By Fred Kofman
 
The worst leader is he who people despise. A good leader is he who people worship. A great leader is he who makes people say: “We ourselves did it.”
Lao Tse
 
Just as in the theory of systems, the whole is more than the addition of its parts. In management, the team is more than the addition of its members. That which makes a team differ from a group of working people is synergy. Through the development of a shared vision, an engagement with certain essential values, a context of mutual confidence and respect, and a unifying interpretation of certain recurrent practices for the efficient coordination of actions, a group of individuals can generate a creative energy that largely exceeds the mere addition of individual energies. Such as a light beam may organize itself by means of a crystal into a laser ray, a beam of individuals may organize itself through a field of intellectual, emotional and existential forces, producing an extraordinary team. The leader is the person in charge of creating and maintaining such field of forces.
Traditionally, the leader is identified as a person detaining formal authority. From ancient heroic myths to modern management literature, the leader appears as an individual capable of leading others. This image is valid all right, but it conceals other possibilities. In this article, we want to put forward an alternative idea: shared leadership. To do so, first we will analyze the role of the leader, and then we will propose that it can be played by a collective person. Moreover, our thesis is that in highly uncertain situations, exercising shared leadership has advantages over individual leadership. Quoting Peter Senge, “Our traditional idea about leaders — special persons who determine the direction to be followed, take key decisions, and instill energy — is based on a nonsystemic and individualist vision of the world. Especially in the West, leaders are heroes, great personalities occupying the center of the scene. As long as these myths prevail, the focus of attention will increasingly fall on immediate facts and charismatic heroes rather than on systemic forces and collective learning.” (The New Task of the Leader, the Creation of Learning Organizations — Sloan Management Review, Fall 1993.)
 
The role of the leader
The leader develops precise functions destined for keeping cohesion and alignment of the organization, directing it toward its objectives, assuring a maximum utilization of its resources, honoring its system of values, feeding the individual enthusiasm of its parts, and continuously regenerating the culture that supports the interactions. The leader maintains the creative tension. Every action (be it individual or collective) sets off from the difference between a present reality that is unsatisfactory and a desired future possibility. The leader is permanently busy “charging the battery” of the organization through a dual strategy: (a) interpreting the present world, (b) imagining possible future worlds.
The first focus of a leader is hermeneutic (interpretative): He looks at the world, reading its signs and providing sense to the group reality, for instance, studying the market and casting an analysis of its forces, weaknesses, opportunities and risks. As Max de Pree, ex‐president of Herman Miller, says: “The first responsibility of a leader is to define reality.” Much of the multiplying effect a leader exerts lies on his ability to help people see the reality in a more generative, deep and energizing way. The leader can see (and show) opportunities where others only see problems.
The second focus of a leader is poetic (creative): He looks into his heart, reading its wishes and imagining a possible reality that may make them real, for instance, making up a new way of doing business. Quoting Albert Einstein: “Imagination is more important than information because knowledge is limited while imagination embraces an infinite possibility.” The leader’s power derives from his ability to paint futures that can light up the passion of the members of an organization. This “sacred fire” that burns in men’s spirit is the fuel of the organizational engine.
Every individual exerts this leadership task for himself. The responsibility for one’s life and the actions being displayed is not feasible of being delegated. An organization that demands the subordination of personal autonomy becomes a cult that deprives individuals of power and discourages and neutralizes its members. The way to build a community collectively responsible for its creative tension has to do with encouraging a continuous reflection on reality and organizational aims.
The leader teaches and redesigns the organizational culture. A culture is a set of ideas and practices that aid a community to locate itself in the world and to sail about it — a collective “mental pattern” that organizes the experience of those participating in it coherently. Quoting Schein: “Leadership is related to the formation of the culture.” The construction of the organizational culture and its evolution management is the “sole and essential function” of a leader.
Mental patterns are systems of deeply rooted assumptions, generalizations, images and archetypal plots that influence how we understand the world and how we take actions in it. They condition our personal, organizational and social lives and help us to make sense of reality and perform our functions efficiently. They determine what is rational, correct, moral, convenient and legitimate for us. They help us decide how to interact with others and with the world so as to maximize efficiency and keep coherence.
The leader is the cultural architect. Through his example, his words and his actions, he exerts a deep influence on the way of thinking and on the way of being of the organization. With his behavior, the leader is constantly sending subliminal messages about what is good, true and beautiful — the three dimensions that, according to Plato, define the essence of a cosmovision. This design task is a fundamental lever point to create the organizational synergy. The “adequate” culture becomes the link connecting the present reality with the future vision, through efficient and ethical mechanisms of behavior.
Cultural design is a continuous task. Beliefs and behavior systems tend to become age‐stiff and lose contact with the dynamic reality that generated them. The obsolescence of certain ideas and practices represents one of the major risks threatening the survival and vitality of the organization. On a social level, Michel Foucault analyzed this phenomenon and concluded: “The history of thought and culture throws a continuous pattern of great liberating ideas — ideas that inevitably become oppressive straitjackets containing the seed of their own destruction at the moment they face new emancipating conceptions, which will eventually turn enslaving.” The leader is he who is permanently busy updating the culture, to keep it fresh and vibrating.
Every individual has a personal leadership world in this area. As a father, a mother, a brother, a friend, a therapist or a manager, the person is able to show and project his cultural influence over his immediate environment. In organizational life, the coherence of culture demands a “traffic director” who helps to negotiate and align cultural forces emanating from each individual.
The leader defines structures, strategies and politics. To implement the ideals and cultural values, the organization needs to literally “incorporate them,” or “make them corporal.” The structure is the body of the organization, the visible side of culture. The leader is the person in charge of conducting the generation and maintenance of the structures, strategies and politics. In particular, the leader is in charge of keeping up the strategic compromise against environment pressures. When the temptation for straightforward gratification threatens with deviating the organization from its objectives and fundamental values, the leader works as an “anchor” and reminder, of that which, though essential, may turn invisible to the eyes of urgency.
Such as the designing of a culture, this defining of structures, strategies and politics is a continuous and dynamic task. To keep its coherence, the organization must fit the evolution of its mental pattern to the evolution of its forms and courses of action. The leader coordinates the design conversation in which the organization permanently reinvents itself.
Again, we emphasize the necessity of an individual leadership in life. Particularly, the creation of personal structures — such as the family, the job, friends, a religious congregation or other groups — are essential actions. To live in plenitude, the individual needs to examine his conscience and implement behavior standards that enable him to be at peace with himself and ethically proud, disregarding the pressures of the moment. In an organization, different individuals gather around directing ideas. While in the past, these ideas exclusively came from the leader, in the future, they will be born from a community dialogue. (The term dialogue comes from the Greek “dia‐logos,” which stands for “shared sense.”)
 
