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OPINION
Remedy for leaders? How about a dose of honesty

By Amy Bermar, 11/10/2002

The shame being heaped upon America's business leaders is prompting even the innocent to duck and run for cover. Nothing could be worse - for their companies, for their careers, and for the constituencies that need to hear from them, now.

Hundreds of CEOs have run their companies capably - if not outstandingly - for years, even decades. Now, they need to stand up and be heard. Not to fill the vacuum of easy celebrity, but to do what they're paid to do: lead.

At the core, leadership requires communication. In times of crisis, people crave information, hoping it will lead to clarity. Too many companies create cultures of secrecy with information shared on a ''need-to-know'' basis. The result is a deep disaffection and distrust. The recent immoral actions by executives who freely helped themselves to apartments, artwork, airplanes, and cash simply reinforce everyone's worst suspicions.

The remedy? Two simple steps - one easy, and one that contradicts almost everything American executives have been taught in business school, in the field, or in the corner office.

The easy fix: Get out there and be seen.

Talk to those who care most - employees, customers, partners, and investors. Please note that investors do not come first, but last. Though The Street's ability to rain lucre on favored CEOs is still unmatched, it perpetuates the myopic focus on short-term results rather than substantive change.

Employees may not always understand the bottom line, but they have surprisingly tough skins. Getting accurate information about the marketplace, and their prospects of continued employment, is foremost on their minds, even if there's no forum for asking the questions. The answers may not be comforting, especially if they're honest. But the resulting climate of openness may build enough trust to prevent employees from jumping ship and foster loyalty that yields dividends when the economy rebounds.

Communicating does not mean soul-baring. CEOs can't be expected to offer clarity about issues, decisions, or even past actions that are still in flux. Nor can they, or should they, divulge information that is sensitive or competitive.

In classic ''crisis management'' mode, they can, however, let people know they are taking steps to identify what caused particular problems and to find solutions to ensure they won't recur. And they can promise to be accessible, providing updates on the issues and questions that matter most, on a regular basis.

Now for the harder step. Humility.

After six continuous quarters of shaky financial forecasts, most CEOs concede they don't know where the economy is headed. At 3 a.m., when they wonder if they're ever going to fall back to sleep, many may even acknowledge that the broad and sweeping visions that drove the acquisitions, expansions, and mergers of the past several years aren't working.

The simple statement ''I made a mistake'' would be a breathtaking departure from business as usual. It is also long overdue. In Japan, CEOs convene press conferences at which they tearfully beg forgiveness from the public - and these are not necessarily malefactors headed for prison.

True, Americans love a winner, but we also root for the underdog. This deep-seated belief in the right to a fresh start is at the core of this country's history. In our Calvinist tradition, transgressions are recognized as a part of life; redemption begins with admitting the error of your ways.

Amy Bermar is president of Corporate Ink, a Newton communications firm.