simplicity rules final

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Simplicity Rules

12 Thoughts for the2012 Workplace

by

Stephen M. Paskoff, Esq.

President and CEO

Employment Learning Innovations, Inc.

A publication of


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Simplicity Rules12 Thoughts for the 2012 Workplace

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Forward ........................................................................................................... 3

Chapter One - Simplicity Rules ....................................................................... 4

Chapter Two - Values, Culture, and Legal Risk ............................................. 6

Chapter Three - Leadership ............................................................................ 8

Chapter Four - Civility at Work .................................................................... 11

Chapter Five - A Welcoming Environment .................................................. 14

Chapter Six - Motivation and Learning .......................................................17

Chapter Seven - Global Standards ............................................................... 22

Chapter Eight - U.S. Government at Work .................................................. 24

Table of Contents


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We live in astonishing yet challenging times. Industries rise and fall more rapidly than ever in ourindustrial history. We share information with others in our offices, in our communities, and around

the globe in more ways than ever before. We are expected to know more, do more and absorb more

while completing a broad array of complex responsibilities under great pressure.

In this climate, key lessons about behavior and responsibility can be lost in a maze of regulations,

statutes, procedures and policies that seek to ensure compliance and minimize risk. Instead, they often

do the opposite. Individuals forget key rules vital rules about leadership and values and dismiss

information. Its a matter of overload; they just cant retain it all.

The solution is to focus on simplicity: we need to link key values to concrete behaviors and make them

cultural standards. This includes how we present regulations and legal information not separatelybut as part of an overall business and organizational philosophy, which involves civility, inclusion,

professionalism, effectiveness, and, of course, compliance with required statutes. The latter cannot

be accomplished without the former. And the former involves a few key rules and thoughts about

learning which are summarized in my upcoming book, to be released in 2012, titled Simplicity Rules.

Stephen M. Paskoff, Esq.

President and CEO

Employment Learning Innovations, Inc.

Forward


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Chapter 1

Simplicity Rules

Are you frustrated by the countless mandates for behavior and practice that swamp the workplace?

Youre not alone. We all deal with an overload of information from every direction: texts, e-mails,

social media sites, and more. In this mass of communication, its easy to lose sight of key messages,

messages about basic behavioral standards necessary to a civil and professional environment.

Whats the answer? A few simple rules that apply to every professional situation. These simple rules

can transform the workplace.

Complexity Squashes Business Results - Fight Back with Simplicity

Weve made ethics, compliance, and daily behavioral standards too complex. By trying to convey

too much, we accomplish too little. We need to simplify messages, repeat them to make them

memorable, and cut through the clutter of information that confuses rather than clarifies our

objectives. Thats my simple message; the rest of what follows is proof.

We are all flooded with information, more than any generation in history. We have e-mails flying

into our multiple mailboxes while voicemails wait in our desk, cell, and home phones. We have

to check them daily to avoid a deluge of piled-up data. We can find anything we want and much

more on the Internet. Then there are meetings and conferences and hard copy documents to

review. Behavioral economists will tell you that too many choices make it harder, not easier, to

make reasoned decisions.

The same is true with information as it applies to ethics and related issues. Give people too

much information, present them with too many topics, lay out too many matrixes on behavioral

standards, and ultimately it all gets lost. People will think, This is too much to absorb on top of my

job. Ive got other things to worry about. Whats the real message? Im too busy to think.

Require your employees to click through a mandatory series of online questions. Sure, theyll do it

while daydreaming about other, more interesting stuff or going through all the communications

piling up while theyre supposed to be learning. Youll have a record of completion, but without

clear, consistent messages driving and reinforcing the event, thats about all youll have.

So while weve given people more information on ethics and the law than ever, scandals keep

erupting. In scope and sheer brazenness, theyll match the worst of any era. Just think of what

weve seen in the last year in Congress, sports, financial services and other businesses.


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How do we solve this information overflow and spiders web of communication? Attack the

complex with simplicity. Communicate simple messages. The most important are the following:

Know our general standards. Theyre important, not fluff.

Let us know if you find out about issues or dont know what to do.

We wont tolerate lying and fabricating information.

We dont shoot our messengers. We welcome their issues.

Repeat the above over and over, not just via courses or bulletins but in regular conversations.

A client once told me that they teach one of our programs the exact same program over and

over again. And it works; it has changed their organizations culture. At first, this surprised me, but

then I realized this was proof that my own theory works: clear, consistent messages really make a

difference.

I recently met a General Counsel and an Executive Vice President of a well-known, prestigious

retailer. I asked them how they manage ethics and related issues. They said, Its sort of a back of

the envelope kind of thing. Our CEO talks about it, we all talk about it, we send out quizzes, and

we do training. Were always communicating. They said more and more people bring them issues

that they can resolve.

I told them they have it right. Simplicity and repetition from leaders trump complex information

assaults and mazes of processes every time.

Chapter 1

Simplicity Rules


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Chapter 2

Values, Culture, and Legal Risk

Serious legal problems big lawsuits, investigations, fines, criminal penalties rarely arise because

individuals did not know the law. Instead, they arise when people choose to ignore ethics and opt

instead for their organizations true values. These are the values that can pave the way to legal

disaster. If we are to address legal risk, we must first address ethics in the workplace. Its only this

proactive approach that can avoid the risk before it ever occurs.

