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Tuesday, June 9, 2009

Strategic Confrontation of a Company CEO

[This Q/A first appeared in May 2009, Workforce Online. Here's a reader's note:

Loved your response to the HR vice president about the demoralizing CEO!

DB, CalPERS, Office of Governmental Affairs]

Strategic Confrontation of a Company CEO

Q. I am the HR Director at a small company. I have been asked by the head of our small company to counsel my boss, who is the company CEO, about his tendency for insulting employees and making racist comments in e-mail messages. The same CEO has made derogatory comments about me, and retaliated against some employees (including firing) who have brought his defects to light. Morale is extremely low, from district managers to the corporate office, yet our company has never done better financially. As a result, our company's directors don't want to change CEOs. How do I handle his request for me to counsel my own boss?

A. Before tackling this CEO "stress carrier" (and you know the definition of a stress carrier…"someone who doesn't get ulcers just gives them!") you have to have a serious sit down with the company head. Two questions jump out: why is the head of the company accepting the CEO's dysfunctional behavior and why is he not having the counseling session? Of course, we can speculate on the "head" (case) motives, and again two stand out: he (or she) is confrontation averse and/or he and the CEO are buddies. Another question comes to mind: what is your relationship with the company head? Do you have enough experience to judge his integrity? This is vital as you must obtain substantive assurance (perhaps in writing) that the company head (or the board of directors) will give you protection from any retaliatory behavior by the CEO? (Is the company head aware of how far this CEO has taken retaliation when feeling threatened?) The company head and company board must understand that employee discontent with treatment from a specific manager or supervisor is the biggest cause of employee's leaving a company. That is, profits probably won't stay up if morale stays low and people eventually change ships, which is what they will likely do once the economic climate starts to improve.

Finally, I would obtain buy-in from the company head for some executive/communications/diversity coaching for the CEO. Assuming you get satisfactory assurance (and if you don't then I would think twice about meeting with the CEO alone; I might opt instead for a three way meeting with the CEO and the company head) then consider these steps:

1. Challenge and Reassure the CEO. If possible, have the CEO meet in your office. Psychologically this will be self-empowering. Let the CEO know that the head of the company strongly suggested the meeting. Then inform the CEO that you and the company head (there is strength in numbers) value his contributions to the company success (note specific strengths). Also, share that you appreciate how, as a leader, he wants to hold people accountable, and you understand his frustration when people do not meet company performance expectations. (Hint, hint.) However, you and the company head both are concerned that some of the CEO's actions are hurting his status as leader and potentially are hurting the overall position of the company.

2. Get Specific. Ask the CEO if he recalls imparting any insulting or racist comments in emails? If he denies the deed, if at all possible be prepared to present such emails or have some documentation re: time and place regarding hostile or racist remarks. (I would not bring up your experience with the CEO in this meeting. Don't give the CEO ammo to question your objectivity.) Let the CEO know he is putting himself and the company in legal jeopardy with such insults and racist comments.

3. Ask for Feedback and Have a Plan. How does the CEO respond to your constructive confrontation? If he is defensive or in denial, then you have to let him know that you will be reporting this fact back to the company head. If he is open to your comments, solicit his ideas on how he can express his frustrations or concerns with people or business operations in a more constructive and substantive manner. I would also let the CEO know that the company is prepared to provide voluntary executive/communication/diversity coaching (and will make it mandatory) if problems persist.

4. Follow-up Meetings. I would schedule a three-way meeting with the CEO and company head to make sure everyone is on the same page, after you've had a report back with the company head. And then have a follow-up meeting in two to four weeks with you and the CEO to monitor progress.If you follow these steps, I believe you will demonstrate your professionalism and will determine whether the CEO's behaviors are amenable to change. And if the CEO resists this intervention, then the ball is in the company head/company board's court, where it belonged all along.


Mark Gorkin, MSW, LICSW, "The Stress Doc" ™, a Licensed Clinical Social Worker, is an acclaimed keynote and kickoff speaker and "Motivational Humorist" known for his interactive, inspiring and FUN speaking and workshop programs. In addition, the "Doc" is a team building and organizational development consultant for a variety of govt. agencies, corporations and non-profits and is AOL's "Online Psychohumorist" ™. Mark is an Adjunct Professor, No. VA (NOVA) Community College and currently he is leading "Stress, Team Building and Humor" programs for the 1st Cavalry and 4th Infantry Divisions, Ft. Hood, Texas. A former Stress and Conflict Consultant for the US Postal Service, the Stress Doc is the author of Practice Safe Stress and of The Four Faces of Anger. See his award-winning, USA Today Online "HotSite" -- www.stressdoc.com -- called a "workplace resource" by National Public Radio (NPR). For more info on the Doc's "Practice Safe Stress" programs or to receive his free e-newsletter, email stressdoc@aol.com or call 301-946-0865. And to view web video highlights of a Stress Doc Keynote, go to http://www.stressdoc.com/media_downloads.htm .

(c) Mark Gorkin 2009
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