Introduction

In a crisis that threatens to redefine the very fabric of our nation, Canada finds itself locked in a high-stakes, existential struggle with its southern neighbour. This post provides some thoughts on how leaders of all stripes will need to intelligently “up” their approach and communication skills to minimise the damage caused by a rapidly changing world.

To start with, it might not be an overstatement to say that the 3x foundational communication skills, covered in our last post – building trust, empathy and active listening in particular, are now more than ever, critically important.

In leadership, communication isn’t just a skill—it’s the foundation of influence, alignment, and results.

Here are the four interconnected components of this post:

1. Why Investing in “Soft Skills” Pays Of - When Done Right
2. Clarify and Commit to Your Purpose - Answering the Question “Why Are We Here?”
3. Feedback is a Two-Way Street
4. DEI - A Competitive Advantage, or “woke nonsense”

Why Investing in “Soft Skills” Pays Off - When Done Right

Many leaders mistakenly see communication skills as “soft skills” — a luxury rather than a necessity. Instead, they often prioritize short-term profits, drive results through sheer determination, but don’t see communication skills as a priority. This despite research, showing the overwhelming positive impact they can have, as illustrated below. Calling them “soft skills” is misleading — these are leadership essentials, not optional extras. Learning to be an effective communicator is a defining leadership skill that separates the best from the average.

Here is the evidence that investing in communication skills, if done right, can pay handsome dividends:

• McKinsey & Company: Companies with strong communication and collaboration see a 20-25% increase in productivity (McKinsey, 2012).
• Salesforce Report: High-performing teams are 4.5 times more likely to have effective communication than low-performing ones (Salesforce, 2020).
• Gallup Research: Teams that communicate effectively are 47% more productive (Gallup, 2018).
• Project Management Institute (PMI): Poor communication is responsible for 56% of project failures (PMI, 2013).

Clarify and Commit to Your Purpose - Answering the Question “Why Are We Here?”

By way of example, I’m going to reference two classic examples of companies where the clear articulation of purpose served them extremely well.

The First Example: Avis & Their Famous Campaign Slogan - “We Try Harder”

• The campaign revitalized Avis, turning it from a loss-making company into a profitable competitor to Hertz within a few years.
• Avis employees embraced the slogan — it became a service philosophy rather than just a marketing tagline.
• Customers perceived Avis as a friendlier, more customer-focused alternative to Hertz.

✔ “We Try Harder” worked because it was authentic and customer-focused.

The Second Example: Alcoa’s Commitment to “Worker Safety”

This is the story of a remarkable man, who changed the fortunes of his company in a super positive direction over a 20-year period. His name was Paul O’Neill, and his success could in large part be attributed to his unwavering commitment to one single purpose: a focus on worker safety.

When he was introduced to the press to announce his appointment—he surprised his audience with his announcement that worker security would be his overriding goal for the company. This was not the usual type of response that the skeptical press expected. They would have expected to hear things like “strategy” and “synergy” and “right-sizing” and all the other usual “executive speak.” Some reporters left the meeting in a hurry to warn their readers and investors of the impending disaster that would unfold under O’Neill’s leadership.

Here is what he said:

“If you want to understand how Alcoa is doing you need to look at all workplace safety figures. If we bring our injury rates down, it won’t be because of cheerleading or the nonsense you sometimes hear from other CEOs. It will be because the individuals at this company have agreed to become part of something important: they’ve devoted themselves to creating a habit of excellence. Safety will be an indicator that we are making progress in changing our habits across the entire institution. That’s how we should be judged.”

- Extract from “The Power of Habit” - Charles Duhigg

Before O’Neill’s tenure, Alcoa had at least one accident per week. The company’s worker injury rate fell to one-20th the U.S. average.

“I knew I had to transform Alcoa, but you can’t order people to change. That’s not how the brain works. So, I decided I was going to start by focusing on one thing. If I could start disrupting the habits around one thing, it would spread throughout the entire company.”

Within a year of O’Neill’s speech, Alcoa’s profits would hit a record high. By the time he retired in 2000, the company’s annual net income was five times larger than before he arrived, and its market capitalization had risen by $27 billion.

Feedback is an Essential Two-Way Street

Great leaders don’t just give feedback — they create environments of trust where feedback flows both ways, up and down the organization.

• Start by always being on the lookout to “catch others doing things right.” This reinforces the positive behaviors and values you want in your organization.
• Creating this “positive contagion” is the easy part, and most good leaders do it naturally.
• The hard part is giving negative feedback, which for most of us is never easy.
• This can be made easier if you have an agreement right from the start with new hires, where both commit to not being afraid to give each other negative feedback, as a way to help each other grow.
• The toughest feedback is upward feedback, from the subordinate to the boss. The best way for this to work is for the boss to create a culture where subordinates are consistently solicited for feedback both positive and negative.

