The Five Temptations of a CEO: A Leadership Fable 0787944335

Table of contents :
Tribute. Foreword. Introduction. The Fable. The Model: A Summary of Why Executives Fail. Self-Assessment. Acknowledgments. About the Author.

Citation preview

OF A

ALEADERSHIP FABLE

PATRICK LENCIONI

$20.00

U.S.

I

CEO

he Five lemptations of a

As

he stared out the picture

Andrew O'Brien wondered how

office,

come

it

his

had

to this.

Tomorrow would he promotion

0/ his first

window from

to

hoard meeting

the

one-year anniversary

CEO.

It

would also be

the

which he would be

in

accountable for the results of an entire fiscal

year Those tomed

results, as

he had grown accus"

to saying,

Andrew

were "unspectacular at

best.

could not deny that he was at a low

CEO,

point in his brief tenure as

a point he

never expected to reach so soon.

And then

Tn

things got worse.

stunning

this

Lencioni

Patrick

wake-up

business

call to all

fiction

delivers

of us

who

a

powerful

dare to lead.

Young, ambitious, and overwhelmed,

O'Brien personifies he wanders bullet

that

in

will

a part of

debut,

Andrew

every leader as

search of the elusive silver propel him to success.

happens upon an unlikely guide the seemingly infinite

list

who

He

distills

of leadership perils

into the five temptations of a

CEO.

In

intense and often combative exchange, the

debate fundamental issues faced by

ers—issues involving personal

all

lead-

integrit)'

(continued on back flap)

an

two

and

^

Advance praise

for

The Five Temptations of a

"The most fascinating book

I

CEO

have ever read about man-

agement. Pat Lencioni thrusts into the psyche of a

CEO

in

an extremely shrewd manner and reveals the vulnerabilities there.

could not help but

I

confronted while reading

feel that

I

was the one being

it."

—Tadao Kobayashi, Executive Vice

President,

Amer-

Honda Motor Company

ican

"Lencioni goes right to the core of what

is at

once simple and

profoundly hard to do as a leader: to take actions that are conscious and honest, always. authentic

tempted

—

at precisely

those

He

moments when we

to act out of ego, vanity, or fear.

good job, I'm aware of following the

—

Dr.

human

It

are

When am I

to

be

most

doing a

principles he suggests."

Diane Flannery, CEO, Juma Ventures

"Leadership results.

challenges us

is

about motivating others to achieve superior

demands

that individuals rise

above the inherent

temptations so clearly articulated in this book.

Insightful

and

entertaining. The Five Temptations of a

CFO

provides a practical construct that will help every general

manager become more

—Thomas Bain

J.

effective."

Tierney, Worldwide Managing Partner,

& Company

"I

normally cringe every time someone

insists

read yet

1

another book on leadership or corporate philosophy, but

must admit quickly

—

warmed up

1

to

The Five Temptations oj a

CEO

plain English, simple truths, eminently digestible."

—Graham Spanier,

President,

Penn

State University

"A fast-reading page-turner that puts things in perspective

—

it

makes you

as complicated as

—

I

you

their

realize that corporate

proper

life is

not

think."

Sal Schiliro, Publisher, Street

''The Five Temptations of

a

CEO

& Smith's Sports Group

tells it like it really is at

the top. In vivid prose storytelling, Lencioni depicts the

challenge and inspiration of overcoming the five deceptively

simple barriers to successful leadership."

—John

Alexander, President, Center

for

Creative

Leadership

"Pat Lencioni has written a compelling ble.

CEO

The Five Temptations of a

and

delightful para-

blends Pats

brilliant

storytelling ability with his extensive practical experience. It

gives us a \dbrant illustration of the success factors for

leadership in business

.

.

.

and

in

life.

Anyone,

CEO

or oth-

erwise, can benefit from this book."

—Terry Pearce, President,

Schwab

&

author. Leading Out Loud; Senior Vice

Executive

Communication,

Co.; Lecturer,

Charles

Haas School of Business,

University of California, Berkeley

"Few business books

a story that

tell

you can

does that and more. The Five Temptations of a

key

to a

form.

A

CEO;

a

CEO's real

ability to

^Alan

for

anyone

CEO holds

the

a company's ability to per-

joy to read for anyone

must read

—

leam and

relate to. Pat's

who wants

who wants

become

to

a

to stay one."

Anderson, President and CEO, Quintus Cor-

poration

''The Five Temptations

in

its

oja

powerful in

simplicity,

humanity. Pat Lencioni

who knows from thrive in

CEO is a powerful book.

honesty, powerful in

and engaging

a wise

is

real close

one of the

its

Powerful

up what

it

loneliest places

storyteller

takes to survive

on

its

the planet

and

—

the

boss's office!"

—Jim Kouzes, coauthor, The Leadership Challenge and Chairman,

Credibility;

Tom

Peters Group/Learning

Systems

"Outstanding!

one

is

I've

great! All

read

many management books and

managers can leam from

honest, and simple to understand book.

you want I've

made

this quick-reading, It is

a

must read

improve your executive management

to

this

if

skills.

a wallet-sized reference card of the five tempta-

tions so that

I

don't stray"

—Michael Officer,

Rowe, President and Chief Operating

New Jersey

Nets

The Five Temptations gets to a level of organizational truth in a

compelling way.

will

It

change the way we look

behavior and priorities without feeling guilty The night

commute home

—Richard "Take

it

from

tedium ers

best-selling

author,

Never

with Reality

confirmed 'business book basher': The Five

a

Temptations of a jargon,

Memo

late-

never be the same. ..."

Moran,

A.

Confuse a

will

our

at

CFO

is

not singing the same old song.

No

no pseudo-science, no strained sound-bites, no

—just

depend

a percipient parable for those

whom

oth-

for leadership."

—Mitch

Daniels, Senior Vice President, Corporate

Strategy

and

Policy, Eli Lilly

and Company

"Lencioni understands the subde but that every

on

CEO

must ultimately

critical

challenges

face."

—Mark Hoffman, President and CEO, CommerceOne "Some els

—

practical

in

and profound choices

any organization! The

fable

for leaders at all lev-

is

a great

way

to get

hooked."

—Tom Kurtz,

architect, coach, navigator, facilitator for

organization breakthrough, Procter and

Gamble

"I

couldn't stop thinking about the people

how this

this

on

book

my

1

work with and

applies to them. I'm going to keep a copy of

desk and use

it

—Leilani Gayles, Vice

as a tool for coaching."

President of

Human Resources,

@ Home Network "Good CEOs

are going to love this book.

disturbed by

it

Bad CEOs

because they're going to realize that

problems in the organization

start

be

will all

the

with them."

—Mark Talucci, President and CEO, The Sak "Most of us have succumbed tations' is

described in this

book

to

one or more of the 'temp-

—but not

worthy of the attention of any

CEO

for long. This

or

manager

book

at

any

level."

—Timothy E

Finley,

Chairman and CEO, Jos. A. Bank

Clothiers

"A good story that conveys wisdom

for all

human

institu-

tions, certainly including not-for-profits."

—Brian O'Connell, Founding

President, Independent

Sector

"Using a 'novel' format, Lencioni guides not only CEOs, but also

and

all

managers, to a more productive way of thinking

acting!"

—David Chilton,

author. The Wealthy Barber

.

.

.

CEO really got me thinking. It made me reexamine my own performance and gave me some insights on how could do my job better." ''The Five Temptations oj

a

I

—-Jerome L. Dodson, President, The Parnassus Fund "Lencioni has found a great issues

we

way

face as leaders. ...

—John

to

communicate about

A quick,

easy,

the

enjoyable read!"

S toner, President and General Manager, True

Temper Hardware

"Well, well, well.

make

I

am

the sixth temptation?

and could not put

my own initiatives,

evant.

CEOs

I

I

down.

it

bringing clarity to the ing

tempted

CEO

to read

it

again!

actually read

A

it

Would

on vacation

very clever approach to

mystique and process. In lead-

these concepts were abundantly rel-

look forward to providing a copy of this to

in our portfolio."

—Rick Patch,

that

Partner, Sequel Venture Partners

all

the

THE

FIVE

Temptations OF A

CEO

THE

FIVE

Temptations OF A

CEO

A LEADERSHIP FABLE

PATRICK LENCION

>»

JOSSEY-BASS A Wiley Company San Francisco

Copyright

©

1998 by Jossey-Bass

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in the

Library of Congress Cataloging-in-Publication Data Lencioni, Patrick M.,

The

five

Lencioni.

temptations of a

—

p.

1965a leadership fable

/

Patrick M.

1st ed.

cm.

ISBN 0-7879-4433-5 I.

CEO:

(acid-free paper)

Title.

PS3562.E479 F5 1998

813\54—ddc21

98-9097

FIRST EDITION

HB

Printing

10 9 8 7 6 5

Contents

Introduction

vii

The Fable

3

The Model:

A Summary

Self- Assessment

Acknowledgments

About the Author

123

131

133

of

Why Executives

Fail

111

INTRODUCTION

eing the chief executive of an organization

B

the

most

career.

Some CEOs, with

difficult challenges a

But

it is

is

one of

person can face in a

not a complicated one.

especially the struggling ones,

this statement. They'll tell

you

might disagree

their jobs are riddled

with complexities and subtleties that make success impossible to predict. If their organizations

a tired

list

fail,

they

may point

to

of causes like strategic errors, marketing inade-

quacies, competitive threats,

these are only

symptoms

and technology

of their troubles.

Vll

failures.

But

The Five Temptations of a

who

All chief executives

time or another

cumb

If

to

—make

CEO

—and most

fail

them do

of

at

one

same basic mistakes; they suc-

the

one (or more!) of the Five Temptations of a CEO.

this is true, if a

behaviors, then

why

CEO's success hinges on just don't

more

of

them succeed?

a

few

Why do

they keep looking at the same financial statements, prod-

and marketing reports

uct development schedules,

search of a silver bullet?

in

think Lucille Ball answers this

I

question best.

In an old episode of the

home

to find

fours.

When he

Love Lucy show, Ricky comes

I

Lucy crawling around the

living

room on

asks her what she's doing she explains that

she has lost her earrings. "You lost your earrings in the ing room?" Ricky asks. Lucy replies, "No,

bedroom

For

—but

the light

many CEOs

is

the light

strategic planning, ful

all

and

so

is

much

1

lost

them

liv-

in the

better out here."

best in places like marketing,

finance, safe havens

from the pain-

darkness of behavioral self-examination. Unfortunately,

they find

little

opportunity for meaningful improvement in

these areas.

Even

relatively progressive

executives often stay in the

comfort of their "living rooms," sampling management fads

and leadership trends

in search of relatively painless

Vlll

reme-

The Five Temptations of a

dies for their

work

While some of those remedies appear

for a while, they eventually leave executives

to the first

ills.

same

exposed

place, the ones explored in this book.

enough

to

that

is

understand

do anything about

tract

to

basic issues that caused their problems in the

The tragedy here

to

CEO

most executives

all this

—

^but

many

of

are intuitive

them

struggle

Instead, they unconsciously dis-

it.

themselves and others from their personal leadership

issues

by getting overly involved

in the details of their busi-

nesses, often to the point of creating complexity

where

it

shouldn't exist.

Essentially,

what they

their organizations in to face

are

doing

is

putting the success of

jeopardy because they are unwilling

—and overcome—

the Five Temptations of a

IX

CEO.

To

my mother and father, my

wife Laura,

and our newborn sons Matthew and Connor

»

rHE

FIVE

Temptations OF A

CEO

CHAPTER I

Andrew

Andrew

O'Brien hadn't been the

last

person to

leave the offices of Trinity Systems for the past five years. In fact,

since taking the job of

he hadn't stayed past midnight

CEO.

As he stared out the picture window from San Francisco, he wondered

Tomorrow would be promotion.

It

would

how

Those

had come

above

to this.

the one-year anniversary of Andrew's also

be the

which he would be accountable fiscal year.

it

his office

results, as

first

board meeting in

for the results of

an entire

he had grown accustomed

saying, were "unspectacular at best."

to

CEO

The Five Temptations of a

But the results didn't bother of

mind

did.

halls of his

Lately,

Andrew

as

much

as his state

he wasn't comfortable walking the

company. He didn't

executive staff meetings.

And

feel at

ease leading his

own

certainly he wasn't looking

forward to meeting with the board tomorrow. They probably wouldn't be too tough

on him, he thought, but they

wouldn't be patting him on the back

Andrew O'Brien could not deny in his tenure as

CEO,

a point

that

either.

he was

at a

low point

he never expected to reach

so soon.

And

then things got worse.

J

CHAPTER

BART

Staring

Andrew

out toward the Bay Bridge,

that there

were no cars heading

east

noticed

toward Oakland.

That seemed odd. Andrew always marveled that fic filled

the city at

the clock at this

on

all

his desk

hours of the night.

and saw

that

hour there were always

never really stopped

m

it

cars

He looked

traf-

over at

was 12:02 a.m. Even on the

bridge. Traffic

San Francisco, short of an earth-

quake.

Then

it

hit

him.

In his mind's eye,

Andrew saw

the orange road signs he

been driving by on his way home every night

two weeks:

had

for the past

The Five Temptations of a

CEO

BAY BRIDGE CLOSED EOR REPAIRS

MARCH 4&5 MIDNIGHT TO It

hadn't occurred to

Andrew

that

the bridge at this hour. Slowly

would not be driving home wanted

to

5:00

it

AM.

he might need

dawned on him

go out of his way, across the Golden Gate Bridge

Highway 24 and out toward

to

him more than an hour two hours of work didn't

he

that

tonight. Unless of course he

and back over the Richmond Bridge and down

80

to cross

seem

like a

to

—

forget

of driving time,

it.

It

Interstate

would

and with

at least

do before tomorrow's meeting,

good

cost

that

idea.

On any other night he would just check into one of the service hotels near the office, give his clothes to the

fullall-

night dry cleaning service, and be ready to go by morning.

But tonight for a

Andrew wanted

to sleep in his

own

bed,

if

only

few hours. Besides, he was determined to see his wife

and kids

m the morning.

Andrew needed

a

little

Though he would never admit

it,

moral support.

So he put his papers in his briefcase, grabbed his coat, and

headed

The

for the door.

street

below was almost

as deserted as the offices

above, with the exception of the doorway

where the homeless man everyone

down

called

the block

Benny

lived.

The Five Temptations of a

Andrew sometimes pondered a relative sense of relief his

life.

But tonight

when

Benny's plight to give himself things weren't going well in

didn't work.

it

CEO

He could not

escape his

obsession with the dreaded board meeting that would

begin in just nine hours.

