The Truth Is, the Truth Hurts

The first is a company-wide survey. Sure, lots of companies poll their employees. But this survey got to the heart of what our people really think about Playboy - as a place to work and as a presence in the corporate world. The second is a 360-degree feedback exercise that began with the top management team. This process works because we get tough-minded comments from all sides. You'd better believe the truth hurts! There's nothing like seeing how your opinion of your performance differs from that of your boss, your peers, or your subordinates.

Christie Hefner joined Playboy in 1975 and has been CEO there since 1988. She helped found the Committee of 200, an international organization of women business leaders.

William Rosenzweig
Managing Director
Venture Strategy Group
San Francisco, California
bill@venturestrategy.com

Why are people reluctant to tell the truth? Because so many of us take the most well-intentioned criticism personally. The only way to unleash open communication is to convince people that honesty is about group learning, not individual criticism.

That's not an easy change to make. In fact, it requires having someone inside the organization who can create an environment where people feel free to tell it like it is. Full-time employees are too attached to the existing power structure. Outside consultants are too detached from the day-to-day realities of business life. You need an objective listener who has deep ties to the organization and enough independence to be trusted by everyone. I call this person a Wisdom Keeper.

We have such as person inside our firm. He is a semi-retired executive with lots of experience in how partnerships work. He writes books and coaches businesspeople. He has become our mentor, witness, and guardian angel. He attends many of our key meetings. He's not attached to any specific outcome. His only role is to reflect on and clarify what we say and how we reach our decisions. Most people underestimate how much time and effort it takes to tell the truth and to learn from it. You can't do it over a beer after work. We're trying to make it a business discipline.

William Rosenzweig was cofounder, president, and "Minister of Progress" for the Republic of Tea. Venture Strategy Group's investment portfolio includes Net-based companies such as Infoseek and HomeShark Inc. and food companies such as Jamba Juice and Sweet Charlotte's.

Jerry Hirshberg
President
Nissan Design International Inc.
San Diego, California

Even people who don't mind telling the truth have mixed feelings about hearing the truth. It's like a chemical reaction: Your face goes red, your temperature rises, you want to strike back. Those are signs of the "two D's": defending and debating. Try to fight back with the "two L's": listening and learning.

Many of the best ideas are communicated through whispers - in the hallway meetings that happen after the official meeting. That's because people worry about how the boss will react if they speak the truth. What's remarkable, of course, is that these whispered ideas are what companies are most hungry for. So the next time you feel yourself defending and debating, stop - and start listening and learning instead. You'll be amazed by what you hear.

Jerry Hirshberg is the author of The Creative Priority: Driving Innovative Business in the Real World (HarperCollins, 1998). Nissan Design has created such cutting-edge vehicles as the Nissan Pathfinder and the Infiniti J30.

Robert Rodin
President and CEO
Marshall Industries
El Monte, California

The more you insist on hearing the truth, and the more often you act on what you've heard, the more often people will give it to you. But most leaders do precisely the opposite. Their companies systematically distort the truth - by design.

So many CEOs run companies by the numbers. Salespeople get bonuses tied to individual quotas. Division managers get promotions based on quarterly P&Ls. Then CEOs are shocked - shocked! - when they discover that their people manipulate results to make those numbers. When it comes to the truth, you get what you pay for. Which is why, six years ago, we eliminated all commissions, contests, and prizes.

It's human nature to avoid conflict. That's why one of my favorite questions to ask employees is "Do you like my tie?" It's lighthearted, but there's a serious message behind it. If you want to hear criticism, you have to invite it. At least once a month, I convene a forum called "Marshall Live." I gather people at one of our sites; no managers are allowed. I start every meeting by saying something like "This is your company. Tell me what's wrong with it." I get amazing feedback. And then I promise to deal with the feedback in two weeks or less. We don't always do what people want: Companies aren't democracies. But people know that we haven't just heard their criticisms - we've dealt with them.

Rob Rodin is writing a book on leadership and change that Simon & Schuster will publish later this year. Marshall Industries is an electronics distributor with annual revenues of $1.2 billion.