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Ethics

4 Leadership Lessons from the Penn State Scandal

by Daria Steigman on November 14, 2011

It’s impossible to ignore what happened at Penn State. Which is ironic since Penn State officials, impossibly, chose to ignore what was happening.

This was a massive failure on many levels.

Here are four leadership lessons:

1. Leadership is about making tough decisions. The president of the university didn’t. Joe Paterno didn’t. But the Board of Trustees did, taking quick action once the scandal broke to start to clean house and appoint a special committee to investigate how things went so wrong.

2. Dissent should be encouraged. I don’t know this, but it certainly appears that no one involved with the Penn State football program made a move without consulting Paterno first. Because otherwise I can’t for the life of me understand why a 28-year-old’s first thought after witnessing an assault wouldn’t be to call 9-1-1. You can’t be a good leader if you don’t let people act independently–and disagree with you.

3. Bubbles are bad for business. Tracee Hamilton wrote a terrific column for the Washington Post in which she said in part:

If [Paterno] really loved Penn State as much as he professed, he’d have fallen on his own sword a lot sooner, rather than letting the situation on campus reach a boiling point while trying to engineer his own retirement… If he wanted to save his school and his program and even his friend from the firestorm engulfing them all now, all he had to do was pick up the phone and dial 9-1-1. Three digits.

Paterno was the definition of a ”big man on campus.” The problem with bubbles is that you only talk to friends (see #2) and see what you want to see. And you think you can control everything.

4. The letter of the law is not enough. You can’t lead by technicality. The argument that (indicted and/or fired) Penn State officials have tried to make is that they did what they were legally obligated to do. That might save Joe Paterno from criminal liability, but it certainly doesn’t save him from moral accountability.

What leadership lessons learned would you add?

Photo by Russell James Smith (Flickr).

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Pulling Your Chain

by Daria Steigman on November 3, 2011

business, ethics, Independent ThinkingWhen I was in graduate school, there was this guy who had a habit of putting his hands where they didn’t belong. Many of my female classmates would make excuses for him, saying he was from [anywhere but here], and he just didn’t understand personal space.

Fast forward to the business world, where I see some of the same excuses being made.

Just the other day, one colleague was lamenting that a company had dropped new tasks into the negotiated contract–but not increased the budget. Another colleague told me that a prospect kept asking for business advice but wasn’t ready to make a buying decision. Each suggested the challenge had to do with how different cultures communicate.

Huh?

Show me a culture where people expect to work for free–and then let’s talk.

People can only take advantage of you if you let them. Whether you’re from Mississippi, Montana, or Mozambique, there’s a right way and a wrong way to behave–in your personal sphere and in business.

If someone’s pulling your chain, call them on it. Or, better yet, do business with someone else.

Photo by Julian Burgess (Flickr). 

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Are You Counting the Pills?

by Daria Steigman on October 10, 2011

Quality Control, Business, Business Ethics, Independent Thinking, Steigman CommunicationsI always count the pills.

And the widgets. (And pretty much anything I buy “by the numbers.”) It’s not that I expect any problems, it’s just that I want to make sure I’m getting what I pay for when it comes to products bought in open bulk.

When it comes to medications, it seems there’s  a lot of miscalculation going on. After my mom received 25 percent fewer pills than should have been in a bottle recently, she warned everyone she knows. Several people e-mailed immediately to say they’ve had the same problem.

Meds cost big bucks. Per pill.

My old bank said “it’s only pennies” when I asked them to credit back interest they owed me because of a screw-up at their end. Yes, but they’re my pennies.

Add my pennies to your pennies and a whole lot more customers, and you can see how the dollars start to add up.

I don’t know how often it’s a quality control problem versus a deliberate strategy of spreading out the inventory. But I know as a business owner that I don’t want my customers asking that question.

Who’s counting the pills in your business?

Photo by Dominique Godbout (Flickr).

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The Fine Print

by Daria Steigman on July 14, 2011

Skype, Business, Ethics, Independent Thinking, Steigman CommunicationsWe talk a lot about “reading the fine print.”

The disclosures that scroll across the bottom of TV ads. Multi-page bank privacy statements. Multi-screen end-user agreements. All those documents you sign when you buy a house or refinance a mortgage–or start a new job.

The problem with “the fine print” is it’s not fine. It’s jargon. Legalese. References to more legalese.

Skype employees thought they knew what was in the fine print. The stock options that vest. Only they didn’t:

Normally options give employees the right to buy shares at the price on the grant date, once they have worked at the company for a time… [But] it turns out the investor group, led by private equity firm Silver Lake Partners that bought Skype from EBay in 2009, had secured a so-called repurchase right that gave them authority to buy back the shares at the grant price…

The only mention that the company had the right to buy if [an employee] left in less than five years came in a single sentence toward the end of the document that referred him to yet another document.

Make sure your business has clear terms, not fine print.

Photo by Kevin Spencer (Flickr).

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Are You For Sale?

by Daria Steigman on July 7, 2011

sales, branding, business, Independent Thinking, Steigman CommunicationsAssessing value can be one of the toughest challenges facing any business. Bring small business folks together for a conversation, and the topics of rates and handling negotiations routinely come up. Pricing is often in the eye of the buyer—budget, need, demand, and perceived value all come into play. And that’s before you, your credentials, and your “value-add” even walk in the door.

My latest Independent Thinking column is out, and it explores rates, scope, referrals, and the importance of choosing wisely:

For any business, the perception that you are for sale can be deadly. After endless holiday sales, retailers have trained us to wait for the “real” (discount) price to kick in. Is this the message you want to send to your clients and prospects?

While I’ve talked about some of this before, the column goes into a little more depth–including some good food for thought from Kristie Aylett and others on the topic of referrals. Read the column here.

Photo by antwerpenR (Flickr).

Have you signed up to receive the Independent Thinking newsletter? Now’s the time! Once a month I’ll send you exclusive, subscriber-only content highlighting interesting articles I’ve found, as well as tips on marketing, social media, and how to grow your business. Sign up today!

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