10 Mistakes Leaders Should Avoid at All Costs

This is a guest post by Enrique P. Fiallo. He is an author, speaker, and blogger on purposeful leadership. He focuses on Integrity, Ethics, Values, Team Dynamics, and Perseverance. You can read his blog or follow him on Twitter.

No one is perfect. No one can be right 100 percent of the time (even if you are Jack Welch or Steve Jobs), including an organization’s leaders. But there are mistakes, and then there are MISTAKES.

Man About to Step on a Banana Peel - Photo courtesy of ©iStockphoto.com/RapidEye, Image #17409874

Photo courtesy of ©iStockphoto.com/RapidEye

I have found 10 basic essentials that all leaders should have on their list entitled “things to avoid at all costs,” lest they end up on the wrong end of a no-confidence Board vote, a Shareholder lawsuit, or worst of all, an SEC subpoena.

As a former (and very green) CEO, I was guilty of all of these leadership mistakes, and they cost me, my executive team, employees, shareholders, and my family, dearly. The sad part of this is that I could have avoided all of these mistakes. So, please learn from my failures.

Some of these mistakes may be obvious; some may be a bit more obscure. They are all critical.

  1. Pride and Arrogance.The downfall of many leaders is that their early successes begin to inflate their egos. Never forget your roots, don’t think you are invincible or infallible, and don’t put yourself above anything or anyone.  An ancient script says, “Pride goes before destruction,” and it behooves leaders to tattoo that on their forearms.The trappings and power of the office lulled me into a false sense of security. I began to believe that I was superior to other people and institutions, and that I could do no wrong.
  2. Negative Influences.There is no lack of advice in this world. Some voices offer valuable counsel that can help keep you on track. Other voices will nudge you ever so slightly until one day you wake up and find yourself way off course. Tune in to the voices of value and tune the others out.I had plenty of people surrounding me, all eager to give advice. My challenge was, sifting through the ones worth listening to, and ignoring the others. How can you tell the difference? Listen to different perspectives from divergent sets of people, and then pay attention to the still small voice inside of you. The longer you listen, the better listener and discerner you will become.
  3. Lacking Integrity.There are many things you can lack and still steer clear of danger. Integrity isn’t one of them. Establish a set of sound ethics policies, integrate them into all business processes, communicate them broadly to all employees, and make clear that you will not tolerate any deviation from any of them. Then live by them.You have to carve out time to set the “integrity agenda,” for your own edification, and then to make it clear to the organization. I took for granted people would be able to figure out right from wrong. The problem is, in the middle of a hectic and pressure filled quarter, I myself failed to figure it out.
  4. Majoring in Minor Things.This is one of Jim Rohn’s basic principles for success. You cannot be successful in the long run, being 10 miles wide and an inch deep. There are a handful of things that are important enough to account for the greatest impact. Take a cue from Steve Jobs and get rid of the distractions. Tie your vision and strategy to the truly impactful things and execute those to the best of your ability.I failed by trying to do it all. You can’t. You will hit the wall, and so will the company. I became mediocre at a large number of things.
  5. Avoiding.If there are things that you can do, and should do, then do them. Don’t neglect them. The basic business fundamentals cannot be ignored. Strengthen your skills in weak areas or put people in place in whose skill and integrity you trust.I was not able to recognize the areas I was weak in quickly enough to either learn how to do them (sometimes not practical to do) or find people with those skills that I could trust to do them well.
  6. Lacking Values. Core values are principles without which life (or business) wouldn’t be worth living. As stated in the book Tribal Leadership, values are what the organization stands in. Establish a set of Core Values that can unite the organization, and then create resonance around them.I am now convinced that Core Values become the foundation of a well-oiled, world-class, customer friendly, ethical organization. I was clueless about this in the past.
  7. Blindly Trusting People.Reagan said trust but verify. While leaders can’t do it alone, the wrong people with the wrong skills in the wrong place are a formula for disaster. Allow people to run on “short leashes” until they prove themselves.I did not take the time to properly vet, and then observe key people in their role before I let them fly solo. Any competent, well-grounded person should have no problem with this approach.
  8. Spin Doctoring.Many Corporate PR departments teach executives to provide carefully crafted answers to questions to conceal the true facts. Present the facts, tell the truth, communicate the complete story and let the chips fall where they may. This does not mean you should divulge key strategies and give away competitive advantage, but the truth is ALWAYS the truth, while lies will come back to haunt you.My team would spend a too much time crafting the right story, which in hindsight, a waste of time and energy. A better use of that time is to meet challenges and problems head on, and to communicate openly and honestly, not “spin” a story.
  9. Short-Cutting.Some companies spend an inordinate amount of time flirting with the gray areas, and engaging in accounting tricks. The ethical, values-based and successful leader understands the law of the farm. As another ancient script says, “do not be deceived: God cannot be mocked. A man reaps what he sows.”At its most basic level, there is no substitute for the natural laws of business. Develop prospects, cultivate relationships, determine needs, propose solutions, close sales, ship product and book revenue. It’s a tried and true process that takes time and skill. There is no substitute for methodical execution. I was impatient and succumbed to the temptation of circumventing the natural process through faulty techniques and flawed actions.
  10. Short-Term Focus.Wall Street and shareholders are maniacally focused on short term gains. “What will you do for me next quarter?” is the mantra of the short termer. Don’t cannibalize future results to satisfy the present quarter. If your strategy is solid, stick to your guns, let it work, and remind everyone that you are in it for the long run.We became so obsessed with making the immediate quarter, that we severely impacted future business. As a result, we started the following quarter already behind. This continued to compound until we dug such a hole for ourselves, it was impossible to climb out.