As he walked tion

stiffly

toward the Bay Area Rapid Transit

two blocks away Andrew wondered how long

been since he'd used public transportation. Had

it

it

sta-

had

been

eight years? Ten?

Riding the escalator

Andrew was tion

down

into

the

subway

surprised to see no one around.

terminal,

The BART

sta-

was empty

Taking a ticket from the machine on the wall, he went to a

bench where

his train

was surprised

that

would be

he didn't

feel

arriving

and

sat

down. He

out of place. Ten years have

gone hyjast, he whispered to himself.

Before he could even take his papers out of his briefcase, the train arrived. As the train

began

to slow,

board. At least

that's

first

Andrew

few cars sped by him and the noticed that no one was on

what he thought.

«

CHAPTER

3 Charlie

Taking the ly felt

first

seat near the door,

exhausted.

Andrew sudden-

He had intended

to

work during

the 30-minute ride to the suburbs but self

wanting

map

to just sit there

of the transit system

and

found him-

stare at the color-coded

and ponder the geographic

out of the Bay Area. Anything to take his

mind

lay-

off the

board meeting.

Just as the train descended into the darkness of the tunnel that ran

beneath the bay and Andrew's eyes began to close,

one of the connecting doors behind him opened. He turned and saw an elderly

form step into the

car.

man

wearing some sort of uni-

He appeared

to

be a janitor of some

The Five Temptations of a

name

kind; the

"Charlie"

CEO

was patched onto

the pocket of

his gray shirt.

Suddenly Andrew

felt

man? he thought.

Certainly

him;

It

there's

no one

had come

else

uncomfortable. Should

on the

to this for

dropped

train.

expect

me

acknowledge

to

But what do

I

say?

Andrew. He had no problem talking

to the television reporter

the stock

he'll

talk to this

I

six

from the Financial Network when

months

ago.

He was completely

comfortable making a presentation to more than two hun-

dred analysts

the marketing conference. But for

at

unexplainable reason, tonight

nervous

—

at

the

prospect

Andrew was uneasy of

some

—even

exchanging middle-of-

the-night pleasantries with an old man.

And

a janitor

nonetheless.

Before he could think of something to

man walked by him next

car,

the white-haired

without saying a word, exited into the

and was gone.

Andrew was felt

say,

surprised that, instead of feeling relieved, he

insulted that the janitor

had

just ignored him.

But again, the board meeting intruded on his thoughts, and

Andrew decided

it

for his briefcase,

was time

to get to

work. As he reached

the lights inside the car flashed, then

12

The Five Temptations of a

came

CEO

faded,

and the

in the

dim

light,

Andrew wondered

get worse,

when

the door leading into the next car opened.

"Come

train

on," the old

you waiting

for?"

man

to a screeching stop. Sitting alone if

things could possibly

in the janitor suit said.

Then he

left.

•3

"What

are

I

I

CHAPTER

-4 Contact

At

first

Andrew

seat next to

advice from

didn't

him

as

move. He just looked

though he were searching

someone who wasn't

there.

without a great deal of hesitation, he followed the the next car.

The

janitor

at the

was

sitting

for

Then,

man

into

with his back toward

the door. Whistling.

Andrew decided

BART

riding a

the old

train

at

strangers to follow them? again,

who s following

Maybe

it

this

man was

for

Who

else

would be

12:30 in the morning and asking

he thought

to himself. But then

guy around a dark train?

was because he was

was desperate

crazy.

something

tired;

to distract

15

maybe because he him. For whatever

CEO

The Five Temptations of a

Andrew walked up

reason,

to the

man and

took the seat

across from him.

Before

Andrew could "The heat in

factly,

nights like this

I

this car is the best

prefer

"To talk about what?" ly

what

Andrew

would have made more

want

"sir,"

said matter of

on the

train.

On cool

to talk."

asked, realizing immediateit

was. "To talk to

whom?"

sense.

man answered

without a pause. "Whatever you

to talk about."

Puzzled now, sorry

coming here

a ridiculous question

But the old

man

speak, the old

sir,

Andrew asked

but do

I

know

especially older

you?"

now

He

men. Even

The old man smiled. "Not

Convinced

the obvious question: "I'm

if

always called strangers

I

they were janitors.

yet."

that the old

man was

nuts,

Andrews tone

turned parental, almost condescending. "So then, you work

on the

train?"

"Sometimes

I

do.

If that's

where I'm needed," the old man

said without a hint of pretention. living?"

I6

"What do you do

for a

The Five Temptations of a

Andrew seemed

at a loss.

"Well,

CEO

I

guess I'm in tech-

nology."

"What kind of technology?"

"All

kinds really Everything from calculators to commercial

computer systems.

I

work

for a

company

called Trinity

Systems."

"Oh

yes, I've

heard of

Andrew wondered

if

that."

he was just pretending to

know

the

company The old man continued nical

his questioning. "So, you're a tech-

guy then?"

Andrew paused, decided Then,

for

some unknown

to tell the old

name

is

man who

to just say yes

and

leave

reason, he suddenly

he was.

it

the need

felt

"Actually, I'm the

at that.

CEO.

My

Andrew."

"Well, I'm Charlie. Nice to

meet you."

As they shook hands, Andrew noticed hadn't flinched at the mention of his

that the old title.

man

Does he even

know what C-E-0 stands for? Andrew wondered. After an

17

The Five Temptations of a

awkward

silence,

CEO

man "What

he asked the old

exactly

do

you do?"

Charlie smiled. "Listen, Andrew. We're not here to talk

about me.

Let's talk

about you."

The old man's quirky response almost amused Andrew,

"Actually, I've

meeting wouldn't permit

tomorrow's board

but

I

was going

to

do some work on the

got a big meeting tomorrow, and

Andrew immediately

still."

was brushing was trying

"Oh, I'm

off the old

felt

bad

man, which was

sorry," Charlie said politely

Suddenly the

man

basically

"I'll

like

do he

what he

him

He

just leave

you

stood to leave,

go.

lights inside the train flashed off

was now pitch

it

to let

—and then completely

worry,

lot to

sounding

for

home.

to do.

and Andrew decided

From

have a

I

alone then. You're obviously very busy"

on

ride

it.

off again.

—and then

The motionless

train

black.

the darkness

Andrew heard

Charlie's voice.

young man." Not more than

turned on a

flashlight.

a

second

"Not

to

later the old

Andrew wondered how he had

ready so quickly, but he was just glad to have the

so he didn't ask.

i8

light,

The Five Temptations of a

CEO

Then, as though he had rehearsed the

line before, the old

man said, "It looks like we might be here a while. Why don't you tell me what's bothering you?" Andrew

just stared at Charlie for a

few seconds. Then, as

though he were not completely in control of

his

own

response, he replied, "Okay."

He

word came out

couldn't believe the

of his

own mouth. my problems?

Am I really going to tell this old man, this janitor, Am I this desperate? Apparently so, because here I go. Andrew cleared his throat.

"I

about business, but being a

"It is?"

"Well,

Charlie

I

don't

seemed

want

to

CEO

is

pretty complicated."

surprised. "Tell

me

about

be rude here, Charlie."

searching for the nicest

would be

know how much you know

don't

way

to say

it.

it."

He paused,

"But I'm not sure

it

interesting to you."

Charlie frowned.

At

first

Andrew thought he had offended

the old

man. Then

Charlie spoke.

Looking around the empty

train like a spy, the old

leaned over and whispered: "Now,

19

I

don't go

around

man

telling

just

anyone

like

Tm

this,

The Five Temptations of a

CEO

Andrew, because

don't

bragging. But

company, and

Andrew

I

when

I

was

I

a boy,

want

my

sound

to

father ran a

learned a thing or two from him."

sound impressed. "You don't

tried to

say.

What

kind of company?" He was expecting a hardware store or dry cleaner.

was

"It

a railroad," Charlie said matter-of-factly "But that's

My

not the point.

father always said that

pany was running

running

a

com-

company, regardless of the type of

a

business."

Andrew wondered

man wasn't

the old

if

delusional, but he

played along. "He did, did he?"

"Oh

yes.

And something

else

he

Don't take this

said.

wrong, Andrew, because I'm sure you're very good

you do. But ed

my

—running

father also said that

company,

a

1

make

look

the simple issues.' Pretty

at

compUcated because

what

wasn't complicat-

mean. He used

'people

it

it

at

to say that

they're afraid to

much

in those exact

words."

Andrew was now beginning

me

something.

become

How

a janitor

on

a

to feel

annoyed. "Charlie,

tell

does the son of a railroad president

BART

train?"

20

The Five Temptations of a

CEO

To Andrew's surprise, Charlie wasn't hurt by the sharp question. In

do with your

you don't think

issues? If

valuable to share with you, just say so.

on

to the next car

and

find another

Andrew was impressed by

And he

else

on

CEO. He decided

I'll

CEO

kind-

I

have anything

be glad

to

move

to talk to."

the old man's self-assuredness.

smiled as he imagined the old

someone

"So,

air of

"Now, Andrew, what in heaven's name does that have

ness.

to

new

he seemed to take on a

fact,

man

trying to find

no

the train to talk to at this hour,

less a

be charitable.

to

you think I'm making

it

too complicated, do you,

Charlies-

Charlie answered the question as though

with complete sincerity

"I

it

had been asked

can't say for sure,

Andrew, be-

cause I'm not sitting in your chair right now. But that being a

He paused

CEO

1

can say

should be conceptually simple."

for effect.

"Unless, of course, you're failing."

Immediately Andrew's cheeks turned bright red and his ears

began

to

bum. Even

in the

dim

light of his flashlight, Charlie

noticed the sudden change in his color and expression.

21

The Five Temptations of a

With you

a sense of

talk.

1

urgency and concern, Charlie asked: "Are are,

then

we have

hope you're not giving

in to

any of the

Andrew? Because

failing,

CEO

certainly

if

you

to

temptations."

Andrew

sat

up just

The company

a

"Listen, Charlie. I'm not failing.

little.

struggling a

is

reasons for that. Certainly

but there are

little,

lots of

don't consider myself to be a

1

failure."

Andrew paused

what do you mean by

"I

mean

that

don't think to

if

you

few seconds; then he added, "But

for a

'temptations'?"

you were are,

but

—and sounds you you were—then you would have failing

if

be giving in to one of the

face."

He

let

Andrew

five

Before

Andrew could

tempations that

think about

sentence. "Or, heaven forbid,

like

it

it

all

CEOs

before he finished the

more than

one."

repeat his question, the lunacy of the

situation hit him. Here

1

am,

sitting

on a

BART

train in the

middle of the night, letting myself get upset because an eccentric janitor thinks

versation ing,

and

might he failing. get

back

He wanted

to thinking

to

end the con-

about the board meet-

but the janitor had piqued his curiosity just enough to

make him five

1

ask,

"Could you just quickly

temptations are?"

22

tell

me what

the

The Five Temptations of a

CEO

Charlie paused. "Sit back for a few minutes. I've got

some

questions to ask you."

Andrew took

a

deep breath, looked

leaned back in his

seat.

23

at

his watch,

and

CHAPTER

5 The

H^J-

ell

Temptation

First

me this, Andy. What was the best day of your

career?"

Andrew considered asking

the old

man

Andy, a nickname he'd worked hard to school, but then decided

— do you mean Charlie held

up

his

parent. "Try not to

it

hand

make

not to

kill

call

since business

wasn't worth the trouble.

to interrupt it

Andrew,

complicated. Just

your best day was."

25

him

"What

like a

tell

kind

me what

"

The Five Temptations of a

Andrew considered day

was promoted

I

Charlie tal.

to

Just disappointed.

Being

for a

few seconds.

CEO. One

have to say the

"I'd

year ago tomorrow."

seemed disappointed by the answer. Not judgmen-

Andrew was

for

it

CEO

"Why?"

surprised by the question.

"Gee,

Charlie.

CEO is a pretty big step in a person's career. worked 1

twenty years to get where

Charlie

seemed

to disregard

I

am."

Andrew's answer. "Okay, then,

what about the second-best day?"

Andrew took

a breath

vice president,

and described

and about how

his

first

promotion

was the

first

head

though he had

it

to

time his salary

"cracked six figures."

Charlie

was slowly nodding

ured something out. "Okay, critical,

— but

his

Andy

I

as

don't

want

Andrew

interrupted. "Feel free to be as critical as

Charlie.

Everyone

else is."

He smiled

The old man leaned forward and put knee.

And

"1

it's

in a tired

his

fix."

26

be too

you

kmd

like,

of way.

hand on Andrew's

think you've given in to temptation the toughest one to

to

fig-

number

one.

The Five Temptations of a

As much felt

as

he wanted

to dismiss

with a laugh, Andrew

it

a sense of authenticity in the old

him discount

his advice completely.

CEO

man

that wouldn't let

Not wanting Charlie

sense his concern, he responded jovially:

"What

is

to

this,

Charlie? Right off the bat I'm not fixable?"

Andrew's attempt cern. "Possibly

at

humor

did not diminish Charlie's con-

Some people

are just not cut out to

be a

CEO."

With

less

you think

humor now, Andrew I've

temptation

asked: "Okay, what

given in to temptation

number

makes

number one? What

is

one, anyway?"

Charlie paused like a bedside doctor about to give his patient a diagnosis of cancer. "Well,

seems

to

me

that

you may be more

I

be

can't

certain,

but

it

interested in protecting

your career status than you are in making sure your com-

pany achieves

results."

Andrew looked

puzzled, so Charlie went on.

use an example." Charlie looked

"Let's

the train for a a poUtician,

moment. "Okay.

maybe even

States.

Imagine that

tion

just

I

I

Here's one.

Think about

the president of the United

were

asked you.

the ceiling of

at

to ask

'Mr.

27

him

President,

the

same ques-

what was the

The Five Temptations of a

biggest day of your career?'

CEO

What would

a great presi-

dent say?"

Andrew shrugged. "Or think about the head of a nonprofit agency Or even the coach of a professional basketball team."

Andrew was growing ness.

"What

are

a

little

you getting

tired of the old at,

man's elusive-

Charlie?"

"Well, imagine the president of the United States saying that the greatest

day of his career was election

day, or inau-

guration day" Charlie hesitated, but nothing registered on

Andrew's

face, so

he went on. "Or imagine the head of the

nonprofit agency saying that her proudest

when

moment was

she received a grant from the government.

ine the basketball a big contract

Or imag-

coach saying his greatest day was signing

with a team."

Andrew frowned.

"To

tell

you the

truth, those

sound

like

pretty realistic answers to me."

"They're extremely

Andrew

still

realistic.

And

that's

the problem."

seemed confused, so Charlie lowered

28

his voice

The Five Temptations of a

CEO

know what my

to a gentler level. "You

father said

when

1

asked him about the best day of his career?"

