The Second File

The Second File

Points to Ponder: “In the Business world there are no permanent enemies and no permanent friends.” Mr. D’s very last advice to me in October 1983.

Story Line: My personal belongings were already in the trunk and I was ready to depart, the last time as an employee, from the parking lot of the very first company I had worked for when I saw Mr. D walking towards his car. Mr. D was the general manager of our division and over my three years as an expat, I had developed a good rapport with him.

I immediately got out of my car and rushed to him. I thanked him for the opportunities the company had given me for the previous eight years and the many valuable lessons I had learned; listening to his stories whenever he visited our site and also in meetings during my visits back to the headquarters. Mr. D was touched and with his car's door half open, his hand holding his coat slung over his shoulder and with legs crossed he told me, “The trouble with you was that you only saw good in people”*. Seeing my surprise, he continued, “You have to keep two files on people (know/aware of the bad side of people too). You have to be very careful when to open The Second File but it must kept it in case the situation warrants” (at that time my guess of what he meant; when people go out of line and try to hurt you). He ended by stating, "In the business world there are no permanent enemies and no permanent friends”. As he concluded, I realized that Mr. D had just imparted yet another lesson from his career to me. We shook hands and with tears in my eyes and a heavy heart I walked back to my car. 

As I started growing within the corporate world and always led by a curious nature, I started observing what went around. I understood how true and valuable Mr. D’s parting advice was as I saw office politics unfold. I used to share stories about Mr. D with people at work. They would laugh, many thinking they were the stuff of water cooler talk and lunch time fun. 

Then...

It was the week of July 4^th, our independence day. All our employees received a memo from the CEO stating that the second senior-most executive in the company would no longer be with us; citing and choosing to end with the standard line, “Left to pursue other interests”. Somehow, the tone of the language in the memo seemed harsh and was also a big surprise because the executive who had "Left to pursue other interests" was well liked across the company and had an outstanding track record with our customers. I rushed to our department's Senior VP to ask him what could have happened. He asked me to close the door to his office. Bursting into laughter he said, “The Second File opened.” He wouldn’t say anything else because of the confidentiality his position demanded. 

My thoughts shifted to the executive who had been let go; I amongst many in the company liked his leadership style and pleasant personality. He was brought in from another site because the board had insisted CEO to have a succession plan. He was very good at his job and also a friendly and caring person. He was well liked across the board and we had even heard that the board of directors liked him as well. Having read the history of many empires, sometimes I worried that when one becomes more popular than the boss, it may be time to look for another job. 

Over time, the news about the cause of the executive’s demise and accusations against him started leaking out. Hearing the reasons was shocking. Many believed they were not true and their take was that it was "The Second File" that was put into effect. Yet another time one of many of Mr. D’s lessons had come true. 

Over my 40 year career, I have seen "The Second File" played out in various different scenarios; some of them very sad. The lessons Mr. D imparted to me in my foundational years; to observe and to be aware of this "Second File" even though I chose not to keep one on any person are still of lifelong value. I did not exercise the tricks and techniques but just being aware of them, to understand and know they were there helped me keep my life stress free. I still like to see the good in people, but it doesn't hurt to know that others might be collecting information for a second file as well. 

Reflection: Being naïve and inexperienced I used to get shivers when I used to hear some of Mr. D’s stories and the lessons they had in them. I couldn’t believe how the real world could be like that... I hoped his stories were reserved for isolated cases. But as the years passed, and I matured, I realized that "The Second Files" are the reserved weapons in the business world’s complex Art of War and they have no expiration date. The degree to which they are used depends on how far out of line the other party is with the establishment, how much of a threat the party causes on the ruling Janata or how envious some people are of the person’s success. These "Second Files" are also kept by seasoned personnel on the establishments they work for, and when the time comes, they often walk away with handsome gift packages even if they lose the battle. 

*There was a background story behind that statement which will be the subject of future Friday Reflection.

