Evaluate the choices faced by Steve Lewis, Peter Adario, and Eduoard Sakiz (in Badaracco’s article) from the standpoints of the generalizability, utilitarian, and virtue ethics tests. Does Badaracco’s concept of character illuminate Hooker’s discussion of integrity?Can organizations exhibit character, integrity and virtue?
Character is forged at those defining moments when a manager must choose between right and right. THE DISCIPLINE OF BUILDING CHARACTER BY JOSEPH L. BADARACCO. JR. W E HAVE ALL EXPERIENCED, a tone time or another, situations in which our professional responsibilities unexpectedly come into conflict with our deepest values. A budget crisis forces us to dismiss a loyal, hardwork- ing employee. Our daughter has a piano recital on the same afternoon that our biggest client is scheduled to visit our office. At these times, we are caught in a conflict between right and right. And no matter which option we choose, we feel like we've come up short. ARTWORK BY CRAIG FRAZIER 115 THE DISCIPLINE OF BUILDING CHARACTER Managers respond to these situations in a variety of ways; some impulsively "go with their gut"; others talk it over with their friends, colleagues, or families; still others think hack to what a mentor would do in similar circumstances. In every case, regardless of what path is chosen, these decisions taken cumulatively over many years form the very basis of an individual's character. For that reason, I call them defining moments. What is the difference between a tough ethical decision and a defining moment? An ethical deci- To become leaders, managers need to translate their personal values into calculated action. sion typically involves choosing hetween two op- tions: one we know to be right and another we know to he wrong. A defining moment, however, challenges us in a deeper way by asking us to choose between two or more ideals in which we deeply helieve. Sueh challenges rarely have a "cor- rect" response. Rather, they are situations created hy circumstance that ask us to step forward and, in the words of the American philosopher John Dewey, "form, reveal, and test" ourselves. We form our character in defining moments hecause we commit to irreversihle courses of action that shape our personal and professional identities. We reveal something new ahout us to ourselves and others be- cause defining moments uncover something that had been hidden or crystallize something that had been only partially known. And we test ourselves because we discover whether we will live up to our personal ideals or only pay them lip service. As I have interviewed and studied business lead- ers, I have found that the ones who are most satis- fied with the way they resolve their defining mo- ments possess skills that are left off most job descriptions. Specifically, they are able to take time out from the chain of managerial tasks that con- sumes their time and undertake a process of proh- ing self-inquiry-a process that is more often carried out on the run rather than in quiet seclusion. They Joseph I . Badaracco, Jr., is the fohn Shad Professor of Business Ethics at the Harvard Business School in Boston, Massachusetts. This article is based on his most recent book. Defining Moments: When Managers Must Choose Between Right and Right, published by the Har- vard Business School Press in i991- are able to dig below the busy surface of their daily lives and refocus on their core values and princi- ples. Once uncovered, those values and principles renew their sense of purpose at work and act as a springboard for shrewd, pragmatic, politically as- tute action. By repeating this process again and again throughout their work Uves, these executives are able to craft an authentic and strong identity based on their own, rather tban on someone else's, understanding of what is right. And in this way, they begin to make the transition from being a manager to becoming a leader. But how can an executive trained in the practical, extroverted art of management learn to engage in sucb an intuitive, personal process of introspection? In tbis article, I will describe a series of down-to-earth questions that will help managers take time out from the hustle and bustle of the workplace. Tbese practical, tbougbt- provoking questions are designed to transform values and beliefs into calculated action. Tbey have been drawn from well-known classic and contem- porary philosophers but remain profound and flex- ible enough to embrace a wide range of contempo- rary right-versus-right decisions. By taking time out to engage in this process of self-inquiry, man- agers will by no means be conducting a fruitless exercise in escapism; ratber, they will be getting a better handle on their most elusive, cballenging, and essential business problems. In today's workplace, three kinds of defining moments are particularly eommon. Tbe first type is largely an issue of personal identity. It raises the question. Who am I? Tbe second type is organiza- tional as well as personal: botb tbe character of groups within an organization and the character of an individual manager are at stake. It raises the question. Who are we? The third type of defining moment is the most complex and involves defining a company's role in society. It raises the question. Who is the eompany? By learning to identify each of these three defining moments, managers will learn to navigate rigbt-versus-right decisions with grace and strengtb. Who am I? Defining Moments for Individuals The