Building Integrity-Driven Organizations

by Randy G. Pennington

"He's a real Boy Scout." Those words were used by a middle manager to describe his boss, and judging from his tone of voice, the comment was not meant as a compliment. That statement, or some variation thereof, has become synonymous with the belief that business is a war with no rules. No trick is too dirty, tactic too underhanded or principle too sacred in this win at all costs world.

A classic example of this mentality was portrayed in the movie "Wall Street." In a telling scene, the main character stands before a crowded stock holder meeting and declares, "Greed is good!" The rash of recent business and government scandals support the conclusion that art imitates reality. The desire to succeed has led many to the lure of expediency. A new moral code that says, "If others do it, why shouldn't I?" has become all too common.

A Trip Down Memory Lane

Remember when the signature of a craftsman was the quality of his work? Remember when employees automatically used their best judgment to solve a customer's problem? When business deals were consummated with a hand shake? When "The customer is always right" was not a revolutionary concept? If you answered yes, you remember when the integrity of an organization's products, services and relationships were the foundation of its success. People were expected to be "Good Scouts."

Times and values have apparently changed. The Day America Told The Truth (Prentice Hall, 1991) reported the following to emphasize just how much:

91% of those surveyed admitted to lying about something on a regular basis
50% will procrastinate, in effect doing nothing, one full day out of every five
74% will steal from those who will not miss it

Assuming these statistics are true, society's changing values spell trouble for organizations in the '90s. Deteriorating product quality and customer service are obvious effects. In addition, the trust level among employees at all levels may be strained at a time when teamwork is more critical than ever. Most important, customer perception that products and services do not meet stated standards or that the organization does not act in good faith will have an impact on the bottom-line. Today's consumers are skeptical about the products they buy and the businesses they patronize. The message is clearp;organizations must maintain the trust of their customers, employees, suppliers and communities if they hope to be successful in the future. They must insure the integrity of their products, services and relationships to accomplish that goal.

Integrity In Action Integrity is more than ethics. It is the strict adherence to a set of principles that insures success. Integrity goes beyond a belief in moral principles to guide all aspects of personal and organizational performance. Integrity-driven organizations:

provide quality products and services because it is their duty,
act ethically because it is consistent with their beliefs,
cultivate trust, commitment and loyalty among customers, employees and suppliers because it builds strong partnerships.

As a result, they experience

fewer conflicts over the implementation of strategic decisions,
more effective response when crisis situations arise,
increased trust, loyalty and support from customers,
employees, suppliers and the community.

Johnson & Johnson, Lennox Heating & Air Conditioning, Mary Kay Cosmetics, JCPenney and Ben & Jerry's Ice Cream are a few of the many examples of integrity in business today. There are, no doubt, others with which you are familiar. Here are a few questions to help you identify examples:

Which organizations and leaders come to mind when you think of ones you can trust?
Which organizations over deliver on their promises of quality products and services?
Which organizations and leaders can you count on to do what is right even when they are negatively affected?
Which organizations hold their employees accountable for acting with integrity?
Which organizations and leaders can be counted on to act consistently with stated beliefs and values?

The names you listed are role models for integrity. Would your organization make the list? Would it make your customers', employees', or suppliers' list? The following ideas will assist you in your efforts to enhance your organization's integrity.

Becoming Integrity Driven

Become an Integrity-Driven Leader.
Dr. Stanley Pearle, founder of Pearle, Inc., is fond of saying, "The customer is smarter than you think. You must deliver what you promise. That is the only way to develop trust." The same applies to employees, suppliers and the community. They, too, are watching and are smarter than we think. Dr. Pearle is also known for saying that you can't broadcast your own integrity. Otherwise, you are perceived as fake. Ralph Waldo Emerson put it this way, "The louder he talked of his honor, the faster we counted our spoons." Every organization is influenced by its leaders. A decision to enhance integrity must begin at the top.

Lasting external change must be preceded by internal change. An important step in becoming an integrity-driven leader is a personal commitment to act consistently with the principles in which you believe. Commitment requires more than desire. It also takes self-discipline. Regular time spent in self-evaluation and clarification of beliefs and values is beneficial. In addition, it is critical to develop skills to implement your good intentions, consider the messages sent by your actions and make decisions based on what's right, rather than who's right. Integrity-driven leaders are respected by others because their actions say, "You can trust me. I'm keeping everyone's best interest in mind."