Shared leadership: The leader as a collective person
The great risk of charismatic leaders is the temptation they generate in others to delegate on them the responsibility of leadership. In situations of high uncertainty and volatility (such as those proposed by the present century), nobody has enough cognitive and emotional ability to totally assimilate the complexity of reality. If the community (and each of its members) does not take upon itself the role of leadership, it is highly probable it lives trapped in its childhood, depending on what the “parents” (leaders) dictate it to do. The problem is that paternalism, be it heroic or tyrannical, generates order through the eradication of the differences.
Such homogeneity brings about peace, but it reduces the possibilities of managing increasing complexity. Organizations are coming to understand the value of preserving diversity.
Diversity, though, is a double‐edged weapon. Provided there is a common place where the different points of view can align one another seeking a transcendent welfare, the organization learns and develops with effectiveness. When the common place is absent, the discussion creates friction and wearing away rather than light and energy. We have attributed the leader the responsibility for creating that common place, but no leader can substitute the individual compromise of each member of the organization. In the world of the future, those companies that have members both individually and jointly responsible for leadership will bear a clear, competitive advantage over those where the passivity of the personnel delegates such leadership to the “boss.”


Mindfulness in leadership is becoming quite trendy.  I have been receiving Google alerts on mindful leadership for the past few years and I am excited to see an increase in interest and commitment to mindfulness practices by organizations. Why is mindfulness getting so much attention and how can it help you lead?
Jon-Kabat Zinn, the founder of the Mindfulness-Based Stress Reduction program at the University of Massachusetts Medical Center defines mindfulness as paying attention in a particular way; on purpose, in the present moment, and non-judgmentally. I believe the interest in mindfulness is increasing because of the lasting physical and psychological benefits experienced by those who regularly practice. There are over 10,000 research papers now available on the subject and what once was seen by many as “woo-woo” or “out there” is finding its way into the mainstream. Companies such as General Mills, Google, Apple, Astra Zeneca, Aetna and others have implemented mindfulness programs.
Dr. Patricia Collard author of The Little Book of Mindfulness describes the benefits of practicing mindfulness as follows:

  • Increased experience of calm and relaxation
  • Higher levels of energy and enthusiasm for living
  • Increased self-confidence and self-acceptance
  • Less danger of experiencing stress, depression, anxiety, chronic pain, addiction or low immune efficiency
  • More self-compassion and compassion for others on our planet.

With the demands of modern life and the pressures of high performance, many find themselves in a frequent state of overwhelm and often experience heightened feelings of anxiety. When this state increases over time it can have a negative impact on relationships, physical and mental well-being may deteriorate and the ability to focus and make decisions diminishes.
My journey into mindfulness began seven years ago with the practice of yoga. After the stock market crash of 2008, my husband and I decided to transform our lives. Most simply, this involved both of us starting our own businesses while raising two young children and committing to live purposeful and adventurous lives. It was also a commitment to live with what I perceived to be greater uncertainty and financial risk.
My main intentions during this transition were to experience inner peace, create a sustainable marriage and family and leave a meaningful imprint on our world.  I also wanted to experience gratitude and joy and less feelings of struggle. I wanted to worry less and trust more.  Three mindfulness practices that have supported me are journaling to increase feelings of gratitude, guided meditation to learn to be in stillness and checking-in with myself to notice my inner state before responding.
The application of mindfulness can support a broad range of situations including leading an organization or business unit more effectively. A conscious business promotes mindfulness for all of its stakeholders. This means that employees are encouraged to contemplate their own selves and what brings them meaning, happiness and fulfillment. They also must understand the needs of their customers in order to bring them products and services that support their growth and well-being.
A simple way to begin experimenting with how mindfulness can help you lead is to pause when you are facing a challenge and walk yourself through the following centering practice:

  • Bring yourself back to the present.
  • Let go of any concerns or worries for the next few minutes.
  • Allow your eyes to close or just soften your gaze.
  • Breathe, notice your chest rise and fall.
  • Sense your feet, chair, and feel the support beneath and around you.
  • Notice where your body is particularly tense and let those places relax.
  • If you notice your mind start to wander, come back to your breath.
  • When you are ready, take a deep breath and come back.

Notice what happened. How is your inner state different? From this state, what alternatives are revealed?
Organizations change when the individuals within them transform. Mindfulness practices can support your personal transformation and increase your capacity to lead yourself, others and your organization more effectively through times of uncertainty and change.

