In a bold and unexpected move, CrowdStrike President Michael Sentonas recently accepted the award for “Most Epic Fail” in person at the DEF CON cybersecurity conference in Las Vegas. This award, which is part of the Pwnie Awards ceremony, is typically given to those in the cybersecurity industry who have made significant mistakes. CrowdStrike was honored for an incident in July in which a software update led to one of the largest IT outages in history, affecting millions of devices worldwide and causing widespread disruption.

A catastrophic incident

On July 19, 2024, a faulty security update from CrowdStrike had catastrophic consequences. The update caused the infamous “Blue Screen of Death” on over 8.5 million Microsoft Windows devices and brought critical operations around the world to a standstill. The outage delayed more than 10,000 flights, disrupted banking services at major financial institutions such as JPMorgan and Bank of America, and impacted 911 emergency services. The financial damages of the incident are estimated at around $5.4 billion, with Fortune 500 companies bearing the brunt of the damage.

The scale of the disruption was unprecedented, with 1.4 million travelers affected and surgeries having to be postponed due to the widespread impact on healthcare systems. The incident sparked a series of lawsuits, including class action lawsuits from air travelers and CrowdStrike shareholders. Delta Airlines reported to the U.S. Securities and Exchange Commission (SEC) that the outage affected 1.3 million of its customers, leading to further legal wrangling.

Taking responsibility: A lesson in leadership

Despite the magnitude of the failure, Michael Sentonas did something few executives would consider – he accepted the award for “biggest failure” in person. Known for its irreverent and humorous look at the cybersecurity industry’s successes and failures, the Pwnie Awards have never shied away from calling attention to significant mistakes. Previous winners of this dubious honor include industry giants like Microsoft and Twitter.

Sentonas’ decision to accept the award in person was met with applause from the audience of cybersecurity professionals. “This is definitely not an award to be proud of,” he noted as he accepted the trophy. Sentonas acknowledged the severity of the incident and admitted, “We got this terribly wrong.” His acceptance of the award was not just symbolic; he intended to bring the trophy back to CrowdStrike’s headquarters in Austin, Texas, to serve as a tangible reminder of the importance of responsibility and learning from mistakes.

Accountability: The hallmark of effective leadership

Sentonas’ actions are a powerful example of leadership accountability, a concept that is critical in today’s corporate landscape. Leadership accountability refers to the responsibility that leaders take for their actions and decisions and those of their team members. It is a key characteristic of effective leadership as it fosters trust, respect and confidence among employees.

Accountable leaders lead by example and show their teams that they are willing to own up to their mistakes and take corrective action. This behavior encourages employees to adopt a similar mindset, creating a culture of accountability and continuous improvement within the organization. In the case of CrowdStrike, Sentonas’ decision to publicly acknowledge the company’s failures sends a clear message that leadership is committed to transparency and learning from its mistakes.

The impact of accountability on corporate success

Holding leaders accountable has several benefits for organizations, including better compliance with company policies and regulations, improved morale, and greater trust between management and employees. When leaders take responsibility, they create an environment where employees feel valued and respected, which can lead to higher levels of engagement and productivity.

In addition, accountability in leadership helps organizations navigate crises more effectively. By taking responsibility for mistakes and working to correct them, leaders can mitigate the impact of errors and prevent them from happening again. This proactive approach not only protects the organization’s reputation but also builds its resilience to challenges.

Learning from mistakes: A path to growth

One of the most important aspects of leadership is the willingness to learn from mistakes. Sentonas’ acceptance of the “biggest failure” award is a prime example of this principle in practice. Instead of shying away from the company’s failure, he faced it head on and used the experience as an opportunity for growth.

Learning from mistakes requires admitting mistakes, analyzing their causes, and developing strategies to avoid them in the future. Leaders need to be honest about their mistakes and seek feedback from their teams. This will help them identify areas where improvement is needed and make the necessary changes to improve their leadership skills and the overall performance of the organization.

Practical steps for leaders to promote accountability

Managers who want to foster a culture of accountability in their organization can take several practical steps:

1. Admit mistakes: Managers should openly admit when they have made a mistake and take responsibility for the consequences. In doing so, they set a positive example for employees and encourage them to do the same.

2. Provide support: Leaders should offer help to their team members, especially when they are struggling with tasks. This shows that they are committed to the team’s success and promotes a collaborative work environment.

3. Set clear expectations: To ensure accountability, leaders must clearly communicate their expectations to their teams. This includes providing detailed instructions and guidelines for tasks and responsibilities.

4. Improve attendance and punctuality: Leading by example means always showing up to work on time and attending important meetings. This shows that you respect the team’s time and reinforces the importance of accountability.

5. Create an inclusive environment: Leaders should create a work environment that is inclusive and supports different perspectives. This encourages employees to contribute their ideas and take ownership of their work.

6. Accept constructive criticism: Openness to feedback is a key element of accountability. Leaders should actively seek out constructive criticism and use it to improve their performance.

7. Offer solutions: Instead of complaining about problems, leaders should focus on finding practical solutions. This proactive approach sets a positive example for the team and helps solve problems more efficiently.

8. Apologize when necessary: A sincere apology for mistakes shows that the manager takes responsibility for his or her actions. This can help restore trust and maintain strong relationships with employees.

9. Involve employees in goal setting: By involving their employees in the goal-setting process, managers can ensure that goals are realistic and achievable. This increases the likelihood of success and motivates employees to work toward common goals.

10. Follow company policies: Compliance with company policies and procedures is critical to maintaining accountability. Leaders should ensure they follow all relevant policies and encourage their team members to do the same.

Michael Sentonas’ decision to accept the Most Epic Fail award in person at the DEF CON conference is a reminder of the importance of leadership accountability. By admitting the company’s mistake and using it as a learning opportunity, Sentonas demonstrated the qualities of a successful leader – honesty, transparency, and commitment to continuous improvement.