Building Sustainable Legacies


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Corporate Culture in 2017

As I write this blog, year 2017 is winding down. Throughout the year my blogging partner, Katrin Muff, and I have commented frequently on corporate culture. The media seems to share our interest in this subject. Indeed, references to corporate culture have shown up on the front pages of many reputable newspapers and magazines this past year. I did a cursory web search to gather up a few of these stories.

I don’t claim to have done a scientific study of how often and in what context the media mentioned corporate culture.  Nevertheless, many articles popped up when I entered the search term “corporate culture 2017”. Most pertained to companies’ significant problems attributed to toxic corporate cultures. Of course, the media often showcases the bad news stories. Still, the volume of content was significant enough to warrant my attention.

The Wells Fargo Bank fraud hit the headlines at the end of 2016 and kicked off 2017 with bad news for the company. Several newspapers including the Washington Post and the New York Times reported that Wells Fargo employees had opened millions of phony accounts without their clients’ consent. The articles attributed the malfeasance to a company culture where pressure to meet unrealistic sales goals undermined corporate ethics.

Likewise ride-sharing company Uber made the news repeatedly throughout the year. Referring to the egregious sexist culture, the Washington Post had this to say:

“Corporate culture has long been the sort of squishy management consultant term that’s hard to define, even harder to change, and the recipient of lots of lip service yet little action by chief executives. But however amorphous the phrase may be, its importance was stamped into stark relief this week after a former female Uber engineer made allegations about its sexist, chaotic and aggressive culture.” [1]

United Airlines landed in hot water in April of 2017 when a passenger was forcibly dragged off a plane. The articles attributed the incident to a culture where behavior is scripted and employees have little if any latitude to make decisions.[2]

The last few months of the year brought countless stories of cultures where women were treated as prey. For example, in November of 2017, Fox News set up a Workplace Culture Panel following reports of widespread sexual harassment throughout the company.[3]  And as recently as December, the New York Times published an article on sexual harassment at two Ford Motor plants in Chicago. The headline read as follows: “How Tough is it to Change a Culture of Harassment?  Ask the Women of Ford.” [4]

While I could devote the entire blog to recounting similar stories, I believe that the examples I have offered are sufficient to make the point. Culture counts. No matter how amorphous the concept may seem, those of us who lead companies ignore our organizations’ cultures at our own risk. Consider the degree to which toxic cultures impacted companies and the people in them in 2017. Let us each resolve to assess and address our own organizational cultures in 2018.

Take the first step by looking at your current culture. Ask yourselves questions such as the following:

  • What is the purpose of our company and what do we stand for?
  • How do our corporate values influence our decisions and behaviors?
  • What are the stories that we tell each other about our organization?
  • Who are our admired heroes?
  • Who makes the rules for the organization?
  • What do we reward and what do we punish?
  • How often do we have conversations that consider diverse opinions?
  • To what degree do we value the contributions of everyone in the company?
  • What do we do to show respect for all?
  • How do we ensure that everyone’s focus is on serving our customers?

In addition to answering these questions ourselves, we should pose them to others. In my 30+ years of consulting, I have found that leaders are predictably astonished by how employees’ perceptions of the organization diverge from their own. While some are tempted to explain away the differences, the best leaders value the input. They dig deeper to understand and address the discrepancies.

Leaders create the conditions within which a culture emerges. However, they may not fully understand the possible consequences of the systems that they put in place. Likewise, they may be shielded from what occurs within the organization day to day. Asking the right questions and listening openly to the answers can provide them with the needed data for making appropriate changes to improve the organizational culture.

As I anticipate 2018, I wonder what catastrophes might be prevented in the new year if leaders of every company committed to taking  a close look at their own organizational cultures. Chances are most would find a mix of strengths to reinforce and weaknesses to address. And in some cases, they may find signs of the toxicity that, if not eradicated, could create serious consequences for their people and their companies. Let us all resolve to become proactive this new year in stamping out the unhealthy parts of our cultures while fortifying the strengths.