How comfortable are you with your co-workers’ emotions? How comfortable are you with your own?
Emotions make us human. They have a strong impact on the success, collaboration and engagement of our teams. Research clearly shows that we are all critically affected by our emotions at the workplace. It also shows that the negative influence of frustration has a stronger effect on performance than the positive influence of optimism.
Emotions strongly influence decision-making, creativity and interpersonal relationships. And yet many leaders are uncomfortable with the topic of emotions or are unaware of its influence and impact on leadership, organizational culture and performance.
Conscious, courageous leaders are aware of the power that emotions hold. They harness it and make it work for them.
Let me be clear. Bringing emotions to your leadership is NOT the same as being emotional. Being “emotional” describes someone who is “sensitive” or reacts to circumstances in an intense way — when one takes things personal that are not personal. Being able to process emotions and using the powerful information they contain is a way to improve your capacity to look at the world, take action in it, and accomplish the results you are striving for. If you ignore your and other people’s emotions and the power they hold, then you set yourself up for unpleasant surprises.
The philosophy of Conscious Business regards emotional mastery as a meta mindset that underlies all other mindsets. Emotions deeply influence how we perceive the world and whether we are able, in a given moment, to choose responsibility over victimhood or curiosity over the need for certainty. The key is to consciously engage with emotions and leverage the power and energy they have. This means to engage with the power of all emotions — the so-called positive and negative ones — be it happiness, excitement, gratitude, pride, sadness, fear, anger or guilt.
Over 20 years ago, Daniel Goleman already declared emotional intelligence (EI) as a key competence of leaders:“After analyzing 181 competence models from 121 organizations, I found that 67 percent of key abilities were related to EI. Compared to IQ, EI mattered twice as much.”
Emotions arise from the stories we tell ourselves about what we observe and experience. These stories then consciously or unconsciously influence our actions. The more aware we become of our ability to influence our interpretation of a certain situation (i.e., the story we tell ourselves), the more we can direct our actions.
Have you noticed in emotionally charged situations that our good intentions often go out the window? We know how we would like to behave and show up, but we feel so triggered in the moment that we don’t care about reason or find we are not able to choose an empowering response. Instead, we react.
You can read hundreds of books or attend seminars, but emotional mastery is not about an intellectual understanding of how to lead or have difficult conversations. It is about being aware and equanimous in the moment and choosing a helpful response.
People work differently with emotions, and we recognize three different responses to emotions arising:explosion, repression or expansion of awareness, and management of the emotion. I am sure we all have experienced the harm it does when we or someone else “explodes” because of a strong, negative emotion. For the person showing the strong emotion, it may feel like a relief in the moment, but consequences for relationships and the outcomes they are trying to achieve are mostly negative. And after a short while, it doesn’t feel that good anymore either.
On the other hand, the more we try to suppress or control our emotions, the more control they have over our thoughts and behavior, not allowing us to operate from a higher level of consciousness and leadership. The secret is not to control our emotions but to balance, manage and align our emotions with who we are and how we want to lead. It’s key to productively use the energy the emotions carry to our advantage and become aware of the message it sends us so we can act in a productive way.
Let me share a five-step framework on how to increase your emotional mastery and leverage emotions in a conscious way:

  1. Become aware of the emotion. Feel it and label it. Do I feel anger or sadness? Happiness or excitement?
  2. Unconditionally accept your emotions and those of others. Don’t argue with what is. Accept without judgment and create space for the emotion.
  3. Regulate self and respond effectively to others’ emotions. Expand your awareness. Learn to respond and not react. Practicing equanimity and being able to use the power that emotions carry is a key element of emotional mastery.
  4. Inquire and analyze the story underlying the emotion. Be curious. Every emotion carries a message.
  5. Constructively express the emotion. Reframe and tell yourself a different, empowering story. Productively advocate for your own emotion. Productively inquire into other’s emotions.

Try this the next time you experience a strong emotion arising. Pause for a moment, take a deep breath, focus and spend a few moments to harness its power. Then consciously direct this power to support the people around you and the task at hand. I wouldn’t be surprised if you’ll feel better, too.

“She micromanages”; “He delegates too much”; “She doesn’t allow us to give our input”; “His requests are indecipherable”; “She demands too much in too little time.” The list could go on and on. Difficult bosses…they seem determined to make our lives impossible.
Yes, there are challenging bosses out there. And there’s also our ability to respond to any given situation. Consider the following scenarios. For each situation, take a moment to honestly think how you would respond. What’s the immediate reaction that comes up in those few seconds after you are posed with the situation?

  • When there’s a mistake or you are asked about a breakdown:

a) You identify who’s responsible for getting you into this situation. For example, “The report isn’t ready because the finance team didn’t post the data in the internal system.”

b) You acknowledge your contribution to the problem. For example, “I forgot to explicitly request from the finance team the data I needed to ensure I’d get it on time.”

  • When your manager delegates a task and you are unclear about a few things:

a) You leave the conversation thinking what an ambiguous request and that you’ll do the best you can with the information you were given.

b) You ask for clarification.

  • When you are asked for your opinion in the middle of a heated team meeting:

a) You give a polite opinion, wanting to avoid creating more disruption.

b) You express what you think in a way that is honest and at the same time respectful to others.

  • If you disagree with your manager:

a) You share your point of view with colleagues but not with your manager. He doesn’t really listen, so what’s the point?

b) You express your disagreement with your manager, stating the facts that underlie your opinion and acknowledging that your perspective is one of many possibilities, not “the” truth.

