Values Trump Rules

November 19, 2013

The last two postings, which were about rules and rule-making, have quoted from how:  Why HOW We Do Anything Means Everything by Dov Seidman. The book deserves at least this additional commentary.

Mr. Seidman posits that in the modern world of hyperconnectivity and transparency (which he describes in detail), there is no such thing as “private” behavior. It’s all public and, therefore, how we do things is more important than what we do.

He states that to stand out in a positive way, an enterprise must “outbehave” the competition. And he says, such behaviors do not follow rules, they flow from values.

This means, according to Seidman, that effective leadership in this environment will be less about coercion (rules) and more about inspiration (values). Leaders will spend less time talking about the carrots and sticks of managing people, and more time focusing on “values and missions worthy of their commitment.”

It’s a shift from “task-based jobs” to “values-based missions;” a transformation from “command and control” to “connect and collaborate” leadership. “It’s a move from exerting power over people to generating waves through them.”

Instead of talking about organizations that are too big to fail, Seidman says we will have organizations “that are too sustainable to fail, too principled to fail, and too good to fail.”

Gut Check

October 18, 2016

After nearly eight years on the staff of the National Federation of State High school Associations, I accepted the challenge of leading an effort by a private business to consolidate the insurance needs of high school athletic associations and to control their coverages and costs through a self-insuring pool. My assigned goal was to assemble at least half of the 50 states in this fund. The need was so great at that time for comprehensive general liability and directors and officers insurance tailored to the unique needs of state high school athletic associations, that the group was quickly assembled and launched.

My time leading this effort was brief. In spite of the program's immediate success and continued growth, I became uncomfortable. The discomfort was born and grew in the fact that while I was out meeting with states, decisions were being made back at the home office that I was not involved with or aware of. I began to feel used ... my credibility was bringing in business, but changes were being made without my input; and I feared for my reputation. After a year of this, I resigned the position. That was 1981.

Nine years later, the companies' CEO was terminated when it was discovered that he used the construction of a company headquarters office to build himself a new house at the same time, burying his home construction costs into the books of the companies' capital expenses. Seven years after that, the companies' founder and namesake went to jail for operating from 1984 until at least 1993 what was determined to have been a Ponzi-like scheme.

I listened to my gut which, long before my head, knew something was not right. In fact, my gut seemed on alert well before things went wrong. This has happened at other crossroads and dozens of less dramatic moments in my professional and personal lives.

In this time of increasingly complex and difficult decisions, both personal and professional, the gut may be a good guide for us all.