Andrew shook "He said

opened

it

was

its first

the day the

his head.

a toss-up

between the day the

passenger line west of the Mississippi and

company

first

turned a

Charlie sensed that something

Andrew now,

'Tou

And

as

money And

United States wouldn't be as

a nonprofit agency shouldn't feel

there

isn't

good about

something meaningful with

a great coach alive

who would

say

day was getting hired. Winning games and

championships

is

Andrew decided

what

great coaching

to fight Charlie a

that people shouldn't

stones

be sinking in with

he would of actually accomplishing

getting funding unless they did

that his best

to

so he went on.

proud of being elected

the

profit."

seemed

see, a great president of the

something.

railroad

is all

little.

about."

"So you're saying

be proud to reach personal mile-

m their careers?"

Charlie smiled. "Of course they can be

proud of milestones.

But not as proud as they are of actually doing something

29

The Five Temptatiom of a

with their

CEOs

In fact, great

status.

overwhelmed by the need

CEO

should be almost something. That

to achieve

is

what drives them. Achievement. Not ego."

Andrew decided a

to ask a question of his

own.

"Why

couldn't

person be so motivated by his ego that he would drive for

results? Lots of

Charlie true,

was

I

CEOs have

big egos."

seemed stumped, but suppose a

CEO

just for a

could be driven by ego."

"Why

"But

it

wouldn't

Andrew

until Charlie clar-

not?"

their efforts

They work

is initially satisfied,

toward enjoying the

less hours.

fruits of their

They worry

less

performance than they do about their

they turn

new

status.

about the company's

own

level of

comfort

status."

Andrew nodded point.

The

his

head

just slightly to allow Charlie's

janitor pressed on.

"Of course, when the company shows signs of the

"That's

last for long."

"Because once a person's ego

and

—

relieved to be agreed with for once

ified,

moment.

CEOs

status

is

in jeopardy,

again, but not because he's

failure

and

then he might work hard

concerned about the company.

He's really only concerned about his image."

30

The Five Temptations of a

CEO

Charlie then asked a leading question, as politely as he could: I

can't

"Why is

it

again that you're working so late tonight?

imagine that you usually work these hours."

Andrew responded without making Charlie's point.

"Oh

no. I'm usually

connection to

the

home by

board meeting tomorrow, and things

there's a

seven. But

aren't

looking

m

silence,

too good."

Suddenly Andrew made the connection. He

sat

contemplating the point, and seemed unaware of Charlie's presence.

Deciding

it

was time

ed. "Okay, CharUe.

1

times tempting for a his ego a

advice. felt

I

little

to

change the subject, Andrew

can buy

this.

CEO

put his career, his

too high

to

on the

1

list

can admit that

relent-

it's

some-

status,

even

of priorities. That's

good

could probably work on that one myself." Andrew

a sense of charitable satisfaction at

to Charlie,

who

didn't

conceding the point

seem so crazy anymore.

His satisfaction was short-lived

when

Charlie explained:

me wrong. It's very hard to overcome this of who you are sometimes. And even if you are

"But don't get one.

It's

part

able to resist the

first

that can sink you."

temptation, there are

still

four

more

CHAPTER

6 The Second Temptation

A

ndrew took

a

sound pretty

negative."

"Not negative. Just executive,

Andrew

difficult.

especially

— remember

deep breath. "This

a

I

is

said before that being a

CEO,

interrupted sarcastically.

is

"I

extremely hard.

know.

Its

cated."

"You don't

really believe that,

starting to

do you, Andy?"

53

good But

not compli-

The Five Temptations of a

"Not

CEO

But go ahead."

yet.

Charlie set the flashlight on the seat next to light reflected off the

assume

that

you

white ceiling of the

him

train.

are not overly focused

so that

its

"Okay. Lets

on your

career,

but that you are completely driven by the results of your

company You can number

two."

"Which

is?"

"Wanting

to

fail

still

you

if

give in to temptation

be popular with your direct reports instead of

holding them accountable."

Andrew waited

When

he

to see

didn't,

Charlie

if

Andrew remarked,

"What do you mean, That's

"I

had anything

mean, accountability

"That's it?"

it'?"

the

is

else to say

most overused buzzword

in

business today Every time something goes wrong, people say that there should be

Charlie didn't

more

seem hurt by

Andrew continued. "And talk

accountability"

the dismissal of his theory

popularity That's something kids

about in junior high."

Charlie just smiled.

"1

told

you

34

it's

simple."

The Five Temptations of a

Andrew wanted can say that

1

With

move

move on

first let

With

on.

don't have a

popularity Lets

"Okay But

to

CEO

laugh he

a

1

problem with accountability or temptation

to

number

three."

me ask you why you're so sure about this."

look of feigned contriteness,

a

said, "Well,

"Well, for starters, last

week

fired

1

I'm not afraid to take action

my

when

I

Andrew

explained.

head of marketing.

have

to."

He seemed

almost proud.

Charlie looked skeptical.

Andrew was annoyed by wanted

to

know what

"I

see."

the old man's hesitation, but he

Charlie

was

thinking. "You're not

con\dnced."

Charlie responded apologetically "I'm sony, Andrew.

think you're confused about something. test

you on

this

I

Do you mind

just if I

one?"

"Go ahead."

"Okay his

Why exactly did you

fire this

marketing guy? What's

name?"

"Terry.

He was

1

fired

him because he

wasn't getting the job done.

here for ten months and wasn't cutting

35

it.

He came

— Ihc

}-i\c

Icmptalwns of a

CEO

\o nicciings unj-ircparctl. His advcrlising ideas

He

were

stale.

wasn't generating the kind o{ leads that sales needed."

Andrew sounded

as

if

he were

tr)'ing to

convince himself.

Without any sense of accusation, Charhe asked, "So what did you do?"

'1

told you.

"No,

I

fired

him

1

at

some point during those

I

1

him about

talked to

just treated

say that

ten

km

sure

you

months before

him."

"Oh, sure. part,

him."

mean, what did you do along the way?

talked to

you

fired

1

him

like

things. But for the

anyone

else. In fact,

actually liked Terry better than

most

Fd have

most of

my

to

other

direct reports."

"But you saw that he

"Oh

yeah.

was

Our head

struggling?"

of sales said she w^asnt getting the

quantity or quality of leads she needed.

And none

of us

thought the advertising was worth a damn."

"What did you say

to Terry?"

Andrew thought about know.

1

tc^ld

him

that

the question for a Janice

—shes

36

my

moment. head oi

"I

don't

sales

The Five Temptations of a

wanted more high-quality last

leads.

years ads better than his

"What did he

say?"

"That he was

still

sonable to me.

"And things

new

I

mentioned

still

that

liked

Which sounded

rea-

pretty new."

didn't change?"

"That's right.

So

1

asked him

how

things were going, and

he said that the situation he inherited from the

to take longer

last

He

keting guy was worse than he had imagined.

was going

1

ones."

learning the ropes.

He was

CEO

mar-

said

it

than expected to turn things

around."

"Did you do anything specific

Withhold

a

bonus? Anything

at that point?

Cut

like that?" Charlie

his pay?

seemed

to

be rooting for a yes answer.

Andrew frowned. "No. Not his

gi\ing

him

a

bonus or cutting

pay would have been harsh. He'd just moved his family

halfway across the country."

"So

1

guess you didn't

either?" Charlie

"No way

I

knew

didn't

tell

him

that his job

was

in

jeopardy

the answer.

want

to

make him

J7

ner\'ous.

I

figured

The Five Temptations of a

things

CEO

would probably improve with

shouldn't

do anything

that

and

time,

that

1

might defunctionalize him."

"And then?"

"Three weeks later

I

For a moment, just at

fired

a

him."

moment,

Charlie and

Andrew

stared

one another as they contemplated Andrew's response.

And

then they started laughing, in a guilty kind of way.

After a few seconds, Charlie asked: "Just like that? fired

You

just

him?"

Trying unsuccessfully to wipe the guilty smile off his

face,

Andrew defended

were

still

lagging.

last

month.

himself. "No, of course not. Sales

Then Terry placed I

started getting calls

wondering what was going on

was

a horrible

ad in

USA

Today

from board members

in marketing.

1

decided

it

the right thing to do."

"Was he surprised?"

"Oh

yeah.

I

couldn't believe

cry for a second there.

it.

Which

"What?"

38

I

thought he was going to

told

me

something."

CEO

The Five Temptations of a

He shouldVe known that he was

"That he was out of touch. in trouble. at

every

mean, we talked about generating more leads

I

staff

meeting, and nothing seemed to change."

Charlie frowned

whether

to say

and squinted

though he were debating

as

what what was on

his

mind.

"What's wrong?"

"Andrew" Charlie addressed him by going to be tough on you.

"Sure." This time

With barely you

tell

Andrew

Is

his formal

that alright?"

didn't

seem

to

mean

a hint of scolding, Charlie asked,

Terry that you

name. "I'm

would

let

him go

if

it.

"Why

didn't

things didn't

improve?"

"I

already told you,

— every

we

talked about lead generation at

Charlie interrupted. "Yes,

I

know You

talked about lead

generation. But that's quite different from telling that

someone

he might lose his job."

Andrew was

clearly getting frustrated

questioning, but the old

man went

39

on.

by

Charlie's line of

"

"

CEO

The Five Temptations oj a

"If

you were

tomorrow by

fired

the board,

would you be

surprised?"

This came too close to

snapped

at the

home

old man. "That

for is

fire

me."

The old man held up

his

hand and dropped

is

"I'm sorry. to

I

do something

Calming down

you meant,

mean

didn't

Andrew

Charlie. I'm sorry,

words.

He and

head

talking, as

—

interrupted.

it's

— been under pressure and Andrew stopped

his

to say that they actually are

like that. Its just

quickly,

almost

The

totally outrageous.

not going to

board

who

Andrew,

just that

"I

it's

a bit.

going

know what

late

and

I've

though he had run out of

Charlie sat and stared at the darkness out-

side the train.

Finally,

Andrew broke

the silence. "So,

what were you

saying?"

"It's

not important,

Andy

"You're not upsetting me.

I

don't

It's

want

good

comfort zone from time to time.

They laughed.

40

I

to upset you. Really"

to get

pushed out of

my

read that somewhere."

The Five Temptations of a

"Go ahead,

"Okay.

Charlie."

was

I

CEO

how you would

just asking

feel if

was thinking about replacing you. Without

Andrew now considered certainly all

I

wouldn't be happy. But the truth

They

aren't the

ing a control function

"That's true.

I

1

"Why

he pondered the point. "You

his eyes as

else's

in heaven's

name

Who am

as hav-

else."

I

didn't really see myself as Terry's

don't think I'm Janice's manager, or

"Because they're do.

them

see

more than anything

anyone

Mary's, or

1

happens

warning and

lots of

CEO's manager.

have to say that

manager.

CEOs

is, it

But you were Terry's manager."

Andrew rubbed know,

telling you."

the question intellectually. "Well,

the time. Boards don't give

advice.

the board

1

all

on

Tom's,

my team."

not?"

adults,

to tell

Phil's,

and

them how

they're experts at to

do

what they

their jobs?"

Charlie smiled a knowing, parental smile.

Andrew

felt

and he

finally broke.

forcefully than

he did before,

Charlie's disapproval,

Speakmg more quickly and

he explained: "Okay Charlie.

41

I'll

tell

you why

I

never told

The Five Temptations oj a

CEO

Terry that he might lose his job. For one, he's older than

by almost ten

years.

who reminds you

feels pretty

It

of your uncle that

Second, he knows a hell of a I

do.

My

How

was

supposed

1

background

to

about the pressure

as a

you might

fire

him.

second-guess his decisions?

in electrical engineering. Three, Terry

is

I

my

team

I

could go to and

was under. He was probably more

supportive than anyone on

him

weird telling a guy

more about marketing than

lot

was one of the few people on talk

damn

me

my

staff.

1

didn't

want

to lose

sounding board."

"So you thought that

he might not

if

you

like

you as

told

him about your

intentions,

much, and might not

feel like

being your confidant anymore?"

Andrew

half

nodded, so Charlie pressed on.

"You were afraid to be unpopular."

"Come

on.

I

fired the

poor guy."

Suddenly Charlie became

you don't have It's

one thing

thing and It's

to

to

deal with

fire

the next day

42

for

some-

and deal with him.

him and never have

again."

and now

him anymore, do you?

hold someone accountable

come back

another to

slightly agitated. "Yes,

to talk to

him

The Five Temptations of a

Stunned, Andrew just Charlie sorry,

sat there digesting his

was shaken by the

it's

just that

In a daze,

—

Andrew

CEO

words. Even

own

directness of his

tone. "I'm

interrupted, as though he hadn't even

know someknow plenty of

heard the beginning of Charlie's apology. "You

As horrible

thing, Charlie?

CEOs who do make

it

same

the

thing.

sound. There are

and context

as

it It's

sounds,

not as cut-and-dry as you

kinds of personal dynamics

all

to deal with."

Calmly, Charlie responded. "Yes, that's

I

it's

very

common. But

because they don't understand the difference between

holding someone accountable and deciding to

Andrew shrugged tried a

new

as

fire

them."

though he were giving up, so Charlie

approach.

"Andy, in seventeen years as

know how many Andrew shook

people

my

CEO

of the railroad,

do you

father fired?"

his head. Charlie held

up

his

to

be disrespectful

hand v^th

five

fingers extended.

Andrew your

rolled his eyes.

father,

but

"I

don't

mean

that's ridiculous.

or a charity?"

43

Was he running

to

a railroad

The Five Temptations of a

"You're misunderstanding me. five

people. But

1

didn't say

CEO

my

said

I

how many

father only fired

people

left

the

com-

pany because they couldn't perform."

"What do you mean?"

"I

mean my

father

who worked

for

was

a fanatic

him knew

about performance. People

that they either

produced or

were gone."

"So

how come

he didn't

more people?"

fire

"Because he told them what he expected and reminded

them

of those expectations constantly

made

When they failed,

the consequences clear, whether

otherwise. Eventually,

if

it

was

he

financial or

a person couldn't find a

way

to

improve, they would just leave."

Andrew looked

skeptical.

"What about

the five people he

did fire?"

"Two of them violated company

me what couldn't

father.

My father never

told

who

just

they did. The other three were people

come

to

terms with their

bring themselves to leave, so

For the

rules.

first

time,

my

failures.

father did

Andrew was beginning

"Your dad sounds pretty tough."

44

They couldn't it

for

them."

to like Charlie's

The Five Temptations of a

"Yeah,

guess he was tough. But

I

people.

Still,

it

CEO

crushed him to

those

fire

he had no choice."

