Leadership Toxicity

I was reminiscing with some former colleagues over the holidays and, as often happens in such situations, we were laughing it up as we shared anecdotes about some of the highly placed, handsomely paid, sometimes incompetent and occasionally "toxic" leaders we had worked with over the years.  Of course it's easy and maybe even therapeutic to laugh about such people once they are in your past and no longer part of your daily life experiences, but I think it is fair to say that the truly toxic leaders weren't ever really funny--they were dysfunctional and destructive.  If you have worked with one, you know what I mean.

What is a toxic leader?  Toxicity, like beauty, may be in the eye of the beholder, but when Dr. Marcia Lynn Whicker (Toxic Leaders: When Organizations Go Bad) classified leaders by type, she used three categories:  trustworthy, transitional and toxic. The toxic leaders were described as maladjusted, malcontent, malevolent and malicious enforcers, street fighters and bullies who destroy productivity, operate with a sense of personal inadequacy, and who are selfish and clever at concealing deceit.  It gets worse:  according to Col. George E. Reed, US Army, toxic leaders are viewed as "arrogant, self-serving, inflexible and petty" and they "rise to their stations in life over the carcasses of those who work for them." Andrew Schmidt has even developed a Toxic Leadership Scale that considers five dimensions of toxic leadership:  abusive supervision, authoritarian leadership, narcissism, self-promotion, and unpredictability.

One of my favorite books on this topic is Bad Leadership: What It Is, How It Happens, Why It Matters by Barbara Kellerman.  She describes seven types of bad leadership that are most prevalent--incompetent, rigid, intemperate, callous, corrupt, insular and evil--and illustrates them with stories about public figures from business and politics.  Several years ago, I worked with a group that used Kellerman's categories as a framework to try to articulate what bad leadership looked like in their workplace so they could root it out and eliminate it.  The finished product looked something like this:

 

Incompetent	Lacks knowledge, skill or will to sustain effective action Oblivious to his/her lack of knowledge, skill or will  Focuses on peripheral or unimportant items Gets in the way of direct reports (trips the players on their way out of the dugout) Foolishly and inappropriately confident and arrogant High maintenance
Rigid	Stiff, unyielding, smug Unwilling to consider and adapt to new ideas, new information or changing times Believes he/she has superior knowledge (smartest person in the room) Gets trapped by bad decisions (unwilling to admit mistakes)
Intemperate	Lacks discipline and self control in professional or personal habits and behaviors Has tantrums, screams, throws things, slaps the table, slams the door Substance and/or people abuser Uses inappropriate language or makes unprofessional comments Needlessly hostile and provocative
Callous	Uncaring and/or unkind Ignores or discounts needs, wants and wishes of others Acts without respect Bullies subordinates and/or treats them with contempt Makes disparaging comments about employees to other employees
Corrupt	Lies, cheats, misrepresents, or steals  Takes the credit, avoids the blame Conspires against, demeans and marginalizes others  Deals dishonestly or disingenuously with others Says one thing, does another
Insular	Disregards the health and welfare of others  Fails to listen, or listens to the wrong sources Micromanages Intolerant of alternate viewpoints Ridicules opposing opinions
Evil	Vindictive Intimidates and demoralizes others Hurtful and mean-spirited Uses pain and fear as an instrument of power

Sadly, the CEO at that company was the person exhibiting most of these behaviors, but he was a "kick down, kiss up" kind of guy and the board that had hired him apparently believed he was an outstanding executive.  I have always wondered how people who behave this way ever landed a leadership position, never mind kept it, but I suppose the more interesting question is how and why  such "leaders"  have any followers at all.  Jean Lipman-Blumen, in her book The Allure of Toxic Leaders, points out that people exposed to a toxic leader often come up with excuses to tolerate the abuse--job security, paycheck, prestige--thus the behavior goes unchallenged. So while we usually have three choices when we are facing something we don't like--(1) grin and bear it, (2) change it, or (3) leave it behind--most of us either find a way to put up with it, or we leave it behind, so we generate little or no pressure for change.  Unfortunately, this emboldens toxic leaders and encourages them to stay the course.

Then this week when I read an article in Strategy and Business entitled Are You Your Employees’ Worst Enemy? I realized that while toxic leaders are a problem, a more insidious and prevalent leadership problem might be this:  according to the article, a majority of employees surveyed, even in successful companies, viewed their leaders as an obstacle to their effectiveness.  Apparently many well-intentioned leaders get caught in a "hindrance trap", described as "a cognitive bubble in which leaders erroneously conclude that the success of their teams is a reflection of their good leadership", so they inadvertently derail their employees by:

• communicating purpose and direction poorly
• not considering organizational capacity when rolling out new initiatives
• failing to set policies to help the organization achieve superior performance

Sounds a bit like early stage leadership toxicity to me.  Is it any wonder that leadership consulting, training and coaching have emerged as high profile growth businesses?

