The CEO’s New Clothes: Tell Your Boss in the Buff the Truth

There may not be a story with more to teach the business world than “The Emperor’s New Clothes,” the tale in which no one is willing to state the harsh truth in the short-term to spare the emperor from a disaster later on.

Bad websites, severely flawed products, and even failed companies—in many cases, maybe in most cases, there is someone involved in the decision-making process who sees the truth but chooses not to speak up or simply isn’t listened to. Sometimes, everyone in the organization other than the “emperor” can see the problem and solution clearly.

No one likes to hear that they are naked (especially not people in power), and no one wants to deliver that message either (especially not to people in power).

In the story, the emperor’s ministers and subjects won’t declare that there is no fabric because they fear looking stupid, so they go along and pretend to get it. The fear of looking stupid helps move bad decisions along in business as well.

“Cash flow? You must not get what dot-coms are about.”

“Everyone else in the financial industry sees the value in these sophisticated CDOs, why can’t you?”

While it is quite common for an individual or a group to see that their emperor has no clothes, few ever address the issue with enough conviction to make a difference. Are you confident and courageous enough to speak up when someone in leadership shows his or her rear?

On the flip side, if you are a leader, have you encouraged your team to speak the truth, however uncomfortable? If not, you run the risk of both you and your business being exposed.