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April 01, 2005
When the CEO won’t listen, sell your stock
If a CEO or other senior leader creates a culture where people can’t ask questions, raise issues, or engage in real communication (not the kind that’s just for show), run away as fast as you can—the company’s in trouble.
You can read the front page of today’s Wall Street Journal for the latest example: the recently departed CEO of American International Group (AIG), “Hank” Greenberg. Among other charming tales of Mr. Greenberg’s operating style, the article recounts that employees and directors “rarely challenged” Mr. Greenberg. “At board meetings, directors often refrained from asking questions because they didn’t want to appear ignorant or to challenge Mr. Greenberg’s authority,” according to people familiar with the meetings.
Think Hank’s the only senior executive who kept a lid on communication? Talk to a Hewlett-Packard (or Lucent) employee who worked with Carly Fiorina. Read the accounts of how Ken Lay (Enron) or Bernie Ebbers (WorldCom) operated. Recall the way former Mattel CEO Jill Barad ran the company.
And I’m sure you have your own experiences with less high-profile leaders who are really bad listeners. Like the division president who tried to shoot the messenger (me) when employees in a focus group made suggestions on how he could improve communication. Or the senior leadership team that has a reputation for roasting employees when they come to present their ideas. Or the CEO who responded to an employee question at a town hall meeting by saying, “I’ve already answered that” in a bored, dismissive tone.
CEOs get their jobs because they’re smart, driven and decisive. But they keep their jobs by being smart enough to realize that they don’t know everything. Problems are festering every day—and great ideas are fermenting. This may sound blindingly obvious, but unless a CEO is open to hear both bad news and good news, he can’t help solve problems or take advantage of promising opportunities.
If your CEO has a habit of cutting people off, shutting people down and otherwise acting like the only voice worth hearing is his own, find another job. Sell your stock. Get out quick.
Posted by Alison Davis at April 1, 2005 01:05 PM