Most leaders assume that when employees break rules, punishment is the answer. But that mindset overlooks a crucial reality: not all rule breaking is self-serving, and some of it may actually help organizations perform better. Here’s how to diagnose the type of rule breaking that may be occurring in your organization and how to find a systemic fix for the problem.  

Understand what happened. Ask why a policy was violated and do so in a way that isn’t confrontational. Many leaders assume they already know the answer, and many employees assume they’ll be judged no matter what they say. That’s why tone matters. If employees think your goal is understanding, you’re far more likely to hear what’s really going on. 

Separate intent from impact. When people believe their intent doesn’t matter, they either stop using judgment or start hiding what they’re doing. But if employees see that good intentions are recognized—even when outcomes fall short—they are more likely to take smart risks and speak up when something feels off. 

Pay attention to patterns. If a rule keeps getting broken, that usually points to something bigger, such as a policy that is unrealistic, unclear, or in conflict with what employees are rewarded for doing. Repeated violations can be a form of feedback about where the system doesn’t line up with the work.

Adapted from How the Best Leaders Respond to Rule Breaking by Michael J. Gill

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