Joe Biden and Executive Decision Making

Joe Biden announced recently that he would not run for the 2016 presidency of the United States. There had been significant speculation from pundits on both sides of the aisle about whether Biden would run and what his candidacy would mean to existing Democratic candidates and Republican challengers. A very interesting factor was the length of time it took Biden to make his decision. Clearly, the death of his son Beau weighed heavily on his decision and prolonged the decision-making process. Even though Biden had a respectable favorability rating in the polls, he elected to decline the run for candidacy. This decision came six months after Hillary Clinton announced her presidential run and led to much discussion in the news about the length of time he took to make that decision.

Although Biden has a history of occasionally making unfiltered and controversial speaking gaffes, he was anything but impulsive and imprudent when making this decision not to run. In typical Monday morning quarterback style, it might be easy to think that Biden’s decision was a foregone conclusion because it seemed too late to organize and raise money. In fact, virtually none of the people close to Biden—including his aides, fellow politicians, friends and, even, the president—suspected that he wouldn’t run. When looking behind the scenes at his process, we see another picture of Biden, which has shown him to be more thoughtful in coming to this conclusion than just making an expedient decision. Let’s take a more careful look at his process to see what we can learn from it.

Clear-Headedness:
First and foremost, his current emotional state factored greatly into his decision. In addition to having previously lost his first wife and a daughter in an automobile accident, the recent death of his son Beau was a terrible blow. Biden recognized that he did not have the emotional energy required to run a presidential campaign. In an interview with Stephen Colbert, Biden said, “nobody has a right … to seek that office unless they’re willing to give it 110% of who they are.” Biden knew that the toll of dealing with his son’s death and the demands of the campaign were totally at odds with each other. He wisely conducted his own personal “emotional scan” to determine the level of objectivity he had to make such a large decision. His years of service in making executive-level decisions informed him of the importance of being emotionally “in a good space” to make such a momentous decision. Unlike his periodic impulsive speaking gaffes, he became wisely thoughtful and reflective—and more cerebral than emotional—in making this important choice.

In contrast, it is not uncommon for executives to make decisions based more on emotion than on an objective look at the facts. Examples of this include making rash decisions about markets or products to pursue (e.g., Hewlett Packard’s acquisition of Compaq to get into the PC market), betting on new products (e.g., Google Glass), hiring decisions (e.g., the Apple Board placing John Scully into the CEO position following Steve Jobs’ initial termination), or even the expense of moving manufacturing locations (United Technology’s move of its major Otis Elevator plant from Mexico to South Carolina). Unlike these examples, Biden was clear-headed about his decision at this very important time in both the life of the country and in his own personal and political life.

Weighing Risk vs. Benefit: Secondly, Biden reviewed the landscape of the current race. He was “late to the party” financially. Although Biden undoubtedly had several backers waiting on the sidelines to contribute, Hillary Clinton had a $75 million head start. In order to compete with both Clinton and Bernie Sanders, Biden would have had to accelerate both his fund raising and the development of his political organizational at a time when, according to insiders, he had not even opened a bank account for political contributions. He may have been tempted by Clinton’s swings in the polls, but the uphill battle he faced starting so far behind the curve helped him to be realistic, and ultimately pragmatic, about the immensity of the decision. At 74, he would have been the oldest president in our history, if elected. Also, the specter of having failed to win the candidacy twice previously was probably a factor in his final decision.

In considering the myriad of obstacles he faced, Biden ultimately considered the counsel of those he respected, such as James Clyburn (D-SC), looked at the brutal facts he was facing (finances, late entry, personal issues) and made a decision based on a rational examination of the data. In doing this, he set aside ego and political aspirations, deciding instead on what he believed to be the greater good—what was best for his party and for the country.

Decisiveness: Finally, once Biden made his decision, he made it decisively. In typical Biden style, he called a press conference, giving only 10 minutes’ notice, and announced that he would not be seeking his party’s candidacy. He did not prolong the drama, nor was he equivocal in his response (e.g., “I may reconsider at a later date” or “If I am drafted by my constituents”). Biden did not use the occasion of his announcement to weigh in to endorse any candidate, nor did he try to further any other personal or political agendas. He clearly and simply stated his decision and how he made it.

This is a refreshing approach to making significant decisions. It is not uncommon when executives do not get their way that they “damn by faint praise,” or are ambiguous about their possibilities in the future. These are both positions that dilute the potency of the executive and run the risk of undermining that which they only reluctantly support, in the hopes that the decision will fail and vindicate their own vacillation.

Executives could take note of Joe Biden’s decision-making approach at this very important juncture in our political history. Although Biden can be criticized for vacillating prior to making his decision, the method by which he ultimately decided stands as a lesson to us all. When faced with a major decision, consider these questions:

  1. How ego-involved am I in the outcome of this decision? Am I in a good “emotional space” to make the decision, or am I too close to the problem to have any objectivity?
  2. What is the data telling me? Am I able to make a “cold-eye review” of the information in front of me and come to a decision that is pragmatic and in the best interest of the greater good? Am I seeking opinions from reliable and trusted advisors, as well as impartial data, in order to come to the best decision, or am I skewing the data to support my own preferences?
  3. Can I make this decision and move on, or will I second-guess myself and create unnecessary drama for others? Can I leave the execution of the final decision alone without intentionally, or inadvertently, interfering?