 

[1] https://www.washingtonpost.com/news/on-leadership/wp/2017/02/24/why-a-toxic-workplace-is-now-a-much-bigger-liability-for-companies/?utm_term=.c854fdb575d8

[2] http://www.latimes.com/business/hiltzik/la-fi-hiltzik-toxic-united-wells-20170411-story.html

[3] https://www.nytimes.com/2017/11/20/business/media/fox-news-sexual-harassment.html

[4] https://www.nytimes.com/interactive/2017/12/19/us/ford-chicago-sexual-harassment.html

 

Author: Dr. Kathy Miller Perkins 

Dr. Kathy Miller Perkins is a social psychologist and is the CEO and owner of Miller Consultants , a firm specializing in organizational development, executive coaching and change management. Her work involves helping companies create and sustain organizational cultures that are conducive to executing sustainable strategies. She has worked with companies such as Toyota, IBM, Kindred Health, Brown-Forman, Lexmark, Anthem, Ashland Chemical, the U.S. Military and BC Hydro.

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How CEOs can inspire personal change

Imagine you had 30 minutes with 4 renowned CEOs in front of several hundred business practitioners and you wanted to use the time to create change in the audience. What would you do? I recently had the opportunity and here is what happened!

At the Swiss Green Economy Symposium, the largest event among sustainability enthusiasts in the German speaking part of Switzerland, I could facilitate a CEO panel. I had about six months to prepare which was necessary given the busy agenda of the CEOs. I contacted more than a dozen to have a confirmed gender balanced panel of 4 CEOs. One of the female CEOs had confirmed early and said she would participate with one condition: that there would be at least as many women on the panel as men. What a great condition! Imagine how things would shift if all women (and men) would demand this!

I wanted to create a panel that would serve as a trigger for change in the audience rather than a the usual story-telling inspiration sharing success stories of their organizations. Would I be able to convince the CEOs to give up the opportunity to position their company in front of an attractive audience in service of creating a space where change could happen in the audience? Yes, imagine that. CEOs were open to that idea, once I shared my idea with them and had talked them through the concept. Wonderful!

Figure 1: The Circle Model connecting the inner world of personal development with the outer world of organizational development as a transformative journey towards a world worth living in (Katrin Muff, 2016)

We split the 30 minutes in three parts. After a short introduction where I framed the conversation with a simple concept (see figure 1), we started the first part. Each CEO shared a personal story illustrating the question: “which challenges have influenced them personally and how have these shaped the way you are leading your organization?” As the audience collectively leaned forward, topics such as gender stereotypes, work-place injustice, product waste and power abuse were discussed with courage and vulnerability. I invited the packed auditorium to take moment and to individually reflect on what has shaped them most in your past and how this influences their priorities at work. Both in terms of what they currently do and what they wish you were doing. People came to me afterwards and said they have never experienced a room so quiet and so focused. The magic was starting.

In a second round, we had selected only two of the four CEOs share examples of what issues were challenging their organization in this VUCA (volatile, uncertain, complex and ambiguous) world and what long-term business opportunities were emerging concerning the Sustainable Development Goals? To grant time to the audience, the generosity of the other CEOs to stand back was really touching. We were one and we had one common objective! I invited the audience to turn to their neighbor and to discuss what options their saw to implement change for their organizations to embed the SDGs into their strategy. On a background slide, I shared a support website for those needing help. The room exploded. Everybody talked and shared and exchanged. We sat in our chairs with our jaws wide open. What an energy in the room. And how were we going to get them back to listening to us? When the time was up, the CEOs and I spontaneously stood up together and loudly applauded the audience. They look up and stared at us in surprise. They stopped talking and we could continue.

In the last round, all CEOs shared which issue concerned them most in our society and where they saw opportunities to connect these to future business activities? Their stories addressed the top burning societal issues of Switzerland as addressed by the Gapframe: CO2 overuse, equal opportunity, sustainable consumption, social integration and clean energy. I invited the audience to take a moment and choose one action that they could implement in the next 3 days to close the gap of where we are today vs. where they thought we should be in an area important for them. I offered an online tool to share these actions, if anybody felt like it.

I wish we had more time at the end, the final reflection was a minute shorter than I had hoped but our 30 minutes were up. Nonetheless, I was happily surprised when I discovered the personal commitments coming in. Figure 2 provides an overview of them grouped into some categories I hope are helpful in reviewing.

