her daughter. “Tell me what you see,” she said. “Carrots, eggs, and coffee, of course,” answered the daughter. “Yes,” said the mother. “But there's much more. Do you see how each object dealt with adversity, the boiling water? The carrots went in strong and unrelenting and came out weak and softened. The eggs went in fragile and malleable but came out hardened and unforgiving. The coffee, on the other hand, is unique,” said the woman. “It went into the hot water and actually changed the water into coffee. It didn't see the hot water as a hardship, but as a chance to prove itself.”

The daughter listened carefully as the mother continued. “Which one are you?” she asked her daughter. It's your choice. Are you the carrot that seems strong and stoic but wilts under stress? Are you the egg, which becomes hardened and stiff when facing adversity? Or are you like the coffee bean? The bean doesn't let the hot water get the best of it. It figures out how to alter the water to its benefit. “Choose wisely,” said the mother, “for you will face obstacles every day of your life. And you have a choice in how you respond to them—we all have a choice, whether we realize it or not.”

Beyond Book Smarts

What does it take to be a true leader? Granted, technical ability, years of training, and an above average IQ all play a role, but experts say superior leadership takes more than book smarts or years on the job. In studies of exceptional leaders, “emotional intelligence” appears to be crucial. In fact, some experts believe emotional intelligence is more important for leaders than cognitive skills. Here are the main types of emotional intelligence:

Self-awareness. People with a deep self-awareness have an intrinsic understanding of their emotions, their drive, and their impact on others. They understand both their limitations and their strengths. They welcome constructive criticism.

Self-regulation. People who can control their emotions and impulses and think before acting make exceptional leaders. Their reasonableness generates an atmosphere of fairness, reduces infighting, and increases productivity.

Motivation. Nearly all leaders are highly motivated. Emotionally intelligent leaders, however, are motivated for reasons other than money or status. They like to be “stretched”—to perform at new levels.

Empathy. Easy to recognize, but not always easily acquired, empathy allows leaders to build and retain the best of talent. It allows them to respond thoughtfully and intelligently to employees' emotions.