I "Come

on, sure he

"Not in his mind.

had

If

a choice."

he had

let

those five

stay,

he would

have been letting people down."

"You

mean

"No.

My father felt a sense of duty toward all the people who

left

had

on to

their

shareholders."

own when they couldn't perform. He

felt like

uphold the standards they held themselves

Andrew could

Charlie paused.

the old

tell

he

to."

man was

think-

ing about his father

Andrew paid man,

Charlie.

his respects: "Your father 1

bet he

was

a great

sounds

like a

wise

CEO."

Charlie nodded.

Andrew

continued.

"Now

don't take this wrong, but I'd

have to say that business today than

it

was back

is

a

little

more complicated

then."

Charlie wasn't upset by the

comment. "Why do you say

that?"

45

The Five Temptations of a

"Where should

I

CEO

competition, technol-

start? There's global

ogy changes, more regulations than ever before.

It's

just

complicated. Back then they had government protection.

Cheap

labor.

Things are harder today"

You

"So, this situation with Terry. father's

don't suppose that

my

approach would have worked?"

Andrew pretended

to consider the question. "To

be honest,

probably not."

"Why

"It's

not?"

like

what

to

1

said before.

1

wouldn't have

hold him accountable

ing. This industry is

for.

complex, and

more about marketing than Terry

Charlie shifted in his chair get this straight.

something But

it's

It's

specific

fair to fire

not

"It is

didn't

specifically

would have been

guess-

pretend to

know

I

can't

does. He's the expert."

let

me

hold a guy accountable

for

and leaned forward. "So

fair to

because you

aren't

an expert in his

him without warning when he

meet your expectations? Do

Andrew

I

known

know what

1

field.

doesn't

have that right?"

to say "It isn't that simple."

that simple. That's the

pomt.

46

It's

not supposed to be

The Five Temptations of a

complicated. You facing your

At

own

this point

Charlie.

it

complicated because you're not

issues."

Andrew

Why

MBA would

make

CEO

felt

challenged by the old man. "Okay,

do you think an

want

to

intelligent

person with an

be popular rather than hold someone

accountable for their job?"

"Ah, that brings us to temptation

47

number

three."

*

CHAPTER

7 The Third Temptation

on the

T

he

lights

on

again,

Andrew

sighed. "Finally."

and then

train flashed on, off,

and the

train

began

to

move forward

slowly.

diately realized that

He checked

his

watch and imme-

he might have made Charlie

end the conversation, which wasn't

he wanted

to

tion at

all.

So he encouraged the old

"What

is

temptation

number

man

feel that

his inten-

to continue.

three, Charlie?"

Charlie wasn't convinced that he really wanted to know. don't

want

back

to

to bore

you with any of

your work."

49

this.

1

better

let

you

"1

get

The Five Temptations of a

Andrew responded

kindly,

"Don't stop now, Charlie.

and

just a

need

1

CEO

to

little

patronizingly.

know why

I

don't feel

comfortable holding people accountable. You can't just leave

me

know

the other three."

here with the

first

two temptations.

I

need

to

Charlie sensed the condescension in Andrew's voice, so he said politely, "I'm sure you'll be fine.

got

But

it

like

you've

curious than he wanted to admit.

The prospect of not finding out the advice was troubling. In a really like to

at all.

What

is

If

rest of the old

more genuine tone he

hear what you have to

Charlie paused. "Okay.

"It's

sounds

figured out for yourself."

Andrew was more

"Not

It

man's

said, "I'd

say."

I'm not troubling you too much."

temptation

number

three?"

the temptation to ensure that your decisions are

correct."

Andrew looked confused,

"It's

so Charlie clarified.

the temptation to choose certainty over clarity

executives fear being they're

wrong

so

much

Some

that they wait until

absolutely certain about something before they

50

The Five Temptations of a

make

makes

a decision. That

CEO

impossible to hold people

it

accountable."

"Fm not

"It's

sure I'm following you."

simple.

You

hold people accountable for things

can't

that aren't clear. If you're unwilling to

limited information,

"Okay

I

get

it.

you

make

decisions with

can't achieve clarity."

But what kind of things are you talking

about?"

"Simple things. Important things. Like in business.

Its goals.

The

roles

ple in the organization to

quences

for success

Andrew nodded. school this is

stuff.

and

and

why the company is

responsibilities of peo-

meet those

goals.

The conse-

failure. All that stuff."

"Vision, mission, values, goals. Business-

Don't take this wrong, Charlie, but none of

new"

"Of course not. People

paused

talk

for effect. "So then,

about

what

this all the time." Charlie

is

your vision of the future

for Trinity?"

Andrew frowned and

scratched his shoulder like a kid try-

ing to avoid a scolding.

51

"

The Fi\e Temptations of a

Charlie

"Yeah,

way

was

surprised. "Don't

to explain

"How

you know?"

we're having a hard time settling

its just

tomorrow

CEO

it.

at the

on

the right

In fact, we'll probably discuss

it

again

board meeting."

long have you been working on this?"

Andrew squirmed

a

little,

trying to

come up with an

answer, so Charlie prompted him. "A month? Two?"

Andrew

Charlie

finally admitted: "Eight

was genuinely

name

God's

"Well,

it's

just that the

market

is

—

is

Charlie interrupted. "I'm sorry, Andy, but this please excuse

known you fault

The

in

changing and we're trying

whether our current business

able to sustain

And

What

surprised. "Eight months?!

taking so long?"

is

to figure out

months."

me

for saying this,

going to be

is

ridiculous.

because

very long, but not having a vision

is

I

haven't

no

one's

but your own."

truth hit

Andrew

hard.

He wanted

to

defend himself,

but before he could get the words out of his mouth, Charlie

52

The Five Temptations of a

beat

him

than

that."

Andrew

to

it.

"And

don't

tell

me

CEO

it's

more complicated

deflated in his seat as Charlie took

response.

He was beginning

eyes were glazing over.

"It's

to feel

away

his only

overwhelmed, and his

not that simple."

Charlie leaned forward. "Stay with

me

Andy

here,

I'm

going to ask you some tough questions."

"You

mean

they haven't been tough so

Charlie ignored the humor. "Are

Slowly,

Andrew

sat

grounded. "Yeah.

"Okay.

What

clusions

is

far?"

you up

to this?"

up, like one of his sons about to be

Go

ahead."

preventing you from coming to some con-

on something

as big

and important

as

your com-

pany's vision?"

"I

wish

I

knew."

"You do know, Andy. to yourself. Face

It's

your

just that

fears.

you have

to

admit

it

You must have some idea

about what the future of your company should look like."

53

The Five Temptations of a

"Sure

"So

CEO

do."

1

why

haven't

you put

company, and used

it

on paper, announced

it

Andrew

"Because I'm not sure

it's

Silence.

The sentence

slowly,

to the

you make?"

to guide the decisions

After a long pause,

it

quietly responded,

right yet."

just

hung

there, until Charlie

asked

"Were you ever in the military?"

He shook

his head.

"Well, in the military, they teach better than

"I've

no

"You're right. This line in

Andrew

agree.

is

completely

different.

No

one's lives are

relief.

"I'll

you what,

tell

is

Charlie.

if

you know how

company over

to execute.

a visionary

54

I

overrated."

think that having a great vision and mission

only important executing

is

your company"

struggled for

I

any decision

this is different."

think the whole vision, mission thing

"I

that

decision."

heard that before, but

on the

you

I'll

is

take a well-

one any day"

The Five Temptations of a

CEO

Andrew thought he had found

"Exactly."

man

Charlie agreed with him. Until the old

relief

when

asked the next

question.

"So,

what

"Me

personally?"

"No. The say

it

your goals

are

for the next three

company What needs

was

to get

months?"

done so

that

you can

a successful period?"

"We've got to

make more money. We need

to

grow our mar-

ket share."

"By

how much? And what

needs to happen

for

you

to get

there?"

Andrew was

frustrated to the point of anger now.

you what,

Charlie. I've just about

preaching.

It's

vacuum, and

easy for you to ask

it's

easy to be

Charlie looked hurt

Andrew

"No, like

it's

kindly.

had all

it

"I'll tell

with your folksy

these questions in a

smug about

—

by the remark, but he interrupted

"Do you think I'm being smug?"

just that

it's

too easy to

sit

outside and

drill

me

an attorney, because there are no easy answers."

55

here

"

The Five Temptations oj a

For the

supposed so

time, Charlie

first

to

became emotional. "There

be easy answers, Andy. That's

much. But you have

wise, there

CEO

is

to

why you

results are a matter of luck."

next question.

"How

get paid

come up with answers. Other-

no accountability And without

couldn't quite calm himself

aren't

He paused

enough

could you

for a breath,

to stop

fire

accountability,

but

from asking the

Terry and not

know

what he should have been doing?"

Andrew just

Charlie

be

sat there

shaking his head.

moved forward

criticized.

"No one

in his seat.

"I

think you're afraid to

To look bad."

look bad."

likes to

"Of course they

don't.

You're driving your

board of directors

But the price for you

company

realizes

it

into the ground,

is

too high.

whether the

or not."

That came out of nowhere to Andrew, and he shouted Charlie. "I'm not afraid to be criticized!

the

— company

Charlie interrupted

"Then where

Make

a

darn

is

And

at

I'm not driving

Andrew and shouted back

at

him.

your vision, Andy? Where are your goals?

call

on something. What

56

are

you waiting

for?"

The Five Temptations of a

train

and went out

again.

dark for

Then

five

and the

lights flickered

The two angry men just

sat there in the

ground

Suddenly the

minutes.

the flashlight

holding

it.

CEO

A

to a halt,

full five

minutes.

went on, but

time

this

Calmly, he spoke. "So what

Andrew was

my problem here,

is

Charlie?"

Charlie responded kindly, barely above a whisper. "Let tell

you something. From what

the

same problems. They

1

can

tell,

finally get the

many CEOs have

job they've always

wanted, and they become afraid to lose their don't

want

afraid to

to

me

status.

Or they

hold people accountable because they're

be unpopular.

And even

if

they aren't afraid to be

unpopular, they don't hold people accountable because they haven't bothered to be clear about what they expect

from people because

—

Andrew

finished the rest of the lesson. "Because they're

afraid to

be wrong."

"Exactly." Charlie let

"My

father

used

Andrew

digest the message. Then:

to say that there

were the most powerful thing a

know what

those are?"

Andrew shook

his head.

57

were three words which

CEO

could say

Do you

CEO

The Five Temptations of a

'"I-WAS- WRONG.' But the thing

words

apologetically.

He

them.

He knew

if

that

them

said

he didn't say those

is,

he was proud of

like

he couldn't be comfortable being

wrong, he wouldn't make tough decisions with limited information."

Andrew was now ready lot of

bad

guilty

And he owned

those decisions. But he never

knew

about them because he

forward in the face of uncertainty

make

mistakes.

mistakes. In ability to tion.

he must have made a

decisions."

"Sure he did. felt

for help. "So

And

fact,

gradually,

if

that

you

make good

decisions without

fact,

much

more

enough informa-

as

I

to

meant

Andrew

me."

hate to say

intelligent

it,

it,

my

father

than the average person.

he used to say that the key to his success was hir-

ing people

"So

aren't willing to

really smart."

"He seems pretty smart

Charlie smiled. "As

In

move

he made fewer and fewer

Partly out of respect, partly because he

wasn't really any

can't

people said he developed an amazing

They thought he was

offered,

you

how

who were

smarter than him."

did he learn to

make such

"Well, he avoided temptation

great decisions?"

number

58

four."

CHAPTER

8 The Fourth Temptation

N

ow Andrew was advice,

and he

"Okay. What's temptation

"It's

the temptation to

Charlie

who

felt

no reason

number

to hide

it.

four?"

—

was interrupted by the sound of one of the con-

necting doors opening. see

genuinely interested in Charlie's

it

Andrew spun around

in his seat to

was.

Standing in the door was a

He addressed

tall

Charlie politely

59

man

wearing a

suit

and

hat.

The Five Temptations oj a

"Excuse me. Are you coming back?

Charlie slapped himself

CEO

Its

been quite

a while."

on the forehead. "Oh, my.

been gone quite a while haven't

I?

I

have

I'm so sorry."

Andrew was very confused.

The

Man

Tall

Charlie

seemed almost

just that

I

Andy

with

spoke again.

hurt.

I

"Oh

no.

I

wouldn't do

Then something occurred

why

don't

left."

that.

It's

lost track of the time."

seemed perplexed by the dilemma on

Charlie

"Andy,

thought you might have

such an interesting conversation

started having

here that

"I

his hands.

to him.

you come join us? No sense

in

me

run-

ning back and forth keeping everyone waiting."

Before

Andrew could respond,

Charlie, the heat in here

"Yes,

The

1

know,

Tall

Man

it's

the best

is

the Tall

Man

said,

"Hey

better than the other car"

on

the train."

turned back toward the door to leave. Charlie

and Andrew followed him.

Andrew was

just about to stop

60

and ask Charlie what was

The Five Temptations of a

CEO

going on, but something told him he wasn't supposed to ask.

Somehow,

was just too preposterous

the situation

simple question like

Where

are

we

going? or

Who

is

for a this

guy? Andrew decided that he would find out in due time.

Charlie

let

Andrew

a

behind

Andrew walk ahead

which

offered

Man from

ten feet

of him,

chance to check out the

Tall

as they traveled the length of seven train cars.

His suit was in good condition but seemed out of style to

Andrew

His shoes, although new, reminded

Andrew

of

something he had once dragged out of his grandfather's closet.

The

Tall

Man entered

the seventh car

and stopped. Andrew

heard voices inside, so he hesitated.

"Go ahead," Charlie encouraged him. "They won't

"They?"

Andrew

before Charlie

replied.

But

nudged him

that's all

he could get out

into the next car.

Immediately he noticed that there were two other the car, in addition to the Tall forties or early fifties.

bite."

Man. Both were

They were

sitting in the

men

in

in their late

middle sec-

tion of the train, facing one another, involved in an ani-

mated conversation. One was ish,

bald.

The other wore

double-breasted suit with pinstripes.

61

a styl-

CEO

The Five Temptations oj a

The

Man

Tall

men. This

is

asked for their attention. "Excuse me, gentle-

Andy."

He turned

Andrew.

to

"Its

Andy, right?"

Andrew nodded. chimed

Charlie

the technology

Neither of the

in.

"Andy

is

the

company He and

men seemed

and

like Charlie

The

Stylish

at all

CEO I

lost track of time."

surprised to see Andrew,

they didn't react to his

Man

spoke

first.

of Trinity Systems,

"How

far

title.

did you guys get,

Charlie?"

