CHAPTER 3
Traits and Successful Directives
Personality Traits of Billionaire Entrepreneurs
I once asked attendees at a book launch, “What is the first thing that entrepreneurs need to do to create a lasting impression?” The answers varied, from having a firm handshake to power dressing. These were so diverse that it became quite obvious that there was no real correct answer but that circumstances would often determine what impressed and what didn’t. A young capital provider once arrived at a meeting in shorts and T-shirt. Obviously looked down on, and ignored by other funders, he just didn’t seem to care. When it came to signing on the dotted line to provide the funding, these power-dressed executives had a multitude of questions and reasons for wanting to delay providing funding.
The young man stood up and said, “Gentlemen, with my two-penny pen, I would like to sign the $150-million funding required to expand your business.” He didn’t need expensive clothes, or a branded pen, to impress. He had come to hear the entrepreneur with the intention of investing if he was satisfied that the project was real and met his investment criteria.
So I approached him and asked him the same question I had posed to the book launch attendees.
He answered, “One of the most serious ongoing challenges to entrepreneurs in a roomful of scary people is to maintain honesty and not simply say what people want to hear. That is how you build integrity and honesty among colleagues, staff, and the greater community,” adding, “and believe me, it is a very small world.”
It is easier to build lasting relationships with people with credibility and trust than it is to assess the truthfulness of those who have a poor pattern of behavior. Even contracts drafted by lawyers have no meaning if trust is an issue.
The following are merely examples of traits that powerful entrepreneurs have displayed over decades. Not all possess these and certainly not all at once, and—more importantly—not all traits are positive.
• Truth and Credibility: Never make promises you have no intention of keeping or hope of being able to keep. People around you need to know that what you say is sacrosanct and always linked inextricably to honesty and truth. In effect, keeping promises made or intimated builds trust and solid teams.
• Egotistic behavior: Some businessmen and women believe that it is their right to make critical decisions without consulting their fellow board members. Taking unilateral decisions without important input from key partners is arrogant and points to egotistic behavior.
• An atmosphere of dread: This style of management may work for a while, but, ultimately, staff turnover increases, with skilled staff poached by friendlier companies. The irony is that many staff will leave for better working conditions and not necessarily higher salaries.
• Deception: If you intend to run your company by providing your staff intentionally misleading or incomplete information, it is effectively the same as lying. In the eyes of your staff, you have misled and lied to them.
• Acceptance of failure: This is an instant way to gain trust from your staff. When you have made a mistake, admit to it and take responsibility for your actions. While competitors may be rubbing their hands in glee, they will find it increasingly difficult to poach staff. An honest boss engenders loyalty, but failure to simply apologize timely and unconditionally leads to loss of trust.
• Blaming instead of acting: In many countries, empowerment or quota systems are enforced, and, whatever your beliefs are, being critical and antagonistic for not getting a promotion, not winning a tender, or not securing a contract will not earn you favor. In fact, this attitude will hold you back in your career, as such disparagement does ultimately cause suspicion and create permanent resentment toward you.
• Respect: The ability to earn respect from competitors is a victory in itself. They may not like you, but if you always act with truthfulness and integrity, you will earn the reputation that you are tough but fair.
• Shifting blame: In the early 1950s, there was a trend that if a major problem occurred (e.g., one of your trucks was involved in an accident), the company’s specialist team would quickly attend to the matter, not, as you may think, to help the accident victims and thus earn the public’s respect, but, instead, to get to the accident scene quickly to paint over the company’s logos. This was done to avoid appearing in the newspapers. Shifting the blame does not repair defective components or get stock delivered. Remember, if the company is involved in any way, it is your responsibility to rapidly find a solution.
• Tough questions: Too often, I see entrepreneurs avoiding pertinent questions posed by journalists or, even worse, telling outright lies. These are quick ways of destroying your reputation. Rather, think before you answer, and if the question is of a competitively sensitive nature, just say so. People respect honesty, even if they believe you avoided a question.
• Core values: When a staff member signs to join your company, or a director accepts a board position, they are effectively saying that they are excited to work with you and are thus placing their trust in your hands. If their trust in you is affected, you will lose their respect. These include affecting their families, quality of life, peace of mind, or their economic security.
• Mixed signals: Always ensure that your statements, speeches, or e-mail blasts to staff or customers are not ambiguous. In fact, make sure that whatever you say cannot be misconstrued as such. If you discover that you have made some statements that are ambiguous, take immediate action and clear up any possible misunderstanding.
• Don’t underrate negative influence over staff: Some entrepreneurs will keep staff guessing as to whether retrenchments will take place. They keep staff guessing—even for months. Instead of giving them the opportunity to find alternative employment, these entrepreneurs adversely affect their lifestyles. The longer this kind of influence takes place, the more likely they are to react emotionally and negatively and then legally.
• Not being prepared: A director who believes that there are no questions he cannot answer should be willing to be grilled by an independent panel. When I have listed companies on an exchange, 10 days before the presentation, I set up a panel of experts to hear the director give his presentation. The questions are often brutal but do have the effect of making the presenter realize that he or she does not have all the answers. The system is repeated until the presenter is fully prepared. This system is as effective when presenting to a funding committee or organization.
The preceding examples can become a checklist for being a better leader, who builds trust and credibility with those around him or her. It also serves as a key starting point for analyzing partnerships, associations, and general moral in a company that has inexplicably broken down.
Rainmaker Observation: There is always a reason why trust is affected. It is your choice to decide whether an issue is important or not. However, poor trust in your leader will manifest in staff confusion and, ultimately, negative profit consequences.