Boss, I Think Someone Stole our Customer Data

I didn’t know much about data security when I first started helping to shape the content for the 2007 Visa Security Summit.  One of the skills I brought to my role of Director of Harvard Business Conferences was the ability to look at a thought leadership challenge faced by a company, get up to speed on it quickly, and frame it in a way that was compelling for the target audience to be influenced (and legitimate for HBP to be talking about). From there, I worked to create content that met high editorial standards, was objective, and yet which still helped the sponsoring company meet its communication goals. In other words, I helped companies get beyond their own marketing hype to see how their customers viewed the world and to deliver meaningful information to help those customers solve an important problem.

I see thought leadership as an algabraic equation: given challenge X, your customers will be better equiped to meet that challenge if you educate them about Y. The sponsoring company gives you X and you solve for Y. The customer remembers the sponsoring company as the source of the knowledge and thinks of them as the smartest folks regarding that challenge and this makes them more likely to call. In addition to Visa, I led efforts to do this for UPS (global trade and supply chain management), Accenture (adoption challenges with electronic health records), Coca-Cola (happiness), Nuance (customer experience), SAS (analytics) and others.

After the Visa summit, I turned what I learned into a case study for Harvard Business Review (repurposing content is part art and part science), “Boss, I Think Someone Stole our Customer Data”:

Flayton Electronics is showing up as a common point of purchase for a large number of fraudulent credit card transactions. It’s not clear how responsible the company and its less than airtight systems are for the apparent data breach. Law enforcement wants Flayton to stay mute for now, but customers have come to respect this firm for its straight talk and square deals. A hard-earned reputation is at stake, and the path to preserving it is difficult to see. Four experts comment on this fictional case study in R0709A and R0709Z. James E. Lee, of ChoicePoint, offers lessons from his firm’s experience with a large-scale fraud scheme. He advises early and frank external and internal communications, elimination of security weaknesses, and development of a brand-restoration strategy. Bill Boni, of Motorola, stresses prevention: comprehensive risk management for data, full compliance with payment card industry standards, and putting digital experts on staff. For the inadequately prepared Flayton, he suggests consulting an established model response plan and making preservation of the firm’s reputation its top priority. John Philip Coghlan, formerly of Visa USA, discusses the often-divergent positions of data-breach stakeholders and puts customers’ interests first. Swift disclosure by Flayton, he argues, would empower consumers to protect themselves against further fraud and might even enhance the company’s reputation for honesty. Jay Foley, of the Identity Theft Resource Center, recommends that Flayton emphasize quality of communication over speed of delivery. More broadly, he advocates cautious management to prevent data thefts, which are proliferating and could have long-term consequences.

I’ve gone on to teach this case several times for the Insitute for Advanced Network Security –now known simply as IANS (where I am on the faculty for leadership and management) and I know that it used at the Worcester Polytechnic Institute and other institutions of higher education.

As with all of my work for Harvard Business Publishing, it is still for sale on their site so I can’t post the entire article. They’ll be happy to sell you a copy.

Taking Charge Fast

This is the executive summary of an interview that I conducted with leadership transitions authority Michael Watkins for Harvard Management Update in 2006. It was one of the top 10 selling reprints from 2006 and it was republished in 2008. I’ve always admired Michael’s work as it is both practical and insightful. I frequently give his book, The First 90 Days, to friends who are looking for or about to start a new job. His latest book is Your Next Move.

The average executive takes on a new role every two to three years. And it can take up to six months for the executive to go from being a net consumer of corporate value to a net producer. Fortunately, there are strategies new leaders can use to shrink their time-to-value–and set the stage for their success. This article outlines four key strategies for successful transitions: (1) Craft a learning plan well before your first day on the job that includes markets, products, systems, and structures, as well as culture and politics; (2) Promote and protect yourself by letting go of your old job; (3) Beware of sacred cows–the unwritten rules and powerful informal networks that can be minefields to the uninitiated; and (4) Build the support team you need to succeed.

In some ways, Watkin’s guidance echoes a lesson that I’ve learned from executive coach Kira McGovern: you can consciously design relationships and your role in an organization.  You need to be mindful and intentional about your actions in order to do it, and you may find people more open to your efforts than you expect.