Andrew was confused, and began vousness

—almost

to feel a sense of ner-

panic. What's going on here? he thought,

suddenly wondering

if

this

were some

sort of

scam or

setup.

Charlie looked at Andrew, frowning in thought.

did

we

get?" But before

Andrew could even

The

three

number

men acknowledged

far

grasp the point

We

were

number

four

of the question, Charlie remembered. "Oh, yes. just starting temptation

"How

four."

temptation

with nods and ahhs and smiles.

The

Tall

Man

spoke.

"Number 62

four

is

my big

challenge."

The Five Temptations of a

Andrew began

to feel

he was in the midst of an episode of

And

The Twilight Zone.

CEO

then suddenly his concern about the

strange situation faded a

as

little

he again became curious

about the next temptation.

"What

He

is

temptation

number

four?"

Man, who looked

directed the question at the Tall

toward Charlie as

nodded, so the

"Have

a seat,

Charlie,

Taking

Man

Tall

and

to ask permission. Charlie smiled

if

I'll

spoke.

explain

Andrew, and the

and

it

Tall

to you."

Man

Man

off his hat, the Tall

sat

down.

spoke. "Temptation four

is

the desire for harmony."

Without knowing why, Andrew suddenly with these men.

have to do with

"I

don't understand.

clarity

The Bald Man spoke spective of a person

temptation

number

comfortable

What does harmony

and good decisions?"

for the first time.

who

four"

"From the per-

doesn't have a

problem with

— the others laughed—

explain."

All attention shifted

felt

toward the Bald Man.

65

"let

me

The Five Temptations of a

"Answer

a question for

CEO

me, Andy. What

is

the opposite of

harmony?"

Andrew thought

for a

moment.

"I

don't

"Discord. Disagreement. Conflict.

The point ny."

He

is, its

human

natural for

paused. "But

harmony

is

Any

know; discord?"

of those will do.

beings to want harmo-

like

cancer to good deci-

sion making."

Andrew seemed

"You is

ly

to

see, the

suck

all

lost,

only

so the Bald

way

to

come

Man

to a

continued.

good decision quickly

of the honest opinions out of people efficient-

There are two ways to do

The Bald Man held up explaining the es in place to

first

that."

a finger to

show

that

he was

way. "One, you can put nice process-

massage opinions out of people

— focus

groups, brainstorming sessions, democratic voting."

held up a second finger. "Or two, you can do

it

He

in a

messy way."

The

Tall

Man jumped

in.

"Messy means using

conflict.

But

not bad conflict. We're talking about productive ideological conflict.

From

the outside, they look the same, but they're

very different."

64

The Five Temptations of a

Andrew was

CEO

starting to grasp their point, but

troubled him. "But

isn't that

the

same

something

as temptation two?"

The others looked confused, so Andrew explained "Temptation number two

is

popular with people instead

The

Man

Stylish

accountable. Yes,

"Right,

pretty

1

the

where you want

the one

—

we know about temptation number

same thing

The Bald Man seemed

to

as

isn't

wanting

to

to

be

them

"Instead of holding

interrupted.

guess you do. Anyway,

much

himself.

two."

be popular

wanting harmony?"

understand Andrew

where you're confused. Temptation two ing to be rejected, as a person.

It's

is

now

"1

see

about not want-

about judging yourself

by what other people think of you."

The

Stylish

Man

spoke next. "You're confusing the

fear of

being unpopular with the fear of your group being in conflict

with one another."

"But-

Before

Andrew could even begin

the sentence, Charlie

interrupted him. "No, we're not splitting hairs here, Andy.

There

is

a big difference."

65

The Five Temptations of a

The

Man

Tall

CEO

explained. 'Tor instance,

lem holding people accountable

I

don't have a prob-

for things, as

agree what those things are. But sometimes

long as I

decisions."

Because he almost never

without having the

Tall

down.

1

full

"1

a decision

benefit of everyone's ideas."

I

I

them away from

tions because I'm afraid that it

made

Man became excited. "Right. And that's where fall don't like it when people challenge one another.

try to steer

of

because

"You said your father almost

to Charlie.

made good

"That's right.

The

for,

decisions that don't feel right."

Andrew turned always

all

have a hard

time deciding what to hold them accountable

we make

we

passionate, heated conversa-

someone

is

going to come out

getting hurt, or looking bad."

don't have that problem."

The Bald Man's comment

brought out laughter in his colleagues.

"Why

"I

is

that?"

don't know.

way

1

was

fine.

I

1

all

guess

asked.

suppose

raised.

about things

was

Andrew

My

has something to do with the

brothers and

the time, I

it

I

1

fought and argued

and ten mmutes

later

everything

learned that there was never any perma-

nent damage."

66

The Five Temptations of a

The

Man

Stylish

added: "Me too.

with allowing people to get into if

no one

I

feel like

gets a

little

CEO

I've

it

never had a problem

during meetings. In

pushed out of shape during

we probably

didn't put

fact,

a meeting,

our issues on the

all

table."

Andrew

persisted.

"I still

think that

if

you have

a

problem

with temptation two, you'll struggle with temptation

The

Stylish

But take

me

down on

Man for

responded. "That's sometimes the case.

example.

and

a table,

face about things real clear

The

Tall

Stylish

Man

"How "Well,

two;

1

we need

to

I

can jump up and

don't hesitate to get in

my

we

get

feel the

need. So

do and about what we're

Man began

to laugh.

Andrew wondered out

loud.

explained. "They're laughing at one of

weaknesses. You see,

number

my people

the Bald

"What's so funny?"

The

love conflict.

right out there in front of us."

for. It's

Man and

I

whenever they

about what

accountable

four."

let

I

sometimes give in

to

my

temptation

people off the hook."

so?"

when one

that they couldn't

of

my

people comes to

meet a deliverable or

67

me and

tells

finish a project

me on

The Five Temptations of a

time,

I

And

always ask them why.

the time they don't have a pretty

"And so

1

let

them

off

be damned

if

most of

good reason." He pauses.

every once in a while."

The Bald Man and the once in

I'll

CEO

Tall

Man

objected in unison: "Every

a while?"

"Alright, alright.

do

I

it

way

too much.

I

guess for

all

ranting and raving, I'm pretty soft about things. Too

empathy or something. In kids.

I'll

holler at

ate discussions,

fact,

them and

if

I

we'll

of

my

much

do the same thing with

my

have some pretty passion-

you know what

mean."

I

They laughed.

"But then

I

bring myself to actually punish them."

can't

Andrew was beginning sound

like

to like the Stylish

such a bad thing

Suddenly the Stylish

to

Man. "That doesn't

me."

Man became

adamant.

"It's

a horrible

Man

continue.

thing. Horrible."

Andrew was shocked, but he

"I

let

lose credibility with people.

unfair to them. deliver

The next time

on something,

I

the Stylish

I

seem inconsistent and

need someone

they're not sure

68

how

to actually

serious

I

am

CEO

The Five Temptations of a

about this

it.

And

the funny thing

He

problem?"

Andrew

asked, "Does

me

as

Andrew was The that

Tall

.

want them

me."

to like

like

me?'

1

they would

."He

didn't

guess so, but they don't if 1

have

And

were consistent.

to finish the sentence.

already nodding.

Man

need

1

.

I

have

I

work?"

it

much as

without respect.

do you know why

paused. "Because

"You mean, 'Do they respect

is,

completed the lesson. "But my problem

to

be popular.

It's

just that

1

isn't

com-

don't feel

pletely right about holding people accountable, because

even though accountable ly

1

for,

bought into

Andrew shook

"Because their

1

made 1

it.

a clear decision

know

in

my

heart that they haven't real-

And you know why?"

his head.

don't

let

them

air their

arguments before they have

things.

1

about what they're

opmions enough. a

chance

1

stifle

to get clear

on

on

all

just don't like conflict."

Andrew added, "And

so your decisions aren't based

the information that your people have to offer."

They

all

nodded. Andrew was begmning

though he

still

seemed

a

little

to grasp

it

confused, overwhelmed.

69

all,

The Five Temptations oj a

CEO

Charlie decided to challenge his pupil. it

"Why don't you

give

Andy?"

a shot,

"Give what a shot?"

"The temptations. See

if

you can remember the

Andrew looked around

first

four."

the four strangers. Before he

at

accepted Charlies challenge, he asked the unthinkable question:

"Who

are

you guys?"

The Bald Man answered. "We're

like you.

We're people

who've faced these same temptations. But we're not here talk

to

about us."

Charlie agreed. "That's right,

Andy

See

if

you can remem-

ber the temptations."

Andrew looked were trying see.

The

as far as

and

my

to decide

first 1

tell

status

—

is

above

me

window

whether he could do

temptation

can

That makes

into his reflection in the

—

the one

I

it.

focus

on

if

"Alright,

he

let's

struggle with the most,

the temptation to focus

my

as

on

my career

the company's results.

complacent and unfocused, and causes

results to slip."

Andrew

noticed that the four

except

seemed

it

that they

men were nodding at him, were not so much acknowledg70

CEO

The Five Temptations of a

ing his correct response as confirming his tendency for

number

temptation

one.

He shrugged

it

off

and went on

with his quiz.

"Okay, even one,

I

might

temptation

were able

if I

still

get unspectacular results

number

Charlie prompted:

"The need

to

overcome temptation number

to

give in to

if 1

two."

"Which

is?"

be liked and popular with

my

staff, at

the

expense of holding them accountable. That's your problem, right?"

He motioned toward

the Stylish

Man, who

nodded.

"And even when we liked

by our people, we

because

—wait

"because able.

are not overly

And

we

don't feel like

ber three, which

I

"Right. Clarity.

We

to decide things

it's

something can't quite

The Bald Man helped him

hold them accountable

he paused

a minute,"

that has

to

fail

concerned about being

fair to

for a

few seconds,

hold them account-

do with temptation num-

to

remember."

out: "Decisions."

because

we

don't like

without perfect information.

We

let

don't feel

it's

fair

hang there ambiguously, without making decisions, because

we

don't

want

71

to

clear

things

and timely

be wrong. So

we

wait.

"

The Five Temptations of a

and we blame

The

for things

Man

Stylish

Andrew

guts to

in the

And

so

someone might

around

get

embar-

even though no one had the

fired,

them what was expected

of them. But even

make

things clear, some-

they do have the guts to

times they

to take the

finished the sentence: "Unspectacular."

demoted or

tell

meantime, someone has

— being

smiled. "Right.

rassed or

when

and

wait,

CEO

fail

to

make good

their clarity

decisions and achieve buy-in

because of temptation number four: the

desire for harmony."

The

Tall

Man

raised his

hand

to claim this particular

temp-

tation.

Andrew acknowledged him with

a smile

and went on.

"They're afraid to entertain conflict, to put their ideas

on

the line where they might get challenged. So they don't benefit from the various opinions

And I suppose fear of,

that

is

and ideas of their people.

the root cause of all the confusion, the

what did you

call

it,

productive ideological con-

flict?"

Charhe smiled and nodded not the root of

all this.

The

his approval. "Yes. But that

root

is

is

the fifth temptation."

Just as he finished the sentence, the train began to slow At

72

The Five Temptations of a

CEO

once, Charlie, the Bald Man, the Stylish Man, and the Tall

Man

looked

at their

their belongings.

that

must have

And

then

tation

it

The

watches, stood, and began to collect Stylish

Man had

cost a fortune,

dawned on him:

Andrew

an antique briefcase thought.

they're not going to

number five.

75

tell

me

temp-

CHAPTER

9 The

As

Temptation

Fifth

the train

came

to a halt, the four

men swayed

unison and reached for the overhead

would have found he not so desperate

"You guys

this

odd

picture

bar.

in

Andrew

amusing were

for the conclusion of Charlie's advice.

aren't serious. You're

not going to just stop right

there?"

Only Charlie answered.

"It's

The four men moved toward in front of

it

to

block them.

time for us to go, Andy."

the door, but

First the Tall

75

Andrew stepped

Man, then the Bald

The Five Temptations of a

Man, and carefully,

finally the Stylish

nodding

their

Man

CEO

stepped around Andrew

heads or tipping their hats to him

as they passed.

As Charlie approached, Andrew held out him. With a sense of desperation he it is,

You don't need

Charlie.

tions or

tell

me any more

Just give

me

For the

first

me any

to ask

me what

leading ques-

boring stories about your

father.

you

immediately.

can't just leave

Charlie took a breath.

me

Andrew turned toward

moment he

his briefcase was. At that

hydraulic doors preparing to close.

would not be

hanging."

"Come with me."

Charlie exited the train as

He

said: "Just tell

to stop

time in the evening, Charlie looked hurt.

"I'm sorry But

his case.

hand

the final temptation."

Andrew apologized

where

his

heard the

Andrew knew

able to get out of the train

if

the seat

that

he

he went back

for

ran to the door and leapt from the train just as

the doors closed.

Watching the

train carry his briefcase into the next tunnel,

Andrew rubbed

his eyes

and smiled

was having. He turned around

to

at the

an empty terminal.

Everyone was gone, including Charlie.

76

crazy night he

The Five Temptations of a

Desperate again,

toward the

down

Andrew

the street

Then he heard

ran to the escalator and

Once

street exit.

up

up and

outside, he looked

and saw no sign of

a voice

CEO

Charlie.

behind him.

"Over here."

Completely

startled,

Charlie sitting

on

a

Andrew jerked around and saw

bus stop bench. "Oh

my

God!"

"What's the matter, Andy?"

"What's the matter?

I'll

tell

you what's the

thought you ditched me. Then you scare

Charlie ter

was calm, concerned. "No.

with you, in general?

Andrew

Why are

I

matter. First

me

1

to death."

mean, what's the mat-

you so desperate?"

sighed, walked over to the bench,

and

sat

down

next to Charlie. After a few moments, he dropped his head into his

hands and spoke.

"For the I

feel like

first

time in

my

career

I'm pulling people

I

think I'm drowning.

down

with

me just

head above water."

Charlie said nothing.

Andrew continued.

77

to

And

keep

my

The Five Temptations of a

CEO

"IVe always been able lo turn things

needed

up

a

notch

when

but this doesn't seem to be about turning

to,

it

I

up

at all."

Charlie asked, "What's

"1

don't know.

It's

like

about?"

it

an impossible balancing

everything constantly moving. So details.

Too much

Charlie patted

temptation

number

Andrew

up and took

"My

sat

—

father

it's

"Sure, Charlie.

1

many subtleties. So many

the back. "Let

me

tell

you about

five."

alright

a

if I

was being

deep breath. "Okay Fire away."

talk

my father wasn't

about

a jerk.

boring. They're just painful.

