An Infuriating Insight
I was recently able to join one of my role models and senior advisors, Jim Kouzes, as a participant in his teleseminar about leading through tough times. It is a very relevant topic nowadays, and one I have been considering as the theme for my next book.
There was an opportunity to email questions in advance, so I availed myself. I sent Jim the hairiest, most difficult question that was on my mind that day. It is the kind of student I have always been. Jim knew immediately when the question was read who had sent it: Who else would ask so obnoxious a question? But who better to send my obnoxious question to, if I wanted a good answer to it? Here is the email I sent:
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I have heard a CEO describe how he was able to ask for and get more performance out of his 50-odd employees, and so his company grew and prospered despite the economic downturn. He said he was able to accomplish this change precisely because of the “bank account” of credibility and goodwill that he had established over many years. What can a leader do if they do not have such a preexisting bank account?
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Was that an obnoxious question or what? I sent the question in advance, but Jim did not hear it until we were live on the conference with hundreds of people listening. He is very good.
His answer infuriated me. I had hoped to learn of some magic bullet that would allow a leader with a low bank account to somehow capture the integrity dividend. But magic bullets are the stuff of fantasy, and not hard reality. No magic bullet was forthcoming.
After thinking, Jim said simply, “Don’t overspend.” Treat it like you would a real bank account, at a bank that is managed properly. Live within your means. If you pay your bills on time, your credit rating slowly increases. As that happens, you get more flexibility. But first you have to live within your means. Don’t overspend.
What? That is not an answer. I was mad. I was nettled. I was confused.
After a few more minutes, I was awed by the simple brilliance of Jim’s answer.
There are no magic bullets. Trust is earned over time, or it is not. The current economic times mean that leaders need to ask their people to make sacrifices. And the legal and tactical environments are such that a leader cannot fully disclose the reasons for actions – and so must sometimes fall back on the entreaty to “trust me.” “Trust me” only works when they already do.
The CEO I had spoken with navigated the hard times by drawing on his healthy bank account. If you don’t have one to draw on: start building it.
So that is the answer. Simple. Elegant. Infuriating. Difficult to practice. But spot on.
“Don’t overspend.”
