CREDIBILITY is a leader's currency. With it he or she is solvent; without it he or she is bankrupt. Consider this metaphor: A leader with credibility has a pocketful of coins. As long as the pocket is full, the leader is believable, worthy of respect, and able to be trusted. Each time the leader breaks a promise or acts inconsistently with professed values, he or she must pay out some of the coins in their pocket.
When the coins are gone, so is the leader's credibility. No amount of persuasion or personal appeal will be able to buy it back. Once lost, respect and trust take years to regain.
Here are the four keys to establishing credibility in your leadership:
1) Speak the truth.
Be honest and upfront. Transparency breeds legitimacy--make it a priority to be open with financial statements, policies, and decision-making rationale.
2) Don't hide bad news.
With corporate scandals at Enron, WorldCom, and Arthur Andersen seared in our collective memories, we have entered an era in which transparency is demanded like never before. With multiple information channels available, bad news always becomes known, so it behooves management to be candid right from the start.
Winston Churchill is a classic example of a leader who communicated bad news frankly and honestly.
In the midst of World War II, he let the British know they were in their darkest hour, their backs were up against the wall, and that democratic civilization rested upon their ability to win the war against Hitler. He never sugarcoated anything, and his sincerity instilled a grim determination in his people to sacrifice and persevere.
3) Never over-promise.
Do not make promises you cannot keep. Why do you think politicians have such a poor reputation? It's very simple. They promise the world and seldom deliver.
I am naturally optimistic, and as my child is growing up, I found over-promising to be a weakness of mine. I would talk with my kid (though he might not understand yet) about going to exciting places and doing fun activities, but then my schedule wouldn't allow me to follow through with my intentions.
I had to be very careful about what I said so that my child would be able to trust my words. Remember: A highly credible leader under-promises and over-delivers.
4) Do what you say you will do.
Follow up and follow through. Unfortunately, many in the corporate world politely make offers with no intent of carrying them out. After meetings and phone calls, follow up with a reminder e-mail outlining the action items discussed and agreements made.
How many times have you been in a business meeting that ended with warm handshakes but empty commitments? When you say you'll pass along a friend's contact information to a business associate, do it.
When you agree to meet with a potential partner, make it a point to schedule the meeting onto your calendar. Diligent follow through will set you apart from the crowd and communicate excellence to those you meet.
Credibility is the bond between the leader and the follower, and it forms the bedrock of why people will do what the leader asks of them. Even the best leaders may suffer a blow to their credibility.
This may be the result of a mistake or error in judgment. Or, circumstances may conspire against the leader, such as adverse market conditions or the failure of a supplier or partner.
When the coins are gone, so is the leader's credibility. No amount of persuasion or personal appeal will be able to buy it back. Once lost, respect and trust take years to regain.
Here are the four keys to establishing credibility in your leadership:
1) Speak the truth.
Be honest and upfront. Transparency breeds legitimacy--make it a priority to be open with financial statements, policies, and decision-making rationale.
2) Don't hide bad news.
With corporate scandals at Enron, WorldCom, and Arthur Andersen seared in our collective memories, we have entered an era in which transparency is demanded like never before. With multiple information channels available, bad news always becomes known, so it behooves management to be candid right from the start.
Winston Churchill is a classic example of a leader who communicated bad news frankly and honestly.
In the midst of World War II, he let the British know they were in their darkest hour, their backs were up against the wall, and that democratic civilization rested upon their ability to win the war against Hitler. He never sugarcoated anything, and his sincerity instilled a grim determination in his people to sacrifice and persevere.
3) Never over-promise.
Do not make promises you cannot keep. Why do you think politicians have such a poor reputation? It's very simple. They promise the world and seldom deliver.
I am naturally optimistic, and as my child is growing up, I found over-promising to be a weakness of mine. I would talk with my kid (though he might not understand yet) about going to exciting places and doing fun activities, but then my schedule wouldn't allow me to follow through with my intentions.
I had to be very careful about what I said so that my child would be able to trust my words. Remember: A highly credible leader under-promises and over-delivers.
4) Do what you say you will do.
Follow up and follow through. Unfortunately, many in the corporate world politely make offers with no intent of carrying them out. After meetings and phone calls, follow up with a reminder e-mail outlining the action items discussed and agreements made.
How many times have you been in a business meeting that ended with warm handshakes but empty commitments? When you say you'll pass along a friend's contact information to a business associate, do it.
When you agree to meet with a potential partner, make it a point to schedule the meeting onto your calendar. Diligent follow through will set you apart from the crowd and communicate excellence to those you meet.
Credibility is the bond between the leader and the follower, and it forms the bedrock of why people will do what the leader asks of them. Even the best leaders may suffer a blow to their credibility.
This may be the result of a mistake or error in judgment. Or, circumstances may conspire against the leader, such as adverse market conditions or the failure of a supplier or partner.
As a leader, how can you restore damaged credibility? Let me give you three steps.
1) Acknowledge the mistake
When decisions turn out unexpectedly, the leader owes his or her followers an explanation. The egos of leaders can make them quick to assign blame or make excuses, but the problem compounds when a leader does not acknowledge mistakes. The acknowledgement should be on the front end, and should be voluntary. A forced acknowledgement ("Because I got caught, I'd like to acknowledge this") does nothing to reestablish trust.
2) Apologize
Admit what you did was wrong, accept responsibility, and say you are sorry. To do it may be painful for the moment, but it will shorten the agony and enable the leader to put the incident behind him or her.
3) Make amends
Find a way to make amends to the people you've wronged. Make restitution to those you've harmed. You may not be required to do so, but a trustworthy leader goes the extra mile to remedy strained relationships.