Candor in a Recession is Even MORE important

First a quote from Jack Welch on Candorbroken tracks by eschipul

“There’s still not enough candor in this company. [By that] I mean facing reality, seeing the world as it is rather than as you wish it were. We’ve seen over and over again that businesses facing market downturns, tough competition, and more demanding customers inevitably make forecasts that are much too optimistic. This means they don’t take advantage of the opportunities that change usually offers. Change in the marketplace isn’t something to fear; it’s an enormous opportunity to shuffle the deck, to replay the game. Candid managers – leaders – don’t get paralyzed about the fragility of the organization. They tell people the truth. That doesn’t scare them because they realize their people know the truth anyway.”

Jack Welch quoted on pg 120 of Absolute Honesty

I believe candor is particularly important for American businesses right now given we are in the middle of the great recessions. Officials continue to give us ridiculous platitudes (Bernake? Baroo?) when observations of the facts say otherwise (see Ghost Fleet of the Recession).

My observations of candor within our company over the last 12 years has been that the two biggest dangers and misuse of candor are:

  1. People who use candor as an excuse to be rude.
  2. People who falsely accuse others of using candor to be rude.

In my experience #2 is more dangerous as it is the most effective way for a squeamish or low performing person to combat candor within an organization. So don’t be rude. Yet also hold your ground on speaking the truth. It’s just that important. And as the quote says, “leaders – don’t get paralyzed about the fragility of the organization … because they realize their people know the truth anyway.”