Role modelling

  • I commit to dedicate my working time to a project that serves 100% to make our living more sustainable
  • Lead a topic coming out of SGES 2017
  • I will define my personal SDG‘s to be achieved by the end of 2018
  • Break the barriers, create sense of urgency and implement the much needed change
  • Prepare presentation about the legal implications of a meat tax as a ghg heavy good

Encouraging others for action

  • Communicate knowledge to peers
  • As corny as it may sound: foremost change minds
  • I commit to also encourage others to live more sustainably
  • Talk with my Patents about their travelling
  • Poll others on these questions
  • Roll out the sdgxchange in a world wide level
  • Make my sons understand that they also have a big responsibility for Equal Opportunity and that they must contribute to achieving it

Community building

  • Organize a non-hierarchical roundtable for a common sustainable mindset within my organization and outside
  • Partner to strengthen the capability to act
  • Launch SDSN Switzerland on 2 Nov, the network that mobilizes the Swiss research & innovation community for the SDGs
  • Keep engaging people for a sustainable future
  • I’ll ask my fellow Entrepreneurs how they care about Sustainability! And I’ll publish it later on!
  • Organize the startups around me in a matrix to share sustainability progress

More time for the soul

  • Slow down. I will lower my expectations towards myself and spend more time speaking with my employees
  • I will observe better!

Aligning corporate sustainability goals with national priority issues

  • Identify lacks in our sustainability goals by comparing them with the topic of gapframe.org
  • Build our new 150kW PV project in Bern – Solarify
  • Verity the strategic goals of my organization against the Agenda2030 for Sustainable Development and adapt if needed
  • I will create a personal project on how we can introduce GTDs with local partners and stakeholders in our projects worldwide
  • Make sure that we also talk about social innovations.
  • Apply the standard for sustainable construction (SNBS) in the area of buildings

Social integration action

  • Partner up to reach higher employee diversity (age, gender, education, etc.)
  • I would like to support employees who lost their jobs with improving their skill-set and find a new opportunity or career path.
  • Transparency and equality

Reducing the CO2 consumption (Switzerland’s no 1 sustainability issue)

  • Only travel by train to destinations in Europe (always!)
  • Rain or shine, I’ll bike to work.
  • I commit to eating only very little meat and buy organic food, to fly as little as possible and compensate my flights
  • Compensate my flight
  • No more elevator – taking the steps, staying fit and saving energy
  • Exchange my diesel into an electric car
  • Conscious Consuming
  • Cook local
  • Eating less meat
  • Renovate our old Windows in order to create more insolation
  • Commit to an organic “vegetable-abo” in order to support sustainable and local agriculture.
  • Before I buy something, to ask: what is the harm when I buy this?

Figure 2: List of shared personal commitments as a result of a 30 minute transformative CEO panel

I don’t think I have ever spent so much time preparing for a 30 minute intervention. I think I spent 30 hours, or 60 times the intervention time, in preparation. I needed not only prepare the CEOs, I also needed to get the organizer onboard. Among the CEOs, we had spent two months carefully scripting each statement of each person so that we could create an overall story that would hopefully allow a change in the audience. This resulted in a 3500 word document that everybody had approved, outlining minute by minute who would say what. If you attempt something similar, ensure you have plenty of lead-time available! It is worth it though!

Author: Katrin Muff, PhD

Active in thought leadership, consulting & applied research in sustainability & responsibility, and directing the DAS & DBA programs


Why We Work

Work is about a search for daily meaning as well as daily bread, for recognition as well as cash, for astonishment rather than torpor; in short, for a sort of life rather than a Monday through Friday sort of dying.” Studs Terkel

How much of your life do you spend at work?  For many of us the answer is shocking.  Working adults residing in the United States spend a third of their time at work, according to recent estimates.  Many of us spend more time at work than in any other endeavor including time with our families and friends. I am not going to debate whether this is the right way to live. However, since many of us will work a large proportion of our adult years, we might reflect on what work means to us.  Are we working only for a paycheck or for something more?

Through my own conversations with working people, I have found that most want to work for companies with a distinct purpose and clear values.  Research that I referenced in my August blog, confirmed that all generations, not just millennials, want to find purpose in their work.

Last month Katrin Muff discussed the importance of connecting our values with our life purpose as it relates to the world outside of ourselves.  Certainly, the workplace is part of that outer world. While our jobs may not suffice to define our total life- purpose, our work and/or our profession are part of our identity.  For example, reflect on how you describe yourself to others.  Chances are if you are a working adult, you include a reference to your profession or what you do for a living.

