Making timely, smart decisions can be an everyday occurrence. But what happens when the pressure is turned up and the stakes the highest you have ever faced? In this Tough Things First podcast, Ray Zinn discusses the key elements of navigating decisions under pressure.
Rob Artigo: Ray, as CEO of Micrel for nearly four decades, you have had to make countless decisions, and so I thought maybe we’d explore just on how effective leaders like you make confident, informed decisions when the stakes are really high. Obviously you’re talking about employees’ futures, the future of the company, people making decisions on investments when it relates to your company, and then also buyers; the people you’re selling to have to have confidence that your company’s going to deliver properly. All of those things are really high stakes in decision-making. So let’s talk a little bit about decision-making and how high stress impacts that process.
Ray Zinn: Sure. Well, what I’d like to do is start out by talking about the culture. Every company needs a culture. And at Micrel, our culture was, number one, honesty, the second was integrity, third was dignity of all individuals, and the fourth was doing whatever it takes, no excuses. So those cultures help form and transform the decisions that we make. All of the decisions that the company made were, whatever the reason, were based on those four cultures as it relates to employees, of course, dignity of every individual. So you make your decision based on that culture of dignity and respect. And then whether it’s dealing with customers or dealing with a bad market, honesty and integrity are very important. So those were the basis of the decisions we made regarding how we run our business, whether it be honesty, integrity, respect, or doing whatever it takes.
Doing whatever it takes is really an interesting one because it talks about how you go about making a decision. Your first decision is, how do I rectify this mistake or this problem that we’re facing and doing it in a way in which none others than yourself will have to suffer? You have to take the biggest hit. And I did that when I was CEO, is whenever we had a layoff or whenever we had a downturn, I took the biggest hit. I took the most time off, or I took the biggest pay cut by a factor of three over everybody else. So I put myself at risk more than I did my employees.
So if you start out with that basis that, whether you’re an employee or whether you’re the CEO, that you’re going to make sure that no one suffers from your mistakes, that you take that responsibility of correcting that mistake, will be key to how well your decision is going to be accepted. When we had to do a layoff or when we had to do a cutback, reducing salaries, they knew that I was going to take the biggest hit. We’re all in it together, as they say. So if your employees or your customers know you’re in it, you’re in it to win it, as they say, then they’re more supportive. And that’s what you need. When you have tough decisions, just make sure that your employees know that you’re on it, that you’re in it 100%, and that you’re not trying to put it off on someone else, that you’re taking full responsibility for that decision. And that’s the key. Just saying, by the way, “Oh, I take responsibility,” doesn’t mean anything. You have to show it. It has to be absolutely clear that you have accepted that responsibility.
So that’s the key to good decision-making is that willingness to accept the penalty, not just the words, the penalty for a bad decision. That’s what it takes. It takes that willingness to make the reparation for your decision and that you’re not putting others at risk; you’re taking on that responsibility, and they can see it. That’s what my people, the employees at my company, saw my willingness to take the penalty to suffer the consequences.
Rob Artigo: In my experience in the Army, we called that lead by example. And you’ve always been a leader in whatever you’ve done, where you’ve set the example, not just in creating the culture, but in living the life. So you’re out there not just talking the talk, you walk the walk, and people respond to that. And I’ve seen that.
Ray Zinn: Well, it’s that Congressional Medal of Honor philosophy. The way you get a Congressional Medal of Honor, and of course you know probably better than me because you’ve had a good career in the military, is that you have… To do something outstanding, you have to take whatever risks that are necessary to save your company or those around you. You’re going to put your life more at risk than anyone else, and that’s how you get the Congressional Medal of Honor. And maybe you could speak a little bit to what that means, because that’s what good decision-making is, is getting that Congressional Medal of Honor
Rob Artigo: Yeah. And most of the people who have the Medal of Honor, not withstanding the fact that… Because people have been getting that award for long enough to where a lot of people end up dying of old age, but they’re deceased when they receive it because of decisions that they made, selfless sacrifice. And I think that’s what you’re talking about here is you’re saying lead by example. Selfless sacrifice is in doing things that you know put yourself at risk, but you’re doing it because you’re living your personal ethos.
Ray Zinn: Yeah, so to be the one making the decisions is also the one who’s willing to take the hit and suffer the consequences. So be a Congressional Medal of Honor winner, either as a leader of your company or as an employee. Have that mentality that you’re going to do whatever it takes, no excuses.
Rob Artigo: Well, Ray, our listeners can join the conversation at toughthingsfirst.com. Comments are always welcome there. You can follow Ray on X, Facebook, and LinkedIn, and of course, pick up Ray’s books, Tough Things First and Zen of Zinn series one, two, and three, and on sale now, The Essential Leader: 10 Skills and Attributes and Fundamentals That Make Up the Essential Leader. Thank you, Ray.
Ray Zinn: Thanks, Rob.
