Posts

legendsin-their-lunchtimes

Legends in their lunchtimes

As the basket at the foot of the AMP guillotine begins to fill, for those of us who have had the privilege (or curse) to have been active in business for more than 3 decades, the unfolding events appear all too familiar.

Hubris, and wilful blindness have never combined to end in a positive result. Never-the-less, both tend to manifest as part of a regular business cycle.

An outbreak of believing your own PR is likely to resulting in mounting casualties.

Business success depends not only on sound strategies – well executed – but, annoyingly, on a degree of luck, timing and a supportive broader social and regulatory environment. Too often management and boards can mistake a fair proportion of the latter three (delivered by regular variations in business and consumer confidence) for their own genius.

The resulting natural tendency is to lessen the focus on detail and begin rewarding one another for the job well done. A tendency naturally increased if it is other people’s money that is being used.

The mess uncovered at the AMP is almost certainly the beginning of a long stream of hubristically driven shambles that the, much delayed, Royal Commission into Misconduct in the Banking, Superannuation and Financial Services will bring to light.

The damage to personal and corporate reputations will, in some cases be irreversible and in most cases, take long periods to recover from.

Two things confound and disappoint the public and work to lessen an organisation’s social licence to operate. First, the evident avarice-driven disregard for rules and customer benefit. Second, the failure of boards, as houses of review and management supervision, to identify and act on such abuses.

As professional communicators, we are regularly asked to convey good news and minimise poor outcomes when engaging with ‘stakeholders’ (read anyone who can impact on a share price that drives bonuses or who can tip folks out of a job). Both on principle and in the longer-term interests of our clients, we never knowingly misrepresent the facts. We may focus on one element more than another, but to lie is to ensure you will, eventually, get caught-out. An outcome that damages all involved.

Board members of any public company, industry body, not-for-profit or other such organisations have a responsibility to ask management the difficult questions, to challenge assumptions and, where necessary, to check the detail. Even if all is presented, on the surface, as good news.

In getting to the facts, too often we have witnessed situations where process is relied upon rather than proper answers. Instances where to us, as so-called spin masters, it is obvious that either not enough substance is present and/or too much pre-spin has already been applied.

Thankfully, few such cases have involved our existing clients. But we have worked on quite a few crisis management cases where the damage has already occurred.

Business cycles have, even in our relatively short experience, displayed a predictable regularity. A longer view of business history does not support an alternate conclusion. Executive management and boards should, in good times and bad, take a close look at how their businesses operate, how they generate the results, consider the prevailing conditions and ensure that they are well insulated from possible ethical, regulatory and operational failures.

If that is happening, the task for the communicators is to tell a good story, well. If not – welcome to the town square, with the crowd baying for blood. The most that can be done at that point (at great expense) is make the best of bad situation and prepare the ground for the successors.

Japanese-Character-For-Respect_883x331

Would you like decency with that?

Helping your organisation develop a values based culture, how Bushido shows the way

Open a paper, turn on a TV, or click something that’s not bait and you will not have to turn far, wait long, or search hard to find a story about bad corporate behaviour. This is no better illustrated than by the recent Mossack Fonseca (Panama Papers) and Unaoil revelations (ably supported by a cast of local stories such as 7/Eleven, CommInsure, Wilson Security et al).

So, is the surfacing of these revelations a deterioration in corporate culture and associated decline in ethical standards, or has this always been the way in which the spinning of the globe has been oiled and there has just been a rise in investigative reporting that has brought these issues out into the open?

The answer is likely a mix of the two, however the naïve optimist in me would like to think that a fall in the standard of behaviour accounts for the majority of the stories that have been broken; as opposed to the alternative of low-standards having always existed out of view.

Progressing on that basis, the question arises how do organisations ensure that their much vaunted corporate values are adhered to in the pursuit of shareholder value and returns? As we know, dollars (or perhaps what they represent) are very powerful things.

Societal values are evolutionary in nature; by way of example I cite our acceptance of violence. It wasn’t so long ago that a punch up at the pub, though not encouraged, was accepted as a form of dispute resolution. Rightly, this is no longer the case.

I therefore contend that organisations (be they government, corporate, or not-for-profit) need to have an adaptive system in place that educates their operational headcount about what is, and is not behaviourally acceptable. A one-off, tick box exercise to satisfy a checklist would not be sufficient given that the subject matter is undergoing continual metamorphoses.

An enlightening parallel can be found in Bushido: The Soul of Japan, an explanation, if you will, written by Inazo Nitobe[1] of the moral principles that Samurai were required or instructed to observe.

The nature of the system was such that it was not a written code; rather it was a set of principles that were handed down organically (not unlike an oral history) either via word of mouth, or more impressively through deed.

Interestingly, the paid fighter was naturally recruited from some fairly rough and ready personnel, it was through the generational application of the ‘unwritten moral code’ that Samurai came to be highly respected and seen as both the exemplars and guardians of the highest behavioural standards.

It was a sorting of the wheat and chaff that conveyed enormous privilege and responsibility upon those within its ranks.

It is possible to make the argument that our leaders are those now charged with passing down through word and deed the standards that are expected of their charges. These standards must be the living representation of ‘Value Statements’ and take into account the evolving expectations of society at large.

As outlined by my colleagues Rob Masters (Contrite Contrition) and John Kananghinis (The Values Deficit) in this edition of Words and Insights society at large has had enough of hearing mealy mouthed platitudes laid at the foot of the most recent scandal. They want to see leaders who own the situation and the moment; leaders who embody their values statements through their actions; thereby laying the foundations and paving the way for the next generation of Samurai to follow them, and protect society’s behavioural standards.

For a brief history of Japan, click here

 

[1] Inazo Nitobe (1862-1933) was born in Morioka, Iwate prefecture. After graduating from Sapporo Agricultural School, he went to the United States and Germany, where he studied agriculture and economics. On his return to Japan, he held various positions in education. From 1920 to 1926 he stayed in Geneva as Under-Secretary General of the League of Nations. After retiring from that post, he dedicated his life to peace. In 1933 he died in Banff, Canada.

 

 

Portfolio Items