What’s the biggest shortcoming a leader can have? My vote is compromised integrity. If an executive wants to enjoy continuing credibility in his or her position, he needs to pursue the truth and confront the truth in everything he does. Dishonesty, misrepresentation, and cherry picking the facts to make an argument are all unacceptable conduct. Too often, leaders stretch or alter the truth to achieve a bigger goal. At the end of the day, perhaps every day, they are Machiavellian.
I was extremely disappointed that Mark Hurd, one of the most highly-regarded CEOs in industry, had to step aside for lapses in behavioral conduct and judgment. His departure was a shock to investors, costing HP $10 billion in market cap on Friday afternoon. Few analysts questioned Hurd’s extraordinary performance. He was the leader who transformed a flailing technology company into the powerhouse of its industry. Straight-forward, down to earth, unassuming, he was not the person we would expect to break the rules.
However, after a thorough investigation, the HP board concluded that Mark Hurd had crossed the line of ethical conduct and violated the values of the company by falsifying expense reports. At the root of the problem was Mr. Hurd’s relationship with a marketing contractor, Jodi Fisher. A lesson for all executives in the private sector: misrepresenting the facts puts your credibility and position at risk.
While Mark Hurd’s indiscretion was probably an isolated misstep, the culture of the public sector, driven by personal and political power, breeds a syndrome of untruthful behaviors with frequent examples of spin and deceit. Unless the American public gets its information from many sources, it is easy to believe the barrage of half-baked arguments and mistruths that emerge from the political arena.
In my view, the standards of integrity have dropped to an all-time low in Washington where bent facts, distortions and political maneuvers are used to advance agendas and win elections. There are consequences, however. Bend too much, and people spot the inconsistencies and flaws. Bend the facts too often, and people begin to anticipate and look for the loopholes. Lies hurt credibility and zap the public’s confidence.
In rationalizing this bad behavior, most of us argue that politicians, by definition, are not honest – forgetting that these same politicians are our leaders. Stretching or misrepresenting the facts has become the norm. Congress appropriates and the executive branch uses funds for another purpose. Presidents who lie or play favorites to the detriment of the country continue to govern. CEOs are forced to step aside.
Should we tolerate leaders who stretch the facts or reveal only a portion of the story to sell their points of view? I say no. Should we accept a piece of legislation designed to cut health care costs, when we know the numbers are being manipulated? I say no. Do we have reason to believe the president’s statement that the Medicare trust is now on solid ground? Let there be limits to truth bending and a greater sensitivity among politicians that the public deserves more.
Take for example, the president’s comments on the July jobs reports. Putting a positive spin on the horrific jobs numbers, Mr. Obama said that this is the seventh consecutive month of growth in jobs, as the US emerges from the worst recession since the Great Depression. He acknowledged that recovery is a slow process. We are not satisfied; “we” have to do more to accelerate job growth in the private sector today, not six months from now. His concern to accelerate private sector job growth should have been addressed with more serious solutions well over a year ago.
The truth behind the disappointing employment report for July appears to be very different. Reuters analysis concluded, “Weak Private Hiring Shows Recovery on the Ropes. – Private employers added fewer workers to their payrolls in July than expected and hiring in June was much weaker than had been thought, a blow to an economic recovery that is failing to gain traction.”
Numerous economic reports are now saying that the administration has taken a course of action to fix the economy that has not produced the results expected. Apparently, it is hard for the executive branch to look at the truth, without admitting that their fiscal policy has generated disappointing results. If leadership is about accountability and courage, a more truthful presentation of the facts is better than saying things are good, when they are not. Public and private leaders need to take a large gulp of truth serum and accept the responsibilities and trust of their positions. It’s time to put the truth back into leadership.