These are the ten things that I discovered can make or break the most charismatic, energetic, brightest and hardworking leader, and also the company.

Question: How would rate yourself on these leadership mistakes? You can leave a comment by clicking here.
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  • http://darensirbough.com/ Daren Sirbough

    I enjoy majoring in minor things. Over the past year I have got much better at it and it has caused other people to rise to the occasion. I also am great at avoiding the thing I know I need to do. That is something that I can’t wait to fix this year. It’s on my New Years resolution list!

    • http://theordainedbarista.com Barry Hill

      Daren,
      What kind of minor things do you like majoring in? Your statement made me say, “Hmmmmm?”

      • http://darensirbough.com/ Daren Sirbough

        I definitely shouldn’t respond to posts at 1am when I receive these e-mails. This is the case of my brain not working as well as I’d hoped it would. I live in Australia which means I get the blog posts at a different time then everyone else.

        What I was saying is that I micromanage a lot and it doesn’t help the big picture of things when working as a team. When putting songs or an album together, you have to do those things because you’re working with a very specific project but micromanaging people always limits the capacity of a project. I believe that just getting the right people on board and letting them do what they do best is the solution.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Majoring in Minor keys? :-) It would be great to hear more about how you are working in this area from a musician’s point of view. As an amateur musician, I often wonder how professional musicians are able focus and not get distracted by minor things and to create beautiful works. Could you share a story or two? Thanks for commenting!

      • http://darensirbough.com/ Daren Sirbough

        To create anything amazing, you need proven people in their expertise on board with your project. Attention to detail is important but in regards to people, it can be a creativity killer.

        At church I lead teams of trained and untrained musicians and singers. Excellence in music is not the aim here, otherwise our team would be cut to a few chosen people. The aim is to serve God and to bring people on the Journey.

        When I work as a Session musician, I am hired for my ability. Excellence in music is the aim.

        It’s all about just defining what the goal is. If we put an album together, we put our best foot forward and we  have the most creative and talented musicians and singers. In a Church service though when you include volunteers from all walks of life, things change and so must your expectations.

