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LESSONS LEARNED – MISTAKES REPEATED vol. 5
Ethical Behaviour –Principles and Practice;
We don’t need Aristotle or aCode of Business Ethics – we
need only 3 simple tests.
Carl Miller
President CMMS Inc.
Business ethics
Every Projectclosure needsa time for lessons learned. Alas I am notthe only
one who sees the samemistakes repeated far too often. One I see repeated is
not so muchan isolated mistake as it is a corporateculture issue – ethics.
In this issueI will talk about the principlesaround ethics and in the next
issue, the practical implications and 3 simple tests to determinewhat is
ethical and what is not.
Although helpfulat times, we do not need a Codeof BusinessEthics to tell us
what is right or wrong. Nor do weneed the philosophical musings of
Aristotle, Plato or Kant on what constitutes ethical behavior. Ethics by its
natureis about the grey area in between right and wrong. It is about choices,
neither of which is perfect.
Let’s explorethe dilemmaof ethical decision-making.
Behave ethically
Appear to behave ethically
Encourageethical behavior in others
In business, it is importantto not only behave ethically but to have the
appearanceof ethical behavior. Many actions may appear unethical but still
fall within the boundsof ethical behavior. I remember a Manager who upon
detailed economicanalysis discovered it was cheaper to fly his group to the
Bahamas for a regional meeting then to hold it in a traditional conference
center. His boss was not amused – perception is everything.
Butmore importantly it is the act of encouragingthe ethical behavior of
others and creating a corporate culturethat supportsethical behavior that
preventsethical mistakes from occurringin the first place.
Corporationsdevelop throughtheir actions, a corporate culturethat
supportsor doesnot supportethical behavior to greater or lesser extent. If
one looksat the PM as the CEOof their project team they too must notonly
practice ethical behavior but also encourageand develop it in their teams. To
do otherwise is to fail to lead.
The dilemma
Ethics is about dilemmas. Only a psychopath cannot tell right from wrong.
Butsome ethical decisions are grey – principleswe hold near and dear
sometimes collide.
Weallow freedom of speech in the workplacebut we do not allow hurtful
remarks. We know it is our responsibility to give feedback on performance
but sometimes mask it in tactful remarksor other positive feedback to lessen
hurt feelings but in so doing the impactis lost. We fear there may be hurtful
repercussions so are less honest and forth right. Arewe not cheating the
project and the employeewhen wedo this? I tell the teams I lead that the
best ‘gift’ you can give your fellow team mates is open, honest feedback.
It is necessary to provide honestfeedback as a demand of an ethical
consultantand Project Manager. Many ethical decisions are difficult
judgmentcalls. No onewants to hurt someoneby giving him or her critical
feedback but isn’t it really a gift they need to grow?
I recently had a project manager tell meshe conducted a necessary mid year
performancereview that pointed out an employee’sneed for improvement.
Customer feedback was provided and suggestionsfor performance
improvementgiven. Two dayslater the employeeresigned, leaving the
project manager thinking perhaps she was responsiblefor the resignation
and the subsequentdisruption of to the project. The judgmentwasin my
opinion correct but difficult.
As Project Managerswe are often faced with this dilemma. Not wantingto
demoralizethe individualbutfeelingit is necessary for the integrity of the
Project to make changes.
To remain silent is to engage in unethical behavior.
Why? Becauseyou are hired as a Project Manager to deliver on time, on
budget and with the required scope and in the case of the consultant you are
hired to give independentadvice, even when it is unpopular to do so.
Hence if you knowingly failto deliver on your primary obligation (your
promise)to your employer because you fear conflict, hurt feelings, reprisals
(real or imagined)then you cheat your employer.
That is unethical.
To remain silent is sets up a group norm
Those ‘rules of behaviour’, which are never overtly articulated but when,
observed become the norm for group behavior. This is the way corporate
culturesare developed over time. How would you likeyour group to
behave? Should oneremain silent when they disagree with a decision or
should they engage in constructive collaborative conflict managementto get
the optimum solution?
