Character is forged at those defining moments when a
manager must choose between right and right.
THE DISCIPLINE
OF BUILDING
CHARACTER
BY JOSEPH L. BADARACCO. JR.
W E HAVE ALL EXPERIENCED, a tone time or another, situations in
which our professional responsibilities
unexpectedly come into conflict with
our deepest values. A budget crisis
forces us to dismiss a loyal, hardwork-
ing employee. Our daughter has a piano
ecital on the same afternoon that ou
iggest client is scheduled to visit ou
office. At these times, we are caught in a
conflict between right and right. And no
matter which option we choose, we feel
like we've come up short.
ARTWORK BY CRAIG FRAZIER 115
THE DISCIPLINE OF BUILDING CHARACTER
Managers respond to these situations in a variety
of ways; some impulsively "go with their gut";
others talk it over with their friends, colleagues, o
families; still others think hack to what a mento
would do in similar circumstances. In every case,
egardless of what path is chosen, these decisions
taken cumulatively over many years form the very
asis of an individual's character. For that reason,
I call them defining moments.
What is the difference between a tough ethical
decision and a defining moment? An ethical deci-
To become leaders, managers need
to translate their personal values
into calculated action.
sion typically involves choosing hetween two op-
tions: one we know to be right and another we
know to he wrong. A defining moment, however,
challenges us in a deeper way by asking us to
choose between two or more ideals in which we
deeply helieve. Sueh challenges rarely have a "cor-
ect" response. Rather, they are situations created
hy circumstance that ask us to step forward and,
in the words of the American philosopher John
Dewey, "form, reveal, and test" ourselves. We form
our character in defining moments hecause we
commit to i
eversihle courses of action that shape
our personal and professional identities. We reveal
something new ahout us to ourselves and others be-
cause defining moments uncover something that
had been hidden or crystallize something that had
een only partially known. And we test ourselves
ecause we discover whether we will live up to ou
personal ideals or only pay them lip service.
As I have interviewed and studied business lead-
ers, I have found that the ones who are most satis-
fied with the way they resolve their defining mo-
ments possess skills that are left off most jo
descriptions. Specifically, they are able to take time
out from the chain of managerial tasks that con-
sumes their time and undertake a process of proh-
ing self-inquiry-a process that is more often ca
ied
out on the run rather than in quiet seclusion. They
Joseph I . Badaracco, Jr., is the fohn Shad Professor of
Business Ethics at the Harvard Business School in
Boston, Massachusetts. This article is based on his most
ecent book. Defining Moments: When Managers Must
Choose Between Right and Right, published by the Har-
vard Business School Press in i991-
are able to dig below the busy surface of their daily
lives and refocus on their core values and princi-
ples. Once uncovered, those values and principles
enew their sense of purpose at work and act as a
springboard for shrewd, pragmatic, politically as-
tute action. By repeating this process again and
again throughout their work Uves, these executives
are able to craft an authentic and strong identity
ased on their own, rather tban on someone else's,
understanding of what is right. And in this way,
they begin to make the transition from being a
manager to becoming a leader.
But how can an executive trained
in the practical, extroverted art of
management learn to engage in suc
an intuitive, personal process of
introspection? In tbis article, I will
describe a series of down-to-earth
questions that will help managers
take time out from the hustle and
ustle of the workplace. Tbese practical, tbougbt-
provoking questions are designed to transform
values and beliefs into calculated action. Tbey have
een drawn from well-known classic and contem-
porary philosophers but remain profound and flex-
ible enough to em
ace a wide range of contempo-
ary right-versus-right decisions. By taking time
out to engage in this process of self-inquiry, man-
agers will by no means be conducting a fruitless
exercise in escapism; ratber, they will be getting
a better handle on their most elusive, cballenging,
and essential business problems.
In today's workplace, three kinds of defining
moments are particularly eommon. Tbe first type
is largely an issue of personal identity. It raises the
question. Who am I? Tbe second type is organiza-
tional as well as personal: botb tbe character of
groups within an organization and the characte
of an individual manager are at stake. It raises the
question. Who are we? The third type of defining
moment is the most complex and involves defining
a company's role in society. It raises the question.
Who is the eompany? By learning to identify each of
these three defining moments, managers will learn
to navigate rigbt-versus-right decisions with grace
and strengtb.
Who am I?
Defining Moments for Individuals
The most basie type of defining moment demands
that managers resolve an urgent issue of personal
identity that has serious implications for their ca-
eers. Two "rights" present themselves, each one
epresenting a plausible and usually attractive life
116 HARVARD BUSINESS REVIEW March-April 1998
THE DISCIPLINE OF BUILDING CHARACTER
choice. And therein lies the problem: there is no
one right answer; rigbt is set against right.
