“It’s the Economy, Stupid!”

Remember that line? It was the sound bite during the historical presidential election of 1992. Some would say that the incumbent, President George H.W. Bush, lost the election based on breaking his now famous (maybe I should say infamous) promise, “Read my lips; No new taxes,” during the 1988 Republican National Convention.  And then, on his watch, taxes were raised. Result? A  one-term Presidency by the man with the best resume in the business!

Loyalty is the lesson to be learned. When people feel that another person has not kept his/her word, trust is broken and loyalty will not be granted. Leaders have to know that trust is the one currency they must keep in excess to remain viable.

And, like cash, trust can be managed.

Leaders (without exception) have a “trust bank.” The account can receive deposits, earn interest, and even become overdrawn. Most of us begin our leadership journey with a marginal deposit in the account. It comes to us because our position is granted a measure of trust currency. What we do next determines how long we lead. When the account dips below the level of its initial balance, the leader loses the right to lead. A change in leadership is inevitable.

The account grows when a leader:

1. Sincerely cares for those he/she leads. Remember this: No one cares how much another person knows until they know how much another person cares. Kindness, respect and courtesy add to the leader’s account balance.
2. Is open to another’s thoughts and ideas. Leaders solicit input from those they lead. When a leader solicits ideas and presents his/her ideas to the criticism of the group, the leader is seen to be secure and confident. This builds trust.
3. Makes good decisions. Every good decision that moves the organization forward adds multiple units of trust into the account. The leader benefits exponentially when staffing decisions prove to be right.
4. Admits his/her errors. Leaders quickly and openly own their errors and do not make excuses. Leaders do not say, “I was wrong, but I had poor information; I was under pressure from the board, etc.” Leaders say, “I was wrong; this is where I was wrong; I take responsibility for my actions.”
5. Openly rewards the accomplishments of others and allows others to receive praise from the organization. Real leaders understand they cannot go higher than those around them.
6. Protects those they lead. Leaders understand that they not only stand accountable for their mistakes, but as the leader, they are accountable for those they lead. Leaders who will “take the bullet” for those they lead will engender trust.
7. Does what they ask others to do.
8. Actively communicates across all lines in the organization. Communication clears away the clouds of doubt that naturally exist within organizations.
9. Consistently acts within his/her value system. Leaders do not compromise their values.
10. Never takes himself/herself too seriously. Trust me. No one else does!

To empty the trust account, do the opposite of the aforementioned positive actions.

1. Use people. Be aloof and unapproachable.
2. Shut down dialogue and be seen as a “know-it-all.”
3. Be hasty in making decisions and operate without a system of decision making.
4. Always lay blame on someone/something else.
5. Be jealous when other people succeed.
6. Never be accountable for the performance of the team.
7. Have a “do what I say, not what I do” mentality.
8. Don’t communicate. After all, leaders do not owe explanations to those they lead.
9. Always keep people guessing about what you think is right or wrong. Operate with a philosophy of pure pragmatism. The end always justifies the means.
10. Treat your position/project/assignment/you as the center of the universe and demand that others re-define their star charts to reflect your importance.

Take this list and think about this: Could there be a reason that more than six out of ten American disapprove of the President’s job performance and less than three out of ten Americans approve of the work done by the Congress?

Could there be a reason why you are having trouble moving your agenda forward at work, home, civic/religious group or within your board?

Just a thought.

My dad always told me to never buy a car built on Monday or Friday. Why? On Monday, the workers are coming back with possible hangovers and probable hang-ups about a job they may or may not like.

There was a time that a colleague and I would meet in the hallway on Monday and exchange resignations. It wasn’t that Monday itself had ever done anything to me. And, the job wasn’t that bad. Further reflection uncovered that my motivation was based on the stresses of life going unmanaged.

I believe that most of the performance issues business owners are facing have more to do with issues rooted at home than those based on the job.

Think about it.

Everyone who punches the clock on Monday is dealing with stress over finances (heard the one about rising gas and food prices? What about the foreclosure rate skyrocketing?), children, marriage (or the lack thereof – remember, the divorce rate is still pushing 50%), outsourcing of jobs and the uncertainty of the future. This can lead to extreme anxiety and even anger. Unresolved anxiety and anger can lead to depression. Depression can, and will, lead to lower productivity in the workplace.

Forward-thinking business owners and managers must look beyond vision and mission statements to motivate employees. Not even performance rewards can silence the bull-horn of a falling real estate market or a teen lost in an emotional swamp. HR professionals have to cover the regulatory compliance issues of diversity, non-discrimination, benefits administration, and internal quality controls. The real issues affecting performance can be lost in the paperwork jungle.

There will always be room for leadership symposiums and team building exercises. What about workshops on personal finances (the average college graduate is not equipped to manage personal finances. Seen the bankruptcy rates lately?), parenting, or marriage. Employees are more than cogs in the engine of commerce. They are people with everyday stresses that impact their job performance.

Business leaders can show employees that they are valued and supported by providing on-site resources to help with the stresses of life. Companies can also provide access to professionals who can assist employees through group coaching, seminars, and round-tables.

Major corporations like Intuit and Geico are stepping up and offering more and more support services for employees. Some employees of these companies have told me that the support of them as people and not the pay keeps them loyal.

Kouzes and Posner would call this "soft leadership." In their book, Encouraging the Heart, they say that it is imperative for leaders to master the ability to powerfully recognize the efforts and achievements of those they lead. In fact, they state that nothing - not even money - motivates people like recognition.

Patrick Lencioni, author of the best-selling The Five Temptations of a CEO, acknowledges that this kind of soft leadership that generates a workplace that cares is most valuable in today's, "economy of job-hopping and nanosecond loyalty."

Just a thought.