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Before jumping into this edition's lesson on credibility, I'd like to thank John Baldoni for the wonderful thoughts he provided in Great Communication Secrets of Great Leaders. His ideas helped to shape this lesson, and I would recommend his book to LW subscribers studying communication.

Credibility is a leader's currency. With it he or she is solvent; without it he or she is bankrupt.

Consider this metaphor: A leader with credibility has a pocketful of coins. As long as the pocket is full, the leader is believable, worthy of respect, and able to be trusted. Each time the leader breaks a promise or acts inconsistently with professed values, he or she must pay out some of the coins in their pocket. When the coins are gone, so is the leader's credibility. No amount of persuasion or personal appeal will be able to buy it back. Once lost, respect and trust take years to regain.

Here are the four keys to establishing credibility in your leadership:

1) Speak the truth.

Be honest and upfront. Transparency breeds legitimacy—make it a priority to be open with financial statements, policies, and decision-making rationale.

When I began my pastorate in San Diego, I followed the founding pastor who was retiring after having led the congregation for 27 years. He had a tremendous amount of trust in his bank account with the people, and he deserved it because he was a phenomenal leader.

As a young man, coming in after the departure of such a well-respected and admired veteran, I knew my success hinged upon my ability to earn the trust of the church. So, one Sunday night a month, for several months, I would invite congregants to the church and spend a full hour answering any questions they had for me. At the first Q&A session, 600 people came. My sincerity and openness in fielding questions disarmed them, and it laid a solid foundation of credibility from which I could operate.

2) Don't hide bad news.

With corporate scandals at Enron, WorldCom, and Arthur Andersen seared in our collective memories, we have entered an era in which transparency is demanded like never before. With multiple information channels available, bad news always becomes known, so it behooves management to be candid right from the start.

Winston Churchill is a classic example of a leader who communicated bad news frankly and honestly. In the midst of World War II, he let the British know they were in their darkest hour, their backs were up against the wall, and that democratic civilization rested upon their ability to win the war against Hitler. He never sugarcoated anything, and his sincerity instilled a grim determination in his people to sacrifice and persevere.

3) Never over-promise.

Do not make promises you cannot keep. Why do you think politicians have such a poor reputation? It's very simple. They promise the world and seldom deliver.

I am naturally optimistic, and as my children were growing up, I found over-promising to be a weakness of mine. I would talk with my kids about going to exciting places and doing fun activities, but then my schedule wouldn't allow me to follow through with my intentions. I had to be very careful about what I said so that my children would be able to trust my words. Remember: A highly credible leader under-promises and over-delivers.

4) Do what you say you will do.

Follow up and follow through. Unfortunately, many in the corporate world politely make offers with no intent of carrying them out. After meetings and phone calls, follow up with a reminder email outlining the action items discussed and agreements made.

How many times have you been in a business meeting that ended with warm handshakes but empty commitments? When you say you'll pass along a friend's contact information to a business associate, do it. When you agree to meet with a potential partner, make it a point to schedule the meeting onto your calendar. Diligent follow through will set you apart from the crowd and communicate excellence to those you meet.

Credibility is the bond between the leader and the follower, and it forms the bedrock of why people will do what the leader asks of them. Even the best leaders may suffer a blow to their credibility. This may be the result of a mistake or error in judgment. Or, circumstances may conspire against the leader, such as adverse market conditions or the failure of a supplier or partner.

As a leader, how can you restore damaged credibility? Let me give you three steps.

"This article is used by permission from Dr. John C. Maxwell's free monthly e-newsletter 'Leadership Wired' available at www.MaximumImpact.com."

GO GET THE NEXT THREE STEPS!!! They have helped me a lot in my leadership with my company. John Maxwell as you know is one of the great experts on leadership. Also his teaching are unbelievalbe. This is your daily post to change your lifestyle stay tuned for more tomorrow...www.dreamingtodoing.com the ultimate professional and personal development website will be coming soon!!!!