Poor Leadership Has a Price

In a recent article in the Wall Street Journal entitled “Employees Speak Out – Against Their CEOs”, workers are getting comfortable with scrutiny towards what they perceive as poor leadership by their CEOs. More and more workers feel comfortable rating their CEOs in one fashion or another, to the point of being outspoken critics. A closer look at these voices of company experiences reveals an introspective assessment of company culture and reflections on leadership from the top. 

In today’s day and age, customer feedback is vital to a company’s success if it wishes to stay in front of market forces continually shifting the landscape. Feedback can be and is frequently sourced from both internal and external components. A well-run company at all levels takes stock of how smoothly the company operates internally and of how well its employees interact and strive to collaborate towards the company’s mission and focus. The enthusiasm and positive attitudes of valued employees is contagious which results in strong support for their CEO. This business foundation principle historically drives success time and time again because the organization values its people and its customers, starting at the top. When leadership of the organization focuses on creating an empowered environment, phenomenal results happen. History has proven this to be the case.  Most CEOs understand the simple principle - a valued employee is a contributing employee. The workers know that what they do matters and that they are recognized by those above them. They become less outspoken critics and look to contribute to the company’s mission more and more. However, there are moments and even phases when CEOs and other leaders lose focus on valuing the employee or those that make the organization hum. Just about all organizations have disgruntled employees and discrediting or dismissing the value of these employees doesn’t generally have a cost. Yet there is a tipping point where employees critical of company leadership reach a mass that is statistically significant. CEOs who fail to live up to the role of a leader who values those in the company now have a new cadre of individuals to listen to -- the outspoken critic who isn’t just one disgruntled employee but a significantly sized group that are providing valuable feedback as to how the company feels it’s being run. Shareholders and the Board of Directors still weigh heavily in evaluating CEO performance.  Yet internal feedback from all employees within a company can be an excellent barometer for CEO performance. CEOs wondering if solid, 360 leadership is essential should look in the company mirror and ask themselves consistently, “How do I show up in the eyes of my company?” That introspective question will naturally turn CEOs to thinking and acting as a leader which in turn results in fewer critics and more contributors to company success. The opposite disregard for employees will have a price, and one that’s not to be taken lightly.