Authentic and Appropriate Action in the Age of Complexity

Acting authentically and appropriately is vital in a world dominated by diversity, velocity, and interconnectivity. The fact is that no one can hide anymore. The tools of social media open all our actions to instant analysis and massive scrutiny. Any inauthentic or inappropriate action is quickly spotted and called out—or digitally chased—by customers or competitors. (And conversely, authentic and appropriate actions can gain an instant following with the viral impact of social media.) Keep this in mind as you consider your company’s advertising and marketing budget. According to Forrester Research, 95 percent of consumers consider advertising messages to be disingenuous.⁹ This information led Kevin Roberts, CEO of the global advertising agency Saatchi & Saatchi, to conclude that the days of pitching to customers are over. He believes that marketing leaders must learn to engage customers in a meaningful and authentic conversation.¹⁰

Yet it can be difficult for many leaders to be open and transparent with employees and customers, according to Charlene Li, author of Open Leadership, who explains that “leaders equate openness with vulnerability. They are indoctrinated in the C-suite that it’s taboo to appear vulnerable. But in the eyes of your employees and customers, being vulnerable will make you look authentic—not weak. Authenticity is priceless—but lack of genuineness can cost your job.”¹¹

In addition to acting authentically, leaders are facing pressure from customers and employees to act appropriately by looking well beyond maximizing shareholder value. The context in which leaders act is no longer limited to the boardroom: it increasingly extends to the entire organization and the broader world of public opinion and trust. Indeed, more than ever before, customers and employees want to engage with organizations that seek to serve a higher purpose and contribute to society rather than focusing entirely on keeping shareholders happy. A Burson-Marsteller survey found that more than 75 percent of consumers believe that social responsibility is an important factor in their purchase decisions, and 70 percent are willing to buy products at a premium from a socially responsible company that, among other things, strives to protect the environment.¹² “Consumers want a better world, not just widgets,” Simon Mainwaring, author of We First, has pointed out.¹³ Hence, it’s vital for leaders to pay attention to the changing context and fine-tune their actions accordingly.

Acting authentically and appropriately means different things to different leaders, depending on whether they operate predominantly from the blue zone (functional smart) or the red zone (business smart). Leaders act very differently in different zones, and there are different reasons for why they do so.