Since we tend to identify with our work, it is not surprising that most of us want it to be meaningful.

Evidence collected over decades shows a relationship between meaningful work, motivation, engagement and a sense of well-being.  While each of us may have our own definitions of what makes a job meaningful, some common factors are:

  • Person-organization fit
  • Positive and reinforcing personal relationships
  • Opportunities to align with or further one’s values
  • Fulfillment of a social or moral purpose, or broader reason for being. [1]

Year after year we hear that a very large percentage of working adults across the world do not love their jobs and are not engaged with their companies or their work. This disengagement from our work often has a negative impact on our health and well-being.

When we view our work as meaningful, we are also more likely to be motivated to do it well.  In 2015, Alison Alexander conducted research as part of her master’s studies at Northwestern University on how organizations are making work meaningful.  She found a direct connection between the presence of meaning in life and making meaning through work.  She also discovered that organizations with a strong purpose, clear values and commitments to social responsibility provide employees with ways to find meaning through their work.  She concluded that when corporations are committed to serving society, employees can “live their values through their work.”

Last month Katrin Muff argued that each of us must know who we truly are if we are to live an authentic life. I agree, and I believe that that this is also the first step in finding meaningful work or conversely, making work meaningful.  We must be keenly aware of our own values and what we perceive to be our purpose in life before we can expect work to be meaningful. Nancy Collamer, a contributing author to Forbes Magazine, suggests asking yourself questions such as “what five words best describe you”, and “what would you do if you couldn’t fail”.  Regardless of your method of reflection, you must know who you are before finding meaning in your work.

For job seekers, Alexander recommends that you “look under the hood” of the companies you are considering. Determine the degree to which their commitment to social responsibility is embedded throughout the company or isolated to a small group of people in a corporate social responsibility function. Reflect on whether the principles that the companies demonstrate through their words and actions are aligned with your values.  Pursue companies that are committed to the greater good of society.  Ideally, they will have embedded this commitment into all aspects of the company, and every employee will understand the role that they play in contributing to the greater good.

Even if you plan to stay in your current job, most likely you can find ways to make the work more meaningful.  For example, you might seek clarity from your manager about the significance and purpose of your work.  Or if your specific job tasks aren’t fulfilling, you might find others in your workplace who share your interests and values. Perhaps a group of like-minded people can design and carry out on your own time, projects that are fulfilling and contribute to the broader society.  If your company has a Corporate Social Responsibility or Sustainability Department, you might contact them to find out how you can get involved, perhaps as a volunteer.  And if all else fails, start looking for a new job with a purpose-driven company aligned with your own values.

I realize that work will not always be meaningful no matter what we do.  However, despite the role that work plays in our lives, very few of us find all our life-meaning from our jobs or our professions.   In fact it is a bad idea to try to put all our eggs in our professional or work basket. No matter how much meaning we derive from work, we should all seek and find meaning in other parts of our lives as well. We can find meaning from family, spirituality, personal growth, education, community.  The list is very long.  I believe that a sense of well-being, if not happiness, comes from our deepest sense of purpose and our constant pursuit of meaning every day throughout our entire existence.

“For the meaning of life differs from man to man, from day to day and from hour to hour. What matters, therefore, is not the meaning of life in general but rather the specific meaning of a person’s life at a given moment.”  Viktor E. Frankl

[1] Cardador, T.M.& Rupp, D.E. (2011) “Organizational Culture, Multiple Needs, and the Meaningfulness of Work,” The Handbook of Organizational Culture and Climate, Chapter 10.

Author: Dr. Kathy Miller Perkins 

Dr. Kathy Miller Perkins is a social psychologist and is the CEO and owner of Miller Consultants , a firm specializing in organizational development, executive coaching and change management. Her work involves helping companies create and sustain organizational cultures that are conducive to executing sustainable strategies. She has worked with companies such as Toyota, IBM, Kindred Health, Brown-Forman, Lexmark, Anthem, Ashland Chemical, the U.S. Military and BC Hydro.


The tricky interconnection of values and purpose

Being values-based implies a connection with oneself, a deep inner knowing. Embracing a purpose requires, so I argue here, a connection with the context in which we live and operate, a deep outer knowing. When these two senses are disconnected, we are in trouble, as individuals, as organizations and as societies at large. When the senses are aligned, thriving individually, as an organization and as a global community means thriving at all of these levels for the benefit and well-being of all.

