Blog Archives

Leadership / Performance: Are You Committed To Something Bigger Than Yourself?

Is There Anything Bigger Than The Maximisation Of Shareholder Value?

According to Roger Martin, the third most influential business thinker in the world according to Thinkers50, the shareholder value maximisation revolution was triggered in 1976 by Michael Jensen and William Meckling.  How? These economists published, what has turned out as the most cited article ever:  “Theory of the Firm: Managerial Behaviour, Agency Costs and Ownership Structure”.

In this article, Jensen and Meckling argued that the professional managers (running businesses) were looking after their interests at the expense of the shareholders.  Thus began the  shareholder maximisation movement that has since then taken over the business world. And in so doing, all other stakeholders (customers, employees, suppliers, partners, society at large ..) have been viewed-treated as mere resources and/or means of creating-maximising shareholder value.

Are You Committed To Something Bigger Than Yourself? 

What does Michael Jensen say on the matter today?  Let’s listen:

“I have a bad rep on this kind of thing. Because people think that all I want companies to do is to maximise the value of the stock. First of all that is false, it’s not what I ever said. But I guarantee you if you are talking about maximising the right value, which is the total value of the firm, if that is all you’re doing you won’t maximise value! 

You’ve got to be committed, the company has to be, the firm has to be, committed to something bigger than itself. That will light people up. And cause them to be attracted to your organisation. Passionate about it! They’ll find something in what you’re committed to, the company is committed to, that satisfies them, lights them up and excites them. And that’s a HUGE missing component of what’s going on out there in the world ….”

- Michael C. Jensen talking on leadership at the Simon School (talk published on Mar 17, 2014)

If you are interested in listening to Michael Jensen and Werner Erhard share their ontological-phenomenological model of leadership at the Simon School then here is the associated YouTube video:

Empowerment: asking and facing the deeper questions

It occurs to me that empowerment matters. It matters enough for me to think about this deeply and search out those who have thought about this deeply.  If it matters deeply enough to you then continue reading. If it does not really matter to you then I advise you to go and do something that you care deeply about.  With that said, lets start.

What difference does empowerment make?

It really matters if the people in your organisation show up empowered. Empowered to do great work, to create products which show up as ‘magic’, to touch customers in a way that leaves those customers feeling welcomed-understood-validated-helped, to generate an end to end customer experience that simplifies-enriches the lives of your customers.

It really matters, if you, show up as empowered and create a context that allows the people in your business to show up empowered. And allows your customers to show up and experience themselves as empowered.  And creates a space for your suppliers to show up empowered – empowered to share their knowledge and expertise in contributing to the performance of your organisation.

It really matters, if as customers, we show up empowered. Empowered to do business with organisations that stand for purposes-values-behaviours that speak to us. And not do business with organisations that do not stand for and embody that which matters to us. Empowered to get together and apply pressure on regulators and those in government to put in place legislation that protects our interests as customers and to enforce the existing legislation.  We are also empowered to do nothing.  That is our choice; choice is that which comes with empowerment.

In short, empowerment or the lack of it matters.  It occurs to me that empowerment is rather like sunshine in the western world (in the depths of winter) or rain in a region of cursed with drought.  Empowerment creates possibilities which simply are not open-present without the existence-presence of empowerment.

Perhaps because I am so vividly present to the significance and possibility that inheres in empowerment, I chose to put my children in Montessori School.  It occurs to me that it is also the reason that so much of what is written on empowerment (employees, customers) strikes me as shallow and leaves me feeling disappointed-cheated.

Why all the bleating about the lack of empowerment? 

There are two particular aspects of the empowerment conversation that I particularly wish to highlight.  First, there is the assumption that empowerment is a thing to be gifted from the Tops to the Middles and Bottoms.  And from the Middles to the Bottoms. And from the company to customers. Second, is the assumption that empowerment is a blessing and people are yearning to be empowered.

It occurs to me that by virtue of being human you and I are always empowered. You and I are empowered because you and I are free – free to choose. It occurs to me that Sartre spelled this out rather pithily:

Man is condemned to be free: condemned, because he did not create himself, yet nonetheless free, because once cast into the world, he is responsible for everything he does.”

What shows up for me as being a more interested enquiry is this one, given that you and I are empowered why is it that you and I evade this empowerment?  Why all the bleating about empowerment – more precisely the lack of empowerment?  What is it that we are evading through this bleating on the lack of empowerment? Why this supplication at the feet of ‘leaders’?  And why is it that so few ‘leaders’ actually show us as being empowered to chart their own course, and thus lead?

Werner Erhard’s profound insight on empowerment

I share with you the profound insight and wisdom of Werner Erhard. And I encourage you (and I) to listen, really listen to his speaking:

If you are empowered, you suddenly have a lot of work to do because you have the power to do it.