        • http://henryfiallo.wordpress.com/ Enrique Fiallo

          Great points. Thanks for expanding on that!

  • Ana Cristy

    Thank you for sharing your experience.  I had the privilege of attending your
    presentation last night, and it was really enlightening.

    In my opinion number one in the list should be Core Values, these, like you mention,
    become the foundation, not only of the organization, but each of us as an entity
    as well. Following those Core Values will
    prevent us from falling into many of the other mistakes you mention.

    Pride is a real challenge for me.  God does not like the proud, and He is very
    specific in His Word when talks about it. 

    • http://TillerFamily.org/ John Tiller

      Agreed, Core Values are so important!  Communicating and living those core values can be a challenge, though.  Michael wrote a great post about that called How Do You Communicate Your Core Values?.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Hi Ana, and thanks for attending Thursday night and for reading and commenting! You make a great point about Core Values.  Dave Logan at  http://www.triballeadership.net/ talks about how Core Values are what organizations, teams, companies, and people stand in, to govern themselves and foster a unity of purpose and of behavior. I am working with several teams, and one of the first things we do as we organize as a group is to go through a Core Values exercise. What a HUGE difference that makes as we work together to make decisions, resolve conflicts, fulfill our noble cause and self govern. Those values become the TEAM’s way of live! Thanks again!

  • Vicki

    Two points that jumped out at me are Majoring in the Minors and Avoiding…Something that I currently do that the Lord is working out in me.  I find it interesting however that I am not the only woman who mentioned these two points.   Thank you for sharing, it is greatly appreciated.

    • http://theordainedbarista.com Barry Hill

      Vicki,
      I am with you. I am really trying to Major in the Major. I am really thinking about hanging a sign in my office.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      I struggle with these 2 issues daily Vicki.  Old habits die hard, but I can see progress towards a new habit. One of the things that gets in my way towards majoring in major things, is multitasking. It used to be that if I wasn’t doing 10 things at once, I didn’t think I was being productive. Now I see that multitasking is not good (studies show a 10-20 point drop in IQ in those that are multitasking), So I have come to realize that it is not about being productive, it’s about being effective. Thanks for your comments!

  • Dulce Garcia-Williams

    This is excellent! Thank you for the reminder on the still small voice. It is always there God always is and is constantly speaking to us.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Thanks for your comment Dulce. I always need to make sure that I don’t allow the world to drown out that still small voice!

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  • steve underwood

    Number eight Spin Doctoring really hits home.  We all make mistakes, but being able to honestly own your mistake separates people I want to work with and those I don’t.  

    Business, Wall Street and Government leaders have lost sight beyond the next quarter and this shortsightedness has cost us dearly in the last 50 years.   This was a refreshing wake up.  Thanks Henry.

    • Enrique Fiallo

      Steve, good to “see” you again! Hope all is well. My best to Dawn also. Yes Steve, I think you have hit on one of the key issues affecting business and society today, which is accountability. It is so easy to offload issues and problems on someone or something else (the devil made me do it!), But it is not until I held myself accountable that I began the process of dealing with my own shortcomings and healing. Great comment!

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  • Dan Pouliot

    Tragedy has an amazing ability to focus the mind on what really matters. Enrique, I am moved by your article. It is easy to read your points and say “how obvious”, but the sad truth is that these key values are missing in many leaders, resulting in a sick corporate culture. It is heartening to me to see that your circumstances have capitalized you into becoming a beacon to others to focus on what really matters. I’m sure that your  public attention and commitment to solid values is making a difference in the minds of those around you.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Thank you Dan. You make an excellent point about how a focus on key values is missing in some leadership agendas. I don’t mean to imply that the lack of values in an agenda means that the leader and organization are not values and principles based, but I think that there ought to be an explicit statement of integrity, values and principles in the agenda, so that there is no question as to what is acceptable and what will be tolerated. Better to be stated directly and clearly understood than to just be implied, and then have questions roaming around in people’s minds. I feel a real responsibility to share this message. So far, it has been well received. Thanks for the comments!