The options might be a bit extreme, but they capture two archetypes: the victim and the player. In the “a” responses, the focus is on what others did wrong or should do differently. You suffer the consequences of external circumstances (e.g., the finance team didn’t do their job; your boss makes unclear requests). In the “b” responses, the focus is on how you contributed in some way to the situation and what you can do. You respond to external circumstances (e.g., you ask for clarification; you express your truth).
Acting as a victim might be more an automatic reaction than a conscious choice. It protects you from blame and feelings of failure. There’s safety in feeling innocent and watching from the sidelines. But it’s also disempowering. You get trapped in the assumption that there’s nothing you can do.
It’s not you; it’s me
The first step is to recognize that it’s not all about your manager. If you believe her actions are wrong and there’s nothing you can do about it, you are trapped in the mental model of the victim.
The most significant shift from victim to player is moving from a frame of mind of “it’s not up to me” to “what can I do.” A powerful way to do so is paying attention to your language.
As we saw in the examples at the beginning, the victim speaks in the third person and focuses on factors beyond his control: “The finance team didn’t post the information”; “It was too little time”; “The request was unclear”; “Management doesn’t support the idea.”
The language of the player instead starts with “I” and includes specific actions you could have taken or can now take. “I didn’t ask the finance team for the information”; “I underestimated the time it would take me to complete the report”; “I didn’t understand the request”; “I couldn’t convince management to support the idea.”
Another telling difference is that the victim uses the language of “should,” indicating obligation and judgment, while the player uses the language of “could,” indicating possibility and learning.
I’m not advocating for you to become a language fanatic, paying attention to each specific word, but to see language as an expression of your underlying frame of mind and to start paying attention to your automatic responses. Are you focusing on external causality or personal accountability? Are you focusing on what others should do or what you could do?
You can’t change how somebody else behaves. But you can influence through your thoughts and behaviors. Next time you are faced with an ambiguous request, instead of thinking “he should be better at delegating,” consider asking clarifying questions around quality standards, available resources and time of delivery. You are helping your boss be a better boss. And you leave the conversation empowered to actually get the task done.
A footnote for the leader
Just as we are inviting the reader to take ownership on how he or she responds to a “difficult boss,” as a leader, you also can take ownership if you have an unmotivated team member. How might you be contributing to this person’s engagement with the project, department or company? What example are you setting through your actions? How much do you focus on what others should have done versus what you can do? Are you having honest and respectful conversations around performance? Are you delegating clearly?
Creating an effective and meaningful relationship goes both ways. When we are unhappy with somebody else’s role or behaviors, a lot of energy goes into complaining, venting or denying. Shifting from outside causality to personal accountability, from blaming to owning, opens the space to identify what can be learned, what can be done, and how to make it happen.

In cased you missed it, here are the first five questions.
 
Dear CEO,

6) We are not going to refer to this as “the soft stuff” anymore. Devaluing the human dimension compared to the technical dimension of business is not helping us adapt more quickly. We will learn to measure and understand the direct business benefits of our transformation efforts across all three dimensions of success: i) the task, ii) the team, iii) the self. We will overdeliver on all three dimensions.

Regardless of the outside help we get, we can’t “outsource” this work. We have to do this ourselves. We have to become transformation exemplars, and that will require us to integrate the human and technical dimensions of business. We will work on designing and capturing tangible ROI from the beginning. The experts I am bringing in will teach us how to do that in a practical way that matters to us. At the same time, we can also illustrate tangible value by comparing the culture/leadership investment to the cost of NOT shifting (e.g., employee turnover, inability to attract star employees, stalled customer focus improvements, stalled innovation, slower implementation times, lack of agility).
 

7) Expect a significant transition during year 2 and year 3. Companies like ours that are successful shifting culture do not usually say, “we got it” during year 1. This is not an HR project; this is a business prototype, which will give us a chance to “really learn by doing.”

The experts I’m bringing in will take us through a series of 90-day sprints that will help us “learn by doing.” These prototypes will help us learn what helps us deliver better results in the context of working on the business, not in theory. They have seen and lived through all kinds of scenarios facing other peer executives in situations like ours. They heard me admit and ask the same textbook questions while giving me the objective, outside, cold-water-wake-up-call answers that we need to hear…

  • We’re stuck. How do we break free from the inertia of learned helplessness and tyranny of low expectations to get to the next level? Clarify the culture standards (and learning gaps) that we have between our current level and our desired level, then clarify how committed we are to get to the next level (and why). What’s at stake for you? me? our team? the organization?
  • How do we avoid the early-on potential for unskilled false starts (e.g., too big or too fluffy) or snapping back to homeostasis/current level? We won’t get tricked into shortcuts and we won’t “bolt this on.” Connect the development work directly to high priority business imperatives — that’s the best reason to train. We won’t treat this like a communication project; it’s a business prototype.
  • How do we accelerate the process? We will stop delaying it, and we will go deeper faster. We will let the leaders and teams also “learn by doing” with high-impact, real-world, 90-day sprints where we can experiment to see what works here (what we’re ready for).
  • How do we extend and keep the flame going? Let’s stop asking that “cascading” question right now. We’re not sure that we’re willing to do what’s necessary to even “pack the snowball tight” with the senior executives and focused experiments. Let’s focus on that first. If that sticks, then we’ll start building peer learning communities as well as formal/informal communities of practice where we all will learn while doing — we train together while delivering business imperatives.

 

8) Expect to pay attention to things you haven’t paid attention to before.

  • We are going to be doing something that most leaders have not been invited to do before…to courageously observe our own leadership style/techniques, the impact it’s having on delaying the organizational performance/shifts, and then optimize them according to what we say matters most to us.
  • We are going to start with the initiation phase of a vertical learning adult development program, where we will become more objectively aware of our current level and next level gaps…and we will see more clearly than ever before.We will be even more committed than ever to the possibilities that come with our next level goals. We all deserve to get to the next level!
  • It will take deliberate, focused practice to shift these specific organizational capabilities from unconsciously incompetent to consciously competent, and to deliver consistently on the high-performance attributes we have chosen. Some individuals will go faster than others, and some microcultures will influence others faster. Meanwhile, our brain’s biases, our history and our system inertia are working against us more than working with us to support the change. However, once we build our transformation muscles, we will have more wind at our back…exponential business benefits and odds of success for 202X and beyond.

9) I need you to ask for more help.

Not because you are weak but because you are strong — because you have all the power. When it comes to preparing yourself to be an exemplar transformation mentor/leader, you need to ask for more help so everyone will see that being a learner, “asking for help,” and being transformed ourselves is something we value at the highest levels of the organization. Saying “I don’t know how to do this” and asking for help is not a sign of weakness around here anymore. From now on, we win by learning.

