The South African Government has been in the media recently - mostly for the wrong reasons. The intrigues and events giving rise to the bad press are however not unlike what happens within most companies daily. Here are some lessons we can learn:

Transparency rules!

The furor concerning the Minister of Health has shown just how transparent the world has become. It has become difficult to hide things from the public. In this case the Ministers medical records, drinking habits and criminal past in Botswana were blurted out to the whole world by the press. Employees, stakeholders, consumers and press are increasingly obsessed with knowing the facts about businesses they interact with. With the proliferation of cell phones, the internet (with sites like Hello Peter), blogs, the press and talk radio stations where sms’s can be sent anonymously, information about businesses can be spread around the world in no time.

It requires a fresh approach from Companies to deal with this new reality effectively. The best way is to deal with it transparently, openly, directly and quickly. Reveal the facts before it becomes public knowledge if possible.

In search of a fairer and better world

The recent public service strike gave a stark reminder of the society we have created. It was revealed that the contemplated increase for Ministers was close to 50% and soon thereafter Government offered around 6% increase to civil servants including teachers. This contradiction must have been a big motivating factor for the strike to go ahead.

With information more readily available than ever, facts and perceptions drive the frustration and anger of the marginalized. Factors like the increasing wealth gap, company financial and other scandals, environmental damage caused by business etc, are driving people to become destructive towards business.
Pressure will only increase on businesses in future and a new approach towards risk is required. Risks will be far more complex than in the past and these will have to be pre-empted and navigated. Things like a Companies carbon footprint will soon be issues that give rise to how the brand is perceived and if people wish to do business with you. A company involved in any activity that causes damage to the environment is in for a tough time. In short, widen your perception of risk and start proactively navigating your way through it.

The normal man in the street wants to change the world into a better place and businesses are going to bear the brunt of this. Be prepared.

Don’t be vague on performance

The last lesson goes back to the embattled Minister of Health example. Many commentators in the media have indicated that the real reason behind all the bad press about the Minister is actually about her performance. A person can be forgiven for their indiscretions if they perform well (remember Bill Clinton), but if their performance is not up to scratch it becomes very difficult to protect them. If action is not taken then, sentiment will turn against the protector.

Many businesses protect underperforming individuals because there is loyalty towards them, they are the “socialites” or there is simply not the leadership will to take action. This inaction almost always leads to a loss of leadership credibility and in extreme cases to destruction of the business. Don’t let action against poor performance slip. Root it out. The first step is to have clear performance criteria – don’t be vague. If you want to know more detail read Lizette Bester’s article Contracting people for performance and business success!.