“Any business craving of the leader, however foolish, will be quickly supported by detailed rates of return and strategy studies prepared by his troops.”  – Warren Buffett

The sprinter Eric Liddell is most famous for the portrayal of his early life in the movie “Chariots of Fire” as the devout Christian and Scotsman who declined to compete in the 1924 Olympics in his signature event, the 100 meters, due to the race being held on a Sunday. Liddell’s devotion to his beliefs led him to honor the Sabbath by not working, including running a race. In the lead-up to the 1924 Paris Olympics, Liddell was the best and most famous sprinter in the world, and he was expected to win the 100 meters. His refusal to race on a Sunday brought him considerable scorn from many people in his country, but he would not compromise. A few months before the Olympic Games, Liddell decided to compete in the 400 meters due to that race not having a Sunday conflict. Since the two events are not similar in strategy or physical skillset required, Liddell was not expected to perform well, especially since he was completely new to the event. Against all odds, Liddell won the 400 meters and his notoriety soared worldwide.

While the movie “Chariots of Fire” ends there, the remainder of Liddell’s story only becomes more inspirational. Rather than enjoy the fruits of his popularity, Liddell instead became a missionary in China along with his wife and eventually his two young daughters. In 1939 as the world became embroiled in the growing conflict of World War II, Liddell sent his family to Canada due to the dangers in China brought by the growing Japanese occupation, but he stayed to fulfill his obligations to the Chinese whom he called “his people.” As the Japanese occupation of China became more violent, Liddell and many others were sent to an internment camp in the Shandong province of China.

Life in the camp was very difficult, but Liddell considered it his duty to do everything he could to make the situation more bearable for the other prisoners by his own unceasing work and projection of a positive attitude in all situations. Remembering Liddell later, his fellow internees recalled him as “always cheerful, as though to be otherwise set a bad example and counted as a dereliction of duty.” Another said “He never let anyone see him downcast. Every day to him was still precious.” In early 1945, before the war ended Liddell died in the camp after suffering his third stroke. His death was devastating to the other internees because Liddell had been the glue that held the camp together. The other internees also noted that Liddell never tried to deny the harsh reality that they were living, but instead he helped them restore hope through faith in God, the blessing of work, kindness, and using their skills to lift up one another at various points along their journey. He faced reality, but with a plan.

In his bestseller Good to Great, Jim Collins refers to this approach as “facing the brutal facts” (yet never losing faith). Through many examples, Collins contrasts people and organizations in similar situations or industry markets and the differences in how they approached their problems. In one example, Kroger and A&P are examined regarding their responses to similar dilemmas of falling market share, aging and outdated physical assets and lack of expanded offerings. Kroger faced the brutal facts and made significant investments to completely revamp their stores to make them bigger and nicer, with more offerings outside of groceries. A&P did not make any wholesale changes but continued on their historical path. As a result, Kroger outperformed A&P for decades and became one of the premier brands in grocery superstores.

In the quote at the top of this post, no less than Warren Buffett has made the point that there is a strong tendency in corporate America to bend reality to fit the desired narrative of the leader. This doesn’t work. Reality will hit you in the face every time.

At various points in my career, it was painfully obvious when an initiative faltered but was made to appear as a success through dubious “stats,” manipulated indicators and slick presentations. I can assure you that operators see through those attempts.

The meticulous research provided in the pages of Good to Great showed that success comes from acknowledging either your decision-making errors or the brutal facts of your operating reality and using that knowledge to forge a new path rather than make excuses or justify yourself. Leaders who learn how to navigate the reality of their situation, no matter how alarming it is, are appreciated by their teams for their honesty and have a greater likelihood of success over time.

 

References:

Duncan Hamilton, For the Glory: Eric Liddell’s Journey From Olympic Champion To Modern Martyr, (Penguin Press, New York), 238-257.

Jim Collins, Good to Great, (Harper Business, New York), 65-67.