Brené Brown recently said in an interview with Marie Forleo “our worth and our belonging are not negotiated with other people. We carry those inside of our hearts.” Brené is a widely recognized and respected psychologist in the domains of authenticity and vulnerability. She talks about how an individual can find herself, find her roots and core and how to stand up for herself and what matters to her. In many ways what she talks about has to do with finding one’s own purpose and identity or what she calls knowing who you truly are. To her, the importance of knowing who you are is key in living an authentic life as it ensures that you can always belong to yourself, rather than fitting in with what others might expect.

I can resonate with this and I understand the importance of what she says. How are we supposed to know what is right and what is wrong if we don’t know who we are and what that means in the context of what happens around us? This journey of self-knowing, of self-awareness, is a key component in the journey of being a responsible leader. It may well be the first and most important one, the dimension without which all the rest doesn’t really make sense. It certainly is critical to create role models that can serve others to find the courage to adapt their behavior and attitudes in order to re-connect with who they truly are. Or, as Lena Faraguna claims: “Lighthouses don’t go running all over the island looking for boats to save. They just stand there shining.”

Quote and image by Lena Faraguna

Let me zoom out a bit. How would we translate this self-knowing, this inner self of self-belonging in the context of working with others, of teams, and of organizations? How can a sense of belonging among a group of people, be it a family of a company, be created without negotiating with others? How can a group of individuals that belong first and foremost to themselves ever belong to a greater cause? I am troubled when I imagine how a particularly purpose-oriented company, such as those that Kathy Miller described in her last blog, might do if it decides to “not negotiate with others because its self-worth is inside of its own purpose”. Isn’t that what we are accusing the modern corporation of doing? Of putting its own priorities first and to forget about the rest? Where is the line drawn? If investors and owners are part of the inner core, then profit-maximization sure makes sense. If they are not part of it (and how might they not?), then how can a company protect its interest from investors without negotiating? Tricky.

When adding a further dimension and zooming out to an entire society, what changes in that frame? If a society decides that it needs to first and foremost belong to itself, its citizens, and not negotiate with others, what might that mean? Wouldn’t we be moving very close to the explosive sense that nationalists are expressing when they say “my country first”? And when they start protecting themselves from perceived outside threats, such as immigrants, refugees and trade agreements?

There is something dangerous in all of this. And this might well also be the dangerous in purpose-oriented firms. Purpose, after all, means what? The dictionary says purpose is “the reason for which something is done”. Well, and that is the entire problem. That is not good enough. There are excellent reasons to do something and there are incredibly stupid reasons for doing other things. Let me take the three-step zoom back from society, to the organization to the individual.

A society that defines a purpose, or “raison d’être” as something that is distinctive from what is around it, will in the worst case create harm to other societies and possibly even to itself. Global well-being can only be achieved if a society, a nation, embraces the idea that it is fundamentally and indisputably a part of the larger context in which it operates. And finding a purpose that does not take this into account is potentially harmful, as the Swiss President and many other statesmen have pointed out after President Trump gave his disturbing “America First” speak at the UN SDG forum last week.

Zooming now in to an organization or a team, what does this mean? If an organization chooses a purpose that is purely self-serving and that may seem like the best way to survive and ride the increasingly turbulent waves of change, then this organization is also very likely to harm those around it, and as a result, potentially itself. The metaphor is the cancer cell that builds its growth on eating into the very organism that is providing its living substance until that organism has been emptied out and can no longer sustain the ongoing growth of these cells. That sounds ugly and I apologize. What I mean to say is that a purposeful organization is not good enough, if that purpose does not imply taking into account the well-being of the context in which the organization operates.

Further zooming in and back to the individual, I struggle to see how an individual can and should have a sense of identify to herself that is limited to herself only. It appears limiting and potentially dangerous. As it if was necessary to put up guards against something outside. As if that sense of inner belonging needed protecting. An inward journey of discovery will uncover, I am certain, that there is both nothing and everything that can shake you and me in our core. Nothing in the sense that we are who we are irrespective of what happens outside of us, our sense of self is based on how we see and talk to ourselves. Everything in the sense that we are shaped by the events in our lives and we respond to them, in the full understanding that we have no idea what lies ahead of us.