When the Laws Not Enough to Fix the Problem

The pharmaceutical firm keeps selling a profitable medication though its researchers know ithas significantly adverse side effects.

The hospital tolerates physicians abusive behavior though aware of the distraction their

conduct causes.

The automobile manufacturer conceals a deadly defect rather than absorb the cost of product

recalls.

Recently, organizational disasters have resulted from each of these fact patterns. I know Im not

alone in noticing how the same kinds of actions keep causing avoidable catastrophes. Trained legal

professionals hired to clean up problems like these quickly issue spot violations tied to FDA, labor,

employment, and product liability regulations. Applying their talents and training, they reduceexposure through successful analysis, argumentation, and negotiation. But while such legal skill is

well suited to lessen catastrophic losses once bad events have occurred, relying on it for prevention

wont avert future catastrophes.

This isnt a knock on my fellow professionals. By analogy, a gifted surgeon has the skills needed

to delicately remove a damaged kidney but may lack the full arsenal of knowledge and training

to treat the underlying disease. Its simply a different specialty. Similarly, with complex business

problems of the kinds described above, the legal experts have the skills needed to resolve them,

but they lack the strategies, actions and tools required to prevent them.

Heres why. Serious business problems of the kinds summarized above dont happen becausepeople dont know the legal basics about what they should or shouldnt do. Instead, they happen

when leadership, culture and values fail to block such actions. Yet leadership, culture, and values

are not subjects that lawyers study or train to evaluate.

When I practiced law as management counsel, I did not spend much time wondering what caused

the legal problems I tried to prevent. I didnt understand what leadership, culture, and values meant

or the impact they had on organizational conduct. To me, they were buzz words and jargon, not

the keys to solving what later became the concrete legal problems I had been hired to defend.


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As legal counsel, I studied the law to figure out the clearest areas of risk; I read regulations to

understand what needed to be done and documented. But I couldnt find a statute saying how

leaders must act to demonstrate commitment to values like honesty, safety, quality, civility, or

inclusion. Nor did I think to look for one. In fact, there was not then and is not now a code stating

what it takes to make ethical daily conduct part of culture or even what culture is. So without

knowledge or training in addressing legal problems based on cultural issues, the legal approach

often recommended then and now is this: communicate the law and policies, set up hotlines, and

keep good records.

But heres what Ive learned over the past 20 plus years. Compliance with the law is vital but to

avoid serious systemic failures of the kinds summarized above, its just not enough. Here are a fewquestions to consider when determining whether to address a problem with broad-based cultural

change and leadership commitment or whether it is sufficient to simply communicate information

and set up processes.

Are issues that need to be fixed tied to basic kinds of behavior such as abuse, harassment,

falsification of information, or cover-up of problems? If so, giving people more information

wont solve the problem. Most likely, offenders already have the information; they are just not

seeing it as important.

Are standards being ignored by key business leaders? If so, then the problems are likely the

result of ineffective leadership, not just a need for more information or more rigorous policies.

Are proper standards discussed by top leaders but no one else? If so, messages and action steps

are not being properly communicated and integrated into daily performance.

Are business decisions discussed within the context of company values? If not, the values are

cosmetic and wont help prevent or resolve major problems.

Like the gifted surgeon, the law is vital for correcting a catastrophe. But many catastrophes would

never have happened if organizations had nurtured their work cultures. That is the hidden code

undiscovered by any law: a safe, ethical, civil work environment is the prevention thats worth

pounds of cure.

Chapter 2

Values, Culture, and Legal Risk


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Chapter 3

Leadership

Leaders influence others and leave a legacy by defining daily behavioral standards, acting in line

with them, talking about them, intervening when problems arise and making it clear that they

want to find out problems. Their actions live long past their own careers and are the foundations

for civil, inclusive and legal workplace cultures. What will your legacy be?

Wear a White Shirt and a Dark Suit: Clear Rules for

Corporate Boards and Executive Leaders

Every organization should have a few clear and unambiguous rules and principles that are followedand enforced at every level. These principles build culture and set standards that can readily spread

throughout any organization.

A string of executive controversies recently brought this issue into stark contrast. Two bewildering

examples drawn from recent headlines include the firing of the following leaders:

University of Georgias athletic director following a DUI arrest

Hewlett Packard CEO for breaches of trust and conduct who had pledged to lead his business

ethically

In setting standards, I suggest leaders and boards figure out whats really important and then hold

the line. If you dont live up to these rules, youre gone, no matter what position you hold or who

you are.

If you are the UGA athletic director, you need to follow the behavioral rules that you are telling

students to follow. And if you are the CEO of Hewlett Packard, you must provide accurate expense

reports and other information.

I learned my lesson about following the rules on my first real job as a part-time salesperson for

Baker Shoes in September 1967. In those days, there was no orientation, no employee handbook

and no training. Right before my first day of work, my boss, Joseph Silverman, told me how much I

would be paid, what I would do and my shift hours. Finally, he said, Be here at 8:30 a.m. Saturday.

Wear a white shirt and a dark suit.

I got up on Saturday, ready to go to work for eight hours on what was already a muggy day in East

Liberty, an urban neighborhood in Pittsburgh, Pennsylvania. But there was one problem. I had only

one heavy gray wool suit, which had been given to me by my friend, David Kalson, for a role in the

prior years class play. If I wore that suit, I knew I would burn up on that sweltering day in that shoe

store which had no air conditioner.


