3 leadership lessons can we take away from the downfall of Theranos

3 leadership lessons can we take away from the downfall of Theranos3 leadership lessons can we take away from the downfall of TheranosTheranos was a company positioned to revolutionize blood testing. Just a few short years ago, the company was hailed as Silicon Valleys next great unicorn. Investors valued it at $9 billion, making Theranos founder and CEO, Elizabeth Holmes, the youngest woman self-made billionaire, at least on paper.Holmes image blanketed the cover of major geschftsleben magazines where she often sported her trademark Steve Jobs turtleneck, evoking comparisons between the two leaders. Apparently, they also had a shared love of secrecy.Weeks ago Theranos quietly announced that it was shutting down its operations and Holmes is facing criminal fraud charges along with another key executive. Shes accused of defrauding investors, doctors and patients and is barred from serving as an officer or director of a publicly traded company for the next decade.So, what happened?How did a company that raised more than $700 million, with promises to revolutionize blood-tests by using just a few drops of blood, fall so spectacularly from grace?There is a lot to the story, which has been covered in the bestselling bookBad Blood, however here is the very high level version.As Theranos progressed from concept to reality, the technology didnt work as planned. Instead of coming clean, Theranos leadership, led by Holmes, chose to exaggerate and outright lie about the technology. This included running their blood test on traditional equipment, claiming it had been done on their machine.Theranos story is almost identical to the circumstances that led to theVolkswagens diesel engine scandal.Was it massive hubris? A crippling fear of failure? Deliberate deception?Perhaps well never know the underlying why behind it all, but we can take away a few leadership lessons from it beyond the obvious issue of Holmes integrity.1. Dont over promise and under deliverOver-promising i s something of an occupational hazard for leaders of fast-growing companies. While a promise of great things is by no means terrible, its the under-delivering part that is problematic. Once a promise is on the table, it creates serious pressure to meet goals, potentially unrealistic ones. Thats the danger zone.Before long, poor choices are being made as are claims that border on fiction. The line between aspirational thinking and truth begins to blur. By all means, set big, hairy, audacious goals. Just make sure to keep a sharp eye on progress and keep yur ego in check if outcomes arent as audacious as you had hoped.In high pressure situations, its all too easy to get caught up in our own vision however blurry and tweak the facts to support our goals.2. Trust but verifyIts amazing how many smart people will jump on a bandwagon just because its full of other smart people. Theranos had no shortage of star power. Both Secretary of Defense, James Mattis and former Secretary of State, H enry Kissinger, served on its board. But did they or any other powerhouses independently corroborate the companys claims before joining up? Apparently not. Google Ventures, who passed on investing, actually sent a venture capitalist to a Theranos Walgreens Wellness Center to take the revolutionary pinprick blood test and noticed they asked for far more than a prick.In our fast-moving society,its critically important to do your own due diligence. Following the herd might get you trampled.3. Build a team of dissentersAs I mentioned in last weeks Friday Forward, Respectful Disagreement, its critical that we have people in our life and on our professional team who are willing to disagree and push back. Holmes started down a path of lying and covering up poor results without anyone willing or able to stand up and challenge her decisions. She was known for hiring people close to her and insisting on extreme secrecy and security of information.Theranos downfall is yet another example where the cover-up is worse than the crime. Holmes may not have set out to deceive, but that doesnt matter anymore. What the situation reveals is how a few seemingly little lies can quickly evolve into something much bigger, ruining careers and reputations in the process.The path of no return is one every leader should strive to veer from. But if you do find yourself on this path, remember youll be more valued and respected for taking responsibility andowning your failures.This article was originally published on Quora.com.