In the Corporateworld isit all right to cut the corners on quality to deliver
on time? If no one sees it, is it OK? Corporationswho lower the boom on
project managersfor late delivery irrespectiveof circumstances encourage
the unethical short cuts, which harm the end customer.
Encouragingethical decision makingin others.
In the good old dayswe would say we have to ‘walk the talk’. Demonstrate
through our own actions, ethical behavior, as we would wishour team to
behave.
Today, I believe it is more about being authentic. PMsand Corporationsthat
are comfortable in their own skin, appear real and hence believable;
encourageothers not justto follow rules but also to assimilate values. They
are quick to realize mistakes and own up to them and correct them.
Others engage, sometimes unwittingly, in unethical actions and alas condone
and contribute to the unethical corporate culture that encourages a power
and control mentality.
What to do when those unpleasantconsequencesmaterialize? Even if a team
member or consultant did screw up, why fire them just because you can?
Why leave a dysfunctional organization to fend for themselves just because it
appearseasier to leave them to their own devices.
If a long-term employeescrewed up would you firethem or would you
practice the managementskills wepreach –develop employeesthrough
feedback and coaching. The convenient scapegoat covers the ass but does
not solvethe problem. I would arguethat workingwith a corporation or
consultantwho screwed up, honestly owned up and corrected the problem
rather than tryingto break in a new horse is often the best business decision.
Of courseit requires honesty, maturity, communication and admittingthat
perhapsall of us share in the failure.
Unfortunately it becomes difficultto say ‘I made a mistake, I shouldn’thave
donethat’. Occasionally we see contractors/SMEs owningup to a poor job
and Corporationsowningup to mistakes made, however I see more of the
Watergate cover up than an owningup.
So why is it so difficultto own up to and correct mistakes?
Because often there is a lack of trust and sincere honesty in interactions
and, I believe personal insecurity. If we fear wewill be attacked, fired or
sued, a cover up begins. It is interesting to note that when Richard Nixon
fired his two top aides, Bob Haldeman and John Erlichman, he didn’tdo it
himself – he had his presssecretary do it. Such cowardiceand lack of
integrity in human interactions is unforgivable. Certainly it is not a
demonstration of authenticity in the workplace, is it? Why did he send
others to do the dirty work and abdicate his own responsibility? Because it
was difficultto do and he knew what he was doingwaswrong. Such actions
clearly demonstratethe corporateculture that wasin place in the White
Houseat the time.
Few would arguethat over the long term, ethical and responsibleemployers,
PMsand consultantswill benefit from honest and ethical decisions although
it may be painfulin the short term. Conciously buildingthat ethical corporate
culturerequires usto movebeyond ‘walkingthe talk’ to reversingour
silence and doing the courageousethical action. It is difficultbut necessary
to do your joband give their best advice even if it is unpopular to do so. To
do otherwise is to steal from the company who hired you
‘The Kinghas no clothes!’ Is a very underusedphrase!
I suggest a re-read of my previousLessonsLearned-Mistakes Repeated
– Retain institutional knowledgein an outsourced world by maintaining
long term ethical relationships between consultantsand corporations;
– Engage in communication – without it you have nothing. Mostethical
issues need not escalate with some principled behavior and honest
communication by the participants.
– Recognizethe differencebetween positionsand interests.
– Ensureethical conductis a key corporatevalue – Based on authentic
behavior and clear communication to enable values being assimilated.
I would proposethree very basic rules to determineif a behavior is ethical:
The red face test – how would youfeel if it appeared on the frontpage of
the newspaper?
The sleepless nights test– what do I think of the behavior?
The protect your ass gone wrongtest - everyone knows the behavior is
wrongand the guilty are found bareassed for all to see.
