Weak Integrity Got Us Into This Jam - And Strong Integrity Can Get Us Out

The current economic crisis is a result of integrity failures: Many people did not live by their word. Financial executives, lobbying for deregulation, said they would self-police. They didn't.

They wrote mortgages and issued credit cards, assuring their customers that the payments were manageable. They weren't. I am no finance guy, but I knew that a variable rate, interest-only mortgage is a very, very bad idea. I gotta believe the professionals knew it too. Finance gurus created products that systematically understated risk and overstated earnings. They knew better. They were gaming the system. Looking for loopholes. Looking for the ridiculous twist of the rules that magically makes you a winner. According to their still flush bank accounts and high salaries, perhaps they were right.

But the rest of the world is noticing that perhaps they were not. We have had enough gaming. Time for a little straight talk and hard work.

There is nothing more fundamental in business than this question: "How good is your word?"
It is not just a few powerful villains; we have all slipped a little. We make distinctions between things we "promise" and things we merely say we will do. It should not make a difference. We think about fulfilling the letter of our contracts, rather than striving to fulfill the other party's understanding of our agreements. The first will keep us out of court...but the second is what makes relationships thrive.

The Integrity Dividend is the measurable bottom-line business payout of people seeing you as living by your word. Clients value your brand. Suppliers cut you deals. And employees stick around and work their hearts out for you. There are dollars to be made here. Competitive advantage.

Living by your word is hard work. Getting others to see you as living by your word, in this cynical time, is harder still. But it is the only game worth playing.

It is not all it takes to lead – but no leadership happens without it. It is not all it takes to be ethical or moral – but morality without it is hollow sanctimony. Integrity is essential.

Unexpected events, and even expected change, make the integrity task harder. It requires skill and focused effort. But it pays off. Consider it an investment in the essentials of doing business – essentials which we seem to have forgotten. When we practice integrity, we become more effective – as people, as companies, and as a society.

Weak integrity got us into this jam – and strong integrity can get us out.

Read the book: The Integrity Dividend: Leading by the Power of Your Word by Tony Simons. San Francisco: Jossey-Bass, 2008. Available everywhere.

The real question here is where would you place your integrity on a scale from 1-10. If it is not a 10 then you are in the wrong line of work. Not just you but anyone who works for you is scared by your reputation. It makes their work and job all the harder and a large hill to climb.