You (we) should be asking for more feedback and more guidance on how other companies make this shift — on how to best mentor the executive team through this beyond stepping up as a public player in workshops. The majority of adult development/learning doesn’t happen in the workshop; it will happen in the learning experiences we share with each other during the course of running the business. And it will come from the social influence that we contribute in every meeting, every agenda and every interaction that we have within the leadership team.
 

10) We are going to lead the way.

 
 
 
 


Based on several true stories inside of multinational organizations:
When the chief human resources officer (CHRO) or any C-suite executive finally refuses to be a complicit bystander and commits to leading the business (like a real business leader)…here are 5 ways to start the conversation:
Dear CEO,

1) We have a serious problem …a culture problem.


We are witnessing a historic shift in what’s expected of us when it comes to understanding and evolving our company’s culture. We can’t deny or minimize the negative impact that our executive leadership is having on our culture any longer. The crisis of unconscious leaders is all around us, AND it is clearly a disadvantage for our business performance. This is a new era with new rules. We need to let go of some of the old success formulas…not all of them…just some. We are up to this challenge. We are going to shift the culture and expand the future-focused capabilities that we need (e.g., alignment, collaboration, curiosity, innovation, agility) so that we can not only stay relevant and competitive in the future but so that we can win. I (CHRO) am going to help you lead the way through this. I will need you to trust me. We will do this together.
 

2) Our industry, our history and our future are at odds.

It’s time for us to reactivate some of our originating startup/adaptive DNA and take our enterprise transformation seriously if we expect to win in the future.
Yes, we’re already rich, we have plenty of reserves, and we’ll probably stay afloat beyond your retirement…but we’re just floating right now. We’re not moving forward. We’re stuck. That’s not the kind of legacy we want to leave here after all this time, after all our hard work. The business case for change is undeniable, and yet we keep putting our head back in the sand, hiding in our offices, telling our employees and each other, “we got this.” But we’re just floating — and floating is insufficient. Just “getting by” is creating a long-term disadvantage for us, and it’s creating a ridiculous amount of unnecessary suffering right now.
“Just floating” is not going to be your legacy. And it’s not going to be mine either.This is not going to be fixed by having a two-day workshop or retreat. There is no shortcut. We need to shift some of our default thinking patterns/habits and close the gap on some key organizational attributes/behaviors that can make us more agile, collaborative and innovative. To be a legitimate competitor, we need to perform these attributes consistently at a professional, world-class level. This is not amateur hour or a time for dabbling/hacking away at this like it was a hobby to pick up over a weekend seminar. We have to evolve rapidly. We have to transform. We’ve been talking about this for years. If it were easy for us, we would have already been doing it. We’re stuck. We clearly all have a lot to learn. We need to adjust the way we think, relate, make decisions and take action. It’s never too early (and hopefully not too late) to ready our teams and ourselves for the future.

3) Our employees are losing faith…

So we have to act decisively. You saw what they wrote in the annual engagement survey. The research firm quantified just how much they are losing faith. You read the verbatims. You were upset by the quantity and toxicity of verbatims. You asked me:

“Who does that? Who writes that kind of terrible stuff, knowing that their bosses are going to be reading it?” Seriously, who does that? The “un-led” do that. (JL)
We can lead better. The people in our organization are telling us that we have a problem, and they want us to create a more constructive work environment.

  • They basically called BS on our leadership team’s ability to deliver on a majority of our company core values (e.g., teamwork, innovation, courage, respect, trust, creativity, integrity). They notice the incongruence. THAT IS A STRONG SIGNAL FOR US.
  • They said they have 20 percent less confidence in our business potential over the next two to three years compared to their confidence a year ago. THAT IS A STRONG SIGNAL FOR US.
  • They said they are 25 percent less engaged than a year ago across all business units. THAT IS A STRONG SIGNAL FOR US.

None of this will fix itself. We MUST ready ourselves to respond more effectively by leading a sustainable, strategic culture shift.
 

4) Our leadership team is not yet equipped to respond/lead a transformation like this alone. We don’t know how to do this effectively yet (and pretending to know is only making things worse). 

By our own words, we are at an inflection point that our default thinking patterns, behaviors and leadership muscles are NOT prepared for and need to change in order to achieve our three- to five-year plan success/goals — LET ALONE THIS YEAR’S STRETCH GOALS. We can do this, and I am going to lead this. We’re not transformation experts yet, so I’m going to get you and our entire leadership team the expert support, learning and development we all need to feel strong leading the way.
We will focus on consistency over intensity. We’re going to play the long game — no culture “change theater” or quick fixes. We will lead the way, with humility and empathy — not by knowing but by BECOMING LEARNING EXEMPLARS, showing that we value learning more than saving face. We are not yet personally connected to the kind of transformation that we are asking of our people, but we will be. This journey will be one of the greatest achievements of our career. We can do this.
 

5) To ready the organization for change  we should expect to invest in both expanding leadership capabilities and building internal capacity. 

We need to work on our inner game (transforming our mindsets) and our outer game (the way we execute the business). Our internal team of leaders will be fully involved and take on this initiative in a way that integrates with all of our existing work. Our leaders will be doing the majority of the training and development of middle manager cohorts — once we get a couple of cycles under our belt and I am confident that we can skillfully marry executive mentors and the extended leader/team cohorts into effective, sustainable programs that simultaneously support specific business priorities. For the transformation and readiness part, we will need to partner with an expert firm for the high-leverage areas that require their expertise, and we will need to be focused on the C-suite leadership development and culture change readiness (mentoring and coaching) work as well as ensuring high quality, internal capacity building.