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Chapter 3

Leadership

So I came up with a better plan. I would wear my solid lightweight dark-blue blazer with matching

blue slacks. The blazer buttons were gold, but it looked just like a suit, and I would be more

comfortable. I arrived at work on time, greeted by Mr. Silverman, who wore a dark suit and white

shirt.

Before I even entered the building, he asked, Wheres the suit?

But its hot and this is just like a suit, I replied.

Mr. Silverman said, I said a suit, not just like a suit. Go home and come back in a suit if you have

one. Otherwise, forget it.

I went home and told my dad. Without hesitation, he ordered, Put on your suit, and get down

there now. And so I did. I sweated that first day and first month until I could save enough to buy a

lighter-weight, real suit.

Bakers did not spend a lot to get its message out. But the companys dress code was embedded in its

culture. Mr. Silverman always wore a suit. He communicated the rule to every employee before they

started, and he enforced it. It was clear, and he brooked no exceptions.

Some organizations boards and leaders fall back on complex rules and codes of conduct. Its easier

than figuring out whats really essential to the business. But its a vital exercise if you want to draw

clear lines that cant be crossed. You still have plenty of room for discretion to deal with gray-

area exceptions. But where basic principles, values, cultural, legal and reputational risks intersect,

the rules need to be as clear and unambiguous as Mr. Silvermans Wear a dark suit and a white

shirt was back in 1967.

When Leaders are Too Busy: What it Really Means

Doctor: Weve reviewed the tests, and our findings are in line with all the other opinions. You

need this operation. Without it, your life is at risk.

Patient: Thats exactly what other doctors have told me, but I did my research and know youre

the best. Just one question. How long will it take to perform the surgery?

Doctor: The operation will last 3 hours.

Patient: Sorry, Im too busy. I can only give you 2.

Ive never heard of a conversation like this. But when it comes to suggesting learning experiences

for physicians, executives, academicians and other leaders, I hear it all the time. Heres the standard


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Chapter 3

Leadership

refrain: Our top people are extremely busy; they can only spare an hour at the most. Were lucky

to get in front of them briefly, if at all.

True, short, intense presentations covering key points can work. However, Ive often wondered

why theres such an aversion to participating in sessions in the first place, let alone more extensive

presentations on such topics as ethics, organizational values, and lawful, professional behavior.

After all, these tie in to organizational health and success. This is also puzzling because errors at

the top, whether violations committed by leaders or a failure to correct the errors of others, are

frequently the most catastrophic to organizational wellbeing.

Heres what Ive learned: Those who avoid learning entirely - or demand shortened experiences -

either dont really see these topics as important, or they dont believe theres a messenger whose

presentation is worthy of their time.

Some leaders assume others can handle resulting issues, that they already know enough or that

what happened to others wont happen to them. They apparently think, Why should I spend more

than an hour a year, at most, covering these topics? Thats enough to check a compliance box. I

need to spend my time making deals, conducting research, treating patients or doing something

productive.

After disasters like BP or Toyota have hit, though, I am guessing such leaders may now wish they

had not avoided or cut short their study of such time-draining topics.

To combat this lack of interest in compliance and ethics, senior leaders must set the tone. These

must state clearly, These topics are important to me, you and all of us. I will be attending and

participating; I expect you to do the same. And we will keep talking about the issues among

ourselves, not just in this session. When top leaders send this message, they are the doctors saying

to patients, You must have this procedure.

No matter how effective the message may be, the messenger must also be credible, using examples

that tie directly to the audiences personal and business experiences. The messenger must also have

professional stature and credibility equal to that of their executive audiences. Most importantly,

senior leaders dont want to be lectured; otherwise, they will tune out or walk out. They need to be

engaged with their colleagues. Forcing audiences to listen to information they can absorb in other

ways books, iPods, iPads, Kindles, and so on wastes everyones time.

When leaders know they need an operation and find the right doctor, they will agree to surgery.

The same is true for learning on subjects tied to their organizations wellbeing.


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5Organizations must be efficient and productive in a continually challenging local and global economy.

Rudeness and abrasiveness, as well as blatantly illegal practices, will not only cause legal claims but

also interfere with how people work to get jobs done. Civility a defined set of behaviors and daily

practices which become cultural standards is the simple antidote for this problem.

Install Civility as a Business Process

Tell business leaders theres a new operational process that has the potential to transform their

organization. Then notice their reactions when you list what it can do for them:

increase safety

surface problems

reduce errors

improve quality and teamwork

encourage innovations

safeguard their brands

reduce regulatory risks

boost profits

Many executives will reply that theyre in the business of reality not magical thinking though

perhaps in saltier language.

Tell them it wont cost as much as a fraction of an upper executive levels severance package, and

theyll likely think about getting one ready for you. If theyre amused or just curious, get ready

to explain why civility defined as a simple set of clear workplace behaviors will do just that.

Numerous studies in healthcare, government, manufacturing and professional services show

that routine incivility, a seemingly minor detail in the overall scheme of things, actually causes

significant harm to an organizations health. It affects all factors of an organizations success:

clients, staff, and financial returns.

The behaviors causing harm occur routinely. They are transmitted culturally as people absorb

behavior patterns by modeling others. The good news is that we can change these patterns and

curb their damaging impact. In fact, studies such as Atul Gawandes The Checklist Manifesto: How

to Get Things Right repeatedly demonstrate that even simple checklists can change behavior and

its outcome.

