Vol. 68: The Keys to an Apology

Integrity, vulnerability and humility: keys to an apology

 

“Pride is concerned with who is right. Humility is concerned with what is right.”  — Ezra Taft Benson

I was ready to return to our series on strategic finance after my last column about the integrity of umpire Jim Joyce and the accountability of BP… until I read a comment in the Washington Post by Jeffrey Pfeffer, a professor of organizational behavior at Stanford University.

Citing Henry Ford’s infamous quote, “Never complain, never explain,” as the preferred way for business leaders to deal with disasters like the Gulf oil spill took me by surprise.

BP is the poster child for a failed apology

In appearing to criticize BP’s CEO Tony Hayward for apologizing for BP’s actions, Mr. Pfeffer extols the value of being on the “winning side,” that people respect strength and diffidence does not convey winning or power. Research in social psychology, he continues, “shows that acting embarrassed or remorseful conveys less power and results in less favorable impressions than acting angry.”

In the context of BP’s PR debacle, those comments seem wildly misplaced. Does Mr. Pfeffer think BP would have won our hearts and minds by taking no responsibility, “never explaining,” and that he should have acted like he was angry that people blamed BP for this unexpected accident? I can’t imagine worse advice than if I recommended that you chase down every meal with a quart of engine oil.

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Read more about the article Do we need a Federal Escrow Fund?

Do we need a Federal Escrow Fund?

I’m sure this will be a popular post … but set aside your emotions for a moment about the BP disaster… and consider the insistence by the federal government that an independent agency take over the claims resulting from the oil spill,  purportedly overriding BP’s authority, and that of the other 12 entities on board the oil platform, in those matters. The suggested prototype is the independent examiner appointed to handle claims resulting from the events of 9/11 … but recognize that those events were NOT directly caused by a legal entity with rights and responsibilities and shareholders, or that was subject to a myriad of legitimate national and international governing bodies.

Who should decide how much to pay whom for oil spill claims?

What I wonder is whether BP … in most cases, any corporation … shouldn’t have some rights and control over the claims paid from funds ultimately belonging to their shareholders? Take special note that in BPs case, a powerful example of the global economy in which we live, 18 million British citizens own stock in BP, many of them retirees.

Emotions are running high and many people would prefer to see BP hanging from the nearest rafter. At the same time, shouldn’t a company be allowed to settle claims in a fair and reasonable manner? There are plenty of ways in which individuals and organizations can seek redress if they disagree on the results, either through appeal or in claims or civil courts if a reasonable settlement cannot be made.

What paperwork? (more…)

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Read more about the article Any control freaks out there?

Any control freaks out there?

Those of you who are willing to admit …  or deserving … of wearing this crown have probably stumbled down the staircase more than once trying to exert your control over every fiber of the carpet beneath your feet.

Researchers have found that when test subjects are even subliminally exposed to the name of a person they believe is “controlling”, they unconsciously do the OPPOSITE of hard work. It seems that people value their freedom “so much so that even an unconscious memory of a controlling person stimulates a behavioral reaction.”

Combine this with The Productivity Paradox and the work done at Sony Pictures to focus more on employee energy management rather than time management, (more…)

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Read more about the article People are still – and will always be #1.

People are still – and will always be #1.

Many of you are familiar with my interest in the Corner Office articles appearing in the New York Times on a regular basis. These articles, by Adam Bryant, focus on varying approaches taken by CEOs to lead their organizations.

A recent interview with Fuse founder, Bill Carter, reminds me of two critical variables that are easily lost in our haste to always move to the next issue. First, above all, having the best people is the only antidote to business mediocrity. I’ve said it time and again, and virtually everyone knows this deep down (but very few put it into practice) …  that the organization that excels identifies the best people, makes certain they are properly rewarded, and never stops looking for top talent. (more…)

Continue ReadingPeople are still – and will always be #1.