Accountability and tapdancing

You may have seen a recent video of a Senate Finance Committee hearing with the Chairman of the Board of a large bank. He was being questioned about his accountability for his company’s behavior regarding opening new accounts on behalf of their clients.

Form your own opinion about the hearing. We’re here to discuss why it was handled as it was by the Chairman and why you can’t do that.

What you can’t do

The infuriating things about the video:

  • The Chairman makes a few comments that give the impression that his company did no wrong.
  • He shows no sign of accountability for the whole thing (and nor do his managers).
  • He indicates that he can’t provide guidance to the board about the nature of the company’s future actions.
  • He asserts that the whole thing was about one percent of his employees, with a tone that implies it’s really not a problem at all.

What makes it even more aggravating is that the value of the Chairman’s stock rose about $200 million during the period discussed. This means that the value of the company’s stock was misrepresented during that time.

Bottom line, while the camera was running, he washed his hands of the whole thing and of his possible future role in taking corrective action, much less punitive action against the senior managers involved.

Yet, he had a decent enough reason.

The reason for his position is that anything he said during that questioning was likely to be used against him and the company. Whether he is a slimy cretin or not, he is an officer in the company and has a fiduciary obligation to protect the company. One might theorize that lying (if that’s what he was doing) isn’t a good way to do that, but I suspect he was advised well in advance about what he could and couldn’t say to avoid making things worse.

Unless you’re the CEO / Chair of the Board / officer of a publicly traded company, you can’t do that.

What you have to do

If something bad like this happens, the worst things you can do are exactly what he did:

  • Dodge questions.
  • Give vague answers or non-answers.
  • State that you have no responsibility, despite being the Chairman of the Board (or in your case, the owner)
  • State that you have no obligation to lead your board to a decision about making management accountable.
  • State that you cannot lead your board to a decision about making yourself accountable
  • Decline to comment about your level of accountability.

This guy’s customers have a choice. They can get over it in some form, or they can eliminate this company from their lives by closing all of their accounts and banking elsewhere. Moving bank accounts is not easy. Between the regulations that require a bunch of paperwork (in most cases) and a visit to a local bank branch, and changing any electronic bill payments (or similar), it isn’t fun.

Your customers will likely have a much easier time moving to a competitor – if that is their choice. Your comments to any questions about whatever you’re dealing with are going to set the tone for their response and reaction.

When you do these things, you likely won’t be scrutinized by the Senate. In your case, your clients will likely be judge, jury and (hopefully not) executioner.

It was only one percent of our employees

One part of this hearing stuck out to me. The Chair said (paraphrased) “it was only one percent of our employees“. His tone implied that they were bad apples and he had no control or oversight over them. He said that despite the fact that there was a senior manager responsible for implementing the program that created this mess. That senior manager worked for him. Management laid out the program these people worked under, created a bonus schedule for it, oversaw the program and made it expectations clear.

Whether one percent of your employees is 5000 people or five (or it’s just you), you don’t have the choice this guy made. You have to take accountability straight up and dole it out to your team as well. When and if something like this happens, the responsibility to all yours. Own up to it, take your licks, hand out a few as needed and make changes to prevent future occurrences. The rest of your business’ life depends on it.

Anoop voted off American Idol. Economy recovers. News at 11.


Creative Commons License photo credit: boyghost

Yesterday, the International Monetary Fund (IMF, a conglomeration of old money guys from 185 countries) indicated that they don’t see the global economy recovering until 2010.

Meanwhile, Anoop was voted off of American Idol. Wow, I had a hard time getting to sleep after hearing about that:)

The Economy doesn’t have to be Your Economy

“The economy” or “The global economy” may have an impact on your business but it is not YOUR economy.

Don’t let all the doom and gloom junk on CNN and elsewhere cloud your thinking. Sure, some businesses and plenty of people are struggling. Business-wise, look closely at the reasons why.

