Which do you practice? Which is prevalent in your business?
Warren Buffet on Integrity
Warren Buffett was quoted saying he looks for three things in people: integrity, intelligence and a high energy level. But, he said if you don’t have integrity, the other two will kill you. Warren Buffett understands integrity, the internal consistency to act within your values, allowing no gap between intention and behavior. He has proven time-after-time the power of integrity, for instance his $5 billion dollar preferred stock purchase in Bank of America. He was able to strike this deal within twenty-four hours. He purchased McLane Distribution from Wal-Mart on a handshake. What I have learned over time is that to have integrity requires the belief in something, this belief must be shared, and actions must be in alignment. Without the sharing of values, there is nothing for people to base your actions on, except their own interpretations.
Mafia and the Catholic Church
Just because you have integrity doesn’t mean you are moral or ethical. For instance, the mafia acts consistently in alignment with their values and intention, yet most of society considers them unethical. The Catholic Church is perceived as moral by most of society, yet struggles with hypocrisy. Hypocrisy being the opposite of integrity, the state of proclaiming a belief that one does not actually have. My career has been spent in my family’s business and working with family businesses that have Mafia like integrity, yet marred by Catholic like hypocrisy. A religious family proclaiming religious values while operating a business in alignment with those values, seems to be a herculean feat for many family businesses, especially for the next generation entering the business.
The Family Business
I was raised in a religious household, and I ran my family’s business for 16 years. The perceived hypocrisy was noticeable when I first joined the business, and it was a shock to my preconceived notions based upon being raised in a religious culture. We did not communicate what our values were, and our lack of shared values impaired and continues to hinder my family. Today, my weak relationship with my parents and brother is due primarily to a perceived lack of integrity, and perceived lack of clarity around the values of the business. We assumed everybody shared the same values, because we grew up together. Unfortunately, we failed to have the hard discussions to bring these assumptions into reality, leaving each value to the interpretation of the family member. I consider this my biggest failure, because the lack of clarity around shared values continues to hinder the family in making decisions for the business. As the decisions become tougher, there is no common foundation by which the family is able to make the hard decisions, thereby diluting trust among family and employees, depleting necessary energy, and exposing the business to failure, and most detrimental, the deterioration of the family. Family businesses can reverse this destructive course by having the hard discussions, and bringing clarity to the family business values, and understanding how the family should act in accordance with these values. The result is a Warren Buffett like family business, one that has integrity, intelligence, and a high energy level.