Dean K. Harring, CPCU, CIC is a retired Chief Claims Officer and an expert and advisor on Property Casualty insurance claims and operations. He can be reached at dean.harring@theclm.org or through www.linkedin.com/in/deanharring/

Claims Success Vision

Many Claims leaders get uncomfortable and move toward the exits when they are asked to contemplate and discuss their "vision", as in the vision statement of a strategic plan.  For most of us, that discomfort originated from participation in ritualized annual strategic planning events, where our company's leadership team got together to participate in intense wordsmithing exercises designed to produce a strategic plan document.  Vision, Mission, Values, Strengths, Weaknesses, Threats, Opportunities, Critical Success Factors, Objectives, Key Performance Indicators--all of these topics were tossed onto the table, to be debated and scrutinized with the assistance of a cadre of skilled facilitators.  I remember these planning events as contentious and dramatic, featuring break-out sessions, flip charts, storyboards, critiques, soliloquies, and of course mandatory camaraderie, all of which culminated in team solidarity and consensus on a newly minted strategic plan. Whew!

While I am an unapologetic strategy fan (I believe it takes both planning and execution to achieve the best result) I am not a fan of the strategic planning process used by many insurance companies.  I think the process itself has become more important than the plan it produces. In other words, getting through the strategic planning ritual and producing a plan that complies with the company's prescribed format/template has become the primary goal--the quality and utility of the plan is secondary.  Which is too bad, but it does help explain why strategic plans at many companies are so irrelevant.  Once completed, they are tucked away like sacred scrolls, not to be seen again until the next year's strategic planning event. So while most insurers have strategic plans, many of those plans have nothing to do with their day to day operations or decision making.

Google the question "Why do strategic plans fail?" and you'll get over 7 million results, although they sort down into a familiar handful of reasons:

·         plan was not communicated effectively

·         company vision, mission, values and value proposition were poorly defined

·         unrealistic goals

·         disconnect between strategic plan, operating plan, individual performance plans

·         invalid assumptions about internal and external environments

·         lack of resources and commitment to implement plan

·         lack of accountability and ownership

·         lack of meaningful performance metrics to track execution

But don't despair. Even if your company's strategic plan is nothing but fluff, you can still use proven planning techniques to help keep your Claims operation focused on what's important.

Years ago I was doing planning work with a motivational expert from the UK.  She told me about a process called "success visioning" in which leaders visualize what success would look like in their operation and then make a list of 8 to 10 things that, if true, would signal success. The concept was familiar to me, as I enjoy Stephen Covey's books and I’ve read my copy of The Seven Habits of Highly Effective People so many times it is falling apart. What she was describing was essentially Covey’s second habit:  Begin with the end in mind. If you are setting out to do something, it helps to start with a clear visualization of your objective: an image, a picture, or a description that can serve as a touchstone and frame of reference as you move forward.  And if you keep that visualization in mind, you’ll have a better chance of achieving it.

So I prepared a Claims “success vision” document and adapted it over the years to address challenges at the different companies where I worked.  My final version, prepared about five years ago, looks like this:

1.    Effective, efficient claims management operation producing the best claims outcomes

2.    In control: creating and maintaining a “no surprises” claims operating environment

3.    Known for providing industry leading claims service and expertise

4.    Attentive and responsive to stakeholder needs and concerns

5.    Reliable and consistent in setting accurate and adequate case level loss cost reserves

6.    Sought after source of claims thought leadership and timely, actionable, loss-related      information

7.    Seamless operations, utilizing a single claims system and a shared services operating  environment

8.    Skilled at integrating acquisitions and new programs

9.    Viewed as an employer of choice and a developer of people.

To make the list actionable, I included bullet points to provide details and specifics, and developed metrics to track performance. I used to look at the list every month, and think about what had been done and what else needed to be done to make these statements come true.  Why? Because I knew if we could turn these aspirations into reality, and if we could support improved performance with objective metrics (evidence), and if our stakeholders (individuals or groups who have a vested interest in or dependency upon how well the Claims operation performs) were saying and believing these things, then our Claims operation would be a success.

Give it a try.  It's easier, more useful and considerably less painful than strategic planning, and it will give you most of the raw material you need to talk about your vision at your next strategic planning event.

Dean K. Harring, CPCU, CIC is a retired Chief Claims Officer and an expert and advisor on Property Casualty insurance claims and operations. He can be reached at dean.harring@gmail.com or through www.linkedin.com/in/deanharring/