Thursday, May 9, 2013

It's Easier To Be Honest

It's Easier To Be Honest

Dave Kerpen

CEO, Likeable Local, NY Times Best-Selling Author & Keynote Speaker

Four college students missed an important exam. They went together to their professor the next day, and said, "We're so sorry we missed the exam. We had a flat tire on the way to class. Is there any way we could possibly take a re-test?"

"Sure," replied the professor. "Come on in tomorrow, and you can all take a retest. It'll be Pass/Fail though."

The four students arrived the next day to take the retest, and all of them sat down in their seats. Before handing them their exams, their professor told them, "I've got good news and bad news. The good news is, there's only one question on the test. The bad news is, if any of you fail, you all fail the test.

The students sat there, a bit worried from this professor's strange introduction to the exam. Then the professor handed out the four exams, and each student stared down at their papers, which contained just one simple four word question:

"Which tire was it?"

Lying Makes Life More Difficult; Transparency Makes Life Easier

We all know that it's right to tell the truth, and wrong to tell a lie. And yet, somehow, so often, in business and in life, we end up telling "little white lies." Or omitting the complete truth. Or even telling outright lies. Corporate lies and secrecy has been going on since corporations have existed.

My argument here isn't that you should be honest and transparent because it's the right thing to do (although obviously it is). My argument is that it's the easier thing to do - even if doesn't always feel that way at first. When you're honest and transparent, you never have to worry about what you said to whom. You never have to worry about keeping secrets. You never have to worry about getting caught in a lie. You never have to worry about your integrity or reputation. It's freeing and more comfortable to tell the truth. It's easier to be honest.

Our companies use Verne Harnish's 1 Page Strategic Plan (from one of my favorite business books of all time) to guide our business planning and execution. Transparency has always been a core value of Likeable Media. But three years ago, we took the concept to a new level when we began posting an enlarged copy of our strategic plan and financials on a specially-designed whiteboard n the office wall- where all could see it - employees, interns, clients, prospects, and the janitorial staff. I even posted a copy of the plan in my last book.

Many people questioned this - couldn't competitors find out details about our financials? Did everyone at the company really need to know our strategy and each manager's accountability? Dozens of employees personally told me how much they appreciated our openness. It helped to build a more positive working environment. It made recruiting easier. For me, it came down to this: Honesty and transparency breed trust. And trust makes it easier to build a business.

Of course, transparency around this particular strategic plan ended up being a bit more challenging than usual. You see, each quarter we have a theme, a team challenge, and a reward. That quarter, we had a sales challenge, and each time someone made a sale, money was put into a pot, which we then planned to use to host a party at the end of the quarter. And if you look closely at the photo above, on the bottom right, you'll see our reward in print: "Pot Party." That picture ended up in print, for many thousands to see. But it was just a party, from a pot of money earned by sales. I swear. Honest.

The Risk To Your Brand Isn't Worth Being Dishonest

Three weeks ago, I was taken out of a management meeting when my assistant came in and said, "There's a guy calling from Aflac who says he has an appointment with you."

I didn't recall an appointment, but I begrudgingly left my meeting to take the phone call. I put the guy on the phone, and asked, "Did we have an appointment?"

It was a salesperson who then replied, "No, but I just wanted to ask you a few questions."

The guy had lied to both our receptionist and my assistant in order to get on the phone with me. I called him on the lie, and he promptly got off the phone, in order to go after his next victim.

Now, I'm in the process of building an inside sales team for Likeable Local, and I must admit, as horrified as I was, there was a part of me that thought, "He must make a lot of sales this way, if he's still lying to get in front of a decision maker. Could it be worth it?" I asked my sales coach what he thought, and he told me,

"This guy might occasionally get through using a lie, and it might even (less) occasionally lead to a sale. But what about the risk of brand damage to Aflac he does with ever lie? And to his own personal integrity?

It's easier to be honest. It's easier to be transparent.

It's easier in the short term because of how you'll feel. It's easier in the long term because integrity and trust are everything, and both breed business.

We all are tempted to lie occasionally, or hold back from telling the complete truth. That's okay. But next time you're tempted, just take the easy way out, and be honest.

Edited by: Lawyer Asad

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