"It is clear that in moments of stress, organizations do not always operate in the same way that they would in a normal operating environment." So, said Jon Corzine, former CEO of MF Global, while testifying in front of the House Agriculture Committee on Thursday, December 7, 2011.
Apparently, as it became clear to him that MF Global was melting down, and sometime before the firm filed for reorganization under Chapter 11 of the Bankruptcy Code, Corzine had said to his associates, "We've got to fix this." While acknowledging that "Someone could misinterpret" the phrase, Corzine also testified he had learned, only one day before the firm filed for bankruptcy, (Monday, October 31, 2011) that at least $1.2 Billion had "disappeared" from his firm's clients' accounts.
It's up for grabs right now as to whether there is any causation (or even correlation) between the latter pronouncement and the "disappearances." Regardless of that issue, though, Corzine is SO RIGHT about the possibility of misinterpretation of his words.
Depending upon the content of the corporate culture and the leadership "tone" set by the CEO, there can be a high risk that a CEO's words will be misinterpreted by subordinates. That condition of risk is rife any time the corporate culture is steeped in a "Your-wish-is-my-command" atmosphere and where the culture knows that the CEO places great emphasis on pragmatic ideas represented by such common catch phrases as: "In this company, we all have a 'CAN DO' attitude," or "In this company, we do whatever it takes to get the job done." Both of these catch phrases are positive in character. But, without at least the implicit qualification that "the job to be done" will only be done "as long as it is legal, moral and ethical," blind or sycophantic adherence to them has the strong potential to bring about disastrous results. Taken a face value alone, they are phrases that should strike terror into a CEO's heart.
Apparently, as it became clear to him that MF Global was melting down, and sometime before the firm filed for reorganization under Chapter 11 of the Bankruptcy Code, Corzine had said to his associates, "We've got to fix this." While acknowledging that "Someone could misinterpret" the phrase, Corzine also testified he had learned, only one day before the firm filed for bankruptcy, (Monday, October 31, 2011) that at least $1.2 Billion had "disappeared" from his firm's clients' accounts.
It's up for grabs right now as to whether there is any causation (or even correlation) between the latter pronouncement and the "disappearances." Regardless of that issue, though, Corzine is SO RIGHT about the possibility of misinterpretation of his words.
Depending upon the content of the corporate culture and the leadership "tone" set by the CEO, there can be a high risk that a CEO's words will be misinterpreted by subordinates. That condition of risk is rife any time the corporate culture is steeped in a "Your-wish-is-my-command" atmosphere and where the culture knows that the CEO places great emphasis on pragmatic ideas represented by such common catch phrases as: "In this company, we all have a 'CAN DO' attitude," or "In this company, we do whatever it takes to get the job done." Both of these catch phrases are positive in character. But, without at least the implicit qualification that "the job to be done" will only be done "as long as it is legal, moral and ethical," blind or sycophantic adherence to them has the strong potential to bring about disastrous results. Taken a face value alone, they are phrases that should strike terror into a CEO's heart.
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