True Believers and Forced Believers

In this context, there are two means by which invincible executives protect the interest of their companies over the interests of individual employees—and these two means are diametrically opposed to one another. They develop "core loyalists" and "contract loyalists."

First, the invincible executive develops a few true believers—core loyalists. Executives who enjoy long-term success always have a personal charisma that inspires loyalty. Unfortunately, there are a limited number of people top executives can get to know well enough to make them true believers. So the most successful professionals focus their efforts to build true loyalty with a few very talented people. Indeed, virtually every top professional I interviewed said that he or she had a handful of long-term confidants whom he or she could trust entirely. They may be older mentors, younger prot g s, or trusted contemporaries—and are often a mix of the three. But it is unlikely that in an entire career you will be able to find and cultivate more than five such people, and it is a waste of time to attempt more.

That's when the more Machiavellian side of the invincible executive steps in. Top professionals force loyalty where they cannot earn it. They do it through three mechanisms: (1) employment agreements, (2) confidentiality pacts, and (3) covenants not to sue. This is contract loyalty.

Invincible executives value employment contracts. They get such contracts for themselves, and they require their top talent to sign them as well. An employment agreement defines loyalty as a matter of law, not a matter of organizational patriotism. The agreement specifies the pay, benefits, and severance that the employee gets—that is the company's guaranteed loyalty to the employee. But the agreement also contains clauses that prohibit the employee from working for competitors in specified geographic areas for specified periods of time after he or she leaves—that is the employee's forced loyalty to the company. State laws govern the extent to which you can preclude a former employee from competing with you, but there is a lot of leeway to do so, and invincible executives take maximum advantage of their ability to restrict top talent from competing with them in the future.

Next, invincible executives require all employees at all levels to sign confidentiality agreements at the time they start work. These agreements define the type of information that the company deems to be proprietary, and the agreements preclude employees from disclosing this information outside the company—even after the employee leaves the company. Confidentiality agreements also require employees to promise to not take any company documents or electronic files with them when they depart.

Finally, top executives seek waivers of legal liability from departing employees. The rules on obtaining such waivers are tricky and require legal counsel, but they have become an essential part of doing business successfully these days. So many executives—even very senior ones—are done in by disgruntled former employees that top managers have become very familiar with legal waivers and the necessity of using them at all possible times. Often the company will offer a more attractive severance package in exchange for the departing employee's promise not to initiate any sort of legal action against the company. Some companies also elicit statements that the employee is unaware of any illegal or unethical conduct that occurred at the company while the employee was there. Remember, however, that there is a fine line between getting an honest statement of exoneration and looking like you are paying to sweep problems under the rug, so waivers of this type should be negotiated and drafted by professionals.

The standard for professional loyalty has changed with the times. Most of today's invincible executives neither show pervasive loyalty to their employees, nor do they expect it from them. However, they do require observance of basic integrity and professionalism. Then, they cultivate a small core of true believers. And finally, top professionals use contractual mechanisms to protect their organizations in an era when you can no longer depend upon traditional notions of loyalty to do so.