Tuesday, May 27, 2025

Set a Good Example, Or Your Team Will Follow the Bad One.

 

Set a Good Example, Or Your Team Will Follow the Bad One.

Your team will always be looking for clues about how to behave toward customers, vendors and each other. Right now, they’re getting nothing but bad advice from the highest level.

EXPERT OPINION BY HOWARD TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH INVESTORS @HOWARDTULLMAN1

 

May 27, 2025

 

As a young lawyer, I was introduced to a custom in our firm in which the rookies had to handle the many strange and simple lawsuits regularly initiated by one of our most litigious clients. This gent was in the towel-and linen rental business and whenever a customer failed to pay their bill or to return all of his items, he would insist that our firm immediately file a lawsuit.

These were not substantial dollar claims, and it quickly became apparent that filing them made no financial sense because the hourly legal costs far exceeded the value of the claim. The older attorneys in the firm believed that the client was more than a little nuts and each had their own war stories about their time in the “towel tank” as it was called.

In truth, the “honor” of handling these largely frivolous cases was halfway between helpful (learning the ins-and-outs and the arcane procedures of Chicago’s civil trial courts) and hazing (making sure the newbies knew their place), which bordered on harassment. To be slightly fair, learning to cultivate friends in low places at the clerk’s offices and begging them to help you learn the ropes was an invaluable life lesson. More importantly, even though young lawyers quickly concluded that this work was just slightly above ambulance chasing, the client loved every battle and happily paid for the privilege.

In fact, he absolutely prided himself on his reputation as a lunatic who would sue anyone who crossed him. He wasn’t stingy or frugal in the rest of his affairs and, in fact, he owned a great deal of property and bought and sold many businesses over the years, which was clearly why the firm’s senior partners were happy to appease him. But he relished his reputation – well-known across the city and his industry – as a guy who would sue you for a song.

If this propensity to sue everyone for little or no reason sounds sadly familiar these days and reminds us of the daily, illegal threats and extortionate practices of a certain Orange Monster, it’s not an accident.

But the point of the tale isn’t about the stupid or ugly actions of the client. What’s interesting is the impact on his customers and how it changed their behavior. In the very same way that Trump seeks to have the entire country bend a knee and obey his every demand, the Towel Tyrant made sure that every single customer knew that he wasn’t someone to be trifled with, put off, or stiffed. Result: his accounts receivable balances and bad debts were a wonder to behold.

Unfortunately, it’s not easy or often even possible to control the scope, distribution or reach of these actions and philosophies, or the messages they send, or exactly whose behavior they impact. Suffice it to say that there were plenty of prospects who happily found other vendors rather than having to deal with this guy. And others in the industry who – taking a page from his playbook – treated him just as shabbily as he treated his customers.

Enough has already been written about the direct results of Trump’s illegal orders, actions, and schemes.  But we’re just beginning to see how his in-your-face actions and constant outright grifting have begun to change the behaviors of millions of consumers and customers. Any day now you can expect to start seeing the costly and unfortunate behavioral changes in your own businesses that we’re already seeing all over Chicago.

The Trump rot is spreading, and it seems that millions of aggrieved individuals – especially the younger generation of inner-city kids – have decided that, if Trump can do whatever he pleases and get away with it, then why should they follow the rules, obey the laws, respect their neighbors? Why shouldn’t they simply take whatever they can get their hands on?

If you’re in a consumer-facing business – food, entertainment, education, medicine or government service – you’ve already seen dozens of social media videos and news stories showing stores robbed and trashed by hordes of teens. They smash display cases and throw registers around malls, refuse to pay for fast food meals and attack staff.  At big box and warehouse stores, security teams have been overwhelmed, outnumbered and beaten by thieves and other troublemakers.  

Making it okay to behave badly.

In a word, Trump’s overt and shameless lawlessness has given permission – if not direct approval – to every kind of deadbeat, bad actor, teenage wannabe gangbanger, malingerer and criminal to act out, cheat, steal and attack people and property with an inflated, unfounded and arrogant sense of grievance, entitlement and reparation. Trump will never be a good example of anything, but at least his corruption and narcissism can serve as a horrible warning of where we’re headed.

As the videos convincingly demonstrate, these aren’t people to be reasoned with, appeased or placated. The turmoil and the thefts are all an intended and important part of the exercise and the entertainment. They start with the proposition that “what’s mine is mine and what’s yours, we’ll talk about.” Chicago’s own racist mayor tells these fools that they’re entitled to take back what was stolen from their ancestors centuries ago and that he’s happy to lead the charge.

So, what exactly is any business owner or manager supposed to tell their team about how to respond to these growing threats to their operations? Customer service takes a backseat every time to server safety. The last thing any employer wants is to have their employees injured as they unsuccessfully try to protect the company’s property and merchandise. This chaos and loss of control plays into the hands and demented plans of an aspiring autocrat who would love nothing more than to invoke martial law and send troops into our major urban centers.

We’ve already seen that major retailers like Apple have instructed their employees (for insurance and liability reasons) to just stand by and let the thieves abscond with whatever they can quickly grab. No one thinks that this policy makes sense, but other than intensifying their onsite security and securing their doors, it’s not clear that any vendor has come up with a better solution. Some of the high-end jewelry and clothing stores in major cities are reconfiguring their entries to resemble the sally ports that traditionally limited direct access to prisons, banks, and other secure facilities.

CVS has addressed its “shrinkage” issues by locking up the store’s expensive merchandise inside plastic cases which – as you would imagine – has adversely impacted the shopping experience for actual paying customers. The high security approach gives their own staff another set of distracting duties—they have to open the cases for customers– and time-consuming responsibilities. And, in those areas where things are really out of control, we’re seeing stores simply closing.

It’s easy to lose faith and feel that things are hopeless and getting worse and, worse yet, that there’s no solution in sight. But that’s not the way that good people and great entrepreneurs think. We’re able to see and honestly admit that the challenges ahead seem daunting, if not overwhelming, and that our current leaders clearly aren’t up to the task of making things better.

But we still put our heads down every day and move forward with the heart, the critical energy and the determination that it’s going to take to make changes for the better. Chicago has been reborn many times over its resilient history and it’s up to all of us to do it again.  

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