Conflicting Feelings. When caught in tbis bind,
managers can begin by taking a step back and look-
ing at the conflict not as a problem but as a natural
tension between two valid perspectives. To fiesh
out this tension, we can ask. What feelings and in-
tuitions are coming into conflict in this situation^
As Aristotle discussed in his classic
work Ethics, people's feelings ean actu-
ally help them make sense of an issue,
understand its hasie dimensions, and
indicate what the stakes really are. In
other words, our feelings and intuitions
are both a form of intelligence and a
source of insight.
Consider, for example, the case of a
young analyst-we will call him Steve
Lewis-who worked for a well-known
investment bank in Manhattan.' Early
one morning, Lewis, an African-Ameri-
can, found a message on his desk asking
if he could fly to St. Louis in two days to
help with a presentation to an impor-
tant prospeetive client. The message
came as a surprise to him. Lewis's eom-
pany had a clear policy against including
analysts in presentations or client meet-
ings. Lewis, in fact, knew little about
the subject of the St. Louis meeting,
which concerned a specialized area of
municipal finance. He was especially
surprised to learn that he had been se-
lected over more senior people in tbe
public finance group.
Lewis immediately walked down tbe
hall into the office of his friend and
mentor, also an African-American, and
asked him if he knew about the situa-
tion. His friend, a partner at the eom-
pany, replied, "Let me tell you what's
happening, Steve. Look at you and me.
What do we have in eommon? Did you
know that the new state treasurer of
Missouri is also black? I hate for you to be intro-
duced to tbis side of the business so soon, hut the
state treasurer wants to see at least one black pro-
fessional at the meeting or else the company has no
ehance of being named a manager for this deal."
What if at this point Lewis were to step back and
eframe tbe situation in terms of his feelings and
intuitions? On the one hand, Lewis believed firmly
that in order to maintain his self-respect, he had to
earn his advancement at the company - and else-
where in life. He was not satisfied to move up the
ladder of success based on affirmative action pro-
grams or being a "token" member of the company.
For that reason, he had always wanted to demon-
strate through his work that he deserved his posi-
tion. On the other hand, as a former athlete, Lewis
had always prided himself on being a team playe
and did not believe in letting bis teammates down.
By examining his feelings and intuitions about the
To resolve their toughest business challenges, executives
need to refocus on their core values.
situation, Lewis learned that the issue at band was
more complex than whether or not to go to the pre-
sentation. It involved a conflict between two of his
most deeply held beliefs.
Deeply Rooted Values. By framing defining mo-
ments in terms of our feelings and intuitions, we
can remove the conflict from its business context
and
ing it to a more personal, and manageable,
level. Then we can consider a second question to
help resolve the conflict: Which of the responsibili-
ties and values that are in conflict are most deeply
HARVARD BUSINESS REVIEW March-April XXXXXXXXXX
THE DISCIPLINE OF BUILDING CHARACTER
ooted in my life and in the communities 1 care
aboutl Tracing the roots of our values means under-
standing their origins and evolution over time. It
involves an effort to understand which values and
commitments really mean the most to us.
Let's apply that approach to the ease of Steve
Lewis. On the one hand, he bad no doubt that he
wanted to hecome a partner at a major investment
ank and that he wanted to earn that position based
on merit. Since his sophomore year of college,
Lewis had been drawn to the idea of a career on Wall
Street, and he had worked hard and purposefully to
make that idea a reality. When be accepted his cur-
ent job, he had finally set foot on the path he had
dreamed of, and neither the long hours nor the
detailed "grunt" work that was the lot of first-yea
analysts gave him misgivings about his choice. He
elieved be was pursuing his own values by seeking
a successful career at a Wall Street investment
ank. It was the kind of life he wanted to live and
the kind of work he enjoyed doing.
On the other hand, when Lewis considered his
African-American background, be thought about
what his parents had taught him. One episode from
the early 1960s stood out in particular. His parents
made a reservation at a restaurant that reputedly
did not serve blacks. Wben they a
ived, the hostess
told them there had been a mistake. Tbe reserva-
tion was lost, and they could not be seated. The
estaurant was half empty. Lewis's parents turned
around and left. When they got home, his mothe
made a new reservation under her maiden name.
(His father had been a popular local athlete, whose
Self-inquiry must lead to shrewd,
persuasive, and self-coiilident
action if it is to be an effective tool.
name was widely recognized.) The