Courage Pays! The Power of admitting mistakes and making tough decisions

Managerial courage is essential at all levels of leadership—whether at the individual, team, or organizational level. It’s about making tough decisions, taking bold actions, and embracing transparency, even when the path forward is uncertain. Though these moments are challenging, they build trust and long-term success. Let’s explore how managerial courage plays out at three different levels.

1. Individual Leader/Manager Level: A Decision for the Greater Good

At the individual level, courage often means making tough decisions. One example comes from Ed Catmull, co-founder of Pixar. In the early days of Toy Story, Catmull insisted on delaying the film’s release despite immense pressure to meet deadlines. This honesty and transparency ensured the film’s success and built a culture of high standards at Pixar.

2. Team/Group Level: Leading Through Tough Decisions

On the team level, courage involves navigating conflict or making unpopular decisions. In Airbnb’s 2020 crisis, CEO Brian Chesky made the tough decision to lay off 25% of the workforce due to the pandemic, communicating transparently with employees about the decision. His openness helped the company recover and strengthened trust within the team.

3. Organizational Level: Owning a Mistake and Correcting It

At the organizational level, courage often involves acknowledging mistakes and taking swift action to correct them. Sony provides a strong example after the infamous 2011 PlayStation Network outage. After hackers gained access to user data, Sony immediately admitted the breach and took responsibility, offering affected customers identity theft protection and free services. Though the mistake was costly, the company’s transparent response and quick corrective actions restored consumer trust and loyalty.

The Long-Term Value of Managerial Courage

Managerial courage, though difficult, pays off in the long run. Transparent decisions at all levels foster trust with all stakeholders and built organizational  resilience, enabling organizations to grow and thrive over time.

Human Synergistics profiles and programs can measure the ability of individuals, teams and entire organizations to deploy managerial courage.

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