Posted by: Susan Fronk

Preventing Leadership Failure

Preventing Leadership FailureLet’s imagine that you are a very successful business owner or executive. You have achieved amazing results in your company. You are making a great deal of money and enjoying the fruits of your labor. You have earned the respect of your subordinates as well as your peers. You deservedly get the credit for how well things are going. When you talk, people listen. You have the authority to hire people, take them to task when things go wrong or fire them at will. You are now supremely confident in your ability to leap over any obstacle you encounter on the road to success and land on your feet. You feel good about your company’s future. You feel even better about yours. But, maybe you shouldn’t.

After working with many highly successful executives who experienced career failure, Dr.Tim Irwin, an organizational psychologist, noticed a pattern of mistakes which inspired him to write Derailed: Five Lessons Learned from Catastrophic Leadership Failure (available for theKindle).

Irwin was intrigued by the fact that the fatal flaws of leaders who failed had nothing to do with a deficiency in IQ or even competence. These people were smart, tough-minded, willful, skilled at political maneuvering and strategy; all necessary for success in the business world. What Irwin discovered after studying the derailment of six high profile CEOs will surprise you. In this short video, Gretchen Carlson of FOX News interviews Dr. Irwin who shares some common mistakes executives make that can lead to their demise.

In Derailed, Irwin paints a compelling portrait of how highly successful leaders fall victim to an insidious hubris which eventually leads to their downfall. He opens the book by pointing out our fascination with the misfortunes of others. We get a perverse pleasure from watching the mighty fall; relishing it when they get their recompense as we did when Bernie Madoff, the infamous operator of the largest Ponzi scheme in history was caught, convicted and punished.

“It’s like watching a train wreck. We should look away, but we just can’t”…George Will said “few things are as stimulating as other people’s calamities observed from a distance”. Perhaps this explains why we seem to have such an appetite for bad news, celebrity gossip and highway accidents. Irwin hopes that by reading the book, we can learn from other people’s experiences (OPE).

For this reason, the book has significant value for anyone who aspires to greatness; especially small business owners. There are several lessons in the tragic story of the California train engineer who ignored a red warning light and a dispatcher’s verbal warning before crashing into a freight train at 40 miles per hour, killing 25 and injuring another 135 people. The investigation revealed that the engineer had been texting just moments before the crash.

In a way, all of us are engineers, directing the path of  our lives, our families, our companies, our teams and departments. And we are all vulnerable to derailment. In the book, Irwin points out that derailment is a process and shares 5 separate stages:

  • Failure of self/other awareness
  • Pride before the fall
  • Missed early warning signs
  • Rationalizing
  • Derailment

According to Dr. Irwin, if there is one factor more than any other that can get you off track it is arrogance. I am completely honest with myself, I can recall several times when my life and/or career ran off the rails. And, although there were extenuating circumstances in every case, and there was plenty of blame to share with others, arrogance played a role.

What I loved best about Derailment was Irwin’s conclusion that when it comes to leadership, character trumps competence! In my career as a management consultant I have observed countless numbers of leaders who have demonstrated that this is true. Irwin’s definition of character has 4 components:

  1. Authenticity
  2. Self-management
  3. Humility
  4. Courage

As important as character is in business, however, it is critical that you define it in behavioral terms. For example, what kinds of actions and decisions demonstrate that a person has or does not have good character?  What does it look like when someone has authenticity, self-management, humility and courage? All of these nouns can be extremely difficult to define, assess and measure in people. Different people will define them differently.

Many a company has tried to build competency models for jobs that include character. However, unless a company can define character in behavioral terms, it can increase their legal exposure if they try to use it to make decisions about an individual’s career. In my opinion, character or the lack thereof is not a competency. It is an individual’s operating system-what drives them to make certain decisions and take specific actions.

If you would like to know if you are at risk of derailment, take Dr. Irwin’s FREE Derailed Personal Risk Assessment.

