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Related Experiment Videos

If you want honesty, break some rules.

Ginger L Graham

    Harvard Business Review
    |April 5, 2002
    PubMed
    Summary

    Telling the truth about organizational challenges, even when difficult, fosters a culture of honesty. This approach transforms employees from passive complainers into active problem-solvers, leading to a more resilient and responsive company.

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    Area of Science:

    • Organizational Behavior
    • Business Management
    • Corporate Culture

    Background:

    • Advanced Cardiovascular Systems (ACS) faced significant internal issues including R&D conflicts, decreased yields, and customer dissatisfaction.
    • The company's past reputation for innovation contrasted sharply with its current operational realities.

    Purpose of the Study:

    • To explore the impact of implementing a culture of truth-telling within an organization.
    • To examine how radical honesty practices can improve company performance and employee engagement.

    Main Methods:

    • Introduction of radical honesty by CEO Ginger Graham, openly sharing company problems and financial status.
    • Implementation of peer coaching for senior managers to solicit honest performance feedback.
    • Establishment of quarterly company-wide meetings for transparent examination of management performance.

    Main Results:

    • Employees shifted from passive complaints to active problem-solving and partnership.
    • The organization developed a more powerful, nimble, and tough-minded culture.
    • Improved ability to respond quickly to internal and external changes.

    Conclusions:

    • Openly addressing organizational problems and involving employees in solutions is crucial for business success.
    • A culture of honesty, supported by specific practices and rituals, enhances corporate resilience and adaptability.
    • Truth-telling in leadership can transform organizational dynamics and drive positive change.

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