The Circle Model (Katrin Muff 2016)

Let me attempt to conclude. In order for purpose and values to be aligned, an ongoing journey between the inner and the outer world in which we live is needed, allowing an emergent transformation as we advance. This allows a development of the inner knowing and the values we build on. In addition, purpose will need to be defined not just as the “reason for which something is done” but “the reason for which what is done serves the well-being of the next larger holon” or unit. Arthur Koestler coined the term holon (“whole”) as something that “simultanesouly a whole and a part”. Holacracy, which is founded on the principle of Holons, embraces this nicely as an operating system. A holon is a unit that is contained in another holon and that may (or not) contain other holons. Each sub-ordinate holon by definition must embrace the purpose of the holon of which it is a part and the entire system is guides by an overarching missing that should – and here Holacracy stops – again serve the next larger holon. Imagine if individuals would understand that we are holons, as parts of organizations, which in turn are holons as a part of societies, which in turn form a part of a global community, all while being in and of itself a whole that again contains other smaller holons. This understanding would allow an alignment of purpose and values based on the understanding that we are all a part of another, infinitely interconnected.

Author: Katrin Muff, PhD

Active in thought leadership, consulting & applied research in sustainability & responsibility, and directing the DAS & DBA programs


Pessimism in the developed world runs rampant

This disturbing declaration came from a 2017 study of millennials by Deloitte, a financial and risk management company.  Deloitte has been surveying millennials for the past 6 years and this year they found more general anxiety about the future than ever before.  The concerns expressed included terrorism, income inequality, crime and corruption and climate change.  Interestingly, the participants regard businesses as a force for social impact, however, they believe that companies are falling short in applying their capabilities to alleviating society’s challenges. So where is the disconnect between what millennials believe corporations could contribute versus what they think they are doing to address these overwhelming social issues?

Last month Katrin Muff’s blog was related to this theme.  She wrote about her frustration with companies that cannot see beyond their own short-term self-interest.  Obviously, she is not alone with this grievance.

Over the past few years, the news has been filled with stories about companies that acted solely in their own self-interest with calamitous consequences.  Consider the Volkswagen emissions scandal or BP’s Deepwater Horizon oil spill in the Gulf of Mexico. These companies flagrantly neglected all responsibility to the environment in pursuit of profits.  And, thus, both companies suffered reputation and financial damage.

While most companies do not commit fraud as was the case with VW, many do operate as if their only reason for existing is to create as much wealth as possible for their shareholders. These companies describe themselves by the products they make and the profits they generate. Consequently, they are in danger of becoming irrelevant to customers, employees and investors, all of whom are becoming increasingly impatient with corporations that lack any social purpose.

On the other hand, many companies do take their responsibilities to society very seriously.  Rosabeth Moss Kanter, a widely-recognized expert on organizations, says that an increasing number of successful companies emphasize purpose, values and long-term institution building.  These purpose-driven companies believe that they are inherently connected to society at large, and thus have obligations as members of society beyond mere economic transactions.  That is not to imply that financial success is unimportant to these companies.  In fact, Kanter says that they embrace financial success partly if not wholly so that they can carry out their commitments to society.[1]  And in fact evidence from a 2014 Deloitte study shows that companies focusing on a broader purpose are more likely than others to achieve success for the long-term. The confidence that stakeholders place in these purpose-driven companies tends to lead to investments and growth.

Most of us want to work for companies with a distinct purpose and clear values.  A  2016 study of purpose in the workplace conducted  conducted by the consulting arm of PWC, showed that  a large percentage of all generations in the workforce, not just millennials, want to find purpose in their work. The study emphasized the following:

“A truly purpose-driven company must have purpose as its guidepost for decision-making—including the opportunities it decides to pursue and not pursue—to demonstrate commitment to responsible business leadership.”

Unilever, the company that Katrin cited in her blog last month, serves as a great example of a multinational corporation that lives its purpose every day. Their vision is as follows:

“Unilever has a simple but clear purpose – to make sustainable living commonplace. We believe this is the best long-term way for our business to grow.”

This purpose is embedded in all of Unilever’s decision-making including how they interact with their shareholders, as well as how they develop and package new products.

It is time for all companies to critically examine their roles in society. Certainly, at times our global challenges can seem overwhelming so it is no wonder that we will see alarming headlines about millennials’ pessimism! Nevertheless, we can’t become so discouraged that we are paralyzed.  It is time for all companies to act with purpose.