I’d like to post the full article but Harvard Business Publishing is still selling it so I’m not allowed to. You can buy a copy at www.harvardbusiness.org if you’d like.

Leadership and the Emotional Basement

Here’s a post that I published awhile back on the At Work Network. It is related to the work on meta-leadership in which I’m engaged at the National Preparedness Leadership Initiative at Harvard:

How much of your response in a crisis remains under your conscious control? If you are called upon to lead in a crisis, it is a question you should be prepared to answer. In physiological terms, your initial response is largely hard-wired. A sudden threat or crisis—be it a mugger, a fire, or to a lesser extent the announcement of a layoff—triggers the amygdala and the base of the brain, those parts of the brain activated by fear, distress, and anger. From here you will get a “fight, flight, or freeze” response. The brain is in survival mode and will suppress higher reasoning in order clear all channels for rapid action to mitigate the perceived threat.

This is the oldest part of the human brain (also known as the hindbrain); one we share with primates. This hard-wired capacity explains why you jump in fright during a horror movie even though, on a conscious level, you know that you are in no danger when the zombie with the knife leaps from the shadows. Your hindbrain takes over for a moment and invokes an involuntary response.

While the hindbrain can be an excellent asset in a threatening situation, it can inhibit effective leadership. In order to lead others, you need to be able to think at a higher level and make strategic decisions rather than panicked reactions. In fact, according to leadership authorities Richard Boyatzis and Annie McKee, prolonged arousal of the Sympathetic Nervous System (SNS) can deplete energy and hinder the ability to function and innovate.

The emotional basement

Dr. Barry Dorn of the Harvard School of Public Health calls this amygdala-controlled state “the emotional basement.” One characteristic of an effective leader in crisis, or “meta-leader” as Dorn and his colleagues have termed it, is to comprehend that you are in the basement and consciously climb out of it. How? One of the reasons that first responders have practiced procedures and protocols is that they trigger constructive activity and allow for reasoned decision making. It’s also why your organization practices fire drills. Think about what relevant, routine activity you can undertake to instill that calm in yourself. A simple one is to take a deep breath. Controlling your breathing is a great first step to restoring your control over your physical responses and allowing those parts of your brain that control reasoning to reassert dominance.

The second challenge, according to Dorn, is for you to understand that everyone around you is also likely to be in the “emotional basement.” You must help them climb up as well if you expect your followers to understand and follow direction. Again, simply asking everyone to take a deep breath is a good first step. Projecting calm and control will help engender it in others. Give clear, simple, concrete direction in a firm, controlled manner to project that you are in charge (e.g., “We’ll proceed down the West staircase and across the parking lot. Leave everything here and walk calmly out of the building.”)

Responding to complexity

In a more complex situation, give people specific tasks. If, for example, you are an IT or data security leader and your organization was the victim of a data breach, you would have someone check the activity logs, someone else check the firewalls, yet someone else examine recent server patches, etc. These would be tasks with which the people have familiarity; the routine will help them climb out of the basement. If you don’t have a task, make one up. To return to the movies, you’ve undoubtedly seen a scene in which an expectant father is panicked over the impending birth. The doctor (or other authority figure) will send him off to boil water. No one actually needs the boiling water but the simple, seemingly useful task helps the father focus and regain composure. This is usually played for comic effect on film but the underlying principle is actually sound advice.

These physiological responses explain why even the most laid back, non-hierarchical groups will long for the certainty of a command-and-control structure in a crisis situation. If leadership comprises authority, power, and influence, this is the time to leverage your authority and you will quickly discover how much you actually have. One of the reasons that leaders often rise from unexpected places during crisis is that true authority doesn’t always rest with the person formally in charge. People will follow the person they think can best lead to the far side of trouble.

“It takes great self-awareness, stamina, and discipline to control one’s gut-level responses in a stressful situation and intentionally elevate your mental activity out of ‘the basement’ and to bring others along with you,” says Dorn. “However, as a leader, it is the most important first step you can take.”