By considering these lessons, executives can make more effective decisions and increase their credibility, support, and potency in the process.

Leadership Lessons from Donald Trump

Perhaps no one in the recent history of politics has attracted as much attention as Donald Trump. His presidential campaign and subsequent popularity have caught everyone by surprise, from political pundits who pride themselves on being experts, to the man or woman on the street looking for someone to represent his or her interests. The last serious “outsider” presidential candidate that had similar characteristics and created excitement like Trump was Ross Perot, who ran as an independent in 1992—a kindred spirit to Trump, I believe. Although Perot never had Trump’s numbers, he had the same willingness to speak his own mind openly and “be his own man,” like Trump.

What is it about Trump that has captured so much attention and what can we learn from him about leadership?

A History of Getting Things Done

As of this writing, the popularity of Congress is at an all time low. Only 9% of Americans believe that Congress is doing a good job (Rasmussen Report, September 2015). Congressional gridlock has made the average citizen cynical, believing that no congressional “insider” has the ability and willingness to actually do what it takes make something happen in Washington. On the other hand, Trump has a history of actually making things happen in the private sector, and he is very happy to let you know about his accomplishments. It is estimated that his various companies employ over 34,000 people and generated over $9.5 billion in 2014 (Money, September 2015). The most widely accepted mark of an effective leader in business is the ability to generate profitable revenue and create jobs. When Trump boasts, “I know how to create jobs,” his track record inspires the hope and confidence that he would actually be able to keep unemployment low and create jobs—something no other candidate can boast. The hope of having a president who is able to overcome, or override, an ineffective Congress and manage the economy in tumultuous times is what Trump promises. Although the differences between being a CEO running a company with unilateral authority and running a country with three branches of government are significant, having been exceptionally successful in the private sector certainly does not hurt!

Owing No One

Trump has made it clear on numerous occasions that he is using his own money to finance his campaign and is beholden to no Super PACs, special interest groups, or lobbyists. At a time when external money and influence seem to dictate how our legislators vote, having someone with such autonomy and freedom is welcome. The capacity to act independently lends credibility to any leadership platform. Leaders without obligations to others—including boards, investors, and other stakeholders—are free to do boldly what is best for their enterprise. People want to know that, in the midst of difficult times, their leaders are willing to make independent decisions and not cower, cater, or crater. Trump presents this persona.

Saying What He Thinks

You can almost guarantee that Trump will offend someone on every occasion when he speaks publicly. Although there is nothing particularly noble about offending, in a world of “spinning” the truth to fit various situations, many people find his candor, and even hubris, refreshing. It is hard to fully understand Trump’s motivation for his brashness. Whether or not his rudeness is to draw attention to his independence, create more of a stage for his platform, or is just a total insensitivity to those with whom he takes issue, he has clearly struck a chord with a large number of people. In the words of Jim Collins’s Good to Great, the best of leaders have a responsibility to confront brutal facts. Clearly, Trump is willing to speak what he believes, regardless of the audience.

It is difficult to know if Donald Trump is a candidate to be taken seriously or simply a caricature of himself with his self-promoting, arrogant, and opinionated style. However, he has clearly garnered the strong support of a large number of voters for the very same reasons he has been successful in the past—total independence, saying what he thinks, and being boldly successful. Will he be our next president? What do you think?

Check in next week, when we’ll feature the Leadership Lessons from Bernie Sanders.

Hillary’s Emails: When to Be Transparent

Another Washington scandal is upon us. This time it has to do with the emails sent by Hillary Clinton during the time she was Secretary of State. Because she is an announced candidate for the 2017 presidency, the issue is front and center. Apparently, for convenience, she used a single personal email account for both personal and work-related emails. Now, these emails are the subject of scrutiny, particularly as it relates to those more sensitive emails regarding Benghazi and Libya. Even though former Secretary Clinton believes she has been in compliance with the “spirit of the law” by deleting only emails that were personal, House Speaker John Boehner (R) is launching an investigation to make certain than nothing improper was conducted.

This is certainly not the first former, or sitting, official to come under scrutiny, nor will it be the last. In fact, the game these days in Washington seems to be to find anything, on either side of the aisle, that would appear to be an exaggeration, not even an outright lie, in order to discredit the other side.

In the business world, the issue of transparency has become more prominent with the passing of the 2002 Sarbanes-Oxley Act (SOX), “an Act to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.” This was enacted as a response to the misdeeds of major corporate accounting scandals such as Enron and WorldCom. Although no one would argue about the need for companies to be honest and forthright, avoid conflicts of interest and have auditor independence in their financial reporting, some would suggest that there are times when full transparency is unnecessary and even harmful. Some have even argued that SOX has hurt America’s international competitive edge by introducing overly complex regulations.