Chapter 4

Civility at Work


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issues they worry about and the ones they must understand can be positively affected by civil

behavior.

Show them how uncivil behavior leads to serious harm in their own organizations. To do this,

create a brief case and ask for volunteers to exhibit problem behaviors that might occur in

the case. Afterwards, ask leaders to identify notable behaviors, positive or negative, and then

to identify the business detriments or benefits they cause. If done properly, they will link the

negative behaviors to harmful business results.

Work with them to produce a short list of behavioral standards that become their

organizations principles of civility. Remember, this list needs to be simple and short.

Leaders should then talk about these behavioral standards with managers and employees. Thisis a long-term commitment, not a single set of emails or web-based videos. Everyone has to be

involved.

In less time than your organization can build a new facility, develop and launch new products or

buy and integrate enterprises, it can implement principles of operational civility. The good news is

that it can be done with minimal cost and risk, yet generate superior results.

Chapter 4

Civility at Work


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Chapter 5

A Welcoming Environment

The best way to solve a problem is when it is still a simple challenge rather than a complex

distraction. Team members at all levels of an organization usually are aware of danger signs before

they blossom into catastrophes. We need to encourage individuals to bring issues forward as an

element of workplace community and citizenship and recognize it as a professional skill, a valued

action to be praised rather than condemned.

No More Whistleblowers at Work

The chief aim of corporate compliance is to prevent, detect and correct problems before they leadto the stiff penalties the law imposes when the public is harmed, careers are ruined and the impact

of illegal acts lingers.

In fact, the Federal Sentencing Guidelines reward firms whose compliance programs take defined

steps to find out and fix problems before they cause damage. Newly proposed amendments

will provide additional incentives to firms that act aggressively to maintain legal and ethical

workplaces.

As Ive written elsewhere, we would have been better off if wed been able to stop the practices

before they occurred rather than addressing their resulting chaos. Instead, they brought us

financial chicanery, systemic disaster, recalls of dangerous pharmaceuticals and automotiveproducts, and oil spewing through the Gulf.

There are laws in place to prevent retaliation. Organizations also devote massive resources to

hotlines, compliance training, corporate policies and structures. Yet these efforts have often been

less than successful in effectively encouraging individuals to come forward before bad practices

turn into outright catastrophes. If they had been successful, retaliation claims would not be on the

rise and the whole issue of compliance would be a stagnant rather than growing problem.

Recently, when I was interviewed for a New York Times article on the practical issues that

employees face when they bring ethical issues forward, I offered several tips for identifying signals

to discover illegal or unethical conduct.

Its usually easy for us to recognize the obvious signs of a potentially serious violation. Whats really

hard is to know what, if anything, to do about it. This is not because of a lack of systems, processes,

or policies. Instead, it is the lack of organizational credibility: people usually know where to go to

complain but often dont believe their organization really wants to know about problems.

It doesnt help that we call these people who step forward and identify issues whistleblowers.

The word calls to mind a traffic cop blowing a whistle, stopping you from jaywalking.


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Over the years, Ive noticed most people across many industries are reluctant to blow the whistle

because they dont want to be labeled as troublemakers. Many believe that they would be better

off just focusing on what they can accomplish rather than problems that no one wants to think

about, much less fix. Others rightly feel that their organizations would prefer to rid themselves of

whistleblowers rather than the problems they uncover.

Organizations that really want to root out problems need to turn around this perception. Fair

warning this is not easy, especially if the organizations culture includes examples of individuals

who were ignored, ostracized or released for speaking up. Here are five tips to help you create a

welcoming environment for people who step forward and speak up about problems.

This is a leadership issue first and a compliance issue second. Hotlines and complaint systems are part

of a commitment to find out about issues but not the commitment itself.

Leaders have to regularly talk about and demonstrate their willingness to hear about

problems, no matter how serious. If leaders dont deliver the message themselves, it wont take

hold in the organization. Remember, the natural instinct we all have is to keep quiet rather

than to speak up, especially in a challenging economy where jobs are scarce, the risk of job loss

is high, and employees are already wary about speaking up.

Employees and leaders need to understand why finding and fixing problems benefits

everyone. If they dont see how revealing problems will benefit them, their organization or

the public, theres less motivation for them to do so and more motivation for leaders to ignoreor stifle complaints. Leaders should make it clear that they wont tolerate actions that prevent

them from finding out about problems. They must also clearly state, If we find out about

problems, it helps our organization. The following are concrete examples of what discovering

and resolving problems can do for your organization:

o Reduce costs

o Protect its reputation

o Minimize burdens of later fixes

o Demonstrate a commitment to values

o Prove the organization is committed to operating legally

Leaders at all levels must understand retaliation and the behavioral steps which encourage

employees to talk to them about all problems. This involves not only what they say when they

are told about issues, but how they react in terms of body language, tone of voice and follow

through in responding to concerns. This is a specific behavioral model that, in years of practice,

we have learned helps employees know that their organization and direct managers are serious

about uncovering issues.

Chapter 5

A Welcoming Environmen


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Chapter 5

A Welcoming Environment

Finally, lets get rid of the term whistleblowers with all of the negative associations it

produces. How about calling people who come forward organizational guardians, protectors or

friends. Surely we can think of something more welcoming in tone than company cops, stoolies

or tattlers.


