Four Truths

From Catalyst Magazine Ehics Summit, July 31, 2002
Frank Chamberlain

Frank Chamberlain is a turnaround specialist. He goes into companies when they are struggling - when cash is running out, employees are defecting, and credit is exhausted. Mr. Chamberlain was a panelist at the Catalyst Magazine Ethics Summit held on July 31st, 2002, and has a fascinating perspective on the ethical dimensions of struggling companies.

Mr. Chamberlain told the audience that in his work with troubled companies he has learned four truths:

1. He finds, almost without exception, that there have been lapses in organizational ethics and individual integrity. "In an under-performing company financial problems are linked to issues of integrity."
2. Employees were not told the truth by management, and because they saw ethical lapses, they did not trust their leaders.
3. "Simply telling the truth - the simple, whole truth - did more to revitalize commitment than anything I could do. Invite employees' ideas, but don't spin anything - they're too damn smart, and they always know what's going on." If you tell the truth, it will inspire belief, which will inspire trust, which leads to loyalty, then to commitment, and finally to results.
4. "Integrity and truth are the most powerful and underutilized tools in business."