State your expectations, but don't announce a new "Integrity Program."
Many organizations state their expectations regarding the integrity of their products, services and relationships. They are communicated through ethics codes, quality statements, mission statements and customer service credos. Too often, however, these expectations are perceived as the next "program of the month." One former client referred to her organization's never ending stream of initiatives as "MBBS" - Management By Best Seller. It is important to state your expectations in an open, honest and genuine manner so everyone understands their obligation to customers, suppliers, communities and each other. This is the time to avoid hype, admit that you are constantly working to fine tune your own performance and ask everyone to join you in the goal of making integrity the number one operating principle. If you do implement a "program," make certain everyone knows that it is only a tool to help you become an organization that personifies integrity.

Hold people accountable for the way results are achieved.
John Delaney and Donna Sockell, associate professors at the Columbia University School of business surveyed past graduates to find out about their experiences with ethics and integrity. Their findings revealed that the average graduate faced 4.2 ethical dilemmas in the previous year. The most disturbing portion of their findings was 40% of those who chose to act unethically were rewarded, either explicitly or implicitly. An additional 40% received no feedback whatsoever and 31% of those who refused to act unethically were explicitly or implicitly punished. It is clear that simply publishing a statement of the organization's beliefs is not enough.

JCPenney has never experienced a major ethical crisis since its founding in 1902. James E. Osterreicher, Executive Vice President and Director of JCPenney stores, addresses the problem in these words, "A company may have an ethics code that prohibits certain business practices, but the prevailing culture may say, 'Do what it takes, just don't let us know about it. A company can't let down its guard for a moment."

Structure your systems to be consistent with your principles, beliefs and values.
Long-term success requires systems to ensure things are done right the first time. Everyone makes mistakes, has a bad day or simply forgets on occasion. Effective systems help the results remain the same when human breakdowns occur. Each area should be judged by the following questions: Are we doing what we said we would do? Are we providing what we said we would provide? That is what integrity is all about.

Provide skills training to help people put their principles into practice.
One might ask, "If we have good systems, why do we need to train people?" The answer is simple. Even the best system can malfunction. Committed people operating from a sense of integrity will step in and achieve the desired outcome with or without a working system.

Skill development must go beyond the technical aspects of the job to include topics such as decision making, communication, leadership, personal management and conflict management. Good intentions are misinterpreted when individuals lack the skills to put their principles into practice.

Promote traditions and legends regarding integrity.
JCPenney recreates the ceremony in which James Cash Penney and the original partners pledged their commitment to the company's values. They, also, consider integrity as a factor in determining job promotions. W.W. "Foots" Clements, former Chairman of Dr. Pepper, gave away marbles inscribed with The Golden Rule as a reminder of the organization's business philosophy. Traditions and legends help insure your commitment to integrity will stand the tests of time and growth. Find ones that work for you and reinforce them regularly.

Remember and practice the three "P's" of managing changep;persistence, patience and purpose.
Change rarely occurs over night and usually meets with some anxiety or resistance. Persistence and patience are required to stay at the task when it appears hopeless.

Mistakes will be made as you move toward becoming integrity-driven. When they are yours, apologize quickly and publicly. When they are others', confront quickly and privately. Most important, keep the purpose clearly in view. It is easy to lose sight of the goal when you are fighting for your life.

Close examination of organizations and leaders considered to be "long-term successes" reveals a strong sense of integrity. Roger Staubach, a member of the NFL Hall Of Fame and successful business leader says, "I can't think of a better tool for predicting the probability of a person's success in business than a measure of his integrity." Korn-Ferry Vice President Hal Johnson says "A lack of integrity is often the knock-out punch for candidates who are otherwise very strong." Maybe that explains why many of the top leaders in this country are former Boy Scouts and Girl Scouts. The need for trust among customers, employees, suppliers and communities has never been greater. One answer is integrity in products, services and relationships. It begins by building integrity-driven organizations where being a "Good Scout" is a compliment.

© 1992 by Pennington Performance Group; Dallas, TX. All rights reserved.
This article may be downloaded for personal and professional development. Copies may be shared within an individual organization. All other uses of this material are strictly prohibited without written permission from the author.

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