  • http://blog.lifestrike.com/ David Valencia

    The perennial reason Christian Leadership has no worked and will not work as Jesus did is that 99% of leaders, including Michael are interested in power and strength rather than in weakness….read Jesus and Paul…it’s not my song

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Thanks for your comments David. I am not sure if I would agree that 99% of leaders are interested in power and strength (I’ve not seen any studies in this regards), but what I believe is accurate is what Jesus told us in Matthew 20:25-28, when He said “You know that the rulers of the Gentiles lord it over them, and
      their high officials exercise authority over them. Not so with you. Instead,
      whoever wants to become great among you must be your servant, and whoever wants to be first must be your slave—just as the Son of Man did not come to be
      served, but to serve, and to give his life as a ransom for many”. So to me the purpose of leadership is to positively influence people by serving them. Servant first, Leader second. There is a lot more to it, but better said as part of another blog! Thanks again!

    • http://michaelhyatt.com Michael Hyatt

      That’s a really strong conclusion.

  • CA Brown

    This blog reminds me that “except for the grace of God”…any one of us could find ourselves off track and in trouble…for we all make mistakes…and just like there are mistakes and MISTAKES…there can be consequences,  trouble and /or  TROUBLE… Thank you for your candor, honesty and words of wisdom.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Thanks Cheryl. I highly value your comments! Even when I was down as low as I could go, I could look around and say, “Lord, there but for your grace, would I be.” Anyone can fall by the wayside. The sin is in not picking oneself up, and getting back on the right path.

  • http://blog.lifestrike.com/ David Valencia

    There is nothing that Jesus did from a paradigm of power, strength, or control, Actually and existentially is what we all, or better said, myself is tempted to utilize in this world. Think of the Devil’s trinity (if you humor me and are willing to go along with the trio) 1. Greed. 2. Lust. 3. Pride…in other words, money, sex, power, and in the words of John, the world, the flesh, and the Devil.
    And there is no one who is tempted more than the Christian leader…that is why the only the one who stays at the cross will not want to resort to doing things the pragmatic way…Paul met his impasse, his paralyzing turning point and became fruitful because he remained consciously weak, not trying to control. The only way to be real and effective in leadership is to be willing to be in touch with your personal weaknesses…that’s when you become soft enough that people feel understood and not used and are willing to follow your leading…and the reason you naturally become soft is because your weakness keeps you humble and truly open to allow others around to be creative and helpful.
    Most leaders are type’s A that thrive on “control” the one issue they desperately crave in order to compensate for the insecurity.
    By the way 100% of leaders suffer from two fundamental issues: Guilt and low self-esteem….no wonder the power that leadership gives us is so  compensating.
    Paul gave up and gave up “control” and you know the rest of the story…God made him a man of love and softness….read his letters…
    Look friends, I am the worst…and I have failed….I want you not to. I want you to give yourself up the way Jesus did….it will last for ever.

  • http://blog.lifestrike.com/ David Valencia

    There is nothing that Jesus did from a paradigm of power, strength, or control, Actually and existentially is what we all, or better said, myself is tempted to utilize in this world. Think of the Devil’s trinity (if you humor me and are willing to go along with the trio) 1. Greed. 2. Lust. 3. Pride…in other words, money, sex, power, and in the words of John, the world, the flesh, and the Devil.
    And there is no one who is tempted more than the Christian leader…that is why the only the one who stays at the cross will not want to resort to doing things the pragmatic way…Paul met his impasse, his paralyzing turning point and became fruitful because he remained consciously weak, not trying to control. The only way to be real and effective in leadership is to be willing to be in touch with your personal weaknesses…that’s when you become soft enough that people feel understood and not used and are willing to follow your leading…and the reason you naturally become soft is because your weakness keeps you humble and truly open to allow others around to be creative and helpful.
    Most leaders are type’s A that thrive on “control” the one issue they desperately crave in order to compensate for the insecurity.
    By the way 100% of leaders suffer from two fundamental issues: Guilt and low self-esteem….no wonder the power that leadership gives us is so  compensating.
    Paul gave up and gave up “control” and you know the rest of the story…God made him a man of love and softness….read his letters…
    Look friends, I am the worst…and I have failed….I want you not to. I want you to give yourself up the way Jesus did….it will last for ever.