In the next edition I will illustrate with 3 true stories, the application of
ethical behavior, with the names, omitted to protect the guilty in the hopes
they will see the light.

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5LESSONS LEARNED – MISTAKES REPEATED – Vol. 4

  • 1. LESSONS LEARNED – MISTAKES REPEATED vol. 5 Ethical Behaviour –Principles and Practice; We don’t need Aristotle or aCode of Business Ethics – we need only 3 simple tests. Carl Miller President CMMS Inc. Business ethics Every Projectclosure needsa time for lessons learned. Alas I am notthe only one who sees the samemistakes repeated far too often. One I see repeated is not so muchan isolated mistake as it is a corporateculture issue – ethics. In this issueI will talk about the principlesaround ethics and in the next issue, the practical implications and 3 simple tests to determinewhat is ethical and what is not. Although helpfulat times, we do not need a Codeof BusinessEthics to tell us what is right or wrong. Nor do weneed the philosophical musings of Aristotle, Plato or Kant on what constitutes ethical behavior. Ethics by its natureis about the grey area in between right and wrong. It is about choices, neither of which is perfect. Let’s explorethe dilemmaof ethical decision-making. Behave ethically Appear to behave ethically Encourageethical behavior in others In business, it is importantto not only behave ethically but to have the appearanceof ethical behavior. Many actions may appear unethical but still fall within the boundsof ethical behavior. I remember a Manager who upon detailed economicanalysis discovered it was cheaper to fly his group to the Bahamas for a regional meeting then to hold it in a traditional conference center. His boss was not amused – perception is everything. Butmore importantly it is the act of encouragingthe ethical behavior of others and creating a corporate culturethat supportsethical behavior that preventsethical mistakes from occurringin the first place. Corporationsdevelop throughtheir actions, a corporate culturethat supportsor doesnot supportethical behavior to greater or lesser extent. If one looksat the PM as the CEOof their project team they too must notonly
  • 2. practice ethical behavior but also encourageand develop it in their teams. To do otherwise is to fail to lead. The dilemma Ethics is about dilemmas. Only a psychopath cannot tell right from wrong. Butsome ethical decisions are grey – principleswe hold near and dear sometimes collide. Weallow freedom of speech in the workplacebut we do not allow hurtful remarks. We know it is our responsibility to give feedback on performance but sometimes mask it in tactful remarksor other positive feedback to lessen hurt feelings but in so doing the impactis lost. We fear there may be hurtful repercussions so are less honest and forth right. Arewe not cheating the project and the employeewhen wedo this? I tell the teams I lead that the best ‘gift’ you can give your fellow team mates is open, honest feedback. It is necessary to provide honestfeedback as a demand of an ethical consultantand Project Manager. Many ethical decisions are difficult judgmentcalls. No onewants to hurt someoneby giving him or her critical feedback but isn’t it really a gift they need to grow? I recently had a project manager tell meshe conducted a necessary mid year performancereview that pointed out an employee’sneed for improvement. Customer feedback was provided and suggestionsfor performance improvementgiven. Two dayslater the employeeresigned, leaving the project manager thinking perhaps she was responsiblefor the resignation and the subsequentdisruption of to the project. The judgmentwasin my opinion correct but difficult. As Project Managerswe are often faced with this dilemma. Not wantingto demoralizethe individualbutfeelingit is necessary for the integrity of the Project to make changes. To remain silent is to engage in unethical behavior. Why? Becauseyou are hired as a Project Manager to deliver on time, on budget and with the required scope and in the case of the consultant you are hired to give independentadvice, even when it is unpopular to do so. Hence if you knowingly failto deliver on your primary obligation (your promise)to your employer because you fear conflict, hurt feelings, reprisals (real or imagined)then you cheat your employer. That is unethical.