"Well,

with

the stuff."

stuff. All

Andrew on

act,

Go

my

Your

father, isn't it?"

father's stories aren't

ahead."

the kind of

man

to brag,

but he did

brag about one thing."

"What?"

"He bragged about the people who worked get unusually emotional

on

when he

his staff."

78

for

him. He'd

talked about the people

The Fi\e Temptations of a

Charlie smiled as he thought about

"And

remember

I

with his

career."

CEO

it.

he always said he trusted his people

that

Charhe paused, then asked, "Can you say

that?"

Andrew shook Some

close.

way

head without

his

"Not even

of those people probably wouldn't care

or the other

if 1

one

down tomorrow"

stepped

seemed genuinely sad

Charlie

hesitating.

for

"Why do you

Andrew.

suppose?"

Andrew began

empty

stared off across the

to

shake his head.

focused on their

own

Gradually he

street.

dont know. They re

"I

so

all

careers.

"And you?"

"I

donr know,

Charlie.

1

guess I'm as concerned about

career as the next guy. But

"I'm not asking trust

you with

Andrew want to

to

you

that.

1

don't think I'm

if

they could

their careers?"

empty

stared out across the

sound

any worse."

was wondering

I

my

like

I

don't care, but

hold these people's careers

I

street again.

don't think its

m my hand."

79

"I

don't

my job

The Five Temptations of a

CEO

"That's not the point, Andy. All of this

about risking and building

you have

"Well,

And

about

trust.

It's

before they trust you,

them. You have to be vulnerable."

to trust

"Wait a second.

trust.

is

What does

why do you suppose

Andrew shrugged.

"I

that

have to do with conflict?"

people are afraid of conflict?"

guess they're not used to

it.

Or

their

feelings get hurt easily."

"Maybe. But

who

trust

think

do with

People

it

has a

lot to

one another

aren't

worried about holding back

I

trust.

opinions or their passions. They say what they

their

think and

know

that they aren't going to be vulnerable

if

they do."

"I

don't know, Charlie.

ple

You

is

good.

lose

If

you

I

trust

your edge.

1

think a

little

tension between peo-

one another too much, you get don't

want

my

soft.

people feeling too

comfortable."

"Why

in heaven's

name

not?"

"Because people slack off

Charlie

"Come

became

a

little

when

they're too comfortable."

impatient with

Andrew now.

on, Andy. There's a difference between people

80

The Five Temptations of a

CEO

being complacent and being trustworthy. You're smarter than

that."

"Maybe I'm just not

a very trusting person."

"Do you know why people

"No.

don't trust other people?"

Why?"

"Because they're afraid of getting burned. That's what

mean by

vulnerability."

Andrew

slowly

nodded

I

his head. "Yeah. That's probably

right."

"And you know what

Andrew shook

his head.

"Opening yourself up okay

to get

the best cure for that is?"

to

being burned. Sometimes

burned, because you realize

"So you're telling

me

don't trust people,

that

and

1

1

it's

not

it's

even

fatal."

don't like conflict because

I

don't trust people because I'm

afraid of being \njlnerable."

Charlie nodded. ^'Bemg voilnerable.

unpopular. Losing your status."

81

Bemg wrong. Being

The Five Temptations oj a

"And you're

me

telling

that great

around leaving themselves open

CEO

CEOs

to

like

your father go

people stabbing them in

the back?"

"As crazy as

My

sounds, they do.

it

father never worried

about being vulnerable with his people.

That

is

what allowed them

healthy, productive conflict.

to

No

feel

He

trusted them.

comfortable having

one worried about getting

hurt."

Andrew took

deep breath. "So the root of

a

all this is

vul-

nerability?"

Charlie

Andrew

nodded and checked

sighed. "This

is

"Touchy- feely? Getting

his watch.

getting too touchy-feely for me."

results,

holding people accountable,

creating clarity for your people, engaging in productive conflict

with them?

nerability

and

If all

trust, isn't

touchy-feeliness,

if that's

Andrew shrugged.

"I

those depend ultimately on vulit

worth

tolerating just a hint of

what you think

it

is?"

don't know."

At that moment, a bus pulled up in front of Charlie. "That's

my

ride." Charlie

82

Andrew and

stood to leave.

The Five Temptations of a

Andrew asked

CEO

his final question. "So

how do

com-

get

I

fortable being vulnerable?"

The bus door opened. Charlie patted Andrew on

the shoul-

der and stepped on board.

"You'll it

have

to figure that

one out

for yourself,

Andy. Give

a try"

The old man smiled

Andrew watched an old

ped

friend.

as the

door closed.

as Charlie greeted the

bus driver

like

As the bus pulled away, Andrew step-

off the curb, into the street,

and watched

it

dis-

appear.

The blaring sound saw bright

lights

of a

horn

startled

—an oncoming

bus.

him.

He

He turned and

screamed.

Again the horn sounded and again Andrew screamed, waking himself as the train pulled into the Walnut Creek station.

Wiping

the sleep from his eyes,

Just twenty minutes It

always amazed

Andrew checked

his watch.

had passed since he boarded the

Andrew how much dreaming

could do in a short period of time.

83

a

train.

person

The Five Temptations oj a

Grabbing there,

his briefcase,

BART

wasn't weighing half

which he was glad

Andrew stepped from

the exit of the

hour

CEO

station.

the train

to

know was

still

and moved toward

The next days board meeting

on him quite

earlier.

84

as heavily as

it

had been

a

CHAPTER

lO

The Board Meeting

Andrew O'Brien had never been ing in his

life.

But today,

at

late to a

board meet-

9:02 a.m., he sat

desk and stared out the picture

at his

window toward

the

way home from

the

Bay Bridge.

Any confidence he

BART

station

felt last

night on his

had disappeared. The men

—Charhe, Bald Man, Man—could not have seemed dream

the

the Tall

in his strange

Man,

less relevant

was dreading the next few hours of

The phone on

his

his

85

now. Andrew

life.

desk rang, and Andrew

button.

the Stylish

hit the

speaker

The Five Temptations of a

CEO

"Yes, Joan."

She told him what he already knew: "We're waiting

for

you."

"I'm

on

my

way."

Andrew took

Because

a

deep breath and headed

was the annual board meeting,

it

crowded. The Chairman, a large the

head of the

long

man

Twelve others

table.

the

room was

with tan skin,

filled in

sat at

the rest of the

Most were board members, with the exception

table.

of Stephen,

the

CFO;

Andrew's executive

Janice,

the

head of

sales;

and

assistant, Joan.

Taking the lone vacant chair table

for the door.

at the

opposite end of the

from the Chairman, he nodded his hellos

to the

board members. Then he noticed a face he had never seen, a

woman

Before

with sharp features and streaks of grey

could

he

acknowledge

announced: "Andrew,

this is

her,

the

hair.

Chairman

Kathryn Petersen from

B&L

think you've spoken a few times during the

Securities.

I

conference

calls last quarter. She's

taking Carl's spot on the

board."

Andrew remembered gotten that she

talking to Kathryn, but he

would be

at the

86

meeting today

had

for-

The Five Temptations of a

"It's

nice to meet you, Kathryn."

room

to

CEO

Andrew

shake hands with Kathryn,

crossed part of the

who

didn't say any-

thing but smiled politely

As Andrew returned "Alright.

1

think we're

to his chair, the all

familiar with the financial results

for the quarter. I'd say they are

Andrew

"Right.

room laughed louder than they needed

Anyway, you

and annual the

in the

Chairman loudest of

the

all.

all

received a copy of the quarterly

financials in

your packets, so you're aware of

Rather than

details.

make Andrew

through the blood and guts,

some

—

interrupted. "Unspectacular, at best."

The people to,

Chairman began.

I

of the initiatives that are

thought

we

under way

here

drag us

could focus on for the first part

of this year."

Many

of the board

members nodded

Chairman's suggestion. to get off so easily,

Andrew wondered

hoping desperately

Kathryn wrote something on dered what

it

their approval at the

a

if

he was going

that

he would.

pad of paper, and he won-

was.

The Chairman continued.

"Alright,

Andrew.

1

guess we're

going to find out about the executive compensation plan

87

The Five Temptations of a

for next year

CEO

and the customer research

that

was done

last

quarter."

Andrew nodded

CFO, Stephen, who would be

his

to

reviewing the compensation plan. After an hour of light debate about the merits of stock options versus cash bonuses,

he

sat

down. Kathryn made no comments during the

discussion but again wrote a short note

Andrew then presented

a

summary

on her pad.

of the

customer

more work would be needed

research, explaining that

to

confirm that print advertising in business magazines was the answer to their marketing woes. There were polite

questions from

Kathryn,

who

some members

again

made

a

of the board, but not from

few notes on her pad but oth-

erwise seemed disinterested in the conversation.

Lunch was brought

in

at

noon, during which Janice

explained the plans for reorganizing the telesales organization.

her

The board members applauded gently

at the

end of

talk.

During the next two hours the board approved repricing initiative

and reviewed

Andrew handled himself

a

shareholder lawsuit.

masterfully during these conver-

sations, projecting a sense of confidence

even surprised himself

a stock

when he found

ing the meeting.

88

and humor He

that

he was enjoy-

The Five Temptations of a

By two

o'clock, the

to a close.

CEO

meeting was losing steam and drawing

The Chairman looked

watch. "Well,

at his

we've covered everything on our agenda. else, let's call

"When

is

Andrew

it

a

day" He turned

If

there

Andrew's

to

is

1

think

nothing

assistant.

our next meeting, Joan?"

felt

mixed with

a bizarre sense of relief. Bizarre because

a hint of guilt. Nonetheless,

get out of the

room, out of the

office,

it

was

he couldn't wait

to

and home. As Joan

answered the Chairman's question, board members began stacking their papers and portfolios.

Then Kathryn brought

when

a gradual halt to everyone's exit

she raised her hand, trying to get the Chairman's

attention.

He smiled

at her,

amused

at

her overly polite

way

of getting the floor. "Yes, Kathryn?"

The noise

in the

room died down

Kathryn frowned and looked front of her.

"I

a

down

little.

at the

have a few questions before

pad of paper

we

The other board members stopped packing

"Go ahead, Kathryn.

I

wasn't sure

in

go."

their things.

we were going

to hear

anything from you."

"Well," she said calmly

and

seriously, "I don't like to

89

do too

The Five Temptations of a

much

my first board meeting.

talking at

meetings before addressing."

CEO

1

see

any patterns

I

that

The Chairman nodded

as

usually need a few 1

feel

comfortable

Kathryn added, "But

not this time."

Now

the

room was completely

Kathryn looked up.

"I

The Chairman looked

silent.

have a question."

at

Andrew,

who

did not move.

Kathryn turned toward Andrew. "What do you expect the first

couple quarters of the year to look

Andrew?"

like,

Before he could answer, she clarified her question.

mean,

1

know what your

projections are, but

think the problems you had

last

"I

why do you

year are going to get any

better?"

Andrew paused, but I

for

only a moment. "Well,

first

of

all,

expect to hire a head of marketing soon, and having that

job

filled will

be a big boost."

Kathryn continued

to wait, so

market should get better us.

And

finally,

expand our

Andrew went

this year,

and

that's

on.

"And the

going to help

we're looking at an acquisition candidate to

line of services.

Those things

help."

90

will definitely

CEO

The Five Temptations of a

her pen down,

Setting

Chairman, sit

on

who

Kathryn looked toward the

didn't react to

a lot of boards,

Andrews

and you pay

here, so I'm not going to

mince

me

response. "Okay. real

money

I

be

to

my words." The room froze.

"You're in real trouble here."

The Chairman spoke. "Certainly the market should be, and we'd

is

not where

like to see stronger revenue,

think Andrew's numbers are

—

but

I

it

don't

Kathryn interrupted the Chairman politely but sternly "I'm not talking about the numbers.

I

just don't see a sense of

urgency"

The Chairman almost

frov^ned.

Andrew

"Waiting for the market to turn around thinking that hiring a a

and the

IS

to

is all

you need

have an impact

acquisition thing. You're having a hard time I

don't

thmk

that

is

for

manag-

bu}ing another compa-

going to do an)i:hing but distract you further."

Kathryn's bluntness silenced the room. Stephen first

And

few quarters." She looked through her notes. "Oh,

ing this company.

ny

pretty passive.

new marketing head

poor turnaround plan. He's not going

at least a

is

tried not to react.

move.

"I

don't

want

to

sound defensive

91

made

the

here, but are

The Five Temptations of a

you completely

much

familiar with

better than

our industry? We're doing

most of our competitors."

Kathryn responded. yesterday,

CEO

"Yes,

and correct

me

know.

1

did a

I

little

I'm wrong, but

if

1

research

think you're

the number-three player in an industry of six real petitors.

Three of them did

much worse

com-

than you did, but

the other two actually did pretty well. I'd say that puts

you

in trouble."

She thumbed through her papers but couldn't seem

what she was looking

for.

"And

if

remember

I

to find

correctly,

your revenue actually declined since a year ago. The market

grew by 5 percent, which

tainly

is

not much,

you should be getting your

The Chairman

tried to avoid

ably right, Kathryn.

We

fair

share of that growth."

any bloodshed. "You're prob-

need

to

have a greater sense of

urgency around some of these

issues,

our problems

and Terry

lie

admit, but cer-

I

in marketing,

but

1

think most of

really did set

us

back a few quarters."

"What was the problem with Terry anyway?" Kathryn asked.

The directness of the question caused Andrew chair.

"Well, he wasn't able to

move

terms of revamping our advertising. ative skills.

He

wasn't a very

It

quickly enough in wasn't just his cre-

good manager

92

to shift in his

either."

The Five Temptations of a

CEO

"Did you hire him?"

Andrew nodded. "Then

Now

his failure

is

your

the other board

responsibility."

members squirmed

"Did you look into his management

a

skills

little.

when you

hired

him?"

Andrew stammered. "Well with anyone. executive.

1

mean, you

He came

sure,

mean,

much as you do

as

he can manage

figure

if

he"s

an

highly recommended."

Kathr)TL persisted. "'What are

ment?

I

you looking

for in his replace-

How are you going to make sure you

don't

make

the

same mistake?"

Andrew

couldn't really answer the question. Suddenly, a

banging sound broke the tension. outside the

It

seemed

boardroom was pounding

Joan rose from her

seat

that

someone

a nail into a wall.

and went outside

to see

what was

happening.

The Chairman jumped

made

a

in.

"Okay, Kathryn.

few good points. But

searched for a word.

93

I

think you've

this is a little too

—

"'

he

"

The Five Temptations of a

CEO

Stephen finished the sentence. "Unfair.

you

to take shots at

too well, but are

its

when

us like that

to

know

if

a

guy

mean,

is

its

easy for

things aren't going

make

not as simple as you

we supposed

I

it

How

sound.

going to tank

like

Terry did?"