Look under the covers at the businesses that are having trouble. In large part, a lot of them are businesses that haven’t shown any consideration for their customers in decades, or they stuck in outdated business models for far too long, or that they did things just because everyone else was doing them (over-building, over-extended, subprime lending, obvious stuff).

Examples: GM says they won’t make their debt payment and bankruptcy is likely. New York Times stock said to be worthless.

Are they unrecoverable? Depends. If they continue to try the same things that got them where they are today, maybe not.

Meanwhile, there are shining spots in the business news…

So who is right? The IMF or Apple, Wells Fargo and some local businesses?

It doesn’t matter which of them is right. What’s right for you is what matters.

Care as much about it as they do

Earlier this week a client remarked to me that I work as if I care as much about their business as they do.

Isn’t that how all your clients should feel?

Did anyone ever feel that way about GM or the New York Times?

You get what you focus on. Focus on doing more, better for your clients and you’ll get more, better clients.

Pity the fool who doesn’t communicate

Over the last week or so, I’ve hunkered down in the perfect storm of communications.

Bresnan

I get a card in the mail asking me if the recent visit by a Bresnan Cable tech took care of the problem and if I was happy with the service. It’s the same guy who always comes to work on my cable issues. Treats you like a relative, even if he does sometimes have to come back more than once now and then. I wonder if they intentionally send the same guy. Smart if done on purpose (assuming the guy isn’t a bozo<g>).

Usually when I see him more than once in a week – it’s because cable boxes in general are just poorly made hardware commodities that fixing one thing exposes another thing (but later, of course<g>). But…that isn’t his fault.

Movie Gallery

During Thanksgiving week, my kids went up to Movie Gallery to pick up a DVD. My account was in lockdown. That was their terminology for it – ushers up nice images of Shawshank, doesn’t it?

Lockdown apparently occurs when you don’t return a movie for 3 weeks, I guess.

So my kids use their own account instead of mine and I later go up there – after finding the movie – to ask what the deal is. Turns out I’ve had the movie for 26 days (yes, it was a 3 day rental<g>).

Ok, my bad. However, I wondered where the reminder postcard was. Where’s the phone call asking where the heck I put the video?

NOT ONE WORD.

I’d had the movie for a month – without a single call, email, postcard, carrier pigeon, etc.

Folks, as we talked in role reversal last week – look at things from your customer’s point of view. Late fees are not good. Why else would people agree to wait for movies by mail?

Before I left, I asked the clerk what the deal is with no notifications. They don’t mail anymore. Costs too much (what she was told – vs “Earns too much in late fees”?).

I ask why I wasn’t called. For years, they’ve been good about calling, even if it is after the movie is late.

Why don’t they send text messages 2-3-4 hours before they close in order to remind people about the almost-late movie that’s . Seems obvious that they want them to be late. “Late” might be legit / intentional, so why not let it slide.

Because it isn’t in the best interest of the CUSTOMER. “Pity the fools”, as Mr. T would say.

Her reply regarding the calls. “We can’t make the calls anymore. Corporate does that now, they have some kind of automated system…. but some people never get called. It doesn’t work too well.”

Repeat after me…Business is Personal. Think like the customer.

Wells Fargo

We’ll close with a little bit of good news.

I use Wells Fargo for a bunch of stuff.

I got a live call from a lady working for Wells 2 weeks ago. She called simply to “make sure we were doing ok”.

I said “Sure, why do you ask?”

She says (paraphrased, it’s been a week or so), “Well, a lot of people are struggling with their mortgages and stuff, so we’re calling all of our customers to check on them even if they aren’t late. If they’re having some problems and they haven’t told us yet, it gives us a chance to help them figure out a solution before things get worse for them.”

Out-frickin’-standing.

They may be a big lumbering megalith, but someone there really gets it. Yeah, I know. It’s a little self-serving on their part, but the positioning of the call is smart.

Making the call before it has to be made (even if it might never have to be made), that’s the brilliant part.

[audio:http://www.rescuemarketing.com/podcast/PityTheFoolWhoDoesntCommunicate.mp3]