To successfully achieve next level results/culture shift that we say we want, to maintain momentum and to build internal capacity to sustain it, I would expect us to work with expert resources/interventionists over the next three-year time frame while we build internal competency. It will more likely be front-loaded than equally spread out across those three years. It doesn’t have to be incremental learning and development dollars; we can reallocate some of our other important learning and development budget for this essential work.
Here are five more questions to engage the CEO.
 

I was working with a team the other day and one of the members said, “I want to feel it’s OK to say what I am about to say; and if it is OK to say what I am about to say, then I wouldn’t need to ask for it.”
The irony of psychological safety is that you only know you need it when you don’t feel you have it.
 
What is it?
Psychological safety is a term that describes the phenomena of feeling that it’s OK to take a risk. In my words, I can bear the discomfort of stepping out of my comfort zone in this situation with this group of people.
Research undertaken by Edmondson et al. and Google have found it’s one of the key ingredients in high-performing teams. This research has given us language to describe it and to start thinking about how we can intentionally create it.
The other day in an organization I was working with, I heard two colleagues discussing their manager: “He doesn’t make it psychologically safe for us.” I also hear executives talk about how they need to train their managers in psychological safety.
How do we train for psychological safety? How do we help each other to create the environment for each other to tolerate the discomfort of being vulnerable, of being seen in all our glory and messiness? Depending on our past experience, that can for some of us be almost intolerable. So how do we tolerate the intolerable?
 
Where does psychological safety come from?
Well, as I see it, it’s partly internal and based on one’s own level of tolerance of the unknown. As to some degree, we can only know it’s safe to take a risk when we have taken one and survived, and we carry that level of internal trust in ourselves around with us wherever we go.
This internal safety level is then heightened by and impacted by the situation we find ourselves in. We have an antenna that reads faces and body language, atmosphere and energy, and makes inferences and draws conclusion. It tells us whether it’s OK or not OK to express ourselves fully.
And it’s an infinity loop as how we are received, then it impacts future decisions, making us more or less confident to take risks in this situation and situations like them. Is that complicated or what?
 
So how do we create it?
It requires working at the “being” level as well as the “doing” level. Psychological safety is created moment by moment. It’s a felt sense. It often arises out of not feeling safe (i.e., in the bearing of not feeling safe, we find safety — the eye of the storm). It’s not static; it’s dynamic. And it’s not evolving.
 
What does it require of us?
It requires a mindset of a learner, of deep curiosity, of staying in a conversation with ourselves and others to help each other bear the discomfort of being vulnerable — being in open, transparent communication with each other, in each moment. For example, I can’t make my manager make it psychologically safe, but I can find out what is important to him/her and what he/she needs to feel psychologically safe.
It requires a mindset of taking responsibility for my part in the process and not waiting for someone else to give it to me or do it for me. For example, I don’t wait for the company to organize training on psychological safety. I find out what I can do in every meeting to make it easier for people to take risks.
It involves treating myself and others with kindness and compassion. We are much more likely to take risks if we feel we will be met with kindness — for example, remembering that most people care and want the best for everyone, and if they are behaving badly, it’s because they are scared or hurt.
It involves seeing our interconnectedness and interdependence, realizing that we are all similar in our fears and hopes, yet appreciating that we all have different ways of expressing our true nature in the world.
When we say what is true for us in that moment, we feel liberated and free to do our best thinking, and we became more productive.
 
What can I do?

  • Not pretend to know when I don’t; I can ask for help. This is difficult, especially when I feel like I should know and I am paid to know.
  • If someone is behaving oddly and creating an atmosphere, I can ask what is important to them. Usually we get defensive and upset when something we care about is at stake, so I can check if something important to them is at risk.
  • I can have check-ins at every meeting, which is an opportunity for everyone to arrive and get present, and to say anything that is concerning them or impacting their ability to be present.
  • I can say if something is concerning me, and that gives permission for others to say the same.
  • I can find a clean way to discuss the undiscussables.
  • I can continuously remind myself that I am human and, as such, I am impacted by others.
  • I can take risks to expand my comfort zone.
  • I can learn breathing and body practices to grow my ability to tolerate the discomfort of feeling unsafe.

