Today the Financial Times featured an article about the fast growing market of on-line word sponsorship. Very simply, it is a process whereby companies pay to have their site registered highly in ratings of search engines when users input particular words related to their core business.

According to US Bancorp, the paid-search market was worth $431m globally in 2001 and has almost trebled in size in 2002 to $1.26bn. Search engines like ‘Google’ state that its advertising clients experience on average a 2 per cent response rate – about 10 times higher than the rate of banner ads. This value is being recognised in the market with keyword clicks creating tens of thousands of dollars.

What the world of Internet Advertising is just beginning to understand and find new ways of valuing, the students of leadership have known for millennia. Words have power and can almost be priceless when used intentionally by leaders. Signify’s own Richard Eyre, who is also chairman of the Interactive Advertising Bureau, affirms this principle: “The incredible power of search engines now enables the market to put a value on individual words. Good leaders also weigh the value of their words; but the best go further, to read the messages they send through every step they take.”

This can be both positive and negative. The Second World War maxim ‘Careless Talk Costs Lives’ recognised the impact of inappropriate disclosure of information and ill-disciplined language.

The truth is that every word leaders use, are ‘Sponsored’ - that is they come with intention, mood, passion and purpose. They also carry a price tag in their capacity to win the hearts and minds of those who follow. Few things have greater power to generate commitment and galvanize the ‘discretionary effort’ of employees than language. For example, the contrast of performance by individuals who constantly hear phrases like ‘You guys are a waste of space’ compared to those who persistently hear ‘I believe in you’, will be stark.

Our words truly do have power. Fernando Flores, previous Chilean Minister of Finance, now corporate consultant and language guru has turned his belief in the power of language into a powerful force for change. His change programmes focus on helping individual leaders to master ‘speech acts’. These he describes as,

‘language rituals that build trust between colleagues and customers… speech acts are powerful because most of the actions that people engage in – in business, in marriage, in parenting – are carried out through conversation. But most people speak without intention, they simply say whatever comes to mind – speak with intention and your actions take on new purpose. Speak with power, and you act with power.’

Flores’ work focuses on transforming the language patterns of leaders as individuals and corporate teams. He recognises clearly the ‘market value’ of leaders’ words.

Our own experience of working with senior teams shows very clearly, that words, authenticated with action, have transforming power. Yet it is amazing how many leaders either don’t understand this or choose to violate its principles. Too often their words shred their reputation and damage their capacity to lead effectively. Their careless and clumsy words distance them from their peers and build a culture of distrust. It appears others have allowed themselves to believe that they are the exception to such rules and have used rude and abusive language towards their staff that has resulted in million dollar law-suits for emotional abuse.

Martin Heidegger, the German Philosopher, asserted that ‘Language is the house of being’. Whatever you feel about this statement it is certainly true that the ‘working house’ (i.e. culture) of our organisations is significantly shaped by the language we as leaders choose to use.

So it could be that for some reading this it is time for a language audit. Listen to yourself, ask a few others to do the same and see what emerges. For the rest of us we can be assured that no-matter what happens to the price of words on internet search engines, our own will always be filled with priceless potential to injure or inspire.

‘There are many whose tongues might govern multitudes, if only they could govern their own tongue’ (George Prentice)

Phil Wall
CEO