If you are unempowered, you are less dominated by the opportunities in front of you. In other words, you have an excuse to not do the work. You have a way out. You have the security of being able to do what you have always done and get away.

If you are empowered, suddenly you must step out, innovate and create.

The cost, however, of being unempowered is people’s self-expression. They always have the feeling that they have something in them that they never really gave, never really expressed.

By simply revealing the payoffs and costs of being unempowered, people have a choice. They can begin to see that it is possible to make the choice to be empowered rather than to function without awareness.

Empowerment requires a breakthrough and in part that breakthrough is a kind of shift from looking for a leader to a sense of personal responsibility.

The problems we now have in communities and societies are going to be resolved only when we are brought together by a common sense that each of us is visionary. Each of us must come to the realization that we can function and live at the level of vision rather than following some great leader’s vision.

Instead of looking for a great leader, we are in an era where each of us needs to find the great leader in ourselves.”

– Werner Erhard

So what does it take for empowerment to show up?

It occurs to me that it takes the following for empowerment to show up in our way of being-in-the-world:

a) Getting that we are always-already empowered as spelled out by Sartre and so vividly illustrated by Viktor Frankl in his recounting of his concentration camp experiences (Man in Search of Meaning);

b) Caring deeply enough about our being-in-the-world to see-invent possibilities. Possibilities for putting our own ‘dent in the universe’.

c) Courage to put ourselves at risk and act – to live from and into the possibilities that speak to us, to give up comfort and embrace work, to let go of our existing identity and invent-create-embrace the identity that is needed to fulfil on the possibility that we have invented.

What do you say?

Without Integrity, Is Talk of Customer Focus Just Cheap Talk?

Integrity is a choice – one that we fail to choose

Let me make clear that when I speak integrity I am not talking about morality nor virtue.  I am talking about integrity as honouring one’s word.

Integrity, as honouring one’s word, is a choice. It is a choice that almost all of us choose not to make. And those of us who do choose integrity, as way of being and showing up in the world, get that ‘Integrity is mountain with no top’ – that is to say that one never arrives. Put differently, integrity is always flowing out. Therefore, the challenge is to be present to this flowing out and make the necessary corrections ongoingly – this applies to individuals, teams, organisations.

It occurs to me that we live in an age given by cultural practices which allow and encourage us to have a cheap-weak relationship to our word. In our societies one expects people not to talk straight. One expects people not to mean what they say. Nor to say what they mean. It is perfectly ok to make promises and break them if it is convenient to do so. And when we do this the challenge is to find convenient reasons and excuses that allows us to ‘save face’.

What place is there for integrity when the measure is ROI?

Consider the world of business. What drives decisions and actions? If you look at it theoretically, every significant decision should be based on ROI. If honouring your promise, your word, delivers ROI then the smart course of action is to honour your word. If honouring your word does not deliver ROI then the smart course of action is not to honour your word. Doesn’t the ROI argument, in one shape or another, show up at each level of the organisation: Tops, Middles, Bottoms?

Without integrity promises to customers are just cheap talk

Why am I drawing our attention to integrity and the importance of fierce resolve to honouring one’s word? I say that work on harnessing digital technologies is useful. I say that work on changing policies and processes is necessary and useful. I say that harnessing data and using it to generate insight is useful. And I say that all of this makes no difference if fierce resolve is missing. What kind of fierce resolve? The fierce resolve to create superior value for a core set of customers. The fierce resolve to honour the organisations implicit and explicit promises to the customer. The fierce resolve to honour one’s word to colleagues within the bigger context of honouring the organisation’s word to customers.

Let me put it bluntly, the companies that excel at generating strong profitable relationships with customers create and show up from a fierce resolve to create superior value for their customers. Companies like Amazon, John Lewis, SouthWest Airlines, USAA, Zappos… Then are the rest – those that talk the talk and lack the fierce resolve to honour their word. Their words, our words, are cheap.

The real test of integrity is?

The real test of integrity, honouring one’s word, comes when the ROI of keeping one’s word is negative. For an organisation the real test of integrity shows up when the cost of honouring one’s word directly and negatively impacts the short term numbers: revenues and profits. And when the cost is a loss of face even ridicule. I think back to Warren Buffet sticking to his way of investing-doing business during the tech-internet boom.

Here’s the core point when it comes to integrity and honouring one’s word. Those who recognise the critical importance of integrity (as a positive phenomenon) would never do an ROI calculation once they have given their word.  For these people honour one’s word is  matter of principle not expediency. People with such deep relatedness to their word get that integrity is not a nice to have. No, they get that integrity is basis of workability and performance – of our lives, our relationships, our communities, our organisations, our societies, our world.

