Elevating Humanity Through Business
Step up your leadership game and see beyond the bottom line.
People often believe that businesses exist solely to make money. But this is only partially correct. When companies have a greater purpose in mind, they can maximize profits while also doing good in the world.
To achieve this, organizations require a conscientious leader who is prepared to commit to a high level of integrity and social responsibility.
In this summary, you'll learn about the characteristics of a conscious leader, as well as how to lead your organization toward purpose and profit.
Along the road, you will learn.
Why do we need to modify the terminology around business?
How to establish a conscientious workplace culture and
Ways to run your business with honesty.
1. Personal change is the foundation for conscious leadership.
Let us begin with the story of novelist John Mackey.
In the late 2000s, Mackey travelled to Florida to meet with the Whole Foods Market board of directors. They were going to discuss his future as CEO of the company, and the news could have been better.
According to the board, Mackey's work in recent years could have been better.
For example, Mackey attempted to launch an online venture for Whole Foods called WholePeople.com, which promised to sell everything from healthy foods and vitamins to books and clothing. Unfortunately, it was a bust. The board has had enough.
Mackey was worried as he left the meeting. Was he going to lose everything he had worked for?
Mackey might have believed that this was the end of his leadership career. However, this was only the beginning.
The main takeaway here is that conscious leadership begins with personal transformation.
Mackey strolled into some of the local Whole Foods stores in Florida, as he typically did while abroad. He noticed aisles lined with a variety of healthy, natural foods and a number of happy personnel conversing with customers.
This led him to the understanding that Whole Foods' mission was to make people happy and inspire them to eat wholesome food. It was the reason he co-founded the company so many years ago.
At that moment, Mackey reconnected with his purpose - his "why"- for wanting to manage a firm that was motivated by something other than money.
When Mackey met with the board again later that afternoon, he did everything he could to demonstrate that he was the right person to lead Whole Foods into the new millennium. And he almost pulled it off.
To make a long tale short, Mackey was able to keep his job, but he recognized he couldn't be the same leader as before. If he was to lead Whole Foods into a bright future, he needed to mature and adapt as a conscientious leader. That meant starting an "intentional journey" of personal development.
In the following overview, we'll look at the measures you can take to become a conscious leader, including the mentality you need to have and the attributes you should nurture.
But first, consider the role of business in society and how capitalism may be a force for good.
2. In business, profit and purpose are not mutually exclusive.
When we think of "business," many of us see large corporations monopolizing markets, crushing competitors, and constantly seeking to maximize profits. However, not all businesses function this way.
In fact, if you talk to company leaders, you'll often find that they're in it for the right reasons: the meaning it gives them and the value it provides to their consumers.
Of course, businesses want to generate money; otherwise, they wouldn't exist. However, the new technology or services they offer frequently seek to improve people's lives.
The main point here is that profit and purpose in the company are not mutually exclusive.
Many individuals find it difficult to believe that businesses exist for more than just profit.
One explanation for this is the way we classify companies as for-profit or nonprofit. According to this rationale, firms are dedicated to producing a profit for their owners or shareholders. Meanwhile, nonprofit organizations are regarded as having no intention of making any money.
We want firms to ruthlessly pursue profits. On the other hand, we expect groups like the Humane Society and the Nature Conservancy to be motivated by altruism rather than a desire to maximize profits.
The truth is that purpose and profit do not have to be mutually exclusive; a company can make money while simultaneously doing good for the world.
This is known as conscious capitalism, a concept developed by the author. Conscious capitalism asserts that every profit-making activity can realize and elevate a greater purpose. When a CEO sees this, the economic and social benefits of the company grow enormously.
Outdoor shop REI is an excellent example of mindful capitalism. The company makes billions of dollars each year, yet it is motivated by a desire to connect people with the beauty of nature.
REI demonstrates its devotion by closing all of its stores on Black Friday, one of the most profitable days of the year for many businesses. Instead of rushing to get people in the door, REI provides paid time off for all of its employees. It also encourages shoppers to "opt outside," which means skipping indoor commerce in favour of a day of outdoor activities.
