Management Confessions

Leaders become more effective when they appear to be in control*. But success or failure for an organization is often beyond the leader’s control. It’s easy for management to blame bad performance on commodity prices, the weather, or stubborn customers who inexplicably refuse to buy the company’s inferior products.

One research study tracked the share price performance for two situations. The first group studied was companies where performance problems were explained by management as due to internal problems that they planned to fix – in other words, they accepted the blame. The other group consisted of companies where management blamed performance problems on external, uncontrollable factors. The surprising result: the first group, where management accepted the blame, had consistently higher share price performance in the next year. It appears that honestly accepting blame is good policy for leaders.

But there’s more to accepting blame than just saying, "I’m sorry." I looked to my own extensive list of personal management mistakes and recalled a small example from my corporate officer past. A fellow manager took me aside one day and said, "You might want to talk to John. He’s a bit upset because you’re overdue on his evaluation and raise, and he’s afraid to confront you about it." (Hmmm . . . sounds like at least two mistakes on my part!)

I checked my files, and sure enough, I had forgotten the evaluation, maybe because I was consumed with other "important" matters, maybe because I hated doing evaluations. Whatever the reason, it was definitely my fault.

I did talk with John, and for a change, I did a smart thing: I admitted my error, and I didn’t try to minimize or dismiss it. I assured him it was a case of sloppy management on my part, and not related to his performance or what I thought of him. Then I immediately moved to correct the mistake, abasing myself before my boss and the HR bureaucracy to get John a retroactive raise. Then I told John and my boss I was setting up a tickler file system with evaluation due dates for the whole staff so I wouldn’t make the same mistake again.

I’ve used that lesson a number of times in my career, accepting blame when it would have been very easy to dump it on someone else. I believe doing that consistently established some personal credibility. People knew that when I said something happened because of some outside factor, I was telling the truth, because they had heard me accept blame when it really was my fault.

So when you have to explain why things went wrong, think hard about what part of the problem was your fault. Then do more than say, "I’m sorry." Go on to tell what you’re going to do to correct the current problem, and what you’re going to do to prevent it from happening again. Then do it. It will pay off in the long run, even if it hurts short term.

*"‘The Half-Truths of Leadership" by Jeffery Pfeffer and Robert I. Sutton, Harvard Business School Working Knowledge (http://hbswk.hbs.edu/). While the article is no longer on the site, I don’t think they’ll object if you ask me for an electronic copy.