The room went

We

to agree. tion.

And

silent again. Until Janice

did

all

we

joined

in. "I'd

have

could, given the marketing situa-

we're not the only ones with this problem.

Two

of our competitors lost key executives last quarter. They're

going to have the same problems that

Other board members seemed

we

did."

to agree passively

The pounding stopped, and Joan came back

into the room.

Kathryn spoke again, but with a hint of sarcasm. "Well,

maybe

you're doing better than

willing to

let

I

thought." She seemed

the conversation go with that remark.

Silence.

The Chairman spoke. "Okay. Good it

—

Andrew

discussion. Let's call

interrupted. "No. We're not doing better than

thought."

He looked

at

Kathryn. "We've

94

made

too

you

many

The Five Temptations of a

was given no management support.

mistakes. Terry

saw him struggling and we

The room

CEO

froze.

Slowly,

from the table and stood.

just let

it

go on.

Andrew pushed

I

We

all

go on."

let it

his chair

away

were fixed upon him.

All eyes

During the next ten minutes, Andrew delivered the speech of his

life.

He

accountability

about

talked

He

results.

He

talked about

talked about clarity and conflict.

He

congratulated Kathryn on being willing to put the tough issues

on

the table.

"Maybe now we'll

on our

get clear

real issues,"

he even

said.

The Board was dumbfounded.

Before he finished,

way 1

Andrew

we're going now,

if

became more accountable

And

it's

going to

"And

if

we

continue the

our results continue to

probably shouldn't be in

here.

said,

this job.

for the

start

It's

way

with me."

slide,

time that

all

then of us

things are around

He hoped he would

not come to regret that remark.

Just as he finished, the

pounding resumed out

in the

hallway.

The Chairman closed all

for

the meeting. "Alright.

Thank you

your energy and input. We'll see you in about

95

The Five Temptations oj a

twelve

weeks."

CEO

The board members gathered

things and headed for the door, with

Andrew

a

their

few steps

behind.

As the group moved across the hallway

Andrew

became aware

again

of the

to the elevators,

pounding sound. He

looked over and saw a maintenance guy hanging a

series of

pictures along the hallway wall.

He asked Joan,

"What's this

"We found some

about?"

old pictures of past

they'd look nice here his approval

all

CEOs and

thought

by the board room." Andrew nodded

and decided

to

go take a look

at the

photos.

As the elevator doors opened, the Chairman asked, "Are

you coming, Andrew?"

Distracted, he

shook

his head.

"I'll

Everyone but Andrew got into the

see

you downstairs."

elevator,

and the doors

closed.

Approaching the

first

photo, he saw that

ture of himself without as

much

Beneath the photo was Andrew's for

an ending date.

96

it

was an old

pic-

gray hair as he had now.

name and an empty

space

The Five Temptations of a

The next

five

Andrews most

three photos were

decessors,

who had run

years collectively.

man who

CEO

company

the

recent pre-

almost twenty-

for

The next photo was

a

whom

he

familiar at

all,

looked famiUar to Andrew but

couldn't place.

The nam.e below was not

handsome

nor were the dates.

Andrew noted

that the

pounding stopped and the mainte-

nance man, his back turned, was putting his belt.

hammer

in his

His job seemed complete.

Turning back toward the black and white photos, Andrew recognized the face in the next one almost immediately.

The Bald Man.

Andrew went back that

it

was the

photo would be

Finally, the

hair

and

to the previous

Stylish

—

yes,

photo and

Man. He suspected it

was

—

the Tall

who

realized

that the third

Man.

next photo was a kind-looking

a wrinkled smile

now

man

with white

could be no one but Charlie.

"Charles Pierce," actually.

Suddenly

it

dawned on Andrew

man was wearing

the

wore the night before

that the

same color

in his

shirt

maintenance that

Charlie

dream. Turning toward the

97

The Five Temptations of a

CEO

end of the hallway, Andrew saw the old man turn the corner.

He

yelled, "Sir?! Charlie?!"

The old man did not answer or reappear. Andrew sprinted to the

end of the

hall,

turned the comer, and saw no one.

98

CHAPTER II

Three Years Later

The

board room was again crowded. The Chairman

began. "Well,

it

has been a

terrific year, especially

considering the results of the prior two or three

The company

years.

is

healthier than

long time, our marketing is

is

down, and our revenue

price

is

high enough that

more is

it

has been in a

assertive,

our turnover

growing again. The stock

we can even

consider a midyear

spUt."

Golf applause from the board members.

Kathryn joined lot of credit.

in. "1

think the executive team deserves a

The decisiveness and

here have been amazing."

99

discipline of leadership

The Five Temptations of a

Kathryn and the

rest of the

CEO

board turned toward their CEO,

who

could barely keep from smiling as he replied: "Thank

you.

I

appreciate your kind words, but

credit. Certainly

my

team has been

1

don't deserve the

And

terrific.

the guid-

ance of the board has been helpful."

The Chairman smiled knowingly

to

acknowledge the

modesty.

The

CEO

cally

I

then seemed to remember someone. "And ironi-

received

some

pretty

good advice from an unlikely

person."

The room was

silent

with

curiosity.

The Chairman asked, "Who was

"Andrew O'Brien," the

CEO

that?"

responded. The board

mem-

bers were surprised.

The Chairman spoke. "Andrew? to

him

How is he?

1

haven't talked

since his last board meeting."

"You know, he seemed

fine.

about him."

ICX)

But

we

didn't really talk

The Five Temptations of a

CEO

Kathiyn asked, "Where did you see him?"

"That's the

ran into

funny thing," the

him one

night on a

CEO remarked with a smile. BART

lOI

train."

"I

AFTERWORD All

leaders struggle because, like Andrew, they are

susceptible to one or

more

of the five temptations.

But having those temptations mately/ail. Leaders their temptations

fail

is

not

why

they

ulti-

because they are unwilling to put

on the

table for others to see.

For

it

is

only by bringing their temptations into the open that leaders

can

enlist the

unique position

The trouble of scrutiny,

is

who

are in a

to help.

that this calls for a seemingly excessive level

which many leaders resent and

not understand to

support of subordinates

why

resist.

They can-

people in their organizations continue

monitor and comment on

their behavior

105

when

there are

The Five Temptations of a

many

SO

ing.

Of

other problems within the

CEO

company

that

need

course, they are missing the point entirely

they perceive as criticism

fix-

What

actually invaluable counsel.

is

When work with executive teams, explain that if the CEOs behavior is ninety-five percent healthy while the rest I

I

of the organization

focus

up

on

is

that crucial

just fifty percent sound,

and leveraged

the remainder of the

CEOs

five

I'll

choose to

percent that makes

behavior.

Although every leader agrees in theory v^th

this line of

thinking, few are willing to put

and endure

it

into practice

the painful self-examination required to "fix" that final five percent.

And

yet, a willingness to

separates leaders

who

do

this is exactly

succeed from those

who

what

fail.

why don't all leaders endure the pain? Because too many of them mistakenly believe they can avoid it and still find a way to succeed. What they are doing If this is so,

is

then

trading short-term pain (the struggle) for long-term pain

(failure).

The key

to success, then,

to the five temptations.

not to avoid the susceptibility

is

While

an impossibility The key

is

to

that

where they can be addressed.

1

desirable,

it is

embrace the self-examination

and

that reveals the temptations

would be

06

to

keep them

m

the

open

The Five Temptations of a

Of

course, this cannot be accomplished overnight;

not be wrapped in a ic

CEO

CEO

world's

tidy,

happy ending

realizes his temptations

most

in

it

can-

which our hero-

and suddenly becomes the

effective leader. Like so

much

of

life, it is

a

messy, constant, and unavoidable process, but one that great leaders

welcome.

\o7

THE MODEL

A Summary of Why Executives Fail

The

greatest challenge of being a

for that matter, is to

daily complexities rise

above that challenge,

behaviors that

These beha\dors are

or any leader

avoid getting trapped by the

and

details of

we must learn

Andrew and

CEO,

our "business." To to

embrace the

five

Charlie outlined in the fable.

difficult to

master not because they are

complicated but because each presents us with a corre-

human may not

sponding temptation, a natural tendency toward frailty.

seem

Oddly enough, some of these temptations like frailties at all in

our personal

lives.

That

is

the

subject of a different discussion. But in our roles as leaders, the temptations are poison.

in

The Five Temptations of a

TEMPTATION

CEO

1

The most important principle embrace

is

a desire to

sounds,

it

is

produce

that

an executive must

As obvious

results.

as this

not universally practiced by the highest-

ranking executives in

something ahead of

many companies. Many CEOs

results

on

their

represents the most dangerous of

list

all

of priorities,

put

and

it

the temptations: the

desire to protect the status of their careers.

How can a

person become the

be a maniac for results? Most

CEO

of a

CEOs

before reaching their ultimate jobs.

many

though,

of

company and not

were results maniacs

Once they

"arrive,"

them focus primarily on preserving

their

This occurs because their real purpose in

status.

life

has always been personal gain. With nowhere to go but

down,

it

almost makes sense that once they have achieved

their ultimate status, they will

protect

do whatever they can

it.

This causes

CEOs

or reputation

or,

to

make

worse

decisions that protect their ego

yet, to

avoid making decisions that

might damage them. They reward people to their ego, instead of those

of the

to

who

who

contribute

contribute to the results

company

This poses a good question: Don't executives realize that by focusing on results they will ultimately achieve greater sta-

lls

The Five Temptations of a

and ego

tus

satisfaction in their careers? Yes,

requires a lot of for too

many

CEO

work over

a

long period of time.

not

allows

measure of personal

lead

employees, and stockholders

TEMPTATION Even CEOs who

unacceptable to

is

down from

the job.

The

too important for customers,

hold

to

most important

it

hostage to your ego.

2

resist the

tecting their status

results the

success, or step

company you

is

temptation.

resist this

Simple advice for CEOs: make

future of the

It

this

risky episodes of status-loss along the way.

Remember, even temporary loss of status

CEOs who do

but

temptation to overfocus on pro-

sometimes

fail.

Why?

Because they do

not hold their direct reports accountable for delivering on the

commitments

they

succumb

that drive results. This

happens because

to a different temptation: the desire to

be

popular.

Wanting

to

be well liked by peers

is

an understandable, but

dangerous, problem for CEOs. Being nization

is

lonely.

whom CEOs

at the

top of an orga-

There are very few people in a company

spend considerable time with, aside from

their direct reports.

Those reports

are often the

same age and earn the same

"3

The Fi\e Temptations of a

kind of

money

employees

CEO,

as the

CEO

especially relative to other

company Most CEOs become

in the

friends

with their reports and commiserate about the constant

needs and shortfalls of employees. They develop a sense of camaraderie around their overwhelming responsibilities. is

no

tell

surprise, then, that

these

same people

when

comes time

it

that they are not

for a

CEO

It

to

meeting expecta-

tions, they balk.

Empirical evidence of this

phenomenon

is

that

CEOs

duct performance reviews for their direct reports diligently than

do managers

because they are too busy or

want

to deal

fire

when

costly,

will not hesitate to ulti-

his or her

fail

or negative feedback along the

way

Simple ad\ice for CEOs: work for

to provide constructive

the long-term respect of

direct reports, not for their affection. Don't

support group, but as key employees if

the

company

And remember, your

performance

thereby severing the relation-

ship completely But they often

commitments

It isn't

but because they don't

lazy,

same CEOs

a direct report

problem becomes too

your

far less

with the prospect of upsetting one of their

peers. Ironically, those

mately

Why?

other levels.

at

con-

is

to

who must

114

deliver on their

produce predictable

people aren't going

they ultimately fail.

view them as a

to like

results.

you anyway

if

The Five Temptations of a

TEMPTATION Even CEOs who tus fail.

and

to

CEO

3

resist the

temptation to protect their

be popular with their direct reports sometimes

Why?

Because even

if

they are willing to hold their

do so

direct reports accountable, they are often reluctant to

because they don't think

made doing.

it

sta-

clear

Why

it's fair.

what those

direct reports are accountable for

make

don't they

That's because they haven't

these things clear? Because

make

they give in to yet another temptation: the need to "correct" decisions, to achieve certainty

Many CEOs,

especially highly analytical ones,

ensure that their decisions are correct, which in a

is

want

to

impossible

world of imperfect information and uncertainty

Still,

executives with a need for precision

and correctness often

make

their people's deliver-

postpone decisions and

fail

to

They provide vague and

ables clear.

their direct reports

and hope

hesitant direction to

that they figure out the right

answers along the way. The chances that they will produce the results

CEOs

eventually decide they want are slim.

Simple advice for CEOs: make accuracy.

Remember

that

take decisive action than tion.

And

if

clarity turn out to be

your people

if

the decisions

clarity

more important than

will learn

more

if

you

you always wait for more informayou make

in the spirit of creating

wrong when more information becomes

"5

The Five Temptations of a

change plans and explain why.

available,

being wrong. The only real cost pride.

The

wrong

is

cost to

to

It is

your job

you oj being wrong

your company of not taking

to risk

is

loss

oj

the risk oj being

paralysis.

TEMPTATION Even CEOs who tus, to

CEO

4

resist the

temptation to protect their

be popular with their direct reports, and

correct decisions

sometimes

fail

to

sta-

make

because they don't

feel

comfortable with the decisions they make. That's because they haven't benefited from the best sources of information that are always available to them: their direct reports.

Why

not? Because they give in to the next temptation: the desire for

harmony

Most people, including CEOs, believe

that

it

is

better for

people to agree and get along than disagree and conflict

wdth one another. That

mony sometimes

is

how they are raised.

restricts

However, har-

"productive ideological conflict,"

the passionate interchange of opinions around an issue.

Without mal.

The

this

kind of

conflict, decisions are often subopti-

best decisions are

and perspectives perspective

are out

made

on

only after

the table.

all

knowledge

Not every person's

and opinion can be agreed with, but they can

116

The Five Temptations of a

be considered.

CEO

When all available knowledge is considered,

—not

the chances of optimal decisions are greater

tion the likelihood of confidence in those decisions, is

men-

to

which

just as important.

Simple advice for CEOs:

tolerate discord.

Encourage your

direct reports to air their ideolo^cal differences, sion.

and with pas-

Tumultuous meetings are often signs of progress. Tame ones

are often signs of leaving important issues off the table.

Guard

against personal attacks, hut not to the point of stifling important interchanges of ideas.

TEMPTATION Even CEOs who tus, to

5

resist the

temptation to protect their

sta-

be popular with their direct reports, to make correct

decisions,

and

to create

harmony sometimes

fail.

