When people in organizations feel too secure, it's because there aren't any significant outcomes as a result of what they do. Whatever you do, nothing much different happens. This also means there are no important pay-offs if you risk by innovating. As there are no rewards for taking risks, then there's no sense of push in that institution's culture.

... there's a large core of powerlessness which is balanced against the unwritten contract that says that if you behave, you'll be okay. No wonder people pay so much attention to knowing the rules, to knowing the right people, to not making waves, to never making errors -- to not risking, trying, innovating.

I was appalled at how children had become the focus and gravitational center of the nuclear family around which parents orbited instead of the traditional arrangement in which children orbited around their parents. This is a huge change because a critical job in early childhood is to get children weaned away from the total narcissism normal to infancy. With the children as the center of the family's actions and decisions, narcissism is at a minimum prolonged and may never significantly decline.

The message to organizations is this: You have to increase the number of categories of contributing, or the types of career paths, which people can experience as successful. You cannot restrict esteem to the fewer and fewer who will be climbing up the management ladder. You need to have the majority of your people feeling like winners.

If the mood is overly anxious, then anxiety must be reduced by lowering uncertainty. Very simply, uncertainty is reduced when people are told what's going on and what will happen to them. In the vacuum of no news, people imagine the worst. Since disappointment is much easier to handle than anxiety, then, good news or bad, honesty is honestly the best policy.

Trust is perhaps the most critical single building block underlying effectiveness. Without trust leaders do not have followers. Without trust, leaders are impotent despite great rhetoric or splendid ideas. Trust rests on the belief among followers that the leader is transparent: What you see is what there is. Trust means followers believe there is no duplicity; no manipulation just to satisfy the leader's ego. Very simply: The effective leader is transparent; that's why that person is trusted.

I think the characteristics of really effective leaders when people are frightened and depressed are the same qualities that leaders need when people are optimistic. The difference is when people are frightened the need for these few qualities becomes much stronger because frightened people are desperate to have someone they can trust and believe in and who seems to be able to create a better future.