When the Going Gets Tough…
...The Tough Take Responsibility
2011 was a really bad year for a lot of folks. People lost their jobs and then their homes, banks tightened up credit requirements, businesses shut their doors, and the government raised our taxes for the next however many years to bail out institutions and cover the costs of so many folks out of work.
Suddenly, our national and individual financial folly — and interdependence on one another — became glaringly apparent. Businesses need money to stay in business and continue to deliver goods and services, and when Joe Customer doesn’t have money to spend, businesses don’t have money to cover expenses. No business was immune in 2011, and since business is the lifeblood of our economy, everything changed.
And a nation of people started pointing fingers at one another.
But is everything someone else’s fault?
Gini Dietrich Sets an Example for All of Us
Gini Dietrich, CEO of Arment Dietrich
In response to someone else’ blog post that referenced her own business’s near-bankruptcy in 2011, Gini Dietrich, founder and CEO of Arment Dietrich, wrote the following:
“…I am a bit disappointed that you wrote this before talking with me. You know I would have told you the ins and outs of my ONE statement in ONE blog post that we nearly went bankrupt.
“You see, we have a great business. We have lots of fantastic clients. All of whom pay their bills on time. But the United States, last summer, had a near crisis when our government couldn’t come to agreement on what to do with our credit. So, like everyone, our clients retreated to their corners and held on to their money as long as they could. And it hurt us. Just like I’m sure it hurt other small businesses.
“But the issue was not due to our clients. The issue was due to *me* forgetting that cash is king. You see, I let our expenses get out of control (it took me 18 months to get out of a lease that was much too large and expensive for us) and I let the business live from paycheck to paycheck, essentially. So, when clients went from 30 to 90 days, overnight, I didn’t know how I was going to make payroll.
“Let me be very clear. This was not their fault. This was only my fault. I know better, but I was ‘hoping’ everything was going to be OK. I know hope is not a strategy, yet I focused on it in 2011. That is no one’s fault but my own.”
Gini Dietrich, power blogger, business owner, and role model to so many, did what most of us are too proud (or self-absorbed) to do: she accepted responsibility.
Imagine if every single person in this country did the same thing, right now. Imagine if we each took a good, long look at ourselves, and at our businesses, and took personal responsibility for whatever we’ve done — or not done — that contributed to not only our own financial stresses, but the stresses on our nation’s economy as well. And imagine if we taught the next generation to do the same.
Because that’s how we’ll rebound individually, in our businesses, and as a nation.
Are you willing to share what you learned “the hard way” that you want the next generation to know?
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Hi Michelle,
Where I live so many businesses went out of business the past few years. At the end of my road there is an awesome Victorian Mansion that was converted into a B&B but after the recession came full force they had to turn the B&B over to the bank.
So sad.
Justin, we’ve seen the same thing here in our town, with many small businesses boarded up on the main strip. We saw one furniture store close, and soon after, a Hobby Store announced “Opening Soon” in the same space, featuring model car racing. It never did open. We heard the owner committed suicide. Unbelievably heartbreaking, and all too common right now.
Interestingly, a long-standing liquor store in the middle of our town has expanded, adding twice the square footage and changing the outside appearance, with better signage, expanded parking, and an upscale sign. They seem to be doing really well.
Sign of the times right there.
I learned a really hard lesson in 2010 when I didn’t take responsibility for my cash flow and extended an informal credit line (translation: I kept working even though he stopped paying). There were promises of payment, but – in the end – I took the hit for thousands of dollars.
At the time, I wasn’t ready to take responsibility for my business and didn’t have the confidence to stand up and say, “No.” It’s a different situation than Gini’s, but still a lesson learned. I will never let that happen again, AND I now have a much greater appreciation for the depth of my responsibility as a business owner.
Thanks for sharing your story.
Jamie, that’s a great lesson that every new or young business owner should hear. May I assume that this customer/client was someone you knew? That’s usually the case when I hear of a business owner left holding the bag after extending an “informal” line of credit.
Can you tell we’ve been there?
What did you learn from that, and has it changed the way you do business?
When I began my career, the man who was the GM of the Fleishman-Hillard office that I worked in was an extremely good leader. He would take the fall when his team made mistakes and would be the first one to pump them up when they did something really good. Not to say if you made a mistake, you weren’t held accountable. But to clients, he was the fall guy. I’ve always remembered this and what a great example he was for me. It’s difficult to swallow your pride sometimes. But there are huge lessons when you do.
Gini, one of the hardest things to do is say, “Hey, this is my fault. I’m sorry,” especially when there ARE other factors at play. It’s always easier to try to save face and come out smelling like roses, even if it means spraying a lot of rose-scented perfume. But like you said, the growth we experience personally, and the influence we have on others as a result, is so worth it.
Thank-you for leading!
That’s awesome, Gini. There are definitely not a lot of leaders who are like that. In fact, I think it’s quite rare.
It’s really hard to swallow your lumps when your team makes a mistake, but it’s WAY better than placing blame. I’ve been on the receiving end of the blame before and it does nothing but diminish self-esteem.
Thank you both for sharing. This is certainly wise advice.
Laura, this reminds me of the GOP debates this year. I’ve noticed there are candidates who own up to their mistakes and take full responsibility, without laying blame anywhere else, and then there are candidates who make excuses and blame everyone else for whatever they’re being called to task for.
I honestly never noticed it before, but yeah — this is about leadership.