Filing Cabinet Picture Source: Es.123rf.com

Related Story: In the Corporate Kingdom, Like the Animal Kingdom - Few Lions Die A Natural Death

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Comments

[Lopeti Senituli]

I like to think that I only see good in all people. But now that I have read your piece I realise that I have indeed kept a Second File secretly, although I will not readily admit to it...lol!

[Sam]

Thanks Anand for sharing this lesson and lot more during our long discussions. I agree that our values determine whether we keep the second file or not, but atleast we know how the jungle operates.

[Basant]

Very interesting!
The 'second file' can be a useful tool depending upon which side of the fence you are!
Fall in line, as they say is the option of majority.

[Cautious]

i have no energy for the 2nd file but I guess ignorance is not bliss; it can come to bite you...

[Singapore Student]

Politics is an art including in corporations.

[friend]

Wow, you did it! Got the 2nd folder story out to all your FR subscribers/ fan club

[California Guy]

The Second File sounds like a useful risk management tool for relationship management at any level, whether between individual persons, between company departments, between business entities, etc.

Like disaster recovery plan, the Second File seems most effective when used during "emergency" or "crisis" situations as a "survival" mechanism.

[microCEO]

There is a well-known rivalry in the world between the hedgehogs and the foxes (as described first by Aesop, and later by the writer, Isaiah Berlin). The fox is clever, with many tricks up its sleeve. The hedgehog has essentially one trick, but it knows skillfully how to apply this to a myriad of situations. So, which anthropomorphic animal has the better strategy? This eternal question in our contemporary age…has no correct answer, and yet each of us knows what is the right answer for ourselves.

Many writers in philosophy, history, journalism, and business have tackled the question. A favorite journalist, Nicholas Kristof, has an interesting take here : https://www.nytimes.com/2009/03/26/opinion/26Kristof.html

I bring up this fable because the FR story this week seems to hit on a similar dichotomy. In the "cut-throat" corporate world, is it better to be conniving and ambitious, or is it better to be apolitical and assume the role of a quiet leader, who modestly rejoices in the recognition of the team's accomplishments? Is the latter type naïve and vulnerable, inferior to the confident and paternal type of leader? Many might argue thus. I for one am not so sure.
Perhaps the foxes do fare better in a typical, "red-ocean" scenario, while hedgehogs know how and where to forge new, "blue-ocean" opportunities. But perhaps this picture is too simple even for Aesop's conception.

Many of Anand's readers, including myself, are or were affiliated with one of the corporations where he worked. We have seen his curious style of leadership, very much built upon trust and values, rather than hidden FBI-style dossiers. Most curious indeed! So atypical of other execs in his industry. And yet he thrived, and he demonstrated the effectiveness of his style to build a robust organization and a legacy. Those who have worked with Anand, or even nearby to him, would attest to his mysterious mix of softness and confidence in leadership (perhaps, ENFP or ENTJ?...https://www.bustle.com/p/which-myers-briggs-type-is-the-best-leader-only-18-percent-of-people-test-as-this-type-8487220). In my view, I was fortunate enough to observe how a hedgehog can survive and be happy, even without needing a 2nd file. Certain corporate big-wigs should only be so lucky!

[Everglades]

It's better to know the rules of the game and choose how to play it (i.e. knowing the Second File exists), rather than being ignorant of the game and one day being left out in the cold with no idea what happened.

As you say, doesn't mean that you have to keep a Second File, but knowing others might does offer some protection.

[The Golden Rule]

It's a really good reflection. And I agree with microCEO - not many of us gets to know a leader that is true; doesn't need to use the 2nd file. I personally get to experience the usage of 2nd file by some of the leaders in my company in many instances. One in particular used in so often, he used it on his own superior. In return, his superior used it back on him.
Everything comes back full circle coz what goes around really do come back around.
And ultimately, it is a vicious cycle - unless it stops somewhere.