Sustainable extraordinary performance is about increased consciousness.
In his research, published in Firms of Endearment, member of Axialent’s Advisory Board, Raj Sisodia found that Public Firms of Endearment outperformed the S&P 500 and Jim Collin’s Good to Great companies by significant margins, over 15, 10, 5 and 3 - year time horizons (ending June 30, 2010). At the core of firms of endearments lie the principles and skills of a conscious business.
A firm of endearment combines:
- A shared purpose that ennobles those who seek it and provides a sense of community.
- Management for the maximization of value to all stakeholders (not just shareholders) in the belief that when one of them wins, all win. Stakeholders include clients, employees, vendors, and society at large.
- Conscious Leaders.
- A Conscious Culture.
Rajendra S. Sisodia, David B. Wolfe and Jagdish N. Sheth, Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, Pearson Prentice Hall; 1 edition (February 10, 2007).
Companies can obtain great financial results in the short term with unhappy people or strenuous relationships yet the gains will not endure. Strong profits are not sustainable without equally strong interpersonal relationships and personal well-being.
Conscious leaders understand that exceptional sustainable results come from integrating three critical dimensions:
The impersonal or "It" dimension
The extent to which the organization achieves its goal, pursues its vision and fulfills its mission, while enhancing its ability to continue doing so in the future. Success is measured by growth, profit and economic value.
The interpersonal or "We" dimension
The organization’s capacity to build relationships based on trust and respect, creating a community in which people feel included and enabled to contribute their best. Without cooperation and solidarity long-term business success is compromised.
The personal or "I" dimension
The organization’s ability to foster well-being, meaning and happiness in each one of its stakeholders. People are enthusiastically committed to a shared vision, have the skills to pursue it, and become fulfilled human beings because of that.