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Are You Balancing Expertise and Integrity? A Key to Achieving Sustainable Business Results

In today’s competitive business world, expertise is often heralded as the key to success. Whether it’s through years of technical training, industry knowledge, or proven skills, expertise is essential for navigating complex challenges. However, expertise alone may not be enough when it comes to achieving sustainable, long-term business success.

The real differentiator lies in the balance between expertise and integrity. Too often, businesses focus exclusively on technical skills, overlooking the importance of honesty, ethical behavior, and personal integrity. However, as case studies of financial crimes, frauds, and corporate scandals have shown, experts can sometimes be the very people who misuse their knowledge for unethical purposes.

The Challenge: Expertise vs. Integrity

Consider the challenges organizations face when expertise is prioritized over integrity. It's like an autoimmune disorder within a company. Just as in the human body, where the immune system attacks its own healthy cells, organizations that focus only on expertise can "attack" their own ethical foundations. In these cases, the system becomes self-destructive. When businesses are obsessed only with technical skill and overlook the importance of integrity, they risk allowing "autoimmune-like" behavior—such as financial fraud, misconduct, or manipulation—to undermine the very foundations of trust and long-term success.

Now if we consider some of the most high-profile business failures in history—Enron, Volkswagen’s emissions scandal, or the 2008 global financial crisis. These events were orchestrated by individuals with high levels of technical expertise and acumen. Yet, despite their remarkable professional achievements, these same individuals lacked integrity. Their actions not only led to financial losses but also irreparably damaged public trust and their companies' reputations.

• Enron: Once regarded as a shining example of corporate innovation, the company was engaging in a series of accounting frauds, ultimately resulting in one of the largest bankruptcies in US history. Despite having some of the brightest financial minds at the helm, Enron’s unethical behavior led to its downfall. Cost to shareholders: $74 billion in lost value.
• Volkswagen Emissions Scandal: Engineers developed software to cheat on emissions tests, allowing Volkswagen cars to appear compliant with environmental regulations when they were not. Total cost of fines, compensation, and buybacks: $30 billion in addition to severe reputational damage.

This raises a critical question: Can we truly rely on expertise alone to achieve sustainable business results? If we do not prioritize integrity alongside technical skill, we risk compromising not just our ethical standards, but the long-term success and health of the organization.

Integrity: The Unseen Ingredient for Success

The challenge lies in assessing integrity and honesty. Unlike technical skills, which can be measured through qualifications, tests, or experience, integrity is a qualitative factor, often difficult to quantify. It’s harder to evaluate a person’s honesty in a resume or during an interview. While many candidates boast impressive achievements, how those successes were achieved—whether with honesty, fairness, and respect—may never be fully revealed unless we specifically look for it.

• Key point: Integrity and honesty are often assumed, but should not be taken for granted.
• Problem: How can we measure integrity in a way that is as precise and objective as a candidate’s technical skills?

How Can We Assess Integrity?

The first step in fostering an integrity-focused culture is to explicitly require it. This may sound simple, but it is an important shift. By clearly stating that integrity and honesty are essential qualities for both hiring and promotion, employers send a strong message that these values are just as important as technical expertise.

Here are ways to assess integrity:

• Track Record and Reputation: In today's interconnected world, it’s possible to evaluate a person’s integrity through their online presence and reputation. Look at their social media engagements—do they engage respectfully? Third-party feedback—such as client testimonials, references, and past colleagues—can offer insights into their character and behavior.
• Behavioral Interviews and Hypotheticals: Incorporate behavioral interview questions that focus on ethical dilemmas. This encourages candidates to share specific examples of their core values and decision-making processes. Example: “Tell me about a time you faced a situation where doing the right thing wasn’t the easiest option. How did you handle it?”
• Employee Surveys and Peer Feedback: How do employees perceive leadership integrity? Employee surveys can provide an honest look at how senior management's actions align with the company's values. 93% of business executives agree that building and maintaining trust improves the bottom line. https://www.pwc.com/us/en/library/trust-in-business-survey.html
• Qualitative Goals with Quantifiable Actions: Incorporating integrity into performance evaluations can be challenging but possible by breaking qualitative goals into measurable, observable actions. Example actions: No disciplinary investigations were conducted, No legal disputes, Positive feedback from clients or colleagues on ethical decision-making, Volunteering for corporate social responsibility initiatives or community-based programs.