most basie type of defining moment demands that managers resolve an urgent issue of personal identity that has serious implications for their ca- reers. Two "rights" present themselves, each one representing a plausible and usually attractive life 116 HARVARD BUSINESS REVIEW March-April 1998 THE DISCIPLINE OF BUILDING CHARACTER choice. And therein lies the problem: there is no one right answer; rigbt is set against right. Conflicting Feelings. When caught in tbis bind, managers can begin by taking a step back and look- ing at the conflict not as a problem but as a natural tension between two valid perspectives. To fiesh out this tension, we can ask. What feelings and in- tuitions are coming into conflict in this situation^ As Aristotle discussed in his classic work Ethics, people's feelings ean actu- ally help them make sense of an issue, understand its hasie dimensions, and indicate what the stakes really are. In other words, our feelings and intuitions are both a form of intelligence and a source of insight. Consider, for example, the case of a young analyst-we will call him Steve Lewis-who worked for a well-known investment bank in Manhattan.' Early one morning, Lewis, an African-Ameri- can, found a message on his desk asking if he could fly to St. Louis in two days to help with a presentation to an impor- tant prospeetive client. The message came as a surprise to him. Lewis's eom- pany had a clear policy against including analysts in presentations or client meet- ings. Lewis, in fact, knew little about the subject of the St. Louis meeting, which concerned a specialized area of municipal finance. He was especially surprised to learn that he had been se- lected over more senior people in tbe public finance group. Lewis immediately walked down tbe hall into the office of his friend and mentor, also an African-American, and asked him if he knew about the situa- tion. His friend, a partner at the eom- pany, replied, "Let me tell you what's happening, Steve. Look at you and me. What do we have in eommon? Did you know that the new state treasurer of Missouri is also black? I hate for you to be intro- duced to tbis side of the business so soon, hut the state treasurer wants to see at least one black pro- fessional at the meeting or else the company has no ehance of being named a manager for this deal." What if at this point Lewis were to step back and reframe tbe situation in terms of his feelings and intuitions? On the one hand, Lewis believed firmly that in order to maintain his self-respect, he had to earn his advancement at the company - and else- where in life. He was not satisfied to move up the ladder of success based on affirmative action pro- grams or being a "token" member of the company. For that reason, he had always wanted to demon- strate through his work that he deserved his posi- tion. On the other hand, as a former athlete, Lewis had always prided himself on being a team player and did not believe in letting bis teammates down. By examining his feelings and intuitions about the To resolve their toughest business challenges, executives need to refocus on their core values. situation, Lewis learned that the issue at band was more complex than whether or not to go to the pre- sentation. It involved a conflict between two of his most deeply held beliefs. Deeply Rooted Values. By framing defining mo- ments in terms of our feelings and intuitions, we can remove the conflict from its business context and bring it to a more personal, and manageable, level. Then we can consider a second question to help resolve the conflict: Which of the responsibili- ties and values that are in conflict are most deeply HARVARD BUSINESS REVIEW March-April 1998 117 THE DISCIPLINE OF BUILDING CHARACTER rooted in my life and in the communities 1 care aboutl Tracing the roots of our values means under- standing their origins and evolution over time. It involves an effort to understand which values and commitments really mean the most to us. Let's apply that approach to the ease of Steve Lewis. On the one hand, he bad no doubt that he wanted to hecome a partner at a major investment bank and that he wanted to earn that position based on merit. Since his sophomore year of college, Lewis had been drawn to the idea of a career on Wall Street, and he had worked hard and purposefully to make that idea a reality. When be accepted his cur- rent job, he had finally set foot on the path he had dreamed of, and neither the long hours nor the detailed "grunt" work that was the lot of first-year analysts gave him misgivings about his choice. He believed be was pursuing his own values by seeking a successful career at a Wall Street investment bank. It was the kind of life he wanted to live and the kind of work he enjoyed doing. On the other hand, when Lewis considered his African-American background, be thought about what his parents had taught him. One episode from the early 1960s stood out in particular. His parents made a reservation at a restaurant that reputedly did not serve blacks. Wben they arrived, the hostess told them there had been a mistake. Tbe reserva- tion was lost, and they could not be seated. The restaurant was half empty. Lewis's parents turned around and left. When they got home, his mother made a new reservation under her maiden name. (His father had been a popular local athlete, whose Self-inquiry must lead to shrewd, persuasive, and self-coiilident action if it is to be an effective tool. name was widely recognized.) The