  • http://blog.lifestrike.com/ David Valencia

    There is nothing that Jesus did from a paradigm of power, strength, or control, Actually and existentially is what we all, or better said, myself is tempted to utilize in this world. Think of the Devil’s trinity (if you humor me and are willing to go along with the trio) 1. Greed. 2. Lust. 3. Pride…in other words, money, sex, power, and in the words of John, the world, the flesh, and the Devil.And there is no one who is tempted more than the Christian leader…that is why the only the one who stays at the cross will not want to resort to doing things the pragmatic way…Paul met his impasse, his paralyzing turning point and became fruitful because he remained consciously weak, not trying to control. The only way to be real and effective in leadership is to be willing to be in touch with your personal weaknesses…that’s when you become soft enough that people feel understood and not used and are willing to follow your leading…and the reason you naturally become soft is because your weakness keeps you humble and truly open to allow others around to be creative and helpful.
    Most leaders are type’s A that thrive on “control” the one issue they desperately crave in order to compensate for the insecurity.
    By the way 100% of leaders suffer from two fundamental issues: Guilt and low self-esteem….no wonder the power that leadership gives us is so  compensating.
    Paul gave up and gave up “control” and you know the rest of the story…God made him a man of love and softness….read his letters…
    Look friends, I am the worst…and I have failed….I want you not to. I want you to give yourself up the way Jesus did….it will last for ever.

  • Jean LaCour

    Thank you for your thoughts about integrity and values… 
    your line about  taking “for granted people would be able to figure out right from wrong” also applies in ministry situations. 
    It can be easy to assume too much in ministries when scriptures and/or prayer are an integral part of the company’s culture….

    I appreciate the reminder to define values and to share them,
    especially important in a virtual context….   any suggestions??

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Hi Dr. Jean! Thanks so much for reading this and commenting. With respect to your question on defining and sharing values, I have experienced some pretty amazing results taking a team through a workshop to brainstorm, discuss and define their values for self-organizing and self governing. This is what Dave Logan and his co-authors refer to as a Core Values exercise as part of Tribal Leadership. At the end of this process the team (group, organization, company, etc.) has a set of 6 to 8 items that they defined and now own. These values are used to govern team interaction and execution towards their common goals/objectives (Noble Cause in Tribal Leadership parlance).  Feel free to e-mail me or call me (I know you have the number!) if you want to get into the details further. I can’t say enough about how well this process works in getting and keeping a team aligned and on the same page. Thanks again! 

      • Jean LaCour

        Henry, good evening! thank you so much for the feedback and giving me the incentive to read Tribal Leadership!    
        Be assured I will call you for more details and more insight.

        Your blog topic is hitting the mark with many of us.  We appreciate your sharing and your transparency.  Be well!

  • Olga Berman

    Excellent blog Henry! What a humbling experience. It takes a real man to allow God to use you in the way you are allowing Him to use you!

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Olga, thanks for reading and commenting. From my point of view, God had the hard part. My piece was easy. Listen, and then do what He told me to do!