Businesses may be a powerful force for good in the world when led by a mindful leader with a clear why. In the following section, we'll look at how CEOs might discover the true purpose of their company.
3. All company leaders must discover their guiding purpose, although this may take time.
Meet Shawn David Nelson. He founded the Lovesac furniture company, although his decisions were only sometimes motivated by purpose.
In truth, in his early twenties, Nelson was just concerned with creating the world's most enormous bean bag - the "Lovesac" - and having fun while doing so.
However, as the company grew and Lovesacs sales rose, he recognized there was another, more meaningful reason to operate the business: he wanted to create furniture that was "designed for life," utilizing sustainable, recyclable materials. Customers would be able to keep their furniture for extended periods, saving millions of tons of waste annually.
The main takeaway here is that all business executives must establish their guiding purpose, which may take time.
Every organization is driven by a motivated individual who has spent time cultivating inner visions and experimenting with new concepts. However, not everyone wakes up every day with a distinct sense of purpose.
For the author, determining his life's purpose was simple. At the age of 23, he realized he was interested in natural, organic food and people's health. So, he used this to start Whole Foods.
Other entrepreneurs realized their mission by encountering difficulty. Consider Yvon Chouinard, the creator of the outdoor clothing firm Patagonia.
Chouinard was a young explorer who was passionate about climbing and the woods, but he needed help to locate the appropriate clothing for his interests. To address this issue, he created an eco-friendly outdoor clothing line.
So, although some leaders arrive at their goal almost instinctively, others must travel a lengthier path to get there. However, this is a good thing.
The author defines purpose as a lifelong practice. It is something you must discover and rediscover several times throughout your business career.
One technique to determine your purpose is to think about people who inspire you - a practice the author refers to as "communing with your heroes." For example, you could concentrate on the words of an author whose work transformed your life or consider the narrative of someone you admire.
As a leader looking to become more mindful, you must first determine your goals. You can accomplish this by seeking guidance from others who have previously walked the path of purpose.
4. Conscious leaders share one quality: integrity.
What would you do if your firm had doubled in size, your shareholders were satisfied, and profits were skyrocketing? Would you continue in the same manner, or would you strive to do even better?
This is the dilemma Ramón Mendiola, CEO of Florida Ice & Farm Company (FIFCO), faced in 2008.
Despite a board of directors that saw no reason to change anything about the company, Mendiola knew things could be better.
However, doing better meant generating less money. It means building a lucrative firm while simultaneously upholding the value of integrity. This entailed gratifying shareholders while also attempting to do right by the environment and society at large.
The main point here is that all conscious leaders share one quality: integrity.
FIFCO appointed Mendiola as its CEO in 2002. He got off to a good start. Under his guidance, the company increased its efficiency and entered new markets. But only some were pleased with it.
Gisela Sanchez, one of Mendiola's executives, noted that the company was expanding rapidly. However, philanthropic giving amounted to only 1% of the company's income. This was a far cry from firms like Microsoft, which donated almost 8%.
Sanchez also introduced Mendiola to the concept of the "triple bottom line," in which social and environmental impact measures are just as essential as financial results in determining a company's success.
Mendiola, like any leader with a strong sense of character, recognized the need to change the company's business practices. So he contacted the company's many stakeholders, including team members, partners, suppliers, and non-governmental organizations (NGOs), and asked questions such as, "What can we do to be a more responsible company?"" and "What can we do to improve our social and environmental impact?"
Mendiola responded to the input he got, and things changed quickly. For example, the corporation achieved water neutrality by 2012. They also gradually expanded their philanthropic giving to 8% of net income in a few years.
Making significant improvements in a corporation requires a leader with integrity who is prepared to admit where the organization falls short and make concrete efforts to solve those areas. However, having integrity also entails demonstrating the following qualities: honesty, honour, genuineness, and trustworthiness. The following section will go over some of these in greater detail.
