Corporate Provocateur July 9, 2010, 2:01PM EST

Ten Signs of a Fear-Based Workplace

Reigns of modest but palpable terror are making an unwelcome return at offices all over the country

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A friend of mine called me from a noisy airport. "I can't wait to get to my hotel and tell you the latest drama from my office," he said. "I would have called you earlier, but my boss was in the cab with me."

"Before I hear the drama itself, I have a question for you," I said. "Do you ever talk to your boss about all the craziness in your company?"

"Talk to my boss?" my friend exclaimed. "Are you nuts? I tell my boss exactly what he wants to hear. People who tell my boss what he doesn't want to hear are people who get laid off at the end of the quarter."

The U.S. financial crisis has caused fear in the boardroom, and that unease trickles down to every worker. The principal signs of a fear-soaked senior leadership are a preoccupation with looking out for No. 1, a clampdown on consensus-building conversations, and the shunning or ousting of anyone so bold or naive as to tell the truth about what he or she believes. We've seen the fear epidemic hit dozens of major firms over the past few years, and it isn't pretty. When a leadership team's attention turns from "How can we do the right thing for our customers and employees?" to "How can we keep our stature, our jobs, and the status quo intact, at any cost?" then fear officially rules the roost.

Here are 10 signs of a fear-based workplace. If you're the person in charge of a shop, pay attention:

1. Appearances are everything. When employees are preoccupied with staying in the office later in the evening than the boss does, fear is king. When people worry less about the quality of their work than about how they're perceived by managers higher up the chain, you've got fear.

2. Everyone one is talking about who's rising and who's falling. When a daily focus of office conversation is the discussion of whose stock is rising and whose is falling in the company's internal stock index, you've got a fear infestation. A preoccupation with status and political capital is a sure sign that stakeholders' best interests have taken a back seat to me-first, fear-based behaviors.

3. Distrust reigns. Would this be your knife in my back? When your employees have to stop and ask themselves, "Is it safe to tell Marybeth my idea?" you have a fear problem in your organization. Workplaces where people steal one another's intellectual capital are places where trust is subordinate to fear (if trust exists at all). If your business is one where backstabbers thrive, ditto. In a healthier shop, people would be comfortable rising up in protest against a backstabbing colleague, and the paradigm "I win when you lose" would be quickly nipped in the bud.

4. Numbers rule. Sensible performance goals help people understand what's important. An obsession with metrics, daily, weekly, and hourly, and a world view that says an employee is the sum of his numeric goals, are signs of a fear-based culture. Why? A healthy organization builds performance goals into its leadership framework, but the metrics don't equal the framework. When management views people as complex, creative, multifaceted value producers and considers metrics as just one element of a well-rounded leadership program, you can beat the fear back to a tolerable level.

5. And rules number in the thousands. Maybe the most stereotypical yet valid sign of a fear-based workplace is an overdependence on policies in place of smart hiring and common sense. These organizations fear their own employees' instinctive reactions to everyday circumstances (the need to book a business trip, order a stapler, or schedule a vacation day), so they install lengthy, tedious policies to keep employees from thinking independently. A need to tout the trust and openness in the organization constantly can be another red flag. As my friend Marla says, "The more an employer drones on and on in the handbook and other employee materials about trust, the less trusting they are."