  • 3. To remain silent is sets up a group norm Those ‘rules of behaviour’, which are never overtly articulated but when, observed become the norm for group behavior. This is the way corporate culturesare developed over time. How would you likeyour group to behave? Should oneremain silent when they disagree with a decision or should they engage in constructive collaborative conflict managementto get the optimum solution? In the Corporateworld isit all right to cut the corners on quality to deliver on time? If no one sees it, is it OK? Corporationswho lower the boom on project managersfor late delivery irrespectiveof circumstances encourage the unethical short cuts, which harm the end customer. Encouragingethical decision makingin others. In the good old dayswe would say we have to ‘walk the talk’. Demonstrate through our own actions, ethical behavior, as we would wishour team to behave. Today, I believe it is more about being authentic. PMsand Corporationsthat are comfortable in their own skin, appear real and hence believable; encourageothers not justto follow rules but also to assimilate values. They are quick to realize mistakes and own up to them and correct them. Others engage, sometimes unwittingly, in unethical actions and alas condone and contribute to the unethical corporate culture that encourages a power and control mentality. What to do when those unpleasantconsequencesmaterialize? Even if a team member or consultant did screw up, why fire them just because you can? Why leave a dysfunctional organization to fend for themselves just because it appearseasier to leave them to their own devices. If a long-term employeescrewed up would you firethem or would you practice the managementskills wepreach –develop employeesthrough feedback and coaching. The convenient scapegoat covers the ass but does not solvethe problem. I would arguethat workingwith a corporation or consultantwho screwed up, honestly owned up and corrected the problem rather than tryingto break in a new horse is often the best business decision. Of courseit requires honesty, maturity, communication and admittingthat perhapsall of us share in the failure.
  • 4. Unfortunately it becomes difficultto say ‘I made a mistake, I shouldn’thave donethat’. Occasionally we see contractors/SMEs owningup to a poor job and Corporationsowningup to mistakes made, however I see more of the Watergate cover up than an owningup. So why is it so difficultto own up to and correct mistakes? Because often there is a lack of trust and sincere honesty in interactions and, I believe personal insecurity. If we fear wewill be attacked, fired or sued, a cover up begins. It is interesting to note that when Richard Nixon fired his two top aides, Bob Haldeman and John Erlichman, he didn’tdo it himself – he had his presssecretary do it. Such cowardiceand lack of integrity in human interactions is unforgivable. Certainly it is not a demonstration of authenticity in the workplace, is it? Why did he send others to do the dirty work and abdicate his own responsibility? Because it was difficultto do and he knew what he was doingwaswrong. Such actions clearly demonstratethe corporateculture that wasin place in the White Houseat the time. Few would arguethat over the long term, ethical and responsibleemployers, PMsand consultantswill benefit from honest and ethical decisions although it may be painfulin the short term. Conciously buildingthat ethical corporate culturerequires usto movebeyond ‘walkingthe talk’ to reversingour silence and doing the courageousethical action. It is difficultbut necessary to do your joband give their best advice even if it is unpopular to do so. To do otherwise is to steal from the company who hired you ‘The Kinghas no clothes!’ Is a very underusedphrase! I suggest a re-read of my previousLessonsLearned-Mistakes Repeated – Retain institutional knowledgein an outsourced world by maintaining long term ethical relationships between consultantsand corporations; – Engage in communication – without it you have nothing. Mostethical issues need not escalate with some principled behavior and honest communication by the participants. – Recognizethe differencebetween positionsand interests. – Ensureethical conductis a key corporatevalue – Based on authentic behavior and clear communication to enable values being assimilated. I would proposethree very basic rules to determineif a behavior is ethical:
  • 5. The red face test – how would youfeel if it appeared on the frontpage of the newspaper? The sleepless nights test– what do I think of the behavior? The protect your ass gone wrongtest - everyone knows the behavior is wrongand the guilty are found bareassed for all to see. In the next edition I will illustrate with 3 true stories, the application of ethical behavior, with the names, omitted to protect the guilty in the hopes they will see the light.