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Reading a booklet, listening to a lecture, taking an online course none of these ensures that

learning takes place. Real learning happens when we claim ownership of principles and understand

their potential influence on the culture around us. When key principles become our key values, we

are motivated and motivate those around us to make them a seamless part of every professional

interaction. That is when true learning has occurred.

Making Learning Matter: 11 Simple Commandments

Theyre simply not getting it. Managers, executives and employees are saturated with informationand theyre zoning out. We give our leaders and employees great training videos to watch. We

have them go to classes that address our issues. We deliver engaging e-learning and we send them

reminders. But somethings not working. They arent applying the key points theyre supposed to

learn. How can we fix this?

In the last 25 years, Ive heard this frustration expressed about initiatives focusing on topics

ranging from discrimination to abusive conduct to encouraging the raising of concerns to ethics

and compliance responsibilities. Yet, the dissatisfaction persists, even as new technologies have

dramatically improved our ability to reach everyone at anytime with customized, specific and

interesting content at their desktop.

As I wrote in Maximizing Workplace Outcomes and Behaviors: Checklists: Yes; Check-the-Box:

No, I believe in checklists as a way to get things done and simplify complex problems. So heres a

checklist of commandments to consider as you work to influence behavior rather than delivering

information.

Changing behavior is more complex than delivering information. This is the most important

commandment; all others derive from it. Information is easy to deliver, but structuring

information, learning the information, and reinforcing the information are more complex. Ask

yourself how many single interactions, life experiences or learning events, no matter how clear

and effective, have an ongoing impact on how you act.

Manage your messages: Keep them simple and few. Its better to have a few messages that

are frequently repeated and reinforced than multiple messages that are infrequently delivered

and never reinforced. Group together similar initiatives like diversity and inclusion or ethics and

compliance. Too many messages are confusing and fatiguing.

Chapter 6

Motivation and Learning


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Chapter 6


Theres a difference between entertaining an audience and influencing behavior. Its easy

to deliver entertaining and humorous content. However, unless the message is taken as

seriously as intended, the entertainment wont affect behavior. In fact, the jokes may be more

memorable than the message clearly not the intended purpose.

Vague messages lead to vague results. Failing to develop an action-based message means

that people will simply interpret those vague messages through their own perspectives. As an

example, Dont lie or fabricate records is a clearer and more specific standard than act with

integrity.

People follow leaders. Unless leaders reinforce messages and apply them to their own

behaviors, the only message employees will hear is, None of this matters. Its got to matter to me. Too many business messages are presented from the point of view

of benefits to the organization. If you want people to change their behavior, they have to

understand whats in it for them.

Dont tell me; let me tell you. Adults dont like to be told to change their behavior. If you

want people to change, you must not only give them standards, but also interactive learning

experiences that lead participants to discover for themselves that change is important.

If I have to teach others, Im more likely to do it myself. When organizations distribute

information passively, they miss a key element of making it stick. Instead, give participants

responsibility for communicating information to others. Then they will follow the principles

themselves.

Dont confuse technical information with what must be applied. Too often organizations

develop complex standards based on laws and regulations. Instead, figure out what behavioral

problems those standards address and emphasize them. For example, compliance training

should affect conduct, not turn team members into first-year law students.

Reward the standard; enforce the breach. For learning to matter, there must be consequences:

recognition for those who meet standards and consequences for those who do not. Information

without consequences simply doesnt matter.

You dont know our organization like we do. Yes, learning must be tailored so it is seen as

relevant to the practices and issues faced in daily business. Insiders know more than outsidersand sometimes have reservations as to whether others can understand and depict their

cultures and workplaces realistically. However, learning about organizational issues from client

insiders is not hard to do. Whats far harder is making certain that the underlying message is

seen as realistic, important, credible and clear.


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8Im the APP

I had dinner recently with my friend, a visionary, dynamic, and nationally-known leader in the area

of diversity and inclusion. Wed worked closely together in the past but hadnt seen each other for

a couple of years. We sat looking at the New York skyline and caught up on the basics -- family,

work, the economy. He beamed with pride when he told me about his young grandson, the big

apple of his grandfathers eye. Hes four and already using computers, tablets and other devices to

read, learn, communicate and entertain himself.

Then we started talking shop. My friend is charged with building a global human resource strategy

for a world-renowned firm. Weve always had vigorous debates, and neither one of us backs

down. We agree on a lot and disagree agreeably. He told me about advances his firm is making

in learning: There are now multiple delivery platforms which can give leaders information on any

topic. They can use learning modules on how to hire and engage new employees; there are avatars

which can be readily adapted to simulate situations in different nations and cultures where the

themes are the same but the settings, accents and demographics of the learners are different. Hes

always been able to anticipate the future, and he told me this way of learning is the next wave

hitting our workplace shores. Hes right. We get knowledge now like air - its everywhere, and we

expect it to be just as accessible. There are multiple apps for learning and completing just about

every task. Ive been learning this firsthand on my iPad and iPhone.

But then a thought hit me. My good friend is right, but there is something missing. As I have

written elsewhere, the learning is useful only if it is important to the learner and, for some of our

toughest lessons, who delivers the lesson is the key. As we watched the sun decline, I asked my

friend, Tell me; what apps are you going to use to teach your grandson to be kind, ethical, decent

and honorable, just like you? Where are you going to find the app for that?

He paused. He looked me dead in the eye. What he said hit the mark: Im the APP. Thats my job.

Im the APP.

