The complexity of external factors, particularly the effects of globalization, technology, demographic shifts, and changing demands, distracts organizational leaders from core elements of business success, the most important of which are the people one leads, influences, and guides. We should recall Maslow’s hierarchy of needs, where most basic physiological and security/safety needs must be met before love, belonging, and esteem can be considered. As organizational leaders, we should readily acknowledge a primal responsibility to ensure fair and equitable compensation before we can expect our co-workers to give their all toward building and securing the future of our companies.

Some Critical Resources

Building a great company depends on many factors, but if you’ve been reading these articles faithfully, I think you would readily agree that Human Capital is the foundation upon which greatness is built.  Second to this is the leadership that exists within a company to motivate, inspire, guide, and influence everyone to fulfill the company’s mission, seek to achieve its vision, and create “wow” customer experiences that build and sustain the company’s reputation.

Thousands of books exist on the topic of leadership, which is very broad, but the key is having “critical resources” that have stood the test of time and serve as “ready references” when facing difficult situations.  Max DePree, former CEO of the Herman Miller Company, wrote two such works that I encourage every leader, regardless of where he or she operates within a business, to read and take to heart (See Suggested Readings below).  DePree was one of the first to foster the idea of an inclusive company where open communication ensured all voices were heard and a caring organization contributed to business success.

DePree reminds us that “no shortcuts exist to becoming an effective leader” (1992) and no magic pill exists through which leaders can achieve their goals.  According to DePree (1992), leadership requires hard work and “wandering in the desert” while seeking feedback and forgiveness from others (p. 43). In short, effective leadership requires humility and the willingness to seek input from others, routinely and regularly, even if the truth hurts.

Which leads back to Character, not only of the leader but of everyone else who works within a company because Character exists at the individual AND organizational levels.  Just as individuals are known for their individual traits, so also are organizations known for the character traits employees demonstrate on behalf of the company for which they work. Taking a “systemic view” of virtues recognizes that the virtues of individuals intersect, complement, and strengthen the virtues of others, through which those outside the immediate circle of influence, e.g., external customers, feel ripple effects.  In short, Character-based cultures have the potential for changing the communities and societies in which they operate.

Corporate Values: The Foundation for Virtue Ethics and Putting Character into Action

At the beginning of the 20th century, intense interest existed in character and virtues because of their effect on societal norms, but by the end of the last century, interest waned in these topics, especially among counselors and psychologists who were dealing with negative deviant behaviors. In his 1999 farewell address when departing as President of the American Psychological Association, Martin Seligman called for greater attention toward positive psychology and the value of virtues as demonstrations of human strength and excellence.

The challenge of creating and sustaining a character-based culture is messy, constant, and counter-cultural. Market and utilitarian ethics appear to dominate American society along with beliefs about entitlement. Taking a perspective that personal liberty or freedom is more important than justice ignores the systemic nature of virtues, especially treating others with respect. Those who feel entitled can be selfish, disrespectful, and disruptive within any business culture that seeks to blend and integrate individual characters for maximal effect.

The River of Character and the Effects of Positive Deviance in Building a Great Culture

During my research several years ago, I discovered a River of Character© runs through every organization, represented by the traits of each person within it and how these traits either align or run against the grain.  The river can either be polluted with bad behaviors that can lead to toxic cultures or clean where everyone closely identifies with the organizational belief system and values of others with whom they relate daily, including those they serve internally and externally. Seligman’s emphasis on positive psychology was intended to counteract the extreme focus of organizational research on negative, deviant behaviors that depart from the norm.  However, departures can also be positive and constructive.

Character-based cultures exemplify positive deviance through intentional behaviors that are virtuous and honorable. In the face of so much press about negative behaviors that damage our society, virtuous behaviors represent positive deviations from what have become societal norms. Recall the two sides of Character: Performance character is about doing the best job one can do and moral character is about being the best person one can be toward others. Performance and moral character represent honorable or virtuous behaviors that can be company standards to which everyone aspires. Exercising good character can help reshape societal norms in positive ways.

Within a character-based culture, behaviors between and among employees do not appear positively deviant because employees are living and acting according to the same norms shaped by Shared Core Values, but the same behaviors might look entirely different to an outsider not familiar with internal standards. In our work with high-performing companies, we found external parties were “wowed” by their interactions with company employees because they met the unexpected-employees were clearly doing something different, which drew attention, praise, and repeat business.  You can achieve similar results by building a character-based culture.

Suggested Reading:

DePree, M. (1989). Leadership is an art. New York, NY: Dell Publishing Group, Inc.

DePree, M. (1992). Leadership jazz. New York, NY: Bantam Doubleday Dell Publishing Group, Inc.

Questions for the Week: What positive behaviors should be second nature to your employees in their daily activities?  What positive behaviors have generated customer comments?  What do customer surveys say about their interactions with your employees? What behaviors best represent the values of your company and how are you recognizing and rewarding these on a routine basis?  What company stories exist about the best demonstrations of company values and how have these become part of your “company lore?”

 

About the Author: Dr. Ray Benedetto is co-founder of GuideStar, Inc.® a practice in organizational leadership for performance excellence (www.guidestarinc.com). He is a retired Air Force colonel with a distinguished active-duty military career. He is board certified in Healthcare Management and a Life Fellow of the American College of Healthcare Executives (ACHE). Dr. Ray taught leadership for 12 years for the University of Phoenix Chicago campus. He holds degrees from Penn State (BS), the University of Southern California (MSSM), and the University of Phoenix (DM). He is co-author of “It’s My Company TOO! How Entangled Companies Move Beyond Engagement for Remarkable Results” (Greenleaf Book Press Group, 2012) and numerous ezine articles available online. You can reach him at ray@guidestarinc.com.

 

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