honesty

May 27, 2009 - Is Honesty Really the Best Policy?

Main Idea

Have you ever found a great deal in an advertisement, only to find there are hidden fees involved? Or been solicited with a “too good to be true” product or service? How many times has a car dealership told you that the most expensive car is the best in the lot? Have you ever read the small print on a television commercial?

Expansion of Idea

It can be quite frustrating as a consumer to try to pick out the small pieces of fact in a sales pitch full of fabrication. What does your company do to ease the frustration of your customers? Some companies choose to outright lie with false advertising, or to omit pertinent information when trying to make a sale. Lying to a customer to get them to purchase your product or service may be a short-term gain, but will eventually ruin your reputation. Without trust, your customers will no longer be your customers.

The best way to take care of your clients is to create lasting, meaningful relationships with them. To do that, they must be able to consistently rely on you, your company, and your word. If you start the business relationship with honesty, and maintain truthfulness and transparency in all aspects of your company, you will have a customer for life. Beyond that, you will gain an advocate that will spread the word to the people they know to spend their money with you. After all, word of mouth referrals in business are the very best form of advertisement. 

As Mary Kay Ash, the founder of Mary Kay cosmetics, once said, “Honesty is the cornerstone of all success, without which confidence and ability to perform shall cease to exist.” This business principle has obviously worked well for the Mary Kay Empire, as 2007 business revenue was upwards of $2 billion dollars world wide!

Areas to Start:

  1. Follow through on your promises

  2. Fess up if you mess up.

  3. Tell the truth (no matter how bad it makes you look)

  4. Ask for feedback

May 20, 2009 - Do You Have a Culture of Trust and Honesty?

Main Idea

Has your trust in institutions been rattled over the last year? Do you still have trust in your bank? Do your employees trust that you are making good decisions? Are you being transparent in order to earn your employees trust?

Expansion of Idea

As humans, we are born as trusting beings. We rely heavily on our parents as small infants to protect us and provide us the necessities to grow. In the same light, your employees rely on you to provide direction, feedback, and security. In the past year, millions of Americans have weathered lay-offs, scandals, and bankruptcy. There’s no question that those people have lost trust.

As business owners, it is your responsibility to strengthen the trust relationship between yourself and your clients, employees, and vendors. Your business cannot survive if your motives and priorities are questioned by those that deal with you regularly. If you develop a reputation for being honest, you will be setting the example for your employees, especially those not holding a management position.

Typically, the people working on the front lines have information about customer or process problems that executives may not see. But if those people do not feel they can be honest and upfront, the problems will continue to go unnoticed-at least to upper management.

To avoid this scenario, executives need to be especially transparent. Admitting your mistakes to your team will encourage them to do so as well. Allow your company to have an open line of communication so that employees do not feel that their job is in jeopardy if they mess up. If you are approached by someone who confesses to making a mistake, show empathy for their courage to speak up and thank them.

Creating a culture of honesty can, at times, prove to be a challenge. Prepare yourself and management for unpleasant conversations that may come up. Being transparent in business can be difficult, but also rewarding, as the people surround you improve their working relationships.

Areas to Start:

1. Tell the truth!

2. Encourage employees to be honest.

3. Read Crucial Conversations to learn how to deal with uncomfortable situations.