It is critical that leaders surround themselves with people who are willing to tell the truth. You don’t need people who blindly march in lock step—mostly because those people are easy to come by and you probably already have enough. You need people who give you diverse and honest opinions so you can make good directional decisions.
In January, I asked my financial guru to adjust the stock portion of my portfolio to reflect a more defensive position, in which we stop investing in banks and put our money in things that people need to survive in a recession, like food!
My straight-talking financial advisor told me, “Yes, indeed, had we done that back in October we would have minimized the losses from the stock market drop. But, Ralph, if you do it after a 40% drop, in which banks were the hardest hit, you will not participate when, or if, the banking stocks stage a comeback.”
I stuck to my food strategy. I thought to myself, If he’s so smart, he would have had me out of the market back in October, before the 40% drop.
So in April, he returns and fearlessly demonstrates to me the results of my actions, that had I stayed in the banking stocks in January through April, I would have done better with his bank strategy than my food strategy. A leader must encourage people who keep standing up with a different thought than your own. And this time I took his advice.
Sometimes it is natural for leaders to develop reputations for wanting to do things their own way. Telling stories that praise the people who doggedly confront you and are still alive collecting a check is the best way to encourage more people to stand up and tell you what they really think. Thus allowing the leader to receive the greatest benefit from their people’s knowledge and insights—which is probably the reason you hired them in the first place.