Allow challenge or risk suffering, bosses told
BUSINESS LEADERS must allow ‘challenge’ from their colleagues or risk their firms suffering, according to former Sainsbury’s boss Justin King.
Mr King said many people at lower levels felt unable to challenge the boss despite knowing the real issues that were potential risks to organisations. He was speaking at an ‘an audience with’ style event with local leaders from a range of sectors at the Old Government House hotel, organised by Leaders founder Phil Eyre.
‘We treat people who bring us bad news badly,’ said Mr King.
‘Then we’re surprised they stop bringing us bad news – and then you say to them: “Why didn’t you tell me?”. What’s going on inside their head when you’re saying: “Well why didn’t you tell me this?” – “Well the last time you kicked me in the nuts. So why would I tell you this time?”.’
Leaders need to embed values within their organisations and bring them to life, said the former Sainsbury’s chief executive. ‘To me it’s a core personal value. But it says something about the people who are choosing to work with you in your firm. You should respect them as human beings, assume they’re coming to work to try and do a good job. And if they’re failing to do a good job, that’s probably your fault.
‘They don’t know what a good job looks like, they don’t have the skills to do a good job, the tools to do a good job, the budget. Whatever the reason, it’s probably not their fault. And even if it is, it’s the wrong place to start in altering performance.
‘But it all comes back to this idea of recognising that the trade between an employer and an employee is not the financial one, it’s everything else that makes the place you run or are working at a great place to work.’
While leaders needed to have inner confidence, Mr King added: ‘It has to be combined with humility because if you actually ever believe that’s true you’re in big trouble. You’ve got to wake up every day thinking there’s probably a piece of information somewhere I don’t have that somebody does that could help make this decision better.’
Leaders founder Phil Eyre said: ‘Justin’s ethos on business values reflects our own work with business leaders in the Channel Islands. He explained that putting your people at the heart of your growth strategy is core to long-term success. I wholeheartedly agree. Helping our clients to create meaningful, engaging workplaces is at the core of our work.
‘As Justin said, shareholders are best rewarded when your people – colleagues and clients – are at the centre of everything that you do.
‘Treating everyone in the business respectfully is the basis of trust, the foundation of excellent performance. We agree with Justin’s aversion to the term “staff”, much preferring colleagues. We believe that great leaders foster a mutually supportive and challenging environment and it’s these details that make the difference.’
At the event Mr King also spoke about his move into private equity from retail, saying the proposition of buying ‘broken businesses and make them better’ appealed to him.
He works as head of portfolio businesses at Terra Firma, which is owned by Guernsey-based Guy Hands.
