By now you’ve probably heard about the Panama Papers – the 11.6 million files leaked from the database of the world’s fourth largest offshore law firm in, you guessed it, Panama. The documents name a number of notable international politicians, business leaders and celebrities who are said to be using offshore bank accounts to hide their money or avoid paying taxes. Click here to brush up on details of the scandal.
Leadership Lessons from the Panama Papers Scandal
One important leadership aspect of this story was first called out by Geoff Colvin in his Fortune article. He states that discoveries like the Panama Papers – where we find that our elected leaders aren’t what we thought they were – are becoming less and less of a “scandal.” Sadly, we are beginning to expect this kind of reality from our leadership. This begs the question: “Are today’s leaders more corrupt, venal, or dishonest than yesterday’s?”
“Human nature being what it is, it’s hard to believe that they are,” Colvin writes.
But they appear to be. And that’s all that matters.
The reason leaders appear more dishonest is simple. Technology. It’s easier to get caught. Papers can be transmitted electronically. Financial records can be reviewed by computer programs. If it had been left up to a team of real live people to examine the 11.6 million files that were leaked, we still wouldn’t know about the Panama Papers or the leaders who engaged in financial corruption for who knows how long. It would have taken years to analyze all that data. Instead, with the help of data analytics software, it took one year.
Technology isn’t going anywhere. People are going to continue to trust leadership less and less. So what can we – leaders who are good people, who want to be trusted, who want to be great – do to combat this and get our people trusting us again? Starbucks CEO Howard Schultz recommends being more transparent.
“The currency of leadership is transparency,” he said.
3 Tips to Increase Your Transparency
I agree. Transparency increases trust, and trust is so important to good leadership. If people don’t trust you, they won’t follow you. And the only way people will trust you is if you show them that they can. Schultz recommends to be more transparent. Here are 3 tips on increasing your transparency:
- Don’t be afraid to “get naked” with your employees: No, I am not recommending that you take off your clothes at work. But you should be able to bare your authentic self with your employees. Don’t feel like you always have to have the answers. Be a normal human being, with normal human flaws. Be your authentic self with others. The more you are able to let down your guard with coworkers, the more likely they will be to trust you and come to you with problems.
- Look for signals of power distance: How do you know if someone has trouble trusting you? Very few people will come out and say it, but if you watch and listen carefully they’ll tell you. Look for physical behavior that suggests avoidance. Listen for things like mitigated speech or “beating around the bush.” These are signals of mistrust and lack of connection.
- Shrink any gaps you notice: If you notice behavior like this gently remind the person that it is OK to tell you like it is. That you want their candid feedback. Tell them a story about a time another person opened up to you and how it helped you. Open up yourself and encourage them to open up with you.
Leaders today face a crisis in confidence and trust. Situations like the Panama Papers don’t help. But just like people tend to hate Congress but like their Congressperson, you have a lot of control over how your coworkers feel about you as a leader. Follow these steps and you’ll be taking big steps toward building trusting relationships.
