Admit Mistakes

Nothing suggests strength so much as the ability to admit when you are wrong. It is nothing unusual for CEOs to make mistakes. It is a rare, indeed, for a CEO to admit mistakes. Strong leaders can admit their shortcomings.

Studies show that consumers respect a company that admits mistakes readily and corrects mistakes quickly. Think about product recalls and auto recalls. Most customers willingly return or exchange their product for a new or repaired version. And they tend not to hold these mistakes against the manufacturer for long. As Steve Jobs noted, “. . . when you innovate, you make mistakes... Admit them quickly and get on with improving your innovations.”

Of course, if you attempt to cover up or hide them, the company opens itself not only to any legal liability for the underlying actions, but also to the cover-up charges as well.

To be sure, litigation, class actions and other risks are important considerations. But as a leader, you need to find a way with your lawyers to recognize your mistakes and address them publicly. Your personal stock will soar, and your company will be known as a good corporate citizen. It can be a win-win.

(c) 2008 Adonis E. Hoffman