"Be a team player" is one of the most abused phrases in business. Most of the time, what it really means is, "Shut up and go along with everyone." You know: the way people at Enron and Lehman Brothers and Toyota were "team players." How did that work out for them?
At Thursday's meeting of the local chapter of the Association for Corporate Growth, Jacob Blass of Ethical Advocate made a convincing argument for the "bottom-line implication" to emphasizing ethics within a company. His company offers ethics training and an elegant solution for anonymous reporting and investigation of ethical issues. A former psychologist, he reported on a study that found 45% of companies are experiencing fraud at any given time, which in turns mean every company eventually will. Running the math shows that fraud adds 7% to company costs in the United States. But fraud is only one form of unethical behavior. As Blass said, it ranges from cheating customers to harassment in the workplace, so throwing in legal costs and negative judgments would probably drive the figure for all ethical issues much higher.
Changes in federal enforcement could make this all the more pertinent to business owners or top managers. "If an organization is convicted of a federal crime," Blass said on a slide, "its failure to maintain 'an effective compliance and ethics program' may result in the assessment of harsher penalties." We're talking a 400% increase, Blass wrote.
You may be stunned to learn who commits fraud. About half are senior managers, Blass said. This isn't just about line workers stealing pens. Most, 93%, had no prior record. Another study showed that 43% of people admitted to some form of unethical behavior on the job, and 75% admitted to having observed it but not reported it.
Among that last set, the top reason cited was because reporting the behavior was "not being a team player." This was a much higher percentage, 96%, than fear of retaliation, coming in third on the list at 68%. Blass said people think, "It doesn't affect me, so I'm not going to do anything."
But it does. Ethical lapses hurt the company's bottom line, and thus each team member's job security and any profit-sharing. Many unethical behaviors will directly impact the reputation of the team or individual team members, in turn harming credibility, persuasiveness, motivation, and, ultimately, careers. I know of a situation at a nonprofit where a series of lapses, each in itself relatively minor, added up to drive out the organization's top fundraiser.
Staying quiet is not"being a team player." Researchers use the term "groupthink" to refer to the behavior of teams so averse to confrontation that everybody goes along with the first or easiest idea—or more often, the boss's idea. Some have pointed to the Bay of Pigs disaster during the administration of U.S. President John F. Kennedy as an example. The CIA proposed an invasion of Cuba by exiles to overthrow Cuban President Fidel Castro. Naysayers did not feel comfortable speaking up, and the April 1961 invasion was a horrid failure costing lives on both sides, damaging the U.S.'s reputation, and requiring another $53 million to free imprisoned invaders.
When the Soviet Union placed missiles in Cuba, an event facilitated by the invasion fiasco and triggering a crisis in October of 1962, Kennedy wisely recognized the teamwork problem. He ordered people to speak up, promising no retribution for disagreement. Open debate in the White House led to a nuanced response that provided a peaceful resolution.
I asked Blass during the Q&A how he would get people to redefine being a team player to include speaking up. Having already stressed the need to "draw a clear line in the sand" about ethics through explicit, repeated communications, he now added that a leader must "walk the talk." He gave a wonderful example from his own experience.
He was running a company whose building did not have enough parking spaces for all of the workers. It had implemented a rotation system for parking in which he included himself. From his office window, he was able to see people cheating. He sent out a memo asking, do you want me to name names in a company meeting, "or do you want me to treat you like adults?" The cheating stopped.
What also needs to stop is the use of "be a team player" as a cudgel to force people into supporting positions that are not supported by the facts. Persuasion, not retaliation, will move your team toward the high performance that ultimately reduces everyone's pain.