  • Adrian Stone

    Henry,

    Thank you for the insightful and honest post as it is not
    easy to look at one’s past shortcomings and it is even more difficult to share
    them so candidly with others. I really do commend you for it. Two of your
    points really have resonated with me throughout my career. Both points 2 and 7
    really speak both to a leader’s ability to honestly listen to others who may
    not be their organizational peers and to make it a top priority to create a
    healthy, open, and respectful environment where dissenting opinions can be
    expressed up and down the chain without fear of reprisal. That environment
    includes making sure that everyone, including Sr. leadership, is expected to
    have transparent accountability to the team and the organization with clear
    goals and commitments. It is even more invaluable when it means being called to
    the carpet by the very folks you are responsible for leading if you find yourself
    veering off course. Unfortunately creating this type of environment is rarely
    given the attention it deserves outside of the annual corporate governance
    training and it is one of the most crucial investments we can make as leaders for
    the betterment of the company and for ourselves. It is very easy to want to
    hire likeminded folks and we have a tremendous responsibility to not fill the
    ranks with “yes men and women” or those of similar perspective.  Thank you for restating something that is
    often said and not done and for calling it out as something that had tangible
    impacts to your career. I also want to thank you for later in your career recognizing
    these shortcomings and for creating the type of environment where that was
    possible under your leadership. I personally benefitted tremendously from it
    and it has been something that I have tried to live by as my career has
    progressed.  

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Adrian, thanks so much for your insightful comments. I get in early to scan blogs and in general get ready for my day, and opened this blog to see if I had any comments that I needed to read and perhaps respond to. When I saw your comments, I smiled. It took me back to when we worked together, and I fondly remembered your intellect, ideas, and energy and how much I valued them and you. I can bet that you continue to demonstrate those 3 qualities, but now you have added insight and a deep understanding of what it takes to be a successful leader. Your team is lucky to have you! What you describe above I call growth and maturity. I went through it the hard way, nevertheless, I came through it and here I am. I coined an acronym, A.W.A.RE which stands for Awareness, Willingness, Ability, Resistance and Enablement, and I use it to describe the way people come to change themselves. It was not until I became Aware I needed to change, became Willing to change, found the voices of value that gave me the tools (Ability) to change, overcame the Resistance to change and Resisted slipping back into old habits, and finally, Enabled myself to the change so that it became a natural part of my new behavior and way of being, that I truly CHANGED. I wish it had happened sooner, but, then again, I was not Aware and Willing back then. I like to take people through the AWARE model, to show them that change is possible, and a necessary part of growth and maturity. Thanks again for bringing back fond memories of Adrian!

  • http://uma-maheswaran.blogspot.com/ Uma Maheswaran S

    At times, I tend to get into the trap of short term focus. I feel  I should get out of this weakness for my betterment. It curtails my potential for optimum performance.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Uma, it is the way many of us are driven, every day. While there are things that definitely require our attention right now (for example, a fire usually needs to be put out right away before it does great damage), we cannot ignore fire prevention, so that future fires don’t break out! I think there is a balance. I usually ask myself, “is this absolutely necessary to do right now, and, if I do so, am I going to be neglecting a future, important, long term outcome by not taking another action now”? It’s part art, part science,  I think. Thanks for your comments!

      • http://uma-maheswaran.blogspot.com/ Uma Maheswaran S

        True Enrique! That’s prioritizing in life. We need to be good in that skill to make judicious use of our time.

        Subject: [mhyatt] Re: 10 Mistakes Leaders Should Avoid at All Costs

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  • Mckobelinski

    I think at one time or another we all make some of these mistakes. Great advice. You would think it is obvious, but not really. Thanks. 

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Thanks for the comments Mary. You are right. Sometimes the obvious is not-so-obvious!

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  • Natasha

    I like these  eye opener teachings…It makes you see the leadership position from another perspective…thQ.

    • http://henryfiallo.wordpress.com/ Enrique Fiallo

      Thank you for your comments Natasha. I have found great value in looking at tings form different perspectives. We all have paradigms (lenses) that we look at life through. Making a shift in our paradigm (perspective) and taking a look at something through a different lens (like walking in someone else’s shoes) really opens up the world. Thanks again!
      Enrique Fiallo

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