Consistency in Decision-Making: Integrity can be assessed through an individual’s consistency in decision-making. Are their actions aligned with the company's ethical guidelines and values, even when no one is watching? Are they willing to make the hard decisions for the long-term benefit of the organization, even if it means short-term losses? 

Speaking up against unethical practices: The quality of speaking up against undue influence or attempts at corruption can reflect a person's commitment to honesty and ethical standards. Those who are willing to push back against pressure for personal or organizational gain demonstrate a strong sense of integrity.        

When Challenges Arise: The Impact of Dishonesty

While expertise and technical skills are certainly vital, many organizational challenges stem from willful irregularities or incompetence. More often than not, however, dishonesty is at the core. This dishonesty may not always take the form of criminal behavior, but it can lead to unethical practices that derail growth and damage reputations.

• Key Statistic: According to a survey by PWC nearly three-quarters i.e. 72% of the respondents say the board is regularly updated on efforts to investigate allegations or mitigate fraud risk. https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html

When faced with challenges, organizations often have two choices:

1. Work with honest people who may not be an expert.
2. Work with experts who may lack integrity.

This raises a critical question: What factors drive organizations to choose dishonest individuals, even when there’s a clear preference for integrity?

• In some cases, it’s about navigating complex regulations or addressing external pressures that prompt companies to seek alternatives.
• Regulatory environments: When regulations become too complicated or burdensome, coupled with lengthy processes, organizations may feel forced to take shortcuts to protect their earnings, growth, and business continuity.

However, choosing to sidestep regulations often creates short-term gains at the cost of long-term harm.

The Question: Who Gains, and Who Loses?

The ultimate question is: Who benefits from these shortcuts, and who loses out?

• The gainers: Individuals or companies that engage in unethical practices often benefit in the short term, creating a system where “corrupt shortcuts” thrive.
• The losers: Honest businesses that try to play by the rules are left at a disadvantage, caught in the maze of unnecessary regulations.

This brings us to a paradox: Why are certain practices illegal in one country but legal elsewhere? Are some laws and regulations creating unnecessary obstacles for good practices, thereby forcing businesses into moral gray areas?

Why This Matters: Long-Term Impact

Focusing on integrity isn't just about mitigating risk—though that's certainly a part of it. It's also about building a sustainable business model. Companies that prioritize integrity foster an environment of trust, which strengthens employee engagement, boosts customer loyalty, and ultimately drives long-term profitability.

• Example: Companies like Patagonia or Salesforce have earned their reputation not just for expertise, but for prioritizing ethical decision-making.

Conclusion

Ultimately, sustainable business results are driven by expertise and integrity. Expertise alone can get a company to a certain point, but without integrity, long-term success is unlikely. Integrity forms the foundation upon which trust is built, and trust is what keeps businesses resilient, especially during times of crisis or change.

Fostering an environment that values both expertise and integrity requires intentional effort.

• It starts with leadership that models ethical behavior, followed by clear expectations for employees at all levels.
• Furthermore, unity among honest people is essential—even when there is disagreement on specific matters. Healthy disagreement should not be seen as a challenge to honesty, but as an opportunity to explore diverse perspectives while staying grounded in core ethical principles.
• Those committed to creating and sustaining an honest and fair environment must remember their shared commitment to integrity, which forms the common ground that unites them.

Key Takeaways:

1. Expertise alone isn't enough: Sustainable business success requires a balance of both technical skills and integrity.
2. Integrity drives trust: Trust is foundational for long-term success and resilience, especially in times of crisis.
3. Assessing integrity: While harder to measure than technical skills, integrity can be assessed through reputation, behavioral interviews, and peer feedback.
4. Honesty in hiring: Make integrity a clear priority in hiring and promotion practices to build a trustworthy culture.
5. Dishonesty can derail progress: Many challenges in organizations stem from dishonesty, even among skilled individuals. A focus on integrity can prevent unethical shortcuts.
6. Simplify regulations: Overly complex regulations can encourage unethical practices. Clearer frameworks reduce opportunities for dishonesty.