I don’t know about you, but, in my case, I tend to learn more from my failures than my successes. Do you have story to share about learning from failure or derailment? I would love to know your thoughts on this very important topic!

Feel free to contact me by visiting my LinkedIn page or emailing me at susan.fronk@bestbizpractices.org.

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Responses

I think the term “best practice’ has lead many companies down the path of a false sense of security. They should be following the mantra of lean and agile so you can compete with more agility.
http://bit.ly/9F7Csl

Susan, great topic – a sense of humility does all of us a great deal of good. A question would be does an individual need to be humbled to make for a better leader or not?

Best of Success,
Eric Mitchellette

Eric,

I really don’t know. I would think that we can be humble in one area and arrogant in another. I do know that we tend to judge others more harshly and are less appreciative of their performance in the areas where we feel confident and competent. So, maybe we are more lenient with others and more appreciative of their performance in areas where we feel less confident, competent and humble. Hopefully someone else can enlighten us!

Susan

Susan,

This is an interesting article and the conclusion seems to be going against many leaders aspirations. Many leaders seem to think that they cannot admit to any faults or mistakes. Self-management seems to be the downfall of many high visibility leaders when the have a moral lapse. It is no coincidence that most people are pleasantly surprised when they get a leader who is authentic, humble, courageous, and has self control.

Thanks,
Chris Paulsen

Susan:

You are correct that people want to see and hear about tragedy. Just look at the local news.

Some of the CEOs do seem to need a comeuppance though for their arrogance.

Thanks for a multi-media post with video and links.

Rob

Christian,

It is unfortunate, but you are correct about many leaders. Here’s my theory. Some call it ego strength. I have noticed that people who rise to leadership positions tend to have disproportionate levels of dominance in their personalities. Raw dominance responds to any challenge swiftly and sometimes with aggression. Perhaps this is where the expression, “don’t shoot the messenger” originated.

My husband, who is an accomplished (entrepreneur) and charismatic leader, is supremely confident in his opinions. He is insatiably curious and usually only forms an opinion after learning from experience, other people’s experience and/or research. This makes him a formidable foe in a debate. In fact, he often warns me, don’t try to change my mind unless you know your subject and have the facts. Therefore, I do not attempt to sway his opinion or challenge him very often unless I have a lot of passion around the issue. And then, I know that unless I have some my facts in order and some very compelling arguments, it could still be a waste of time and energy.

Now, these behavioral tendencies (similar to a great many leaders) serve him quite well in most situations. However, considering the speed of change, some of what he believes today that is true may not be true tomorrow. Consequently, if people (me included) don’t know enough or care enough about some issue to challenge him , he will continue to think as he has always done, even though he could be wrong (if he reads this thread I better have my facts straight!)

Rob,

Thank you for taking the time to comment!

Showing leaders with heart and humility is one of the reasons why “Undercover Boss” has been so popular. We have a post about it on our blog called “Leaders with Heart”.

Susan

Just yesterday the CEO of Target Corporation apologized for its $150K donation to a conservative political organization in MN. For some reason Target did not think anybody would notice their donation to an organization that contributes money to a political candidate that has political platforms that goes against Target’s own stated policies. Target thought they were donating to support strictly the business views of a political candidate. How can a company so savvy in the business world make such a political blunder? The whirlwind of public outcry forced Target to make an apology to get them off the front page.

They should leave the politics to their lobbyists on K Street in DC.
Earlier this week another well respected company, Intel, was slapped with major business restrictions to settle an anti-trust case that was brought by its major competitor. It had earlier received a significant fine. What makes a well respected company cross the line from being a competitor to being a predator wanting to destroy its competition using illegal tactics?

I was at a presentation earlier this week by the former CEO of First Bank/USBank who asked the same question. He preached for corporate ethics which somewhat surprised the business crowd.
Why are these stories of corporate arrogance endless?