And thats the point. Some lessons, especially those dealing with how we act and apply values, must

be delivered by the right instructor. The learning platform must be direct, human and credible.Theres no technology, no interactivity, no LMS and no clever avatar that can replace the power of

a grandfather saying to his grandchild, This is important. I want you to remember this. Heres a

lesson youve got to live and work by.

One of our strategic challenges is to figure out which lessons must be delivered like this in order to

have a lasting impact. Thats not the same question as asking, Whats the most rapidly deployed or

immediately accessible way to transmit information via the latest technologies?

Chapter 6



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Chapter 6


9

Sometimes, like my friend, leaders must say, I am going to deliver the messages that matter.

There will be constantly developing new ways to reinforce these messages. We will and must

use them. But some lessons have to come from us, in real time first, to be heard, understood and

applied. For those vital lessons, our mantra must be, Im the APP.

Time to Chuck the Box

The Code of Business Conduct and Ethics of UBS sets out the principles and practices that

UBS expects all of its employees and directors to follow unreservedly both in letter andin spirit. The principles and standards set out in the Code should characterize all of UBSs

business activities and its dealings with the firms stakeholders including clients, colleagues,

shareholders, regulators and business partners. It is the basis for all UBS policies, guidelines

and statements relating to each of the firms employees personal commitment to appropriate

and responsible corporate behaviour. Higher standards are the foundation for long term,

mutually rewarding relationships. These three values shape the behaviour of everyone at UBS

as they work to reach our firms vision.

Despite UBSs corporate statements and corresponding values of truth, clarity and performance,

a financial scandal broke there recently involving a rogue trader, Kweku Adoboli, who cost the

bank $2.3 billion in unauthorized deals. Within days of his actions discovery, he apologized

profusely. And in a gesture of penance, UBSs chief executive officer, Oswald J. Grubel, announced

his resignation. James Stewart, The New York Times financial reporter, stated, Its the Culture

Thats Rogue rather than the renegade staffer. He pointed to a series of misdeeds preceding this

most recent outrage. His important point is that something beyond regulations and processes led

to this disaster. Apparently organizational codes and commitments which included we always

act fairly and abide by the law [truth] and we will perform to the highest professional standards

[performance] proved inadequate to prevent this financial debacle.

When acts like this occur, resulting autopsies typically lead to the same postmortem findings:

leaders failed to set the right tone. Consequently, those below them got a message that differedfrom those in stated values, processes, applicable regulations and training. They acted accordingly;

catastrophe resulted. In fact, in the aftermath of such blatantly avoidable foul-ups, can you recall

a single instance when outside analysts concluded that systems and processes had not been put

in place, complaint procedures had not been implemented or learning had not been delivered? I

cant. Its the failure to act in line with all of these safeguards thats the issue.

Compliance measures are intended to prevent or surface problems like this. When they nevertheless

arise, its typically because of lapses in the intangibles of leadership, culture and accountability.


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Yet in setting up their compliance plans and systems, organizations act as if a lack of knowledge

and process are the key problems they must address. Theyre not. In fact, Stewart noted:

The problems at UBS arent inadequate risk controls, which Mr. Adoboli brazenly circumvented,

or a lack of regulations, which didnt stop other UBS executives from skirting the law. The

problem the board faces is whether the UBS culture, to the extent it had one, was one of

personal greed.

Regulations like the United States Federal Sentencing Guidelines stress the importance of

leadership and culture. All too often these are viewed as soft skills and relegated to secondary

importance. Instead, when the issue is learning on compliance and related topics, the trend in

many organizations is to focus on reaching everyone with as much raw knowledge about law and

processes as possible and then verify that everyone has taken a required course on these topics by a

required deadline.

All the facts arent in yet regarding the UBS disaster. But does anyone really think that Mr. Adoboli

didnt know that what he was doing was wrong as he was doing it? If so, rather than releasing a

quick apology, he would have said, I didnt know this was wrong why didnt someone tell me?

I didnt know where to go to deal with this issue. Generally, following catastrophes involving

massive and repeated rule violations, individuals either admit they made an error, though thats

rare, or try to pin the blame on someone else. Rarely do they say, I didnt understand that my

actions werent right.

So what do most organizational learning and communication initiatives on compliance topics

actually do? In my view, apart from helping to build an after-the-fact defense, they instill a false

sense of organizational security, sort of like those airline announcements telling us how to use our

inflatable cushions and life vests if our flight goes plunging into the ocean. Worse yet, launching

salvos of monotonous content to large audiences obscures simple messages about telling the truth,

getting help and welcoming questions. Those are the keys to finding out about and correcting

serious issues before they cause irreparable harm. In a torrent of information, they just get lost.

Yes, we need to give people basic information about rules and procedures. But without

emphasizing the link between actions, business outcomes, values and key behaviors, were reallychecking a box. I say its time to chuck the box. Instead lets make leaders accountable for delivering

vital messages in their own voices not just once a year but as part of their ongoing professional

responsibilities to lead and mentor. Systems, processes and more formalized learning via classroom,

desktop, tablet and m-learning are critical. But they should augment rather than replace individual

leader responsibility for communicating and living by basic values like UBSs truth, clarity and

performance.

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10

As our workplaces become more and more globalized, we may be tempted to think that simplicity in

our behaviors and practices is obsolete. But in fact, the simple values have never been more important

than they are today. Simple values are the ones that all people can embrace, regardless of where they

work or what their local traditions are. Is there anywhere that civility, respect, and professionalism are

unwelcome? These are just a few of the baseline standards that organizations can set to represent who

they are and how they work together as a single global workplace community.

