How Come Some Leaders Still Just Don't Get It?

Last week as I was reading about Duke Energy's latest developments – $44 million for one day as CEO – nice work if you can get it I thought. But that thought quickly woke me up to the fact that this piece of news is just another piece of evidence that not all is well with the way many corporations are run, and the fundamental organizing principles and practices of their leaders. Can anyone, even the most ardent supported of "go get all you can capitalism" think this is sane and responsible leadership?

While I am on that topic of sane and responsible leadership, if you haven't read Firms of Endearment (FoE), I highly recommend it - Raj Sisodia the lead author is a professor at Bentley U in MA and a highly respected thought leader. He and his co-authors shows that there is huge economic upside to managing a firm with the interests of all stakeholders driving every decision (high on the list is employees). For example, the 15 year ROI of FoE companies is 1646%; vs, Good to Great companies 177%; and S&P companies 157%. These numbers unequivocally demonstrate that when leaders create: 

• Meaning and purpose, so that everyone knows what the organization is up to, really. They can answer the question, "what would be missing to society, to our stakeholders if we disappeared?"  
• A clear and unequivocal concern for, and commitment to, every stakeholder expressed in specific measurable outcomes that they know (or strongly intuit) that when they deliver, each stakeholder will be thrilled
• A culture that is an expression of consciously-lived values – no platitudinous  warm and fuzzy statements made for PR not for living
• A caring and responsible leadership – which in simple terms means walk-the-talk.

Not only does leading this way really pays off in the only measure that too many investors and analysts care about – ROI; but it also pays off in all the other key measures of performance.

It still puzzles me that so many "leaders" still don't get what is blindingly obvious – if they would just be open to looking at what is being done that works in many highly respected and well know organizations – if they would just be open to experimenting with a few low risk and high payoff proven practices that could (would I say)  transform their businesses.

Another part of what works, I have found, is to design work so that each person experiences making progress in whatever it is they are working on and accountable for – some tangible evidence they are moving closer to the specific measurable desired result they want and are committed to. This perspective too is well validated by Teresa Amabile and Steven Kramer in the well researched book The Progress Principle.

If everyone can experience making progress every day, then in a month, a quarter, a year huge changes are made. With hindsight, people will notice it did not appear to be struggle or effort – just lots of small satisfying changes that added up to something big. It's a variant of the old story, "how do you eat an elephant?" – one mouthful at a time.