Undeniable Truth: Leadership Beyond Rules
In the midst of the endless debates over AIG bonuses and the ongoing mess within the banking sector, one undeniable truth stands out: You can’t mandate proper behavior. This simple yet powerful reality is often overlooked in the rush to fix problems with new laws, rules, or reforms. But no matter how many policies are put in place, if the underlying culture doesn’t change, we end up stuck in an endless cycle of outrage and fallout.
The Role of Rules and Penalties
Rules can set boundaries, but they don’t inherently inspire positive action. Penalties, on the other hand, can deter negative behaviors—but only if they are enforced. Unfortunately, this hasn’t always been the case. For example, when rules or laws create limits, those boundaries tend to get pushed, often to the breaking point. This has led to a system many feel benefits only the rich and powerful.
When those limits are blurred and crossed, outrage follows. This results in dust-ups, settling, and the eventual return of the same problems—over and over again. It’s a never-ending cycle.
The Unintended Consequences of Rules
The problem with rules is that they often create unintended consequences. Take executive pay as an example. Whether it’s a highly paid CEO or their subordinates, the issue of excessive compensation is a constant source of public anger. Every time the government attempts to impose a new rule or reform to fix it, there are always ways to circumvent those rules, often by those who have the power to do so.
While it’s easy to point the finger at individuals who exploit loopholes, the deeper issue is how these rules and regulations fail to address the root causes of such behavior.
Leadership Shouldn’t Be About Imposing Will
A major factor compounding this problem is the mindset of so-called leaders who believe that simply imposing their will on others is the solution. Instead of focusing on real solutions that could change the underlying behavior, these leaders often focus on pushing policies down people’s throats, believing that this will create change. However, history shows that more laws and regulations are not the answer.
Dov Seidman, the author of How, sums up this point best: “Laws tell you what you can do. Values inspire you to do what you should do.”
Leadership Through Values, Not Rules
As much as we might want to shift the blame to politicians or corporate leaders, the real issue is about leadership. True leadership is about modeling proper behavior within organizations and communities. It’s not about creating more policies or adding more layers of red tape. It’s about aligning the values and beliefs of the people within those organizations to encourage positive behavior.
This isn’t always easy. It requires a commitment to integrity, transparency, and accountability. Leaders need to be role models, showing by example what it means to act with integrity, even when no one is watching. This is where the buck starts and stops—not in whether another policy can be imposed, but in creating a culture where doing the right thing becomes second nature.
Call to Action
If we want real, sustainable change, it’s time to focus on values-driven leadership. We need to create environments where people do the right thing because it aligns with their values, not because they’re afraid of breaking a rule. Leaders should be less concerned about pushing policies and more focused on inspiring others to lead by example.
Ultimately, rules can guide, but it’s values that will inspire and sustain real change