We often read about senior executives and holder of public positions being fired or forced to resign for sexual harassment or misconduct. One incident specifically caught my interest when a CEO of a large public corporation resigned over an affair with an employee. While the relationship was consensual, the company’s board stated this violated company policies and demonstrated poor judgment. They opted to terminate without cause. While the CEO received severance and pro-rated bonuses, the romance cost him/her the job and the annual salary of several million dollars. The CEO didn’t lose the job for poor performance. He/she had delivered solid financial numbers and was credited with many innovative non-financial achievements. Few people will feel sorry for an executive who receives a handsome severance, a pro-rated bonus and gets to keep the stock options. Still, it is sad to see capable and experienced executives make such egregious errors to the point where they must leave.
What can we learn from this story? Here are two key points.
The first lesson concerns the company’s board and how swiftly it decided to terminate. The board was prepared with and up-to-date succession plan. It is good to be prepared. Filling senior positions usually involve several changes on the organisation echelons. An effective communication campaign was promptly orchestrated both within the company and publicly. Large corporations and organisations must always aim to protect their stakeholders and that include being prepared for surprises and unforeseen events. The board had its act together and I like that.
The second lesson from this story is about why it happened and most importantly how to avoid such an outcome. My long two careers leading four companies in Italy, Brazil, France and Canada and then as a management consultant taught me how to avoid falling – pardon the pun – into the “wrong bed,” and any executive or manager should pay heed.
Temptations are part of life and all get tempted one way or another. We are tempted to lie, to envy, to be jealous and to get romantic... The key is to take a stand before the temptation presents itself. Waiting to decide what to do when tempted, we assume high risk. Emotions may take over the brain. Here are 5 guidelines for your reflection and consideration:
- Working late at the office if necessary, must be in groups and not one on one.
- Breakfast and lunches are OK but no dinner one on one.
- No driving home after work at night. Taxi or Uber do a better job.
- Events outside the office are great for team building but a team is better defined as 3 people or more, not two.
- Displaying family photos in your office (spouses, children, family etc.) help remind us of our priorities and loved ones. Guardrails along highways and bridges are installed for our protection. Photos can do a similar job.
These suggestions apply to all: men and women. They are not bulletproof, but they will mitigate the risk of “falling in the wrong bed”.
(W 500 - Re-edited)