To me, the most intriguing paradox of conscious business — and the hardest to explain — is the interdependence of openness and resolve. How is it possible (even necessary) to be curious, open, humble, and yet at the same time, decisive and action-oriented?
This question is not just academic. If it weren’t possible to be both decisive and open, the whole set of mindsets and skills that we call “conscious business” would be of very little use. Why would anyone with leadership responsibilities want to practice being curious, flexible and open if it meant being ambivalent, indecisive and fickle as a chameleon?
I believe that skillful leaders get a “feel” for how to be “decisive learners.” They don’t just get it cognitively. An experiential component leads them to “get it” in the same way that you first found your balance on a bicycle or learned to look up while dribbling a ball.
By the same token, there is a risk of overexplaining such things. How long would you want me to explain how to ride a bicycle? (For that matter, how long would you want me to evoke the paradox of the decisive learner before asking you what you already knew about it?)
I’m going to offer two stories: one from the martial arts and one from business. Then it will be over to you!
As you may know, Tai Chi is one of the “soft” martial arts, like Aikido. The joke about Tai Chi is: “How can you expect to defend yourself when you are moving in slow motion?” Yet meticulous practice of these slow movements (the “form”), as well as “holding” postures, are a critical part of training for the dynamic and interactive part of Tai Chi “Push Hands.” And Push Hands can be lightening fast (and rock hard).
Traditionally, Push Hands is not taught to novices. I had been learning the “form” and related exercises for almost a year before I was allowed to join a Push Hands class in 1989. That is when I got my first taste of “open/flexible/receptive and tough/decisive/resolute.” My assignment was to try to “push” my Tai Chi teacher, Lenzie Williams (i.e., make him lose his balance or even just move his feet). The difficulty began when I couldn’t even find anything to push on. No matter where I thrust my arms, he seemed to just disappear. (He was “yielding.”) And yet when he pushed me, I went flying across the room. It was a major “aha.” I felt, quite tangibly, how it was possible to be totally receptive, open and relaxed, and at the same time grounded, decisive and powerful. Lenzie demonstrated these qualities without a shadow of a doubt. The only problem was that I had no idea how to do it! I had taken the most important step in my learning journey. I was now “consciously (rather than just unwittingly) incompetent.”
With practice, I became “consciously competent,” which meant that if I really paid attention, I could evade my more experienced classmates, and sometimes even push them out. The thing I paid attention to was staying relaxed and receptive as I yielded and also as I pushed. Lenzie always emphasized (and demonstrated) that the greatest strength came from the greatest “yielding.” It was by practicing softness that we developed our “rooting” — the ability to stand firm like a tree and push people in a way that was powerful and irresistible.
So that is the martial arts story. I also want to share with you the story of a CEO who transformed his leadership style from directive and controlling to receptive and encouraging, without losing any of his action orientation. In fact, he became more resolute, not less.
What happened is this: Bob wanted to engage his staff more. He recognized that there were unintended consequences when he “cut to the chase” and went into director mode. His staff would become remarkably passive, waiting for him to tell them what to do. This was frustrating to Bob. What he really wanted was for them to be energized and take more initiative, yet he seemed to be influencing them to do the opposite.
Following an Immunity to Change approach, Bob wrote down his improvement goal: He wanted to be more receptive and encouraging to his staff, particularly when they were tackling a problem that he had a strong opinion about. Next, he listed the things he did (unwittingly) that undermined this goal: interrupting, taking over, correcting, focusing on flaws, failing to inquire. He asked himself what did he worry would happen if he did the opposite of those things? The worry that first occurred to him was that they would steer the company into an impasse, and the results would reflect badly on him as a leader.
In other words, Bob came to see that he was ambivalent. He was committed to energizing and empowering his staff, but he was equally committed to never letting them get off track. Each of these competing commitments triggered the other. When he got carried away “correcting” his staff, he resolved anew to empower them, but when he trusted them to take charge, he felt an equally compelling need to reassert control. He was oscillating in a state of “unresolve,” never fulfilling either commitment to his satisfaction.
Bob did not resolve his ambivalence by “trying harder”; the problem was not willpower. Rather, he began to question the assumption that was holding it in place — that if he let others take the initiative, he would end up being neglectful (because they needed him to course correct) or worse, obsolete (because they didn’t). So long as this assumption remained “true” for him, he was bound to buck and bridle when he felt the initiative passing into others’ hands and out of his control.
Instead of remaining subject to this assumption, however, Bob conducted a set of deliberate challenges to it, in each case comparing what the assumption would have predicted to what actually happened. First he tried a new behavior. He listened; he left the initiative to his subordinates; he made himself notice, appreciate and acknowledge their progress. Then he asked himself, “Well, did they go off track? Am I being irresponsible or neglectful? Do I feel superfluous? Are they wondering what value I’m adding?”
To his astonishment (and relief), when subjected to such direct scrutiny, his “big assumption” crumbled; its predictions just did not hold up. And just beyond the movie that had been projected by this limiting belief lay a much bigger landscape of possibilities: His staff could seize the reigns enthusiastically, and he could feel good about it. They could suggest things he had never thought of, and he could be intrigued. He felt much more connected to his staff, more “on task” as he delegated, and more fulfilled as he discovered his role as a coach and mentor. Now his way of adding value wasn’t just to “keep the business on track.” It was also, in a more complex view of the world, to “grow leaders.”
Through this learning journey, Bob did a lot of letting go. He became less controlling and more curious, open, receptive, engaging, encouraging and patient. As he put it, he learned to avoid the “impatience trap.” His staff noticed the changes, and they were responsive and relieved. As Bob had hoped, they became more energized and took more initiative. He willingly relinquished the initiative. Most of all, he let go of a way of thinking about himself — a self-image as “company savior,” as the one who could discern the risks that others missed and save the day. He also let go of the corresponding self-doubt — his fear that he would have no other way of adding value.
But here is the paradox: In letting go in these ways, Bob did not become ambivalent or indecisive. On the contrary. He became resolute. He stopped oscillating between competing commitments and became more consistent in his mindset and behaviors. Rather than getting caught on the horns of a false dilemma (“if I empower my flock, they will stray”), he was now integrating the poles of a paradox. He could offer challenge and support, leadership and development.
Bob’s story is not unique. It describes a pattern of human development that Psychologist Robert Kegan has described as the movement from subject to object[1]. An assumption or belief that we were subject to — that functioned as a premise for our behavior without our being aware of it — becomes an object of reflection, and it can thus be modified to adapt to the realities we are dealing with.
My aim in evoking Bob’s story was to provoke recognition of this pattern. Have you observed it in someone at work? In your family? In yourself? Can you recognize how this form of human development follows a paradoxical pattern? On the one hand, you let go of a limiting belief or assumption — of an attachment to seeing things a certain way; you become more flexible, open, receptive to possibilities; you learn. On the other hand, you become more resolute — less ambivalent, more aware, congruent, clear and decisive.
If so, then you may also be able to see the connection between Bob’s story and the martial arts story mentioned previously. Each illustrates not only the possibility but also the necessity of being both receptive and resolute, decisive and open.
[1] Robert Kegan, The Evolving Self (Harvard University Press, 1982)

