Stimulus packages, bailouts and great deals on Wall Street stocks cannot fix our ailing country until leaders – from Main Street to Wall Street – address the crisis of credibility that has shaken our faith and continues to erode our confidence.

This crisis of credibility manifests itself in many ways.

• We begin to suspect that all politicians are corrupt or incompetent.
• We begin to believe that every CEO is spending lavishly, without regard for the health of the business, its employees or its shareholders.
• We begin to view our future as being in the hands of people we cannot trust and do not believe in.

Because our perceptions of all leaders are shaped by the high-profile excesses and ethical lapses of a few, every leader now has an even tougher job of inspiring personal and institutional credibility.

The public is asking, “Why should we buy products from, cast votes for, invest in, or follow the advice of those in whom we have such little faith?” In response, business leaders should be asking, “What should a competent, ethical, compassionate and well-motivated leader do to help reestablish credibility in American institutions?”

Here are a few suggestions.

1. Let Core Principles be Your Guide.

Every leader should have a set of core values that drive decision-making and ethical conduct. By articulating these core values as the driving force behind decisions, and by always acting consistently with these core principles, leaders establish trust and credibility.

2. Tell Your Story in Rich and Compelling Detail.

In a crisis of credibility, sound bites simply are not enough. People want to understand the big picture and learn about the details from someone they can believe in. They need to be convinced that their leaders know what they are doing.

In the court of public opinion, leaders must make their case in a compelling way – one that stands up to cross-examination. Charisma and a high-level understanding of the issues aren’t enough. You cannot just “wing it.” To build credibility, leaders must thoughtfully prepare logical arguments and back them up with proof points.

3. Be Consistent.

Almost everyone needs to hear a message many times before it sinks in. Leaders must seek opportunities to reinforce their messages and drive them home. And make sure that their actions walk the path set out by their words.

4. Be Accessible and Visible.

With the advent of the Internet, it is now possible for leaders to be present – virtually everywhere around the clock – in good times and in bad. Visibility signals to employees, customers and shareholders that their leaders are on the job, that they “get” the concerns of others and that they have a strategy to address issues. Thanks to technology, savvy leaders can engage in direct two-way conversations, unfiltered by third parties who may impose their own biases.

To paraphrase a popular song, “Let there be credibility on Earth, and let it begin with me.”

This entry was posted on Wednesday, April 29th, 2009 at 4:41 pm and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.