Do you think there are times when being less than fully transparent is both ethical and desirable? Are there times when full disclosure actually puts people, projects and companies at risk? Lack of full transparency happens in our daily life all of the time—those little white lies we tell to keep the peace. Do we really think our spouse or partner looks great in a particular fashion item or with a new haircut? Do we fully disclose our beliefs about politics, religion, money and personal relationships to our friends? Do we always agree with our boss’s opinions, even about mundane items? Do we let our manager know when we are seeking employment elsewhere? The list of times that we are less than fully transparent, and even deceitful, is endless. Although most people would agree that honesty is the best policy, we have all fallen short. If we take a long look in the mirror, the overwhelming majority of us cannot say that we are fully transparent, or even honest, all of the time.

When the issue around transparency surfaces, it typically suggests that being transparent means there is nothing to hide and that by not being transparent there is something that is hidden. Are there guidelines or principles that could help us determine when to be fully transparent and when not to? First, in what situations should we always be open, forthright and transparent? There are at least three circumstances in which transparency is an absolute.

Transparency Is Required

1. When Endangerment Is Involved

There is a long-standing standard in the field of mental health, prompted by a 1976 case in California in which a university counseling center psychologist had knowledge of, but did not reveal, potential danger to a student that ultimately resulted in the student’s homicide. The law created a “duty to protect” requirement for mental health practitioners, who, when bodily harm is threatened, must fulfill this duty in several ways, including notifying police, warning the intended victim, and/or taking other reasonable steps to protect the threatened individual (Tarasoff v. Regents of the University of California). Therefore, when there is a situation in which an individual’s personal safety is at risk, transparency is clearly required. In my judgment, in the world of business the same standard should apply and extend to threats against a business or enterprise. This “duty to protect” would apply if an unhappy employee, former employee, competitor or nefarious individual threatened to disrupt business processes, spread untruths to company consumers, contaminate products, hack into company technology, or threaten to hurt the company by other means.

2. When Not to Tell Would Be Detrimental

When a person has knowledge of information that, if not revealed, would be detrimental to a co-worker, should they tell them? When an individual’s behavior is negative in the workplace, should anyone have a conversation about that behavior with the individual? If so, who is the best choice to have that conversation? This is clearly a more delicate area, and one requiring more discretion than when endangerment is involved. All too often, by the time an individual’s “bad behavior” is finally addressed, those around him/her have noticed it for a long time. They have not had the courage, or felt it was their place, to confront the person. Colleagues have a responsibility to speak to the person or alert their supervisors when they notice a pattern of repeated “bad behavior.”

3. When Transparency Is in the Interest of the Greater Good

When knowledge of sensitive information is in the best interest of the greatest number of stakeholders, owners, employees or customers, transparency always trumps the narrower interests of an elite few. This transparency includes being open about a company’s financials, downturns in business, major layoffs, executive compensation and other circumstances that would seem detrimental to the business or business stakeholders but are in keeping with good business practices. In fact, the sooner a company, or in some cases an individual, comes forward about a business problem, the sooner the company can begin remediating the problems rather than expending energy on either “spinning” or covering up the information.

Under what circumstance is it legitimate to either not be transparent or be only partially transparent? What are the situations in which being transparent, forthright and direct would not be appropriate?

Full Transparency Is Not Appropriate

1. When It Would Unnecessarily Hurt Someone

There are times when divulging information would not be helpful, and could even be harmful. Being honest in the spirit of “authenticity” can often come across as self-righteous and self-serving. It is best to use discretion in passing out compliments you do not really mean and being totally honest could be hurtful. For example, “You look good in that outfit,” when you are more focused on the fact that the person has gained weight, needs a haircut or such. Another example is when a direct report is trying their hardest, but their work product is still not up to standard, and you say “good job” so as not to discourage their efforts (but do circle back with them later privately to offer counsel and instruction).

2. When Information Is Deemed to Be Confidential

There are clearly times that information should be held “close to the vest” by companies. The examples are many, including:

  1. When a company is considering acquiring another company, and it would be either inadvisable or in violation of certain SEC regulations to disclose;
  2. When, by revealing the launch of a new product too soon, a company could lose its competitive advantage;
  3. When an individual is about to be laid off but the process involved in the transaction needs to be kept quiet to avoid rumors or even legal liability;
  4. When premature leakage around issues, not yet public, could affect a company’s stock price and could even be illegal—just ask Martha Stewart!

In most of these cases, transparency is dependent on timing and not intended to remain hidden indefinitely. Circumstances may dictate the need for a period of confidentiality.

In journalism, it is often the case that a writer wants to keep the source of a story confidential, to protect the source’s identity while being able to print information from them. It is always a slippery slope when their sources are revealing information that could compromise national security (think Edward Snowden) but could also reveal issues that would otherwise remain hidden and are important for the public to know (think Watergate and Deep Throat).

There may be other times that call for discretion when being transparent would either advance one’s own agenda or hurt the greater good.

The overarching major principle regarding transparency is found in the adage “Treat others as you would want them to treat you.” Full transparency can be tough for organizations. There are times and circumstances when information needs to be kept “close to the vest.” If you treat your community (customers, employees, vendors, supporters) as you would like to be treated in a similar situation, you have much better odds of keeping them and keeping your organization moving forward.