Of course, the business community alone can’t fix everything.  However, those of us in this community can and should contribute to finding solutions to our world’s challenges, which, at the same time, will help us make our businesses more profitable and sustainable.  And those not working in the business community can and should hold us accountable for more than merely creating wealth for our shareholders.

[1] Kanter, R.M. (2015) How purpose-based companies master change for sustainability. In R. Henderson, R Gulati and M. Tushman (Eds.), Leading Sustainable Change (pp.11-139). Oxford, United Kingdom: Oxford University Press.

Author: Dr. Kathy Miller Perkins 

Dr. Kathy Miller Perkins is a social psychologist and is the CEO and owner of Miller Consultants , a firm specializing in organizational development, executive coaching and change management. Her work involves helping companies create and sustain organizational cultures that are conducive to executing sustainable strategies. She has worked with companies such as Toyota, IBM, Kindred Health, Brown-Forman, Lexmark, Anthem, Ashland Chemical, the U.S. Military and BC Hydro.


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Walking the path of change: from the invisible hand to the invisible heart!

Kate Raworth left me with a question I could not answer: “How do we transform the ‘value-extraction’ mentality of the 20th century with the ‘designed-in benefits’ mindset needed in the 21st century?”. I walked home after a lovely dinner with her and pondered about why arguments that make total sense to some of us can be dismantled so easily by those who follow the profit-maximization drumbeat that has brought havoc to the world and economics in my lifetime. Kate had shared a story of well-regarded expert who proposed a cleverly designed building able to extract CO2 from its environment to a CFO. The CFO killed the genius idea with as little as: “But why should I do such thing? It doesn’t serve me!”

Kate was in Lausanne to inspire our graduating students along with Peter Bakker, President of the WBCSD, both recipients of BSL Dr. Honoris Causa awards. And they did! Peter shared a story of when he was CEO at TNT and his purchase of two long-haul planes doubled the CO2 footprint of his company in one year. The planes served to fly mobile phone from China to Europe – customers like their orders fulfilled overnight irrespective of the cost to nature. He reminded the graduates that the origin of leadership is “path finder” and that they were more than ever required to serve exactly that; as pathfinders to bring organizations to be the positive force our future needs.

Kigen Moi, the BSL Valedictorian, talked about Ubuntu, a word well known where he grew up “Humanity”. Or, as his story illustrated, the idea that no one can be happy, if the others around him are not. Such a profound thought which stands in such stark contrast to Kate’s struggles we had debated the night before.

I am struck by an oldish HuffPost blog entitled “There is no trade-off between profit and purpose” and that Paul Polman had recently retweeted with the words “To reach the land of profit, follow the road of purpose”. I have been a long advocate of using the right language to talk to various audiences. And that it is necessary to talk to those who see profit maximization as the holy grain by pointing out the immediate opportunity and risks of embracing business ideas that go beyond serving the interest of shareholders but at the same time also serve other stakeholders, society and the world at large.

To hell with it! Why should we adjust a values-based argument to a value-disconnected audience. Why cannot we not shake the CFO in Kate’s story to senses by responding with utter disbelief and exclaiming with wide-open eyes: “But how can you be happy if around you so many are unhappy? And let him reconnect with the humanity that undoubtedly sits inside of him, maybe underneath much dust and fast asleep, but most certainly alive and ticking. Why argue that purpose leads to profit, as if following purpose needed any excuse? Why having to point out there is no tradeoff between making money and doing good?

Why not shake the hearts and minds of those stuck in the 20th century logic of the misinterpretation of Adam Smith’s invisible hand? Take a look at the state of the world, the state of any single country of your choice and you can clearly and without a single doubt see that the profit-maximization argument has gotten it wrong. We have spent the last decade trying to twist purpose and values-based arguments into the ill-fatted logic of the past century and we have gotten nowhere. If we want to change the mindset that Kathy Miller and I are trying to figure out how to change, maybe the time is now ripe to start talking the truth. Kathy ended her last blog with a deep insight of Mahatma Gandhi: “You must not lose faith in humanity.  Humanity is an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty.”

Why not point out the amazing power and the beauty of the invisible heart that is beating in every single living thing and that connects all of us into a humanity across all living beings. Why not question empty values and fake arguments, and why not replace them with the wisdom of Ubuntu and insist that we can only rest if all of us are happy that that we will no longer take part in a race against each other but in a journey towards a place where all of us can be well on that gorgeous planet we are living on. Why not?!