Why Global Workplace Standards Matter

Technologys advantages and risks affect us every day in ways we could not have imagined at the

millenniums start. Ive been thinking about this while watching Japans catastrophe unfold. Two

major technological forces are intersecting with the growth of global workplaces, heightening the

need and benefit of having some shared workplace behavioral standards.

First, industrial advances allow us to accomplish remarkable feats:

Drilling for oil far beneath the oceans surface, finding petroleum to replenish our supplies

Splitting atoms to generate electricity for power factories, to light office buildings and to run

the multiple appliances in our homes

However, when these technologies fail, whatever the causes, the risks to all of us can rapidly spread

beyond the boundaries of any nation or region.

Second, there have been natural and man-made disasters throughout the course of human

history. Whats different now is not only the scope of harm and damage they cause but that

communication technologies allow us to see them unfold instantaneously. Until the recently, and

especially the last 10 years, news of catastrophes reached us gradually. We heard about the breadth

and detail of tragedies hours, days, weeks or months after they occurred. Now, we see tsunamis

raging in real time, we watch nuclear plant explosions, and we see oil spewing into the ocean as its

released. And with the rise of social media, we can report and publish as well as watch. Were no

longer just spectators: were videographers, photographers and commentators.

Theres nothing any of us can do to prevent earthquakes, tsunamis, floods, volcanoes, tornadoes,

hurricanes, or other acts of nature. But to the extent that they intersect with man-made

technologies and actions, perhaps we can better manage their impact. This goes to the need to

build global workplaces sharing the common standard of promptly reporting, speaking up and

non-punitively investigating problems. This is preferable to waiting for disasters to strike when post

mortems reveal how risks could have been avoided or reduced.

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Global Standards


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Is it possible that the BP disaster might have been prevented if reporting safety concerns had

been more vigorously encouraged or investigated when brought forward? Would listening more

intently to those who criticized the design of Japans nuclear reactors before they went online

have prevented the harm and risks we now face? I cant answer these questions, but they must be

considered. This is an urgent matter far beyond the boundaries of legal and compliance risk and

local cultural norms.

Organizations can use their own values and practices to encourage individuals to come forward

safely before catastrophes strike rather than remain quiet out of fear or because of local practices

and custom. We can take advantage of the same technologies that bring us news of natural and

industrial disasters to communicate risks more effectively through pictures, reports, videos andexplanation. Then organizations and leaders must evaluate the information they receive with a

measure of the same intensity as they do with the disasters reported in their aftermath.

While not as dramatic, the principle applies to the importance of considering risks caused by

financial, ethical, manufacturing and other practices whose consequences we can avoid more

readily than natural disasters, provided alarms are sounded and heeded. At least in those instances,

we have a better chance of preventing, detecting and correcting looming disasters before they

cause long-lasting devastation.

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Global Standards


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11

Here are some suggestions and tools to help our colleagues in government perform their vital

services with greater efficiency, productivity and inclusion. Its all based on key principles of

behavior tied into the basic mission and focus of each agency or department. By putting these

principles to work, they can most efficiently complete their responsibilities for the benefit of all of us.

The 97 Percent Problem: Why Meritless Claims Matter

A federal government agency official recently told me that charges of employment discrimination

were way up across his large department. Most cases, he said, involved hostile workplaceenvironment claims, and about 97 percent were lacking merit and ultimately dismissed.

My legal mind immediately thought, Only three percent at most are valid claims great legal

defense record, especially when you consider these were probably settled internally and at

relatively low financial cost.

But then my understanding of broader workplace issues kicked in: a tiny minority of valid claims is

not the true problem, especially in an era of crimped resources. The real problem is the 97 percent

of discrimination claims found to be lacking merit.

These cases may have turned out to be baseless, but the organization still must investigate them

over many weeks, or even months, creating dissension and distraction and draining far more

human and financial resources than the three percent with merit.

No doubt, some truly lacked any credible evidence whatsoever. Employees may have disliked how

a manager told them to perform a task, while others perceived hostility or discrimination where no

reasonable person would. A few employees may have feared being fired and filed charges in hopes

of saving their jobs.

But in the vast majority of cases, even though the evidence doesnt add up to a violation of the

law, investigators typically uncover some improper, questionable or uncivil conduct: an off-color

or ethnic joke, a derisive racial comment, emails that shouldnt have been sent, or questions that

shouldnt have been asked.

How do we address the underlying misbehavior and blatant incivility that causes employees

to silently lose focus on their jobs or file claims? Based on more than 25 years of working with

governments and businesses, I offer these thoughts to help you reduce EEO claims and build

productive, inclusive workplaces in your organizations.

Obeying the law is only a starting point. Whenever I hear a leader ask me to mark the line

between legal and illegal conduct, it raises a red flag. If thats all youre worried about, then youll

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U.S. Government at Work


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12

surely create conditions that lead to 97 percent of the charges, thus driving up costs while harming

productivity. Narrowly focusing on educating managers and employees about what amounts to

legal discrimination isnt enough. Even if most understand and apply the rules, discrimination

training alone wont provide a barrier to the kinds of behaviors that spawn most claims and cause

tremendous organizational harm.

