Jodie Fisher, Actress

Jodie Fisher, an actress who appeared in several R-rated movies and on the NBC reality show “Age of Love” may never have thought her resume would include bringing a major technology company to its knees.   But it happened on Friday when Hewlett Packard’s board of directors forced CEO Mark Hurd to walk.

After Fisher wrote a letter claiming sexual harassment, the board investigated, concluding no on the harassment, but yes, there was a problem. Hurd violated company policy by falsifying expense reports.  They weren’t happy that he concealed his relationship with Ms. Fisher, and paid her when there was no legitimate purpose.  

Move over Tiger.  Self-destruction always finds a new poster-boy.  Tiger is officially old, old news, especially since he can’t find his game to save his life.  Hurd’s legacy now becomes just another tragic story about a swift end to a great career.  Shake your head and wonder.       

The board did the right thing, of course, even though initially people were questioning it.  They had ethical issues in the past.  The policy was crystal clear.  And Hurd had championed it.  HP’s standards of business say employees should pose a simple test as they decide whether an action is appropriate: “Before I make a decision, I consider how it would look in a news story.”  

It’s particularly painful for HP employees and investors, since Hurd is said to have brought a period of consistency and outperformance.  Those who watch the company credit him for the most successful corporate turnarounds in American business history, posting five years of blistering profit growth and iron-fisted cost cutting. The stock outperformed the broader market by 101% over his five-year tenure. 

But you can’t let the CEO’s stink all over the company, period.  As a director, your duty is to protect the brand. Yes, Wall Street is chattering now about how uncertain HP’s future is.  But long term, the company will survive.  In fact, on Monday, some analysts were calling it a buying opportunity as the company is well positioned and the stock relatively cheap.   

Still, there’s a lesson here, about how the CEO brand and the company brand co-exist, sometimes uneasily.  Like Tiger’s wife, HP’s directors knew the marriage was doomed.  Mirroring the self-respecting Elin, they called it what it was and I doubt they will ever look back.  Hurd will be hurting all the way to the bank with an exit package reportedly worth $35 million; his once glorious CEO brand suffers a mortal wound.  But HP, while vulnerable without a succession plan, will come out fine.   

Short term, it will be rocky; company executives will have to go into defensive posture as they have, assuring the street that they will stay the course and aggressively pursue their strategy for new markets and products.  Investors may wait until they recruit the new CEO to pass ultimate judgment.  But the board should be lauded.  They didn’t flinch.  

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The first big stumble of the Obama administration is about ethics and double standards.  The American Public still made it clear they won’t tolerate that. Former Sen. Tom Daschle was forced to withdraw from consideration for secretary of Health and Human Services after a mounting debate over his back taxes.  Nancy Killefer, earlier in the day withdrew her name from consideration as Chief Performance Officer – also over tax issues.

What’s distressing is that President Obama “got it” only after the public outcry.  “I’m here on television saying I screwed up …ultimately it’s important …to send a message that there aren’t two sets of rules. You know, one for prominent people and one for ordinary folks who have to pay their taxes.” 

It’s hard to imagine that this President didn’t anticipate how angry people would be.  Whether its arrogance or expediency Tim Geithner’s appointment as Treasury Secretary was rammed through and then the White House folks started believing they could massage these other flawed appointments, too.  Getting away with it once allowed Obama to fool himself that it didn’t matter, really. 

Harvard Business Review reports this month that when asked what they look for and admire in a leader and in a colleague, people put honesty at #1.  People can accept mistakes, poor judgment or missteps but they simply won’t consider you a good leader if you aren’t honest with them.  In the President’s case, I think there is a question here of intellectual honesty - did he really believe that it was okay to give powerful people a different set of rules to live by than every day Americans, who have to prepare their taxes, pay them on time, or suffer penalties if they don’t? 

This is a leadership lesson - not just about double standards, but about intellectual honesty.  When you are honest you have to make difficult choices - you have to walk your talk.  In Motivate Like a CEO, this is one of the eight principles of motivational leadership.  When you walk the talk, people believe in you and your organization.  Acting in a way that is consistent with your words is essential to your success as a leader.  A leader who acts with integrity generates confidence and enthusiasm, and ultimately builds a motivated workforce that gets things done.  When people see you mean what you say and that they can count on you to act in concert with your principles, they believe in you and they also behave in the same way.  You win their trust, and you can trust them.  You cannot have a motivated workforce or a successful company if there isn’t a reasonable high level of trust and integrity between management and employees.

If you would like a copy of the Eight Principles of Motivating Like a CEO, please email info@bates-communications.com 

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