Truth/Smart Truth*

(* or as lawyers call it: "how to be artfully ambiguous")

Example:

If you are in organized real estate in Ontario (i.e., a licensed sale person) and you are buying or selling real estate for your own account, you must declare that you work for a Brokerage Agency. This makes sense since presumably you have knowledge that the average person selling his or her home wouldn't have. It is an ethical duty. You also have the option of accepting a commission or negotiating your commission down to zero. I mean why should you pay yourself a commission on a home you are buying for yourself? You can then negotiate in good faith to get the best possible price on the house. So far everything is ethical.

However, if you negotiate first and arrive at a price including your commission and then you tell the seller that you are willing to trade your (say) 5% commission for a lower price (i.e., a 5% reduction), then this is not OK. From the sellers point of view, it is true, it is the same but from your point of view, it isn't. Canada Revenue Agency will treat your sales commission as income and tax it accordinlgy. However, if you make a capital gain on your house when you sell it and it is a primary residence, then, in Canada, this is tax free.

The first approach is legal, ethical and the smart truth, The second approach could be illegal tax avoidance. As politicians have long known, how you say things (how you characterize things) matters a great deal...

Example:

In the National League, the fourth line is no longer the 4th line- it is the "energy line". Smart truth. (Has this shifted the problem to the 3rd line?)

Example:

In the 2006 municipal election in Ottawa, Mayoralty candidate Larry O'Brien was asked about his use of the City's subsidy of political contributions. The City of Ottawa rebates up to $185 to a donor for a contribution of $300 or more. Incumbent Mayor Bob Chiarelli refuses to allow donors to make contributions to his campaign if they ask for money back from the City. Larry's smart truth answer was that by allowing his donors to accept money back from the City, he was opening up campaign contributions to those who are less well off and not just business people.

Example:

Ansett Australia ceased flying operations in March 2002. In the windup of the Company, Ansett released a statement that its leased aircraft were 'redelivered'. That is, they were not reposessed or 'repo'd' but redelivered. It sounds better and looks better in print.

Example:

AMC Theatre Chain replaces 'small' pop drinks with 'regular', 'medium' is replaced by 'large' and 'large' becomes 'extra large'. There are no small sizes any longer.

Example:

Truth- The Coca Cola company announced to a chorus of boos a technological innovation: vending machines that raise the price of soda pop when temperatures rise and demand rises accordingly.

Smart Truth would have been to say that Coca Cola has discovered a way to help consumers- their vending machines will lower the price of colas when temperatures fall.

Example:

Donald Trump, New York City real estate developer noticed in the 1980s how tenants and condo owners didn't like being on floor 13; he also noticed how rents and selling prices increased with higher floor numbers. So he decided on a 'floor inflation strategy': from now on, he thought, all our towers above the retail pod (which typically could be three to nine storeys) will start at Floor 20. He justified this by saying that his retail floors were much taller than ordinary office or residential floors anyway.

Example:

'Mr. Carter (then U.S. presidential candidate and born-again Christian in an interview with Playboy magazine), have you ever slept with someone not your wife?'

'No.'

'Have you ever lusted after someone not your wife?'

'Yes, I have had lust in my heart.' Truth, yes, but Mr. Carter nearly lost that election to the unpopular Gerald Ford because of this comment.

What should Mr. Carter have answered? Clearly, the smart truth is 'no' not only because it will avoid trouble with the media but also because it was the truth- Jimmy was faithful to his beloved wife, Rosalyn. The media often ask questions to which the only seemingly possible answer is to agree with them and torpedo your career. These are questions that even saints can not answer.

Example:

In the home building and commercial real estate business, there are no more basements. There are 'lower levels' and 'upper levels'. You get more rent or a higher selling price for lower level space as opposed to basement space.

Example:

"Mr. F. doesn't the plan for West Terrace look a lot like the Glebe?" a question not asked by Tom L. at the Ontario Municipal Board hearing into whether the Ottawa Palladium should be allowed to go ahead in Kanata, circa 1991.

Truth is 'yes', the smart truth is 'no'. Why? Because putting the Palladium in the Glebe would have imposed two million visits a year on an already established community. Putting it in Kanata meant that people who construct homes and shops and businesses in around the building do so at their choice after the Palladium is built. This is an example of second order thinking.

Student Note: Truth is an important principle and an important ingredient in the success of entrepreneurs. Your reputation as a honourable person allows you to credibly present business plans to investors and banks and VCs; it allows you to attract and keep clients and customers; it allows you to borrow hundreds of thousands and millions of dollars; it allows you to apply consistent, focused effort and be rewarded for your efforts. Telling the smart truth in a litigous society allows you to protect your interests and that of your employees, shareholders and others from unscrupulous persons who wish to further their careers and interests at your expense.

Example:

Addressing a group of students about case study writing, the Prof says: "Al gave me his take on T... It was quite good. However, when you are writing anything- a case study, for example, do not put in anything that could be considered libelous. When we are doing case studies, we may from time to time stumble upon things that look dubious to us. Rather than make claims or accusations, we should all be using the smart truth. Use this: "He was not focused on the success of the business. Rather, he appeared to be more concerned with personal goals". This is a euphemism for: "The guy is a crook!" Use smart truth and you won't be sued! Please edit your stuff accordingly.

Example:

Smart Truth:

"Our Guarantee:

If it takes you longer than 15 minutes to get here from (name of suburb here) driving at the legal speed limit, then you get one month rent free at our new mini storage facility on your first 12 month lease!"

Truth:

Anyone would receive one month rent free on a year's contract just by asking.

Note: Everyone likes the words "Free" and "Guarantee".

Example:

Truth:

Used Cars For Sale.

Smart Truth:

Previously Enjoyed Cars For Sale.

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