What is possible when cultural practices encourage and call forth integrity?

Enough said, now I want to share with you this article that I read  and which got me present to what is possible when cultural practices encourage and call forth a strong relationship to our word.  Here is what struck me about this real life WWI story:

  • Capt Robert Campbell had been languising in Magdeburg prisoner of war camp for two years;
  • He received word that his mother was dying of cancer;
  • He wrote to Kaiser Wilhelm II, begging to be allowed home to visit her one final time;
  • The Kaiser granted his request, allowing him two weeks leave, and did so on Capt. Campbell’s word as an Army officer;
  • Capt. Campbell returned to Kent (England) in December 1916, spent time with his mother and returned to the prison camp (keeping his word to the Kaiser), and was held there until the end of the war (1918).

I say that this is possible only in an age where cultural practices call us to be our word. When we are called to be our word, our enemy can grant us leave trusting that we will honour our word. We in return are called upon to honour our word. As the author of the article says:

“Had he not turned up there would not have been any retribution on any other prisoners. What I think is more amazing is that the British Army let him go back to Germany. The British could have said to him ‘you’re not going back, you’re going to stay here’.”

Imagine what level of performance would be possible if the people in your organisation were committed to honouring their word. Imagine what kind of relationships would be possible with customers if the people in your organisation – Tops, Middles, Bottoms – were committed to honouring the organisation’s word to customers.

If you want to explore integrity at a deeper level

If you find yourself drawn to this conversation on integrity then I encourage you to listen to this 2 hour talk on integrity by Professor Michael Jensen

What Are the 4 Factors That Constitute The Foundation for Being a Leader?

“We argue here that the four factors we identify as constituting the foundation for being a leader and the effective exercise of leadership can also be seen as the foundations not only for great leadership, but also for a high quality personal life and an extraordinary organization. One can see this as a “value free” approach to values because:

1) integrity as we define it (being whole and complete) is a purely positive proposition;

2) authenticity is also a purely positive proposition (being and acting consistent with who you hold yourself out to be for others and who you hold yourself to be for yourself),;

3) being committed to something bigger than oneself is also a purely positive proposition (that says nothing about what that commitment should be other than it be bigger than oneself); and

4) being cause in the matter as a declaration of the stand you take for yourself regarding everything in your life is also a purely positive proposition”

Werner Erhard and Michael C. Jensen

The vital importance of empathy and kindness to customer experience design and employee engagement

How far can you get in cultivating enduring customer relationships, delightful customer experiences, and ‘employee engagement’ without empathy?

What kind of world shows up when we put aside empathy?  What kind of world shows up when we put aside kindness?  The kind of world that arose as a direct result of the ‘age of machines’ – of the Industrial Revolution.  When our way of life is centred on and around machines, we worship machines, and we go about life asking and expecting one another to be-act like machines.  We have become great at showing up in the world as machines. And as result we have lost sight of kindness, generosity, empathy.

Why do I bring this up?  Because it occurs to me that our age is calling out for empathy, for kindness, for the injection of the human back into business and our way of life.  Also because, you cannot get far in cultivating meaningful relationships with customers nor designing customer experiences that delight customers, nor generating ‘employee engagement’ without grappling with these topics. Look you and I can make the world accessible, convenient, hassle free and fast.  And, if such a world is missing kindness, generosity, empathy, friendship and love then it is a world that is not fit for human beings.

Empathy is central to customer experience, customer-centricity, and employee engagement

With this context I share with you the following video that was brought to my attention by LinkedIn where Tim Brown, the CEO of IDEO shared it:

If this video speaks to you, if it stimulates your interest in empathy then I invite you to take a look at the following posts:

What Does It Take To Generate Deep Contextual Customer Insight?

Customer Loyalty and Advocacy: what can we learn from Jonathan Ive and Zappos?

What does it take to generate ‘employee engagement’? (Part IV)

Is this the access to profitable revenues, loyal customers and enduring success? (Part I)

Is kindness born of empathy fundamental to cultivating customer loyalty and employee engagement?

I say it is. What kind of kindness am I speaking about?  I am speaking what Werner Erhard refers to as “ruthless compassion”.  If you want to dig into this a little more then check out this talk.

I want to leave you with a quote of a hero of mine, Albert Schweitzer:

Constant kindness can accomplish much. As the sun makes ice melt, kindness causes misunderstanding, mistrust, and hostility to evaporate.

A Final Word

I am putting together a course on communication-empathy-relationship. And there is one slide that I wish to share with you:

Being Empathic Listening.jpg

Follow

Get every new post delivered to your Inbox.

Join 4,441 other followers

%d bloggers like this: