As a leader, you must always give credit where credit is due, but you must also accept responsibility when things go wrong. There is no single act that gives you more credibility than accepting the failure of those under you as your own. It will score points with those above and below you. Taking a hit for mistakes and problems when things go wrong is hard, but it’s the right thing to do, as long as you have a firm understanding of what happened.

Why is accepting responsibility such an important element in leadership? When subordinates know you will back them, they are more inclined to take risks. They will be more innovative in their work. It helps to bring out the best in them. That’s what you want. And that’s what they want.

Are you old enough to remember when Coca-Cola Company introduced “New Coke” on April 23, 1985 — effectively throwing out the soft drink so many people loved? That day lives in marketing infamy as one of the colossal blunders in consumer-goods history. But Robert Goizueta, then chairman and CEO of the firm, stepped in and took responsibility for the risky decision — a mistake that could have toppled the iconic brand — and soon repackaged traditional Coke as “Coca-Cola Classic,” regaining credibility for the corporation as a whole.

The return of the original formula Coca-Cola on July 11, 1985, just 79 days after the previously announced change, stands as a testimony to taking measured corporate risks but also as an example of how leaders act — and react — to challenges their company faces in the heat of a firestorm. Goizueta’s willingness to accept responsibility for the introduction of “New Coke” spoke volumes about his leadership and engendered the trust of his staff. Despite the incredible backlash of public sentiment — something that could have cost the Chairman his job — his creativity in “rebirthing” Classic Coke built credibility with his people and with consumers. Instead of becoming just another case study of marketing blunder, it goes down as one of the best rebounding feats in American business.

Tags: Business, Crisis Management, Humility, Leadership Excellence, Leadership Skills, Learning, Management, Reality, Responsibility