Every system slowly loses energy. The only way to change this “law” is to force the system to remain “open.” This is easier said than done. The two biggest enemies of keeping today’s business systems open are easy to see, but not, obviously, easy to remedy.
The two biggest causes of “systemwide” slow death are mergers with other business systems AND, the dreaded “L” word.
LAYOFFS!
Nothing causes the team to lose trust quicker than when they see their former teammates tossed aside. Tossed to the curb like some form of recycling or, worse yet, like last weeks TRASH. Most CEO’s, sadly, including the ones I coach, seem to miss the importance of this point. Maybe they believe they are above these laws of physics. Maybe they believe they do NOT have other options. Maybe they believe that this layoff will be different from their last one. Maybe…
The truth is that friday afternoon comes in like a LION. Everyone looks around to see what’s happening. They look for the man carrying the large black box. They look earnestly. They look to see if the “RED” folder is present. When the man with the black box comes, with the red folder it means that someone is GONE. Someone is being let go. Someone is being laid off.
This business system is now slowing dying. Sadly, most CEO’s do NOT notice.
Make it a quick death.
Build your business team in such a way that the system does NOT tolerate the mediocre middle. Do not swallow the RIF pill. Do NOT layoff thirteen people, thirty people, three hundred people, three thousand people under the guise of being wise. There is NOT a business system that operates beyond the law of physics.
Build TRUST.
Build dangerously.
Fire the guy with the black box and the red folder.
BUILT TO LEAD 
And don’t miss the connection between this post and the last couple blogs about “I’m not ready”, “Hazy” and the first part of “Jenny”.
Fear, Fortresses and red Folders go together. People fortress up and hold back when they are afraid of being “next”. They don’t take risks. They don’t speak clear, concise and direct. They wait to talk & open up until after the boss isn’t there. Information travels through unhealthy channels which just further muddies the waters, erodes trust and perpetuates a culture of playing it safe, which leads to slow death. The smell to an outsider or newcomer is unmistakable. There is no magic — all are dying. And the black box is the inevitable coffin — the only unknown is who’s name is on it this time.
Johnny,
AWESOME.
You do NOT miss the connections. You find them AND you find a thousand little nuances and then a thousand more. This is WHY you are stinkin’ magic. This is WHY BTL is as well.
Keep anding…
Ok, so here’s another “AND” that surfaced in our sessions with “THE RED FOLDER” & “HAZY” & “JENNY” & “I’M NOT READY” that could use some more blog space. . .
Your quote in the 8 Essentials from Tim Sanders’ book (Love is the Killer App) sums it up: “When asked, the average person a hundred years ago said the biggest problem in business was stealing. Today it is LYING. People value trust today more than ever before.”
It’s the oh-so-subtle but oh-so-real LYING that happens when we PLAY DIRTY instead of GET DIRTY to come clean. The lying muddies & slimes the waters just as much as talking to the wrong person (cf. the blog & comment for “HAZY”). It’s the main dialect spoken by the fear-driven fortress-based culture, including the leaders. It’s super-toxic.
And all too familiar. Which flavor-of-the-day is killing the magic on your team?
1. PLAYING LOOSE WITH THE SPECIFICS. Especially the specifics that might cast the teller in an unfavorable light. Or someone else in a more favorable light. The best lies are “mostly” true. Unfortunately, it’s those very specifics on which customers and teams and leaders rely to make decisions. Loosen the specifics, and loosen the trust!
2. SPIN. Here the “version” of the truth changes with “who” the teller is talking to. What gets emphasized, minimized and rationalized depends on the teller’s audience. Even though spinners get caught in their own webs when audiences compare notes, the normal result is just further erosion of trust, not resolution.
3. “PLEASE LIKE ME” LYING. It’s a take-off on #1 and #2. Leaders are just as guilty of this as their teams. This is especially common when there are what Jim Collins calls “brutal facts” that need shared. And it’s probably the #1 reason under-performers never see it coming when “the black box with the red folder” finally comes their way.
4. SILENT LYING. A famous scripture says “the one who knows the right thing to do and doesn’t do it is guilty of sin.” So it is with the silent lier who withholds, hides & covers. When questions start coming near the dreaded topic, the topic gets changed faster than channel surfing on DirectTV. In a culture where fear predominates, this kind of lying is everywhere. “Don’t ask, don’t tell” becomes the norm. For the antidote, check out Chet’s blog called “Justice & Grace”.
5. HYPOCRISY. Perhaps the ultimate source of cynicism is this form of lying. Words and actions don’t line up. This is why motivational speeches can have the OPPOSITE effect intended. Heads may nod obligingly, but “I don’t believe you” is what the eyes of the team betray because the “black box with the red folder” came last Friday.
In shadowing BUILT TO LEAD team practices, it’s struck me that this is why listening — REALLY LISTENING INCLUDING STUDYING THE NON-VERBALS — is so key. I get why you emphasize this so much, Chet. It takes a strong core “to tell the truth, the whole truth, and nothing but the truth.” It takes an even stronger core for a team to love each other enough to call “B.S.” on each other and fight for truth. And it’s just more evidence why the best thing a leader can do to improve their TEAM’s performance is to model this very kind of change first in their OWN core. And then initiate the TRUST and LOVE with their team that gives them the courage to do the same.