For some reason, the expression in the title is the one that has become widespread in its form in the Hungarian language, but when it comes to organizational behavior of companies, the “Cost of dishonesty and deception” is more accurate.
So, we are talking about costs in this article.
The question, we are going to discuss here is: how much more expensive is it to manage an organization where team members do not have a clear picture of the company’s daily operations and instead of an honest, clear communication and behavior deception, concealment and lying prevail?
I have not found any reference that provides a quantified answer to this question. I don’t think it can ever be set up a comprehensive, general model which would handle all the possible aspects and calculate the related extra costs, because every organization is unique.
Instead of quantitative modelling several qualitative classifications have been set up. However, most of the extra cost generating factors can be identified with a little brainwork by each of us.
For example, here is an excellent summary diagram from an article in the MITSloan Management Review SPRING 2004 VOL.45 NO.3 issue that deals with the topic:
Nice, but without any sophisticated model, solely based on our management experiences we can state that if blatant lies, white lies, or even just deception, concealment, obfuscation, misinterpretation, and unfulfilled promises appear in the life of an organization, the cost of operation increases.
This is so, because the conspirators (if they do not want to fail quickly) must continuously maintain an updated “mental accounting” of when, to whom, and what they lied about, and be prepared to immediately resolve any related confrontations. That requires time and energy.
The following writing focuses “only” on the hidden costs generated by “executive deception,” but it is definitely an authoritative piece of papeer because everyone can confirm that norms in an organization spread downward from the No.1 leader. The behavior pattern of “executive deception” propagates downward and sideways, infecting almost the entire organization. There will always be small islands, but they will only survive temporarily.
https://quarterdeck.co.uk/articles/when-leadership-lies
My conclusion: it is economically justified to develop a company based on clear and straightforward communication and behavior, as this is essential for the lowest-cost operation of the organization.
I built such a company recently.
It was great to work there.
Call any MA-Coding colleagues if you want validation.
Leave a Reply