Meet Mr Confidential Culprit
What talent management and leadership should know about that employee who violates confidentiality
Corporate America offers some fascinating wildlife that you seldom see in the world of entrepreneurship and results-oriented work. In the Meet Mr Series, we meet some of these corporate creatures and their challenges for talent management and leadership. One costly creature in corporate America is Mr Meet Mr Confidential Culprit. Mr Meet Mr Confidential Culprit loves to converse about information that violates confidential agreements. He sees little value in privacy and confidentiality because gossip is more fun in his eyes. His secret passion is making everyone feel close to him while he undermines everyone’s trust in everyone else.
But first, a fictional story. Because I'm creating a fictional stories as examples in this series, I'll call Mr Confidential Culprit in my story Caleb. As a reminder, our fictional company is ABCZ Corporation.
Story
"I honestly don't think that Jack has any idea what he's talking about," Caleb said placing a stack of papers on his desk that he had just reviewed. Josh and Jack developed a budget for a new construction project that had consumed more time than their company had expected due to a shortage of materials. The company requested that they update the budget due to the material setbacks, but with inflation changing the costs, their budget adjustment was much higher than the company anticipated and they wanted a review. "I honestly don't know how Jack got this job. He's just not that talented." Caleb paused and stood up from his cubicle and looked around, "Between you and me, if I were management, I would fire Jack."
"I don't want to discuss that," Josh disagreed and picked up the stack of papers that he handed Caleb. "What Jack and I both agree on is that leadership wants us to anticipate costs for the next two years with a shortage of materials." Josh pointed to the sheet of paper on the top of the stack, "What I'm pointing out here is that the price of the metals we need is rising faster each quarter and this adds a challenge when we're trying to anticipate what that cost will be in seven quarters from now." He showed a column graph on the sheet of paper that highlighted a rising cost, "That's what I need your set of eyes on - I want to ensure that our estimate for next year is factoring rising inflation and that's the only disagreement I've had - I think we should estimate at least double."
"Let me share with you some information that stays between the two of us only," Caleb began. "You're a trustworthy guy right, so you can keep a secret?" Josh didn't reply or respond to Caleb's question, but Caleb didn't care as he continued, "Sarah and I are going to get 30% commission of the budget you set with the client. I am so tired of working here. I know Sarah wouldn't want me to tell you this, so whatever you do, don't let her know that you know this - she's fed up with this company. We both plan to retire once you close this deal and this quarter finishes. Don't tell anyone this because we're pushing several teams to make high estimates this quarter so we can leave. We couldn't careless if inflation is raging even higher next year - the clients are stuck dealing with that problem." Caleb lowered his tone to a whisper, "If you make a really high estimate on this project for us, Sarah and I might find a way to ensure that you get a slice of that. It's only on you to get the client to agree; Jack is too client-conscious. He's such a straight arrow. Plus, Jack doesn't like working under you - he doesn't value your leadership. You know to estimate really high and get the client to agree here." Caleb switched his tone back to a loud tone, "Plus, you know that if inflation is even higher than you expect, you can always justify that cost to the client later. Once they're committed to a project, it's not like they can switch easily to another company." Caleb looked around the office as he said the next sentence, "Clients are best served when high expectations are set initially so that there's no later surprises."
Josh stood silent for a few seconds. "Thanks for another set of eyes," Josh said as he walked away from Caleb's desk. When Josh returned to his desk, he looked out the window of the office at the various birds flying around the rose bushes. After a few minutes, he picked up his phone to call Jack. "Jack, we may have an issue on this budget expectation. Can you come by my desk. Thanks." Josh put up his phone and started his computer. Once his computer finished loading, he started a reporting application that showed the anticipated budget he and Jack had created. He highlighted the first four quarters - the first year of the expected project budget.
"Josh," Jack said walking to Josh's desk. "What's going on?"