Why?

Because even though they are willing to cultivate productive conflict, their people

not? Because the

CEO

may

not be willing to do

so.

Why

gives in to the final temptation: the

desire for invulnerability

CEOs

are relatively powerful people. Being vulnerable with

their peers

and reports

is

not a comfortable prospect. They

mistakenly believe that they lose credibility feel

too comfortable challenging their ideas.

117

if

their people

The Five Temptations oj a

No

how much

matter

CEOs

these

CEO

encourage productive

conflict, they

do not achieve

it

their people,

who

as unwilling to enter the fray.

As

see

them

it

doesn't feel safe to

a result, those reports position themselves

inferred opinion of the

when

only

CEO

challenge ego.

your

ideas. Trust

As a CEO,

give.

They

it

desire to he vulnerable

focus

more than

conflict

with one another

actively encourage

on

of trust that

among

you can

results

their peers.

more than

status, accountabili-

more than

more than harmony, and

invulnerability can

to

with respect and honesty, and with a

popularity, clarity

ductive conflict

your people

them with your reputation and your

this is the greatest level

will return

CEOs who

and

around the

politically expedient.

it is

Simple advice for CEOs:

ty

because

still fail,

but only

if

certainty, pro-

trust

more than

they are thwarted by

competitive and market pressures that are largely out of their control.

The model, on page 119, order to

show

one another. to

displayed in seemingly reverse

the sequential impact of the principles

Instilling trust gives executives the

have productive

tives

is

on

confidence

conflict. Fostering conflict gives

execu-

confidence to create clarity Clarity gives executives

the confidence to hold people accountable. Accountability gives executives confidence in expected results. are a

CEOs

And

ultimate measure of long-term success.

118

results

Overcoming the Five Temptations

Choose

trust

over invulnerability

f Choose over

conflict

harmony

I ^ Choose

clarity

over certainty

T Choose accountability over popularity

I Choose

results

over status

Self-Assessment

Ultimately,

the best

way

Five Temptations

simply

reflect

temptations seem to yourself,

"Which

fortable?"

is

most tempting

tion(s).

little

for

you

is

to

on the model and decide which

fit.

A

good way

to

do

this is to

made me

feel

ask

uncom-

this is certainly unscientific, the best

often unstructured

However, some people prefer provide a

understand which of the

of the temptations

Although

self-assessment

is

to

and

qualitative.

to use a diagnostic tool to

structure in the search for their tempta-

One such

tool

is

provided here.

123

The Five Temptations of a

Some to

ity

of the questions are tricky in that they

weaknesses

reveal

that

tool

this

to

is

at

all.

do not seem

However, keep

designed to identify your

m

mind

susceptibil-

given temptation, not to determine that you

a

definitely

your

CEO

succumb

to

Ultimately,

it.

this

has

be

to

call.

TEMPTATION

1

Choosing status over results •

Do you

personally consider

your organization •

Do you this in

•

its

a professional failure

meet

its

it

when

objectives?

often wonder, What's next?

my

Would

fails to

it

What

will 1

do

to top

career?

bother you greatly

objectives but

relative to

if

your company exceeded

you remained somewhat anonymous

your peers in the industry?

Rationale

On a

professional level, organizational success

professional success are one

healthy for any

human

CEOs justify

their

and the same. Although

it

is

being to separate his or her sense of

self-esteem from success fessional success these

and personal-

on

the job, in the context of pro-

should not be divided. Too often,

own performance even when

zations they lead are failing around them.

124

the organi-

The Five Temptations of a

CEOs must

CEO

ultimately judge their personal-professional

success by the results on the bottom gest that other

"human"

most important on

results of the

is

not to sug-

factors are not important, or

and emotional

spiritual

a

CEO

However, only the

This

line.

level.

ultimately responsible for the

is

company, and

even

this

must be

his or her ultimate

measure.

Additionally, a

pronounced concern

persons career Temptation

is

because

it is

susceptibility

to

a possible indication

being gauged in terms of career advance-

rather than current performance.

CEOs

The most successful

focus almost exclusively on their current jobs.

worrying about

Finally,

receives

is

a possible

Temptation. Although

human

another

comes

how much

public recognition one

sign of susceptibility to the

human

nature dictates that

acknowledgment,

for a just share of

of

good sign of

a

Number One

that success

ment

is

for the "next step" in a

it is

a

CEOs

all

have experienced short

to public recognition.

Those

CEOs who

who

dangerous part

Interestingly

shrift

when

aren't distracted is

by the occa-

sure to give.

enough, they experience a low degree of

from such

press. After

from achieving

all,

satis-

they take larger personal

results.

125

it

eventually get that

sional slighting that an unscientific press

satisfaction

we hope

nature to entertain. Certainly, at one time or

recognition are the

faction

first

The Five Temptations of a

TEMPTATION

CEO

2

Choosing popularity over accountability •

Do you

consider yourself to be a close friend of your

direct reports? •

Does

it

bother you to the point of distraction

if

they are

unhappy with you? •

Do you

often find yourself reluctant to give negative

Do you

feedback to your direct reports?

•

negative feedback to

make

Do you

them about

tion?

often vent to

For example, do you

it

more

water

down

palatable?

issues in the organiza-

refer to

your

staff as

"we" and

other employees as "they"?

Rationale It

is

wonderful

for

CEOs

to care

about direct reports as

people, so long as they can separate the success of those relationships from their sense of self-esteem

happiness. This

is difficult

because most of us try to avoid

major disagreements with close ble not to be concerned about a If

and personal

friends,

deep

rift

and

it

is

impossi-

with one of them.

those close friends are your direct reports, the account-

ability

within the organization can be threatened. The

slightest reluctance to

hold someone accountable for their

behaviors and results can cause an avalanche of negative reaction from others

who

perceive even the slightest hint of

unfairness or favoritism.

126

The Five Temptations of a

Those CEOs who direct reports

find

it

are able to

and

make

CEO

close friendships with

avoid a sense of favoritism often

still

easy to use those reports as their personal "venting

boards." All executives need people they can vent to about

challenges they face in the organization (for example, people they are frustrated with), but

CEOs must

desire to use direct reports for this service.

among

to politics tantly,

the executive team,

own

ing of their

and more impor-

actions

by creating an atmosphere of

victimizing groupthink. Often this manifests

executive staff meetings in

comments such

these people stop questioning us

Do you Do you make

•

start

as

during

"When

will

understanding

3

Choosing certainty over

•

and

itself

self-

are trying to do?"

TEMPTATION •

can lead

can undermine the team's objective understand-

it

what we

It

resist the

clarity

pride yourself on being intellectually precise? prefer to wait for

a decision without

Do you

more information

all

rather than

of the facts?

enjoy debating details with your direct reports

during meetings?

Rationale Certainly,

intellectual

Temptation

Number

precision alone

Three. However,

127

is

not a sign of

when

it

manifests

CEO

The Five Temptatiom oj a

itself

during

over minutiae,

It is

meetings in terms of unnecessary debates

staff

it is

no surprise

that

in their analytical ize that their

a sign of real trouble.

many CEOs

and

take a great deal of pride

intellectual

acumen. Unable

to real-

success as an executive usually has less to do

with intellectual

skills

than

it

does with personal and

behavioral discipline, they spend too the finer points of decision making.

problematic for two reasons.

First,

much

time debating

Those debates are

up valuable

they eat

time that can be spent discussing larger issues, which often receive just a few

minutes

at the

end of the

staff

meeting

agenda. Second, and more important, they create a climate of excessive analysis issues. If there is

and

overintellectualization of tactical

one person in an organization

afford to be overly precise,

TEMPTATION

it is

Do you

cannot

CEO.

the

4

Choosing harmony over productive •

who

conflict

prefer your meetings to be pleasant

and enjoy-

able? •

Are your meetings often boring?

•

Do you

get

uncomfortable

reports argue?

128

at

meetings

if

your direct

The Five Temptations of a

•

Do you reports

make peace

often

who

are at

CEO

or try to reconcile direct

odds with one another?

Rationale

bemoan

Executives often

and they include

attend,

the top of that

taking

up time

that

staff

They

list.

is

the

number

of meetings they

meetings with their peers

often complain about meetings

needed

for "real

work." This

sign that those meetings are not as difficult (that as productive) as they

Productive executive

inasmuch

as

cations that there

staff

is,

a

good

are not

meetings should be exhausting

passionate,

critical

discussions.

—

is

is

should be.

they are

Pleasant meetings

at

or even worse, boring ones

—

are indi-

not a proper level of overt, constructive,

ideological conflict taking place. But don't be deceived.

Every meeting has conflict. conflict

under the

organization sort

When

it

table

Some

and

let

executives just sweep that

employees deeper in the

out. This doesn't

happen by

executives do get into an issue,

any potential

for passion

CEOs

accident.

often squelch

by making peace. This sends

a

message that pleasant, agreeable meetings are preferred by the

CEO.

After a few pleasant meetings,

and executives

start

lamenting the

could be doing.

129

real

boredom work

sets in

that they

The Five Temptations of a

TEMPTATION

5

Choosing invulnerability over •

Do you have

•

Do you

fear that

•

Do you

try to

CEO

trust

hard time admitting

a

when

you're wrong?

your direct reports want your job?

keep your greatest weaknesses secret from

your direct reports?

Rationale

No one it.

Great

loves to admit being wrong, but

CEOs

don't lose face in the slightest

wrong, because they

results,

know who

CEO, and

they are the

some people hate

when

they are, they

they are

know why

they realize that the organization's

not the appearance of being smart, are their

mate measure of success. They get results

is

to

know

way

that the best

to

put their weaknesses on the table and invite

people to help them minimize those weaknesses.

who understand behavioralize

ulti-

it

this

CEOs

concept intellectually but cannot

sometimes make the mistake of finding

symbolic moments to admit mistakes and weaknesses. This only serves to reinforce the notion that the

CEO

is

unwilling to put real weaknesses on the table. Overcoming this

temptation requires a degree of fear and pain that

many CEOs

If

you have

are unwilling to tolerate.

a difficult time identifying

you may want

to

your temptations,

ask your direct reports to answer the

questions above and compare your responses to theirs.

130

Acknowledgments

irst,

F

to the rest

Thanks

my wife for her love and counsel and of my family for their constant support.

thanks to

also to

Amy Adair for her selfless efforts to organize

me and to keep me on top of this book while we were starting a business; to Susan Williams for understanding exactly

what Andrew and Charlie were trying

ing passion about

Group ous

for their

clients,

it;

many

to

my

amazing

to say,

and

staff at

for hav-

The Table

suggestions and ideas; to the numer-

colleagues,

encouragement over the

and

friends

who

have given

years, especially Joel

Mena,

Sally

DeStafano, and Gary Bolles; and to the entire team Jossey-Bass for their

commitment

131

me at

to bringing this together.

The Five Temptations oj a

A

special thanks to

all

who

CEOs and other executives I've me how simple yet difficult it is to

the

worked with who taught be a leader and

CEO

helped lead

me

toward the realization

of the Five Temptations.

And most

important, thanks to

God

for everything

I

have

J '

and am.

132

About

Pat Lencioni

the

president of

is

Author

The Table Group,

a

San

Francisco Bay Area consulting firm specializing in organization development

and executive coaching. He

is

also a

part-time screenwriter.

Prior to founding

The Table Group,

Pat

of Organization

Development

Sybase,

worked

for Oracle

He has worked

at

was

Corporation and Bain

closely with

vice president Inc.

He

also

& Company

many CEOs and hundreds

of

senior executives. In addition, he has trained thousands of

133

The Five Temptations of a

managers and employees to

managing corporate

in topics ranging

from leadership

transition.

Pat lives with his wife, Laura,

and Connor,

CEO

and

their

twin sons, Matthew

in Lafayette, California.

His biggest weakness

is

Temptation

Number Two.

154

1

People are talking about The Fi\e Temptations of a

CEO

Come see how to make these principles relevant to your life and your organization.

www.j osseybass

.

com/fivetemptations html .

I

(continued from front flap)

effectiveness in the ongoing struggle for cess.

While some

bandied about

suc-

of these topics have been

in the leadership literature for

years, in The Five Temptations of a actually begin to

make

CEO

they

sense.

Refreshingly original and utterly compelling,

Andrew's story

will

be enjoyed, remembered,

and reread for years

come.

to

It

serves as a

timeless and potent reminder that success as a leader can vital

come down

behaviors— behaviors

difficult for

few

to practicing a

that are painfully

each of us to master

Patrick Lencioni is

president of

The

Table Group, a San Francisco Bay Area

management consulting firm. In

addition to his

work

as an executive

coach and consultant, Pat has also written a

number

of screenplays. Previously he held

key positions

at

began his career

Sybase and Oracle. at

the years, Pat has

Bain

(£>

He

Company. Over

worked with hundreds

CEOs—

executive teams and

one time or another, of

all

of

victims, at

the five temptations.

Pat lives with his wite Laura and his twin

boys, A\atthevv and Connor,

Francisco Bay Area. 1 he lable Group's

You can

web

site:

http://www.tablegroup.com.

in the

San

reach him

at

A Wise and "A must read

for

all

Enthralling Leadership Fable

leaders, not just CEOs.

Take

it

from someone

been tempted. Better than a personal coach."

who

has

i

— Boyd Clark, President and CEO, The Tom Peters Group "Pat Lencioni delivers a provocative message: CEOs mainly have them-

blame when things go wrong.

selves to

If you're a CEO (or any manager do you have the courage to face the blame? Doing so

for that matter),

could change your future

—

Dr. Jerry Porras,

—for the better."

coauthor, Built to Last; Professor,

Stanford School of Business

"A truly enjoyable story. found myself immediately trying to decide whether had fallen victim to the temptations. think most executives will I

I

I

be able to recognize parts of themselves

in this

well-written, enlightened

book!"

— Ellyn McColgan, President, Exempt

"What little

us.

Investments Tax

a pleasure! Reading The Five Temptations of a

a refreshing look in the mirror a

Fidelity

Services Co.

of

What

Andrew

O'Brien

in all

and

really seeing

for

like

taking

there. There

of us and, at times, a lot of him

book can be

a useful tool this

CEO was

what was

in

many

is

of

many CEOs."

— Lenny Wilkens, Head Coach, Atlanta Hawks Most Wins

in

NBA

History

book provides extraordinary insight into the pitfalls that leaders face when they lose sight of the true measure of success— results. This model is "This

required reading for

—

Dr. Eric

my

staff."

Schmidt, Chairman and CEO, Novell Corporation

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Jossey-Bass Publishers

350 Sansome Street San Francisco, California 94104 www.josseybass.com

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