THE COERCIVE STYLE
A computer company was in crisis mode – its sales and profits were falling, its stock was losing value precipitously, and its shareholders were in an uproar. The board brought in a new CEO with a reputation as a turnaround artist. He set to work chopping jobs, selling off divisions, and making the tough decisions that should have been executed years before. The company was saved, at least in the short-term. From the start, though, the CEO created a reign of terror, bullying and demeaning his executives, roaring his displeasure at the slightest misstep. The company’s top echelons were decimated not just by his erratic firings but also by defections. The CEO’s direct reports, frightened by his tendency to blame the bearer of bad news, stopped bringing him any news at all. Morale was at an all-time low – a fact reflected in another downturn in the business after the short-term recovery. The CEO was eventually fired by the board of directors.
It’s easy to understand why of all the leadership styles, the coercive one is the least effective in most situations. Consider what the style does to an organization’s climate. Flexibility is the hardest hit. The leader’s extreme top-down decision making kills new ideas on the vine. People feel so disrespected that they think, “I won’t even bring my ideas up – they’ll only be shot down.” Likewise, people’s sense of responsibility evaporates: unable to act on their own initiative, they lose their sense of ownership and feel little accountability for their performance. Some become so resentful they adopt the attitude, “I’m not going to help this bastard.”
Coercive leadership also has a damaging effect on the rewards system. Most high performing workers are motivated by more than money – they seek the satisfaction of work well done. The coercive style erodes such pride. And finally, the style undermines one of the leader’s prime tools – motivating people by showing them how their job fits into a grand, shared mission. Such a loss, measured in terms of diminished clarity and commitment, leaves people alienated from their own jobs, wondering, “How does any of this matter?”
Given the impact of the coercive style, you might assume it should never be applied. The research, however, uncovered a few occasions when it worked masterfully.
Take the case of a division president who was brought in to change the direction of a food company that was losing money. His first act was to have the executive conference room demolished. To him, the room – with its long marble table that looked like “the deck of the Starship Enterprise” – symbolized the tradition-bound formality that was paralyzing the company. The destruction of the room, and the subsequent move to a smaller, more informal setting, sent a message no one could miss, and the division’s culture changed quickly in its wake.
That said, the coercive style should be used only with extreme caution and in the few situations when it is absolutely imperative, such as during a turnaround or when a hostile takeover is looming. In those cases, the coercive style can break failed business habits and shock people into new ways of working. It is always appropriate during a genuine emergency, like in the aftermath of an earthquake or a fire. And it can work with problem employees with whom all else has failed.
But if a leader relies solely on this style or continues to use it once the emergency passes, the long-term impact of his insensitivity to the morale and feelings of those he leads will be ruinous.