"I've been thinking about what we're about to submit to the client as far as budget," Josh started, "and I think it's best if we only plan for one year and not two years." Josh and Jack had been working with this client for five years and the ABCZ Corporation had always pushed both of them to set a large budget with the client. However, the company had under delivered for the client every time. When Josh and Jack would review with management, both had pointed out that ABCZ Corporation was promising too much for each project without understanding all the challenges. Inflation had now added another challenge and Josh knew that if they overpromised again, they would lose one of their largest clients.
"Are you sure?" Jack asked. "Right before you called, Caleb told me that we should get the longest budget possible for the client - he actually suggested four years instead of two years because this would prevent the back and forth with the client. He said that client leadership was stressed about our constant back-and-forth and longer contracts prevent that." Jack paused for a bit, "He also told me that if you don't aim for a longer contract that I should consider reporting you."
"I appreciate you sharing that," Josh replied. He looked out his office window again, "We can't forecast inflation four years ahead. In addition, a four year budget would be extremely large in cost for the client, but in the long run with high inflation, it would be more costly for us because we can't calculate how high prices will be in four years." Josh pointed to the one year highlight of his column graph, "One year means that our costs are fair to us considering high inflation and allows us to excel on the project for the client - something we haven't done with them yet and the reason we risk losing them." He looked at Jack with a serious look, "Fundamentally, if we don't perform for this client up to their standards, we will lose them as they are already on the edge. That's why I think a small contract that's reasonably priced is the best move."
Jack remembered the challenges that ABCZ Corporation had faced with their client in previous years and agreed. He knew that they needed to show the client that they could perform up to their promises, as they had disappointed the client several times in the past. A large budget for four years would be viewed as a sign of incompetence and not recognizing where they stood in their client's mind. A small budget for one year along with excelling on the project would mean they could regain some trust from their client.
As Jack grabbed a quick water from the break room before returning to his desk, Caleb interrupted him. "Jack tell me that you were able to convince Josh about extending the length of the budget."
"No, Josh pointed out that we're on the line with our client so we need to shorten it and over deliver this year," Jack replied. "He and I are on the same page that we need to prove ourselves this year to our client."
"C'mon Jack, Josh is such a boy scout," Caleb said shaking his head. He patted Jack on the shoulder, "This is your time to shine. I knew the first day that I met you that you were a guy who could get things done. Disagree with Josh on this and really push for a four year budget. The executives will love it if you do." Caleb looked around the room to verify that no one was around before continuing, "Besides, if you disagree with Josh and push for a longer budget and the client agrees, the executives will view you as more competent than Josh." He chuckled quietly, "You'll look like you can close bigger deals than him." Caleb lightly punched Jack's shoulder, "This company is all about getting big contracts signed."
Jack disagreed, "I think Josh is right that we've lost our clients trust and need to regain it. Putting a large budget in front of them risks us losing the client all together." He stepped away from Caleb and looked at him directly, "I realize that your focus is on a big contract, but our focus should be on delivering."
Caleb looked around the room again, as an employee had briefly walked in to grab a water bottle before leaving. He lowered his tone further, "Look I didn't want to say this earlier Jack, but the executives aren't too thrilled with Josh. Don't tell Josh I said this - this is between the two of us. Sarah and I aren't impressed with Josh either. Again only keep this between the two of us. Sarah and I don't plan to keep Josh on his role next year. I've put in a good word to Sarah about you because I think you could replace Josh." Caleb looked around again before continuing, "If you get a four year budget approved with this client, I'll make sure that you get promoted even if it takes me a bit to make it happen. In fact, I'll use you work as proof that you should be in Josh's role since you have more confidence in our company than he does." Caleb paused again, "I know that I can trust you to not tell anyone on this: Josh doesn't think highly of you. But I do. That's why I know that you can get this four year budget approved with the client. Plus when you do, Sarah will realize how competent you are. Trust me on this, I'll be sure you're taken care of."