Becky’s frustration grew as she watched Joan blow up in her office yet again. Becky had served as the director of sales for a successful pharmaceutical company for the past six years and struggled with her relationship with her sales manager, Joan. Careful to not say anything that would trigger Joan, Becky began to hold back in their conversations and avoided meeting with Joan altogether.
“Not again,” Becky thought. “It seems that every time I meet with Joan, she gets upset when I ask her a tough question or I disagree with her position. This is driving me crazy! How can we work like this?”
Emotions are not wrong; they point to an unattended or unspoken request
“The major block to compassion is the judgment in our minds. Judgment is the mind’s primary tool of separation.” —Diane Berke
When you sit in judgment of those you manage and lead, frustration ensues and the opportunity for connection, understanding and honest dialogue diminishes. Compassion invites truthful conversation and opens space for exploration into potential resolutions. Compassion is defined as the emotional response we have when we perceive suffering and making an authentic effort to help. In the workplace, many leaders fear being perceived as weak if they show compassion, so they separate themselves from their own emotions as well as their team member’s, focusing solely on the task at hand.
Becky started questioning her own conversation style, words and behaviors. In a session with her executive coach, Becky described her relationship with Joan and detailed her concerns. Her coach asked her a very simple yet profound question:
“What would happen if you were to address her emotions head on and find out what is driving them?”
Honoring others as people
Becky was surprised and intrigued by this question. What if Joan’s emotions aren’t “wrong”? She had never thought about her relationship with Joan in this way. She decided that the next time things got heated, she would do just that.
A few weeks later, Joan and Becky were talking, and Joan began to go off on a rant again. This time Becky paused and acknowledged Joan’s reaction. “I see you are very upset. Can you tell me the source of your frustration?”
Joan stopped for a moment and did not respond. Becky said, “I have noticed a pattern in our interactions and want to find a better way for us to communicate. I am wondering what it is that I am doing or saying that is so frustrating for you so that we can find a better way. The quality of our communication is critical to our team and important to me.” Joan began to nod and then explained how she felt smothered by Becky’s constant direction and questioning her decisions. Joan described her desire for more autonomy and requested the opportunity to call on larger accounts and take on more responsibility with less direction from Becky.
Courage to lead with compassion
Current research from Stanford University found that organizations where compassion is emphasized experienced more employee loyalty and engagement. The employees are also less stressed and more satisfied with their jobs. They also cited lower turnover, higher productivity and increased efficiency as benefits.
As Becky shared this story, she acknowledged that many of her ways of leading were based on the assumption that she needed to “control” her staff to be successful and achieve results. This experience and shift in perspective reshaped her leadership. She began to have more patience with her staff’s shortcomings and was more open to forgiving them and encouraging them to do better. As a result of Becky’s compassion, Joan’s honesty and their ability to communicate truthfully, Joan went on to win a large account, and Becky was given a raise as her team began to flourish.
How do you lead with compassion in the workplace?
Here are three things you can do to practice compassion at work:

  1. To be compassionate with others, you must first practice compassion with yourself. Begin by noticing how often you judge yourself and others.
  2. Are you willing to see situations from another person’s point of view? Ask employees, bosses and peers questions to gain a better understanding of their view instead of making assumptions about what is driving their reactions.

Honoring others as people with hopes, needs and fears that are as real as your own empowers you to respond to human emotions with genuine concern. When you treat others compassionately, you have more ability to forgive; you experience greater resilience and less fear of failure and are therefore more effective.

We recently attended the Conscious Capitalism European Conference in Barcelona, Spain—an event attended by 300 leaders and practitioners.
Conscious Capitalism is a way of thinking about capitalism and business that better reflects where we are in the human journey, the state of our world today, and the innate potential of business to make a positive impact on the world. Conscious businesses are galvanized by higher purposes that serve, align and integrate the interests of all their major stakeholders.
The four principles of Conscious Capitalism are very closely aligned with Axialent’s purpose as an organization.

Here are our key takeaways from the event.

  1. If we’re not healing, we’re harming.

In his speech, Raj Sisodia explained that we need to have an active role in making the world a more conscious, caring and compassionate place, and it is critical that we work toward doing business in the right way…good business. By this, we mean that businesses need to think about their customers, products and services, and consider all the aspects including the impact (direct or indirect) their actions have on their employees, suppliers, people who are not their customers, the environment and, yes, also revenue. If we don’t do this, we are contributing to more suffering, and that means we are harming. At Axialent, we work every day to heal organizations by bringing more consciousness and working at the I, We and It levels.
 

  1. If you believe in something, you can do it no matter what. The road will be tough; but if your belief is strong enough, you will find a way to keep going.

Ibukun Awosika, chairwoman of the First Bank of Nigeria, delivered an inspiring keynote about the complexities and obstacles that the African countries have. She also described some interesting aspects of the African society that few people are aware of, for instance, the way they behave as a community and how they care for each other. The biggest takeaway is the way she is as a human being. Despite all the challenges she has back home, she was there “fighting” for what she believed in and forging the change—spreading the message and walking the talk.
 

  1. “Call your heroes and share your gratitude and admiration with them.”

This is a quote from Tom Gardner’s speech, where he mentioned a number of “recommendations” based on his 25 years as the co-founder of The Motley Fool. One recommendation he has is to call or write to all the people you admire and let them know how inspiring they are for you or your organization and how grateful you are for what they are doing and the way they are impacting the world—and to spread gratitude and admiration because it feels good and not expect an answer from those you reach out to.
 

  1. There’s an alternative to a hierarchical mindset!

This is a very strong belief a lot of organizations and leaders hold. Having to rely on, at some point, a hierarchical structure is so embedded in modern-day business. Brian Robertson, the creator of Holacracy, shared that organizations can work as living cells; there’s no CEO cell or VP cell. The principle of this alternative way of working is that we work on having the purpose of our role and organization in mind, but we are the CEOs of our role and we can do whatever we may need to solve and start new things. Unless there’s a rule written against that, we can do whatever we may think is better to serve the purpose of the company. It is really encouraging to know that many companies are implementing Holacracy and thriving. Zappos, one of the biggest online shoe and clothing retailers in the U.S., adopted this new system and is an example of its success.