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LESSO N 1
ÒCharacter is like a tree and reputation like its shadow. The
shadow is what we think of it; the tree is the real thing.Ó
ÑABRAHAM LINCOLN
IT ALL STARTS WITH
CHARACTER
What you do when you think no one is watching may be the best
definition of character. Character defines who you are and forms the
basis for your leadership. Without it, leadership is impossible;
with it, leadership can flourish.
Character is ingrained within us. It is taught to us by our parents, teachers, and
coaches; we learn from them. Leaders demonstrate character by insisting on
values, abiding by principles, and upholding both in their daily lives. Employees
look to managers not only for guidance, but for example. Insisting on good
character means everyone must model that behavior. Sure, itÕs easy to say, but it
can be hard to implement in the real world. Good character may get you hired,
but it is what you do with your character that matters.
So much of what we admire about our leaders comes down to their char-
acter. It is not their degree of affability that matters, as does the degree of
respect. People of character command respect because they have earned it. One
of the salient features of Level 5 leaders, as depicted in Jim CollinsÕs book,Good
to Great,is their ability to put the organization first.Employees like that;it
means that someone is thinking about the big picture as well as their role in it.
Every organization is peopled with men and women who put others first. It is a
matter of identifying them and putting them in positions where they can suc-
ceed, and in the process help others to succeed. That action breeds organiza-
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Character Counts
Insisting on good character means everyone must model that behavior. Good
character may get you hired, but it is what you do with your character that mat-
ters. Employees caught up in scandals at corrupt companies may have been
wholly innocent but many paid for the crimes of their superiors either through
layoffs, loss of pension, or loss of personal reputation. If a manager cuts cor-
ners, for example, fudging an expense report, employees will take note. Pretty
soon, a climate of Òeveryone does itÓ creeps in, and the organization loses not
only integrity, but credibility inside and outside.
Define responsibility.Never assume that people know what their responsi-
bilities are; tell them and then ask them to define such responsibilities in their
own words. Responsibility for achieving objectives may be clear, but managers
need to check whether employees know the code of conduct that defines civil-
ity and rights in the workplace but also they need to insist on behaviors con-
ducive to good order. That means, managers can ask for, and insist upon, cour-
tesy, cooperation, and collaboration as part of the job. Never accept the bad
attitude, and never call it that term. When a person is out of line, define the
behavior, such as acting surly, being uncooperative, or failing to work with oth-
ers. Those are not attitudesÑthey are defined behaviors for which a person is
responsible.
Hold the right people accountable.When people do something well,we
like to reward themÑat least good companies do. But when people slip up,
accountability sometimes defers to the low person on the totem pole. For exam-
ple, at Abu Ghraib prison camp, it was the noncommissioned officers and
enlisted personnel who were punished first. Senior officers with line authority
for the prison system, with the exception of Brigadier General Janis Karpinski,
were not initially held accountable. That sets a bad precedent, not only with our
troops but for other nations looking at our military judicial system. It threatens
to undermine the exceptional work the Army has done in investigating wrong-
doing and owning up to the problem. (It must be noted that a few more senior
officers were later charged with either tolerating the culture of abuse or cover-
ing it up.)
Insist on actions, not words.Every organization professes to be ethical;
even organized crime has some rules. But, as the adage goes, it is not what you02LBE-Part1-4 7/21/08 9:10 AM Page 5
IT ALL STARTSWITH CHARACTER / 5
say that matters, it is what you do. Take, for instance, the superstar performer
who always makes the numbers and scores the big wins. If that person behaves
as a jerk toward others, all too often managers will turn a blind eye. After all,
they say, letÕs cut him some slack. What the superstar gets away with would
never be tolerated by lesser performers. Eventually, the superstarÕs gains become
short-lived because the workplace becomes so fouled by his negligent behaviors
that good people find a way out, leaving only marginal players behind. Pretty
soon the whole department stinks, and eventually sinks. There may be justice in
that demise, but at what cost? Good people leave, performance plummets, and
the organization suffers losses in reputation, revenue, and investor confidence.
It would be better to pull the flagrant superstar aside with a warning to correct
negative behavior supported by behavioral coaching or else face termination.
When employees see superstars let go because they are abusive, it sends a strong
signal that the company values ethics over dollars and cents.
Put people in tough situations.Ifyou want people to grow and develop,
you give them tough assignments. An extreme example is the U.S. Navy Seals.
Their training is physically and mentally exhausting; candidates who want to
qualify are pushed to the breaking point. It is certainly not for everyone, but if
you want to develop a cadre of troops who can jump out helicopters at night in
hostile territory to chase bad guys, you want people who are steeled to adversi-
ty. From a management perspective, grooming people for leadership means giv-
ing them opportunities to develop their skills, not in classrooms, but in real
work situations. Then watch what they do and how they do. In addition to
looking for results, examine how they worked with their team. Did they work
with people or in spite of them? You want leaders who can bring people togeth-
er for common cause. That, again, is character.
Reward good actions.One ofthe best places to see where good deeds are
rewarded is on high school or collegiate sports teams. Look at who the players
have elected as their captains. The players are not always the most talented ath-
letes, but they are the most outward-directed. They are the ones who lead by
example. Specifically, you will find them first to practice, last to leave. What they
are doing at practice is essential to team unity. Often, they are tutoring fellow
players in the art of the game, or more often, in the art of getting along with a
coach, a teacher, or a fellow player. They are team leaders respected by their
teammates. Managers may find such employees on their own teams. When they
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others. Better yet, good managers promote such people into positions of high-
er responsibility so their positive actions can have even greater impact.
Send the scoundrels packing.People who make managerial mistakes need
education and coaching; folks who knowingly make ethical breeches should be
sent packing right away. That sends a clear message that such behavior is never
tolerated. If you let it slideÑor at least, do not exact consequences in the form
of demanding amends, bad things will continue to happen until something
really bad occurs.
Why Character Matters
Character is a virtue, however, and if it does not show up on the bottom line, it
nonetheless provides the basis for sustainability. If you manage for the short
term, how you treat employees or corporate assets is less important. But if you
operate for the long term, the caliber of the people you recruit, retain, and
reward says much about the character of your organization. These are the men
and women who will make the decisions that will develop products and servic-
es that offer value to customers who want to buy and shareholders who want to
own. Character then does matter. Revealing it is essential to your future.