5. Honesty and authenticity are qualities that any leader should develop.
Did you ever tell tiny white lies as a kid?
Perhaps you painted a beautiful image on your parents' lovely cream sofa and credited your brother. Maybe you ate the last cupcake and blamed the dog. As youngsters, one of the earliest lessons we learn is to tell the truth. However, many of us need to do this more, even as adults.
Being dishonest has profound implications, particularly in business.
The main message here is that honesty and authenticity are qualities that any leader should cultivate.
Telling the truth is powerful, but it can be a challenging process. It may occasionally mean upsetting colleagues, defying convention, or rocking the boat in some way. No surprise that so many people avoid it.
While few business leaders possess this level of ethics, authentic leadership requires it. We need truth-telling leaders who will confront us, challenge our preconceptions, and ask us to focus on aspects of our lives that we may not necessarily want to explore.
For example, former Medtronic CEO Bill George once told a colleague who was hesitant to give his boss negative information that "integrity is not the absence of lying." Having integrity and telling the truth can sometimes entail speaking up and saying things people don't want to hear, even if it's uncomfortable.
Authenticity is another facet of integrity that is required for effective leadership. An authentic leader is the same person whether they're presenting to their board of directors or training new interns.
In other words, they don't play to the audience because they're concerned about what others may think and say. Instead, they remain constant and loyal to themselves.
Authenticity only sometimes comes naturally. But it is a characteristic that can be developed.
While it may sound like a cliché, being true to yourself entails knowing yourself. You must acknowledge your own strengths and flaws and accept responsibility for their effects on others around you.
This does not imply that leaders should abandon everything and take a "self-help sabbatical." However, having a little self-awareness, whether through self-reflection or input from others, can go a long way.
6. Conscious leadership entails seeking win-win circumstances.
Have you ever heard the phrases "natural selection," "survival of the fittest," or "it's a dog-eat-dog world" used in business?
That's not an accident. For years, we've been taught that "bloodthirsty conflict" is the essential truth of business and that only the most resilient entrepreneurs survive.
The mainstream media has also profited from these themes. On the popular CNBC show Shark Tank, entrepreneurs present their businesses to hard-nosed venture capitalists, or "sharks." Only the best ideas survive the "ruthless competition" to receive money.
In many circumstances, the primary purpose of business is to survive and thrive - and to crush any competitors who stand in your way. This means that just one person can win; everyone else loses.
But what if there was another way of doing things?
The essential takeaway here is that conscious leadership entails pursuing win-win situations.
Leadership is becoming increasingly complex, especially when you have to handle several relationships and tasks while keeping everyone pleased.
In business, win-win solutions, in which you generate a favourable outcome for both yourself and the people on the opposite side of the table, are the most ethical method to make decisions.
A win-win solution, for example, could be a deal in which both parties benefit: one person receives the desired goods, while the other gains a profit from the transaction.
Then, there are win-win-win scenarios which go even further. Instead of focusing solely on positive results for those involved in the commercial connection, they seek to add benefit to the larger external community - a third win.
This community can be defined as broadly as you like. For example, the additional win could benefit your family, your religious community, your city, state, country, or, if you're really ambitious, the entire planet.
So, how can we master the art of win-win-win?
So, when you're going to make a business decision, ask yourself, "Who is losing in this proposal?" or "Does anyone feel they're receiving the short end of the stick?" If the answer is yes to either of these questions, consider how you and your team might work together to solve the problem.
Posing these questions clarifies any plan by allowing you to detect any gaps and forcing you to develop better and better alternatives.
7. To thrive, organizations must invest in long-term possibilities.
Iceland experienced a boom-and-bust cycle in the years preceding the 2008 financial crisis.
This is the point at which an economy expands exponentially, creating a surplus of jobs and providing investors with significant returns. Then, it shrinks, costing people their jobs and investors their money.
There were several reasons why this bust occurred in Iceland. For starters, everyone was eager to get rich immediately. Instead of considering long-term financial stability, companies borrowed cheap money and acquired other businesses to fuel their expansion.