Values are too vague. Many organizations have broad-based value statements focusing on dignity

and respect of employees. But the problem is these values dont go far enough because theyre not

translated into daily conduct standards. As a matter of workplace civility, operational effectiveness

and legal risk management, governments and private employers need to adopt specific workplace

behavioral standards for employees and leaders alike.

The tone is set at the top of the organization. Senior leaders through what they say and do and

how they respond to breaches of standards need to make it clear that improper conduct is simply

unacceptable, even if its not technically illegal. Accountability is vital.

Stop improper conduct before it gets out of hand. In the language of sports, the best defense

is a good offense. Dont wait for second, third and fourth offenses before addressing improper

conduct. By dealing with misbehavior as it occurs, you can reduce the chances of more serious

violations and claims, while ensuring a more focused and productive workplace for employees.

Where to Start: President Obamas Executive Order to

Promote Diversity and Inclusion in the Federal Workforce

On August 18, 2011, President Obama issued an Executive Order establishing a coordinated

government-wide initiative to promote diversity and inclusion in the federal workforce. The Order

reaches civilians and military personnel working in a wide array of agencies, departments, locations

and operating environments. This Order is not a typical compliance initiative, though adherence to

the law is vital and non-negotiable. It is not a call for new legal rules and more processes. We have

plenty of both. In fact, the Order calls for a consolidation and coordination of efforts rather than

the creation of new structures and regulations, recognizing that less can prove better than more.

The most important segment speaks of creating a culture that encourages collaboration, flexibility

and fairness to enable individuals to participate to their full potential. Thats what will enhance

the governments ability to recruit, hire, promote, and retain a more diverse workforce,

an envisioned outcome. Diversity, inclusion and equal opportunity cant be tied only to reducing

charges of discrimination or targeting for hiring, promotion and like measures. Looking at the

Order this way wont affect culture; instead it leads down a well trodden, wrong-way road.

Here are some suggestions to help realize the Orders vision to promote the Federal workplace

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as a model of equal opportunity, diversity and inclusion in an era of crimped resources. As a

first step, there must be a simple, specific behavioral definition of what diversity and inclusion

mean and how they intersect in daily work life. Otherwise these words will be no more than well-

intentioned aspirations subject to conflicting interpretations. Many initiatives in the public and

private sectors have failed at this starting point.

Heres a clue for the cultural issues that must be addressed first. As Ive previously written, there has

been a significant rise in charges of discrimination in the federal workplace. Yet, after thorough

analysis, the majority of charges are dismissed with only about three percent being found to have

merit and about a third are settled.

From reviewing the data and speaking with highly-skilled professionals in the Federal Government

who investigate and review these findings, I have found that many charges arise out of daily

workplace interactions dealing with whats said, whats not said, whos included in meetings, how

questions are welcomed and answered and similar routine exchanges. Such conduct can involve

face to face, email and like exchanges. Often what stalls diversity and inclusion efforts are not

illegal or overt behaviors that show up as violations in investigative findings but conduct which

makes people uncomfortable, excluding them from what should be shared, routine experiences.

These are the practices that need to be identified and behaviorally changed. They can affect

anyone, regardless of ethnicity, age, gender or any other category. Identifying and addressing them

is what will make the Orders results effective.

The good news is that building an inclusive, high-performing culture need not be an expensive

process. But it must be built on sustained actions. In Washington, D.C., as an example, many federal

employees use slugging to get back and forth to work every day. Drivers pull up to slugging

lines, pick up federal passengers and take them to work. Over the past 35 years an informal code

and culture have developed to support this practice. Why has this system arisen and lasted with no

expense and for so long? Because the culture allows drivers to get to work quickly and saves gas

by using HOV lanes. Riders get free transportation; everyone benefits. And the rules are so simple

theyve become part of oral tradition passed on from new rider to new driver.

Culture change also requires leadership initiative and support. Top leaders must see commitment as

their personal responsibility, not a task they can delegate to others and then ignore. What leaderssay in meetings, written communications and routine interactions will determine whether this is

successful. Talk is cheap. And in todays economy, that is a good thing, provided leaders back up

their talk with consistent behaviors and a willingness to act when others dont follow standards.

Overall they must communicate that their goal is to prevent problems and correct them as soon as

they arise to benefit mission effectiveness and meet the talent objectives stated in the Order.

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Heres a checklist summary to consider in implementing plans and action steps in line with the

Presidents Order:

Identify specific behaviors linked to diversity and inclusion which apply to routine daily

interactions.

Present communication and learning related to these behaviors in a way that matters to

everyone personally just as the slugging rules matter to drivers and passengers. If they are

seen as benefitting someone else, initiatives wont have significant impact.

Limit behavioral principles to five key points more wont change culture and will signal a

regulatory rather than cultural approach.

Make certain leaders reinforce these principles as their own, as shown by their conduct

what they say, how they communicate, and what they do when problems arise.

Plan for key points to be communicated via ongoing messages and base-line learning which is

reinforced outside of the classroom or online learning environment.

Put behavioral models in place which not only define conduct standards but give leaders tools

to model desired actions; communicate their importance in terms tied to mission and team

effectiveness; intervene sooner rather than later; and encourage individuals to ask questions

and raise concerns.

Applying these rules will build a professional, inclusive and diverse workplace in line with the vision

of this Executive Order. Think of it as a system to smooth interactions at work in the same way that

the slugging culture does for thousands daily.

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