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Q&A With Skout Group President David Gebler: Corporate Culture As An Antidote to Corruption
Corruption-proofing a business has never been more challenging and, with the current economic pressures, more vital. With over two decades of experience in the field of risk management, Skout Group president David Gebler knows firsthand how to manage a company’s corporate culture to prevent corruption from seeping in and corroding its dynamic. Gebler has helped organizations such as General Dynamics, ITT, Cephalon, The World Bank, Boeing, Molson Coors, Raytheon and Reebok develop strategies to reduce those cultural risks by aligning the values of the organization’s people with business goals. With Skout Group, Gebler utilizes a unique set of "tools" that can help a company diagnose its cultural weaknesses -- and strengths -- and boost it onto a high efficiency track. Recently, The Skouting Report talked to Gebler about the ethical risks businesses are now facing and how they can address them with effective communication, respect for their employees and truly understanding what makes their own corporate culture tick.
The Skouting Report: Why is culture risk management an issue companies cannot afford to ignore now?
David Gebler: If a company doesn’t manage its corporate culture -- in good times and bad -- it will have no idea what time bombs may be simmering. But these days, the pressure has never been more intense on the ethics side because of the push to make quotas -- and make more with less. Put enough pressure on anybody and even a good person can do a bad thing. Companies need to recognize that, in addition to rules and compliance, they need to understand their corporate culture vulnerabilities, be aware when their organization is approaching that dangerous “red line” and quickly manage those pressure points. They do this by creating an environment with clear rules where people can talk openly about issues.
TSR: What are some of the most common culture management issues you see in organizations that are struggling to grow?
Gebler: There’s too much “don’t ask, don’t tell” out there now, where people receive mixed signals on how to balance company rules with often-unspoken sales expectations. A manager will say, “Don’t come back without that contract.” The employee hears, “Just don’t get caught, but do what you have to do.” The guidelines are fuzzy.
In today’s business environment, when people are being asked to forgo their bonuses, only those leaders who have been open and communicative will be rewarded with their employees’ loyalty and support. If employees believe money is not being allocated fairly, you’ll have a very caustic and corrosive dynamic on your hands, with everyone out for themselves, not the company’s best interest. And, since perceptions rapidly become reality, leaders have to take an active role in addressing it -- they can’t afford to ignore it.
TSR: How can a company's leadership most effectively address some of these issues?
Gebler: The single most important step a leader can take is opening up the lines of communication and keeping their messages – and the rules -- clear and consistent. Employees need to feel respected -- they cannot be left in the dark and they need to be able to voice their concerns. Senior leaders have to be held accountable and they have to hold their people accountable too.
TSR: In the current workforce of low morale and anemic teams, how can companies motivate their employees?
Gebler: They need to truly understand what motivates each employee. Often, companies make decisions on motivations and rewards without checking with employees. When they include them in the process, they may be surprised to learn that most employees want to feel connected but that people are motivated by different things. Ask the questions and you’ll be surprised how readily most people respond. They’ve probably just never been asked.
TSR: There are scandals unfolding in the business world on a continual basis lately. How can companies ensure that they have systems in place to corruption-proof their business (before it's too late)?
Gebler: Companies need to acknowledge that, just because their people know the rules, they won’t necessarily follow them. It seems obvious, but most companies feel as if they’ve fulfilled their duties to ethical culture with a code of conduct and an ethics training program. Since, even ethical people can rationalize, we sometimes have to be given a reason not to do something and each department’s pressure points need to be understood and articulated. When Worldcom leadership created an environment that said, “Be creative but don’t get into trouble,” their people assumed they could rationalize doing unethical things.
The truth is the vast majority of people want to do the right thing but they also want to get ahead. Companies need to balance that. They need to be held accountable, from the leaders on down.