We’ll dig deeper and explore how to create open, honest conversations in post #7, based on the work from the authors of Crucial Conversations.

DEI - A Competitive Advantage, or “Woke Nonsense”

The Strength of Diversity in Hiring

(DEI) — diversity, equity and inclusion — wasn’t around as a concept when I started working in the corporate world a long time ago. But simply by being open-minded, I stumbled upon the benefits of applying diversity when hiring. Looking back, these examples prove that thinking outside the box when hiring can lead to results that may surprise you. Maybe I just got lucky!

Example 1: Hiring for Potential — Not Credentials or Experience

When I was responsible for a drinks company, I hired a young woman called Paddy, as a marketing coordinator. On paper, she wasn’t qualified — no degree and little experience — but she had an undeniable ability to engage, steely blue eyes, and a throaty laugh that hinted at confidence. I took a chance. Four years later, after proving herself time and again, she had earned a well-deserved promotion to Vice President Marketing.

The same positive thing happened again when I was working in a building products company. Once again, I was looking for a marketing assistant. The candidate in this case was an arts graduate from Queens University, with no business or marketing experience. In our first interview, he said that the most beneficial subject in school was typing!!

Like Paddy, Chris was amazingly competent and finished up as V.P. Marketing. Later, we set up as business partners together, under the brand name “Rooney Earl and Partners - Integrated Sales and Marketing.” Our business flourished for the first 3 years, until tragically Chris passed at the age of 35 from melanoma.

Example 2: Over-coming an Age Bias When Hiring

Another left-field hiring experience I had also proved that diversity can pay dividends. In this example, I was in the building products industry looking to hire a regional manager for Western Canada. One day I got a call out of the blue, from a gentleman in his mid-60s from Alberta, who said he was interested in applying. I hired him, after he paid for his own airfare and made very reasonable demands in respect to his compensation.

After that, we used an executive recruiting company to hire another 5 regional managers, giving us representation across the U.S. The team we hired all had degrees, were in their mid-30s, and had at least 5+ years of industry experience.

The results? The “Old Dog” consistently outperformed the young bucks by a mile!

These hiring stories reinforce a simple truth: when hiring, rigid qualifications can be limiting. True talent often lies in unexpected places. Proving diversity — whether in background, experience, or perspective — can be a source of great strength.

Fast Forward to Today and a Closer Look at the Successes and Failures of DEI

Companies as diverse as Apple and Costco remain committed to their DEI initiatives, despite pressure in some quarters to suggest it is soft “woke thinking.” Others like Target, who were less committed and with a more performative approach to DEI, have gone on to abandon their DEI initiatives. For this shift, they have paid a heavy price, reflected in a dramatic fall in their share price, estimated to be around $12 billion.

Here is Why DEI Works for Costco

(DEI) initiatives are integral to Costco’s business strategy, fostering a workplace where all employees feel valued and respected. The company believes that a diverse workforce enhances creativity and innovation, which are essential for offering unique products and services that meet the varied needs of its members.

Costco’s commitment to DEI is also seen as a means to attract and retain top talent, contributing to the company’s overall success. By promoting inclusivity, Costco aims to create opportunities for all employees, reinforcing its code of ethics and enhancing customer satisfaction.

Despite facing external pressures and legal challenges, Costco has maintained its DEI programs, asserting that these initiatives are legally sound and beneficial to the business. The company’s board has urged shareholders to support DEI efforts, emphasizing their role in driving business growth and maintaining a positive corporate culture.

In summary, DEI initiatives at Costco are designed to cultivate an inclusive environment that promotes innovation, attracts talent, and enhances customer satisfaction, aligning with the company’s core values and business objectives.

Why Some Push Back Against DEI

Despite clear advantages, some businesses resist DEI due to:

• Misconception that it’s a cost, not an investment. Many leaders see DEI as compliance-driven rather than a competitive advantage.
• Political framing. DEI efforts are sometimes misrepresented as ideological rather than pragmatic strategies for talent and business growth.

The Leadership Takeaway

DEI, when done right, is not about checking a box — it’s about building the best possible team. If you believe that great people drive great results, then creating a fair, inclusive, and diverse workplace is simply smart business.

Final Thoughts

Here is a summary of the key take-aways from this 4th piece on Leadership Communication:

• Lead by example, investing in your own and your team’s so-called “soft skills” like communication excellence.
• Spend time figuring out and then articulating your company’s purpose, in such a way that it resonates as a rallying call with your team.
• If feedback “is the breakfast of champions,” make sure you create a safe, trusting environment where anyone can speak truth to power. Hard to do, but well worth the effort.
• If understood and adapted intelligently, DEI can be extremely helpful in delivering positive results, well beyond any investment costs.