Jack didn't say anything, but sipped his water. Caleb formed a big grin, "Look Sarah and I are great friends. We'll be sure that you get Josh's position. You just make that four year budget happen and we'll make sure that you're set at this company for life." Before continuing, he smiled more, "Plus, I get the concern with the client. If you request a long budget, I'll be sure that any client dissatisfaction is blamed on Josh. I'm not supposed to say this to you, but so far Josh has been the one who's dealt with the client directly." He leaned in and whispered, "I know from talking to the client some that they feel Josh is the reason that the project hasn't performed as highly as they expected. Disagree with him and this will be your time to shine."
What Experience Has Revealed
I've run into similar situations with a leadership and talent management lunch I host monthly. A few visitors have violated the privacy and confidentiality of their employers and I've had to stop this. Twice I've had to uninvite professionals, as they were discussing matters that should not be discussed with anyone. Mr Confidential Culprit doesn't only violate confidentiality at work, he violates it outside of work. The reason that this can occur is that people think a private lunch is an open place to discuss private matters.
While we discuss topics that are relevant to challenges, I actively caution people about discussing topics that would violate confidentiality and privacy of their companies. Asking a hypothetical question involving "Doe" characters is much different than stating exact names, positions along with the company where you work. In a similar manner, you must always remember that when you meet others in a professional setting, you are representing yourself and your company. If you are always in the middle of issues at work, then many people will correctly feel like it's a you issue, not a work issue.
One pattern I've seen with over half of Millennials (and a percent of iGenZ) is that they are not loyal to their companies. They feel loyalty to their friends or even strangers over their companies. They justify this as they saw their parents being betrayed by corporate America. While a few companies betrayed their parents, this was not true of all or even most companies. What Millennial talent can misunderstand is that by violating their company's privacy and confidentiality, they can undermine the company's success as well as open it to legal challenges. They also reveal that they are not worthy of trust; if you're speaking about private matters at the company that you work for, you'll do the same in your new company. This holds true for everyone who violates confidentiality and privacy.
Costs
The first cost that leadership and talent management face with Mr Confidential Culprit is that he undermines employees' trust in each other. Notice how Caleb talks to Josh about how Jack doesn't respect him, then talks to Jack about how Josh doesn't respect him. Mr Confidential Culprit wants everyone to trust him and feel close to him, but he doesn't want anyone to trust or feel close to others. This ends up creating chaos as employees never trust each other and never feel that they're on a team. Large projects can collapse quickly because rather than teams handling responsibilities through a division of labor, no one can trust that work will be done by others on the team.
The second cost to Mr Confidential Culprit is that he doesn't actually care about your company's privacy or confidentiality (nor does he care about your employees privacy or confidentiality). I'll never forget seeing a presentation about an HR employee who handed strangers on the internet a colleague's private information because she disagreed with her colleague about a topic. Because she gave the information on a public internet forum, the company was able to track her actions. When her colleague received death threats, the company was sued (as they should have been). The company was able to pass on the costs to the HR employee who violated privacy and confidentiality agreements. Unfortunately, this would not have been the case had they not identified the information on the public forum. What leadership and talent management can see here is that Mr Confidential Culprit doesn't care about privacy or confidentiality.
If Sarah really planned to retire, Caleb shouldn't have said this. Nor should Caleb be saying it about himself, nor should he be pushing for high budgets so that he gets a golden parachute before retiring. But we'll notice that he's also inconsistent with what he tells Josh and Jack - Josh is told that Caleb and Sarah are retiring, while Jack is told that Caleb and Sarah will promote him. The messaging differs because we can tell that Jack is new to the company and wants a future there while Josh has been there a while and Caleb thinks that he's as burned out as him. That's why his messaging differs. This inconsistency from Mr Confidential Culprit creates corporate chaos.
The third cost to Mr Confidential Culprit is that he won't obey your requirements. He's always a jump, hop and a skip away from violating the confidentiality or privacy of your company. He's a disaster waiting to happen and no matter how much you coach or mentor him, he's not going to respect your company's privacy. If your company also has a Mr Intellectual Property Theft, you have double the problems as these two employees tend to work and coordinate together.
The Meet Mr Series
For more in the Meet Mr Series of posts, check out Executive Decisions’ regular Series page. Some highlighted posts from this series:
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So so interesting