Somehow it seems that disregarding the truth has become more commonplace and even acceptable in the world today. The problem is that when leaders lie they destroy trust. And, by the way, trust is what makes leaders successful.

I stay away from taking political positions in this blog and this post is no exception. While the recent election makes this topic relevant, the veracity vacuum epidemic I’m talking about is commonplace on both sides of the aisle and rampant in business today as well.

Now let me be clear. There are times when leaders do not tell the entire truth because they legally can’t or it would cause unnecessary harm. There are also times when leaders think something is true when they state it but it turns out to be false (e.g. weapons of mass destruction in Iraq). These are not the pernicious lies I’m talking about. For the most part, people understand why the whole truth can’t always be told. The self-destructive sin to me is when a leader purposely distorts, grossly exaggerates, or fabricates information for personal gain.

Why Leaders Lie

Because sometimes it seems to work—at least in the short term! Human nature steers us to avoid immediate pain even if we know we’ll pay for it down the road. And in some business situations, it’s a leader’s survival instincts kicking in. As president of Takata, you don’t want to reveal that you have a serious product safety problem with your airbags because your company’s performance or your personal survival might be put in jeopardy. Or, as head of Enron you paint a rosy picture for investors and employees even when you know reported profits area fabrication because you’re afraid of setting off a downward spiral. In these cases and with someone like Bernie Madoff, there’s also probably a feeling that if I could only buy some time, I’ll be able to fix it.

Dishonesty is not always of headline scale. Managers promise employees future opportunities to move up in the company even though they know it’s highly unlikely. Business leaders may fabricate facts to support their decisions when they run into resistance from their board or employees. And the beat goes on.

The Power of Credibility

What happens when anyone becomes known for playing fast and loose with the truth is they lose a very valuable attribute—credibility. And, once lost it can never, ever be regained. Credibility is the quintessential core of effective leadership. If you can’t trust that what you’re being told is true, you are simply not going to act on it. On the other hand, when someone with a reputation for a having a firm grasp of reality gives you guidance, you’re all over it. As a result, people with credibility wield enormous power with others. They can readily get things done through other people which is the very definition of leadership. They can create devoted followers.

Practical Applications

Some might argue that sales is the art of creatively crafting a positive truth. Or that to be a successful negotiator, you need to deceive the person you are negotiating with up front to get the best possible deal. To me that’s old school thinking as well as very short-sighted. Ultimately, facts always win out. If you’re not truly improving the lives of your customers in some meaningful way, no amount of marketing obfuscation is going to help you in the long run. If a negotiation does not have a truly win-win outcome, it’s going to come back to bite you at some point.

Next Steps

The starting point for getting on the right path is being honest with yourself. What often happens is that a path of deception starts with someone hiding from reality because it’s too painful or not compatible with what they want to accomplish. As a mentor and consultant I can tell you that this is very often the number one obstacle to success. Whether you want to improve your personal life, start a business, build your business, or improve your golf game, the first step is always the same—understand the current reality with all of its positives and negatives! You have to start from there and then be willing to share that reality with anyone you want on your team. That’s the key to long-term, not just short-term, success and satisfaction.

If you’d like more information or assistance with your unique challenges, consider taking advantage of JPMA’s CEO Mentor Program. Check the web site for more information or contact Kyle Schaller at kschaller@jpma.org.