David,

Most students of leadership and politics are familiar with Niccolò di Bernardo dei Machiavelli. His use of cunning and deceitful tactics are legendary. Sort of along the lines of “the end justifies the means”. Leaders who employ similar tactics are aptly labeled as Machiavellian.

One thing to keep in mind: what we perceive as failure and what our supervisor perceives as our failures may be two different lists. It’s important to be on the same page. Everyone, even a CEO, has a supervisor (aka board of directors). Perception is 90% of reality, at least in the eyes of the beholder. Frequent check ins and no-holds-barred conversations are what help to bridge the gap between your failures and the realities others see.

Shelly,

Well put. We all have blind spots and certain aspects of ourselves that are undeveloped. Have you ever heard of a human development model called the Johari window ? Charles Handy calls it the Johari House with four rooms. Room 1 is the part of ourselves that we see and others see. Room 2 is the aspect that others see but we are not aware of. Room 3 is the most mysterious room in that the unconscious or subconscious part of us is seen by neither ourselves nor others. Room 4 is our private space, which we know but keep from others.

This is very true, it happened to me. I was at the top of the hill, successful, I thought nothing could touch me. Then I was without a job, I had to learn this lesson the hard way. Hopefully top CEO’s will read this book and learn from it so they don’t have to find out the way I did.

Jeannine,

Thank you for for your candor. Personally, I learned most of what I know today-the hard way; by making mistakes. Someone once said, the best way to learn good judgment is from exercising bad judgment.

From a collective perspective we often do not learn from history and we often make the same mistakes.

Much of the current involvement and decision making in Iraq and Afghanistan went against the advice of our military leaders who are well trained in military history, leadership and tactics to name a few traits.

David,

Discretion constrains me from getting into politics. However, it is common for leaders to lack the right advisors or fail to listen to the right ones.

The latest fall from grace is the now former CEO of HP, Mark Hurd. The news releases from HP are a little confusing. He is accused of sexual harassment from a former marketing contractor but he is being fired for filing improper expense reports to cover up a relationship the contractor said they never had. The guy was making millions of dollars and he tried to cover up $20K of expenses, does not make any sense.
He left pretty fast so I would assume there is more to this story. This is the second straight CEO that has left HP under duress.

If someone is truly wise, they will learn from horrendous mistakes like this. Look at Denny Hecker, a former car dealer in Minnesota. He learned the hard way and now he is putting in hard time. I learned the difficult lesson of crashing and burning. I had to sell things and consolidate debt. There is a real strain on my marriage and more. I have vowed to live a simpler life and treat all people with respect.

David,

Hmm-it certainly makes one wonder if HP needs to do a better job of selecting their leaders!

Jeannine,

In response to your insightful remarks about leadership, I know all about the misadventures of Denny because I live in Minnesota! Denny Hecker could be Minnesota’s poster child for failed leadership.

With regard to your entrepreneurial DNA, your story sounds like a text book case of what the researchers found in in the study. Besides being exposed to your Dad’s business life and hard work, what else do you think influenced you to become self-employed?

I was at an interesting presentation today by the head economist for the state of MN. He quoted an old line but with a new tag line and context to the economy:
‘I don’t skate to where the puck was, I skate to where it will be’.
Wayne Gretzky – Philosopher

I am not sure why HP thinks this CEO resignation is going to just go away. More info slowly leaks out and it doesn’t look pretty.
http://mbtmag.com/Content.aspx?id=796

David,

We are tempted to believe that today’s corporate scandals are worse than they’ve ever been. If the truth is told, they are just “business as usual”. The big difference in corporate scandals today is that damage control and cover ups are much harder to execute due to the viral nature of social media.

i noticed there was a comment about the failure of Denny Hecker related to his leadership. I have a paper to write for my business class about a good leader and a poor leader, and i was wondering if you could share some examples of why Hecker is a poor leader. thank you, i appreciate it!

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