Monday, December 04, 2006

Virtue drives the bottom line


Religion, business, and science are often depicted as in conflict, so it catches the attention when all three of them agree on something. That something needs to be investigated.

Recently, the value of virtue in driving high-reliability, high-performance organizations is increasingly being revealed by studies and real-life examples.

The Ross School of Business is consistently recognized as being one of the best business schools in the US. Here's an excerpt from one of their sites - the Center for POS : (you have to go there for the links to actually work.)

============ start POS ===============

Mission

The Center for Positive Organizational Scholarship is a community of scholars devoted to energizing and transforming organizations through research on the theory and practice of positive organizing and leadership. More...

Domains of Excellence

Domains of excellence describe areas of research depth and experience of the Center. Please click on a Domain name for more information.


Compassion
Organizational Virtuousness
Positive Identity
Positive Leadership

Empowerment
Fundamental State of Leadership

Positive Social Capital
High-Quality Connections
Energy Networks
Generalized Reciprocity
Resilience
Thriving
Values

============ end POS ===============

It is recognized that these interpersonal skills may seem "soft", but the outcomes are definitely "hard" and very real. These findings show up in "learning organizations"

For example, the US Army is no one's "fluff" and is definitely oriented to what actually works in practice. Consider this excerpt from the US Army Leadership Field Manual (FM 22-100)

1-3: Leadership starts at the top, with the character of the leader, with your character. In order to lead others you have to make sure your own house is in order.

1-7: The example you set is just as important as the words you speak.

1-8: Purpose ... does not mean that as a leader you must explain every decision to the satisfaction of your subordinates. It does mean that you must earn their trust: they must know from experience that you care about them and would not ask them to do something - particularly something dangerous - unless there was a good reason...

1-10: Trust is a basic bond of leadership, and it must be developed over time.

1-15: People who are trained this way will accomplish the mission, even when no one is watching.

1-23: you demonstrate your character through your behavior.

1-56: Effective leaders strive to create an environment of trust and understanding that encourages their subordinates to seize the initiative and act.

1-74: The ultimate end of war, at least as America fights it, is to restore peace.

4-9: Be aware of barriers to listening. Don't form your response while the other person is still talking.

4-20: Critical Reasoning ... means looking at a problem from several points of view instead of just being satisfied with the first answer that comes to mind.

4-24: Ethical leaders do the right things for the right reasons all the time, even when no one is watching.

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A thought from the Baha'i faith on consultation:

They must... proceed with the utmost devotion, courtesy, dignity, care, and moderation to express their views. They must in every matter search our the truth and non insist upon their own opinion, for stubbornness and persistence in one's own views will lead ultimately to discord and wrangling and the truth will remain hidden. Abdu'l-Baha

From the Christian Bible (New American Standard):

Where there is no guidance, the people fall, But in abundance of counselors there is victory (Proverbs 11:14)

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If you have an hour, the video on the Ross School's POS site on "making the impossible possible" is worth viewing. It documents how these "soft" factors saved a literal hundred billion dollars, had helped to make an "impossible' cleanup at the worst radioactive dump site of the Department of Energy take 2 years instead of the projected 200 with the unions going along with management on the job.

The atmosphere of trust and open honesty where people are free to question the mental models of authorities without challenging their authority itself is also crucial for "safety culture" in high-risk business, such as nuclear reactor control, hospital operating rooms, chemical plants, aircraft cockpits, etc. Without it, management can plow into obstacles or off cliffs that subordinates saw coming and knew about, but felt unable to have a voice - totally avoidable costs.

Interestingly, use of these techniques that fit with "Theory Y" are truly liberating for the leadership as well, because they no longer need to act as if they knew everything, which they know in their hearts they certainly don't. It becomes OK and safe for them to say "I don't know, do you?" This opens the door to active organizational learning, as described by Michael Marquardt in his management text "Leading with Questions." This takes off the cap on learning, which in turn takes off the cap on innovation in problem solution.

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A continuing stream of examples show that, in T.S. Eliot's words, we should stop "dreaming of systems so perfect that no one will need to be good", and focus attention on what this "soft" quality of "good" is that seems to make so much difference in practice.

A last quote from Proverbs (21:31) also reflects the idea that technology is fine, but unless it has a solid base of social integrity, you might as well not have it.

The horse is prepared for the day of battle,

But victory belongs to the Lord.

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References and further reading

High-Relability Organizations and asking for help

Secrets of High-Reliability Organizations (in depth, academic paper)

High-Reliability.org web site

Threat and Error Management - aviation and hospital safety

Failure is perhaps our most taboo subject (link to John Gall Systemantics)

Houston - we have another problem (on complexity and limits of one person's mind)

Institute of Medicine - Crossing the Quality Chasm and microsystems (small group teamwork)

Pathways to Peace - beautiful slides and reflections to music on the value of virtues




(photo credit: Ollieda )

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