Seven reasons why the best leaders always want to hear the bad news
This blog is inspired by a podcast episode, that I hosted with retired United States Marine Lieutenant Colonel Mike Targos. During that episode, which focused on ‘leading with integrity’, Mike noted that “the best leaders want to hear the bad news”.
This notion is both profound and accurate. Like all great truths it is a nugget hidden in plain sight. But as I pondered on this insight, I realised how few of the many leaders that I have worked with over the years, welcomed bad news. Quite the opposite in fact. Bearers of bad news were perceived as ‘negative’. I have personally seen them ridiculed and side-lined in meetings for having the temerity to intersperse leadership ‘happy talk’ with reality checks.
So, what is it about the character of those whose leadership antenna is fine-tuned to capture that which may be seen by others as anxiety inducing? Well, here are ‘seven reasons why the best leaders always want to hear the bad news’.
1. Complacency avoidance
Good news can be intoxicating. So much so that it can lull leaders into a false sense of security, comfort and eventually complacency. Not only that but, in worst case scenarios, it can also lead to delusions of infallibility. It is in these moments that leaders, unbeknownst to them, are at their most vulnerable. This is because, in leadership, whatever you insulate yourself from, you will eventually become intolerant of. Therefore, when leaders insulate themselves from bad news, they inoculate themselves from the truth. In its place, they will be fed a diet of half-truths, untruths and no truths.
2. Prioritisation of action
In business, the act of prioritisation ensures that organisations do not loose sight of things that are important. This is particularly so in fast-moving organisational environments, where priorities are not just competing but also conflicting. Here, leaders need access to situational intelligence that is provided in real-time, not after the fact. Therefore, when leaders have access to the broadest range of information available, only then can they make the most informed decisions about how action and underpinning resources should be targeted, aligned and prioritised.
3. Fine-tune problem solving capability
Bad news invariably presents itself as a problem. Often it is a problem that needs to be solved and even likelier, one that must be attended to urgently. This is where leadership disposition is so important, because in the fertile mind of a leader, there is no greater opportunity to apply collective minds than on a live problem. Unlike any other scenario, problems challenge conventional wisdom, stimulate fresh thinking and create scope for innovation. They also facilitate the empowerment of others, and ultimately enhance the competence of all those involved.
4. Promote a culture of accountability
When bad news is hidden away from a leader, that is a very serious indicator of an integrity deficit. Accountability is not just important because the leader needs to know what is going on and potentially what may be going wrong, it is an equally important test of character for those around the leader. When colleagues demonstrate accountability for their actions, irrespective of what the consequences might be, they show that they have integrity and can be trusted. A leader who operates in an environment, without knowing whether they can trust those around them, is essentially blindfolded.
5. Assumption of risk posture
Gravity and severity are two of the most important words in the risk lexicon. A seasoned leader would have experienced situations with grave implications and potentially severe repercussions. At all times leaders need to understand the risk environment within which they operate to determine the most appropriate risk posture to adopt. No leader worth their salt would attempt to suppress or distance themselves from this type of information. On the contrary, they would take active steps to gain access to it, including through informal or confidential routes.
6. Set everything in context
A good leader will always consider information, no matter how bad, in an absolute as well as relative context. If for the sake of argument, an unexpected economic downturn reduces quarterly profits by 20 per cent compared to the same quarter last year, that is bad news. But if the impact of the recession affects the profits of our main competitors by an average of 35 per cent then, in relative terms, there is a different context within which our company’s results should be read. Yes, context is everything, even where bad news is concerned. But if you can’t see it, you won’t know it.
7. Drive towards continuous improvement
Organisations that drive forward, exceed benchmarks and achieve well-above average results, do so because they are restless and refuse to settle for the status quo. In a highly competitive environment, where even resting on success could be costly, a culture of continuous improvement is not just a ‘nice to have’, it is fundamental for survival. As part of the drive to do better, improvement is often to be found in the small margins. Therefore, a heightened sense of excellence, as moving target, can help to achieve levels of performance that would not be achievable otherwise.
If you flip the arguments in this blog around, you will understand why there is a natural inclination to shrink from bad news. In fact, I would liken bad news to foul-tasting medicine. No matter how bad it makes you feel, ultimately you know that it is for your own good. In simple terms, therefore, one of the best measures of leadership competence, is the discipline to restrain your appetite for things that you do like, so that you can develop a discerning palate for the things that you don’t like.
Paul Aladenika is host of the 11th Thing Podcast