Hard Times: When Your Character is Defined

I heard about some character flaws at this week's NAB conference. Though the atmosphere was as upbeat as I have seen in radio in a few years and every broadcaster and exhibitor was optimistic and felt as though their business was improving, I heard stories that made my stomach turn.

Being on our best behavior is easy when things are going well. Yet our test as decent human beings with a strong moral compass is revealed during the struggle.

Some of the stories I heard at NAB went like this:

"Companies I've done business with for years have not only screwed us over financially, but lied to us about it. If they couldn't pay their bills, I can understand that, but don't lie to me."

"One of my business partners felt that we were financially weaker as a result of the recession and broke a contract, believing we would not have the ability to fight it."

"My company outright lied to the employees. We would have understood the truth, which eventually came out, but now we know we can't trust them."

Don't get me wrong. Survival requires tough decisions, which often includes negotiating balances down, slowing payables, making unfavorable decisions, finding lower-cost alternatives, renegotiating deals, cutting people or salaries, and many other things you might not otherwise do. But these things can be done with high-quality character and honesty and are not unethical.

Some will read this and say, "Eric, you're naive. Business is ruthless. It's dog-eat-dog out there." I'm not naive. I know business requires tough skin, unpopular decisions, radical thinking, swift action, and taking advantage of every opportunity. But it can be done with integrity.

You are defined by your behavior and by your character, in good times and in bad times. Short-term thinking may net you some immediate benefit but in the long term will cost you valuable relationships and clients. You don't have to be weak. You should be paid what you're owed and pursue it to the best of your ability -- up to a point. That point is where your character is defined.

During the '90-'91 recession I barely survived and was kept alive because of the relationships with my vendors. I never promised money if I couldn't pay it, I always told them exactly where I stand, and I worked with them at every possible opportunity. Frequent communication and complete honesty kept me out of collections and from being forced into bankruptcy. People get in trouble when they dodge vendors, when they make promises they can't keep, and when they lie.

Though I don't like recessions any more than you, I find them to be cleansing. It's a time to kick my butt to get unnecessary spending off the books, time to reevaluate the value of every employee and expenditure. Plus, it's an opportunity to be forced into reinvention and development of new products and markets.

And best of all, it's a time to test my own integrity. We all have that evil little voice whispering in our ear, "It'll be OK, just this one time." Once we cross that line, one little thing more will come along, and then another.

Going to a convention like NAB is like going to camp and seeing old friends I see only every six months or once a year. There is a feeling of warmth and comfort in seeing people I can rely on and do business with, and I know their handshake is their bond. Oh, I see the others too. But I avoid doing business with them because in previous tough times they showed their true identity. No matter what they say about their past, their true character has been revealed.

What does your recent behavior say about you?

Comments

[lv]

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For some reason your post brought to mind a quotation that has meant a great deal to me over the years

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the woman asked "do you love me?" Man answer "I like you." The man ask "why don't you accept me?"

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[Eric Rhoads]

Rod: So true. Though I love radio, its only radio and not worth loosing our souls over.

[Rod Schwartz - Grace Broadcast Sales]

Good observation, Eric. It's always instructive to see how people respond or react to pressure.

For some reason your post brought to mind a quotation that has meant a great deal to me over the years:
“A great man shows his greatness by the way he treats little men.” - Thomas Carlyle

[Gary McKenzie]

Don't you wish more business leaders could apply the golden rule as explained by Eric?

Character is who are you in the dark when you have the ability to do things that won't be seen or challenged.