Then, when the economy crashed, this mentality of pursuing quick, short-term profit put corporations in great difficulties.
The main takeaway here is that for businesses to thrive, they must invest in long-term possibilities.
The story of Iceland's boom-and-bust episode teaches conscientious leaders a valuable lesson: seeking long-term value creation is preferable to chasing short-term financial gains.
To build long-term prosperity, corporate leaders must look ahead, comprehend the mechanics of change, and invest within a multi-year - or even multi-decade - time horizon.
Ron Shaich, the founder of the immensely successful restaurant chain Panera, has consistently advocated for this method. Panera had grown dramatically by the late 2000s, becoming a formidable competitor to firms such as Chipotle and Starbucks.
A large part of this success was due to Schaich's ability to make disruptive adjustments and investments that, while difficult in the short term, allowed the company to continue creating value over time.
Panera adopted several strategies to achieve this, including embracing technology, creating a great customer loyalty program, and introducing healthy food products.
So, as a mindful leader, you must avoid the desire to maximize short-term gains and instead invest in the future. But how do you perfect this type of long-term thinking?
One method is to undertake a "premortem," an exercise that Schaich himself does. The aim is to imagine yourself on your deathbed, looking back at who you are now. Ask yourself, "What really matters? What risks are worth taking? And what should be created to make the world a better place?"
This activity might help you clarify your company's future goals and desires. And if you do it honestly, the quality of your leadership will reflect your long-term, optimistic outlook.
8. Creating a mindful work culture requires attracting, hiring, and retaining talented employees.
When we consider today's most successful corporate executives, such as Steve Jobs and Jeff Bezos, we often presume they accomplished amazing things on their own.
However, these brilliant entrepreneurs are supported by fantastic teams that complement their leader's abilities while compensating for their limitations.
That is why employing the most outstanding workers and establishing an environment in which they can grow and thrive is essential to the success of any firm and its executives.
The main takeaway here is that creating a mindful work culture entails attracting, hiring, and retaining great employees.
Steve Hall, the founder of the hugely successful vehicle dealership enterprise Drivers Select, experienced this personally.
Just a few months after starting his business, he discovered that the key to developing a solid organizational culture was to devote significant time upfront in hiring. That entailed bringing the most outstanding personnel on board from the start and doing all in his power to retain them.
When Hall recruits for entry-level roles, he looks for candidates who will be able to advance two or three levels up the corporate ladder. So, when selecting a receptionist, he looks for someone who has the potential to become an office manager in the future.
When a new person joins the company, Hall invests in leadership training to help this entry-level employee grow and develop. As a result, Hall's employee turnover is one-third the industry average.
Other firms recognize the significance of attracting and maintaining quality staff. For example, in 2019, Amazon offered $700 million to provide skills training to 100,000 team members over the next six years.
However, simply putting bright people in the same room does not result in a solid corporate culture. As a leader, you will need to do frequent "chemistry checks" to verify that your team members get along and work well together.
It is advisable to meet with your team on a regular basis to resolve any concerns that may have occurred. Ask inquiries, such as, "How are people getting along? How much trust is there between team members? Is there somebody undermining morale? And if so, what can I do about it?"
Developing a conscious culture entails creating an environment that promotes safety, trust, and happiness, as well as hard labour. As a leader, it is your responsibility to maintain your team thriving in order to keep your organization on track for success.
Final Summary
Ultimately, becoming a conscious leader entails going on a lifelong journey of learning and development. You must not only commit to discovering your purpose but also live it out in all aspects of your business. This entails focusing on providing value for all stakeholders: yourself, your customers, your team, and the larger world.
Actionable Advice: Reduce your speed.
It's great to be a conscious leader who works tirelessly to achieve their goals. However, if you are burned out, you are useless to everyone. So, if you're feeling exhausted and uninspired, take a break. Leave your phone at home and go spend time outdoors. Your mind, body, and business will all benefit from this.