Fiduciary duty vs. emotions.

A client with whom I was visiting a few weeks ago drew me into a conversation on "gatekeepers"--you know, those receptionists, administrative assistants and others who, at least for those trying to talk to decision makers, seem to be devoted to shutting off communications. This client said when she retires she may write an expose on how gate-keepers cost their companies millions of dollars per year. My client is correct, but her thoughts do not go far enough. Beyond gatekeepers there are many throughout the ranks of companies who, either through petty emotions or other attitudinal issues, are failing in their fiduciary duty. I would guess every company in our industry loses the equivalent of their net profits each year through this particular problem.

First, a definition of "fiduciary duty" is in order. The easy word, of course, is "duty," which is simply one's responsibility. A "duty" may be based upon morality, ethics or employment. In this case, we are primarily talking about employment and ethics. According to Black's Law Dictionary, "fiduciary" is "a term derived from old Roman law and means, as a noun, a person holding the character analogous to that of a trustee, in respect to the trust and confidence involved in it and the scrupulous good faith which it requires." Thus, "fiduciary duty" may be thought of as the duty of a trustee. If you are employed by any company, you have a fiduciary duty to that company.

So, we begin by picking on the poor receptionists and administrative assistants who are instructed to not let through that call that just may hold the key to a fantastic economic advantage for your company. If they are only following your orders, you are the one who is failing in fiduciary duty. If they let through those with charm and grace, and not those who offend them, they are failing in their fiduciary duty. Either way, your company has missed an opportunity.

Others are just as guilty. They may be professionals in finance, engineering or some other discipline. Another client recently related to me the endless gyrations a group of engineers and finance types continually put him through as he explains a process unfamiliar to them (do I hear faint, "not invented here" whispers?). This is a corporate group. My client has finally gotten around them by going directly to the mills where his simple concept can be immediately implemented. Meanwhile, this large corporation has probably wasted US$30 to US$50 million in energy costs in the last six months alone, while this corporate group spends its time trying to find fault with a proven technology they have not used before.

My client describes this group as being similar to a bank commercial currently running on the financial television channels here in the United States. In this scene, a group is sitting around a table when one member of the group starts to choke on his food. The rest of the group immediately engages in a conversation regarding the Heimlich maneuver while the poor victim continues to choke, turn various shades of green and pass out. Finally someone from another table takes action and actually performs the Heimlich maneuver--that someone, of course is from the bank. My client says he knows for certain where the other group is from--the previously referenced large paper company's corporate staff.

The clearest case of missed exercise of fiduciary duty, is of course, the unscrupulous bribe seeker. There are many legends and rumors of problems in this area in our industry. Fortunately, most can at least see that this will get them in trouble, even if they do not have enough of an ethical foundation to see it is wrong. Unfortunately, this blatant example tends to hide the subtle ones we have examined here. Letting one's emotions get in the way of a sound fiduciary decision is just as wrong as taking a bribe. Yet, there is an opportunity for so much nuance and finesse with emotions that we can even deceive ourselves as to the harm we are doing our employers.

So, the other side of the fiduciary duty coin is your emotions. When you walk into work each day, it is part of your sacred trust with your employer to keep the fiduciary duty side up and the emotional side down all day. If you do, you just may earn your salary today by listening--regardless of the source--to any idea about how your employer can save money, and implementing that idea promptly.

ABOUT THE AUTHOR

Jim Thompson is chairman and CEO of Talo Analytic International Inc., Atlanta, Georgia, USA. He is also a member of the Solutions! Editorial Board and writes the weekly column "Nip Impressions" in TAPPI's weekly electronic newsletter, Over-the-Wire. Please contact him at [e-mail].

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