Be the Change and Act Fearlessly

As the summer doldrums set in amidst the disharmony and dysfunction here in the USA, I’ve begun looking for inspiration on how to effect constructive change. While achieving change – especially social change- has always been very difficult, it currently seems to me next to impossible in my country.  Here, amidst the everyday claims and counter claims of “fake news”, everything and everyone is so polarized we all feel stuck in our separateness.

In her May blog, Katrin addressed how this schism strikes her and what she thinks we can do as we live through these discouraging times. She concluded that when mass protests don’t work and institutions are too easily by-passed, each of us must step up.  She said that we must “do what is right every single moment every single day” even when we don’t see immediate results. And how do we know what is right?  Katrin suggested that we use our values and our commitment to a common well-being to guide us.

Katrin’s words reminded me of the teachings of Mahatma Gandhi.  I immediately thought of the following quote which has been attributed to him:

“Be the change that you wish to see in the world.”

Many question whether Gandhi spoke these exact words.  Nevertheless, he said many things that implore us to first look inward before we attempt to change the world.  For example, he said the following:

“If we could change ourselves, the tendencies in the world would also change. As a man changes his own nature, so does the attitude of the world change towards him. … We need not wait to see what others do.”

Gandhi’s teachings include some specific advice about how we might change ourselves.  While his words of advice are simple, the actions he recommends are not. For example, he directed us to seek harmony in thoughts, words and deeds. And he advocated for individuals to pursue truth selflessly and with enormous humility. The pursuit of truth is hard work and takes time.

We should form our convictions with care. Gandhi said that we must defend our beliefs and not ever compromise on fundamentals such as showing others respect and honoring the dignity of every human being.

Even so Gandhi warned us to avoid arrogance concerning our own wisdom. He said, “It is healthy to be reminded that the strongest might weaken and the wisest might err.”

Gandhi acknowledged that people may diverge in what they see as truth. However, he suggested that when we pursue truth humbly, with selflessness and tolerance, we may find that our varying perceptions are all part of a larger truth:

“…where there is honest effort, it will be realized that what appear to be different truths are like the countless and apparently different leaves of the same tree.”

Of course individual change without action is not enough. Gandhi claimed that we should act fearlessly, selflessly, with dignity and without violence.  He, like Katrin in her May blog, reminded us that we must take action even if we don’t see immediate results.  He believed that it is the action itself rather than the fruit of the action that is most important.  And he wisely observed that even if we may not see the results of our actions, if we do nothing, there will be no results.

Clearly Gandhi’s words and teachings have had a powerful impact on the world. Not only did he achieve enormous changes in India and in the world in his lifetime, other great change leaders such as Martin Luther King claimed to have been guided by his teachings. And Martin Luther King is arguably the greatest leader of social change in my lifetime.

Gandhi’s teachings are universally profound. His words transcend the boundaries of country and culture.  His wisdom is equally relevant to individuals, organizations and entire societies.  And for me, one of the most significant results of my readings of Gandhi is that I found the inspiration that I was looking for:

“You must not lose faith in humanity.  Humanity is an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty.”

I plan to repeat this quote to myself every time I am exposed to the relentless onslaught of disquieting news across the globe.

 

Author: Dr. Kathy Miller Perkins 

Dr. Kathy Miller Perkins is a social psychologist and is the CEO and owner of Miller Consultants , a firm specializing in organizational development, executive coaching and change management. Her work involves helping companies create and sustain organizational cultures that are conducive to executing sustainable strategies. She has worked with companies such as Toyota, IBM, Kindred Health, Brown-Forman, Lexmark, Anthem, Ashland Chemical, the U.S. Military and BC Hydro.

 

References

Rosenburg, Shaun.  Mohandas Gandhi Quotes and Their Meaning.  http://www.shaunrosenberg.com/mohandas-gandhi-quotes-and-meaning

Allen, Douglas. The Phlosophy of Mahatma Gandhi for the Twenty-first Century. Lexington Books, 2008.

Nirupama, Rao. Gandhi’s Light Guided MLK.  Politico. 3/07/2013. http://www.politico.com/story/2013/03/mahatma-gandhis-lightguided-martin-luther-king-jr-088581