Put People First (eBook)

Chapter Seven

Authentic Leadership

Promptly at 9:50 a.m., Michael made his way across the Stone Financial Advisors campus to the gardens where he found Nick sitting at their bench.

After their usual greeting, Nick jumped right in. “Can I tell you a personal story?” he asked.

Michael nodded his head and waited in polite anticipation. He really didn’t like stories. Results counted in business, not stories.

Nick proceeded with the story of Charlie Clancy.

“Many years back I’m pretty sure I broke the heart of someone in our organization. At the time I didn’t truly realize what I had done. It only became evident to me years later. Honestly, it still haunts me to this day.” Nick stopped to look up at a squirrel who was gazing at him from his perch high up in the branches of a tall oak tree, almost as if he also was listening to the story.

“His name was Charlie Clancy. He was fifty-seven years old and a master tool and die cutter in our manufacturing operation. He had worked at the company for thirty years. I was a new manager in our manufacturing division. New doesn’t begin to describe how young I was. Five years out of engineering school, but a novice when it came to managing people.

“One morning the chief financial officer walked into my office unannounced and closed the door. I have learned over the years that when a senior executive walks into your office and closes the door without asking, nothing good can come out of it. He told me the company was going through a downturn in orders and that Charlie Clancy was on the layoff list. I was stunned. Charlie was one of my best tool and dye guys in addition to being a great employee. Why Charlie? I asked. There must be a mistake, I protested. He gave me a cold stare and walked out.

“That afternoon the human resource manager called me and said she had scheduled a meeting with herself, me, and Charlie for the next day. The layoff meeting was just awful. The HR manager was cold, efficient, and played it by the book. Clearly, she had done this before. She was like a robot. I told Charlie he was being laid off because of a decline in business. His usually cheerful face turned pale in shock. He never saw it coming. There was so much more I wanted to say, but I knew it would complicate things, and it would for sure get communicated back to the CFO by the HR manager who reported to him.

“I later learned there were other younger and less experienced tool and dye employees who were not on the layoff list. That’s when I understood Charlie’s higher salary factored into the decision to lay him off.

“Charlie Clancy’s last day with the company was on a Friday. He faithfully stayed to the end, working as hard as ever. Charlie showed more loyalty to his job than the organization ever did to him. He left with dignity and honor. That is more than I can say for the company. I watched him walk to his car in the employee parking lot his last day, his head held high. I felt terrible. I was so disappointed in my lack of courage that I considered resigning. I’m not being dramatic when I say my heart ached that day. My heart still aches.” Nick looked hard at Michael. His emotions were running high. “Michael, people matter.”

“Sounds like Charlie’s heart really was broken.”

“Wouldn’t your heart be broken after being let go from a company after thirty years, where you were known as a highly competent, faithful, and loyal employee?” Nick paused. “Maybe it was my heart that was broken. I failed to stand up for Charlie and have regretted it to this day. Do you think I’m being idealistic?”

“I might have said yes before today. Now, I’m not sure,” said Michael.

“So, why do people work, Michael?”

Michael laughed. “This sounds like another trick question. So you tell me.”

“They want to be an essential part of something. They want to belong. They want to contribute, to feel valued, and utilize their skills.”

Michael hesitated. “But there’s more.”

“People also want a leader who is authentic and has a heart for people.”

“Come on, Nick! How realistic is this in the business world? People get laid off . . .it doesn’t mean you don’t care.”

“Depends on how committed you are to the organization’s prosperity.”

“Are you kidding me? You know I’m committed to the success of the business. It’s all I think about.”

“So how is that working for you?”

Hearing that question again stopped Michael cold. He felt like he and Nick were playing chess, and he was losing. “I can’t help it if the economy is changing and some people aren’t pulling their weight,” said Michael.

“Are we being a little bit defensive?”

Michael’s face turned crimson. “Sorry . . .yes, I was being defensive. Sometimes tough decisions must be made, decisions that impact the lives of people. That’s the cold reality of business.”

“No argument from me,” Nick quickly replied. He paused for a moment and then continued. “I’m just saying the layoff of Charlie Clancy taught me about authentic leadership. And here are three truths I’ve come to know.

“Lesson One: Not all employee layoffs are necessarily the right decision. The decision to lay off Charlie was shortsighted, and salary based, and it resulted in the loss of a highly loyal and productive employee. I’m curious why leadership undervalues the human calculation in tough economic times. Why are employee layoffs our first resort rather than our last resort? The irony is rich! Leaders use words like ‘our most important assets’ to describe people in their organizations. Somehow words ring hollow when these ‘important assets’ are given their walking papers. I always felt Charlie’s layoff was inauthentic.

“Lesson Two: I learned that I needed to stand up for the Charlie Clancy’s. Sadly, I failed Charlie when he was most vulnerable. I said nothing. Silence in the face of wrong is inauthentic leadership. Authentic leaders fight for the Charlies in their organizations. We must advocate hard because layoff decisions have consequences within the culture. The suffering extends to those who survived. Some have survivor’s guilt. The silent erosion of organizational trust and morale begins to take root.

“Lesson Three: There will be times when people need to be let go, when it is the right thing. There are good hires and there are good terminations,” Nick concluded. He then looked at Michael and asked, “So why do we fire people?”

“Poor performance!”

“Do you think some employees should be fired?”

“Yes!”

“Have you ever considered that you are doing the fired employee a favor? Maybe it was not the best fit, and that employee felt relief because he or she knew the fit was lousy and was unhappy.” Nick continued with his questions. “Have you ever let an employee go because their attitude was adversely impacting employees?”

“No, but I probably wanted to,” replied Michael.

“Why didn’t you?”

“I’m not sure. Maybe I was reluctant for some reason, or maybe I’m a chicken.”

Nick smiled and responded, “Well, you didn’t do the remaining employees any favors with your reluctance, did you?”

Michael shook his head.

“Have you considered the positive impact an employee termination might have on the organization’s culture, specifically employee satisfaction?”

“No,” Michael confessed.

“Did you know that Jack Welch, the former CEO of General Electric, believed that at any given point in time, ten percent of any workforce didn’t pull their weight? So . . .we agree that some people need to go. This is authentic leadership. Now let’s turn our attention to the ninety percent who are performing well.

“Think of authentic leadership like working on a multifaceted diamond. The diamond cutter envisions what the rough diamond can become and works hard to bring its potential to the light of day. He wants the diamond to shine as brightly as possible. Michael, isn’t that our calling as leaders and managers?” Nick stopped and looked directly at Michael. “The greatest gift leaders can give people is the opportunity to thrive and grow, to help them realize their own possibilities.”

“But how exactly do I do that?”

“It requires a significant change of heart where you decide to genuinely love people at Stone Financial Advisors. People who feel believed in will rise to the occasion. Gail Rudolph, in her book Power Up Power Down, said, ‘The highest calling of a leader is to unlock the potential of others.’1 This is authentic leadership.

“I encourage you to take a couple of days and look deeply into your soul and uncover what is there and bring it to the surface and the light of day. After you have searched your soul, I...