Most business owners fail to find their core values that, when lived, make them feel fulfilled. If they do, they cannot offer a farsighted vision and cannot confidently articulate the same.
The journey from values to vision separates the winners from the whiners. The connecting processes lie between the person and their purpose. The ultimate power lies in the processes themselves that serve so long as they maintain integrity between:
âą Values
âą Vision
âą The well-being of the people that run the organization
For the core values that the organization's leader endears to manifest, the purpose-driven vision to take shape, and processes to unfold through the team while maintaining integrity, deep involvement and commitment are required from all those who work in the organization, not just the business owner.
How does one bring about such an organizational transformation?
It happens when every stakeholder participates responsibly. This is where leadership gets tested. Therefore, leadership is a privilege and an opportunity for individuals to let their creativity flow within the organization.
In business, the magic lies in the leaderâs ability to connect with the men, materials, machines, merchandise, and markets and make money for all stakeholders.
Leadership is the art of getting others to do, what you want to do, because they want to do it - Dwight D. Eisenhower
Leadership is truly an art. It is not a set formula or plans and certainly not a sequential things-to-do type of checklist. Business is highly dynamic. Modern commercial business, as we know it, is not a natural entity but an artificial construct. It came into existence out of a parliamentary act, is regulated, must work within the legal framework, is subject to statutory audits, and penalties are imposed for noncompliance.
Not being natural, it is prone to disintegrate unless there is sufficient emotional stamina at the top and a high coalescing force at the bottom of an organization.
What often compounds the problem is the business ownerâs dilemma. Owner-operated companies have an inherent conflict between the owner as a Shareholder and the owner as a CEO, as both are the same person. Invariably, the dominant self-identity eclipses the other, leading to an unbalanced approach.
The owner-Shareholder part is interested in organizational stability, long-term sustainability and growth, appropriate and timely dividends, high valuation, and perhaps even a smart exit strategy. Usually, this identity becomes diminished in most but never gets eliminated.
On the other hand, the owner-CEO is interested in day-to-day functioning, procuring more business, chasing customers, managing survival while simultaneously scaling up, and seeking a handsome salary. This identity remains active due to the daily grind.
The impact of this inherent conflict is that the person at the helm remains in a perpetual dilemma, and the company remains unstable.
The goal is to balance the owner's conflicting pursuits as a Shareholder and a CEO.
This dichotomy gets accentuated during the next-level transition, such as scaling up, delegating authority, succession planning, strategizing, governance, business acquisition, or exiting and retirement.
Irrespective of its size, a stable business running continuously on cruise control is virtually impossible. People who work in it, including the owner, will likely not be hinged or aligned with the values or long-term vision. Issues are bound to crop up due to ideological differences and ambition-action mismatch amongst various stakeholders.
The other issue is that the business is prone to destabilization due to external factors such as geopolitics, government policies, market conditions, competition movements, and changing attitudinal trends of customers and employees alike.
Consider this: The river is the same for the fisherman. Still, the water quantity, depth, temperature, and surroundings in the river keep changing with external weather and climate conditions affecting his catch.
Few business owners truly understand that the business entity, in theory, remains on an infinite journey, so every external success is momentary. It is no different than the cursed life of Sisyphus, who had to push a boulder up the mountain repeatedly for all eternity. It is because if he rested even for a moment, it would come rolling down on him and crush him under its weight. Hence, the unending chore had to be done again and again.
In the real world, we see so many companies having new start-up enterprise kind of problems, even after being in business for decades. They keep falling back as the force of the chaos exceeds their injected energy when they rest on their laurels.
The Bhagavad Gitaâs sobering message of âDo your deeds devoid of desireâ has a profound spiritual and philosophical relevance for most of us personally. However, that wisdom is unlikely to be wholly and severally relatable to all members in the organization's context. That is so much due to everyoneâs varying moral codes, backgrounds, wants, and ever-changing group dynamics.
Therefore, the distinction between ambition and aspiration must be appreciated for the sake of the organization's longevity. We can only look for convergence in the latter.
Ambition is personal. For the owner, it can be the highest sales turnover, maximizing profit, becoming the top company, beating the competition, getting an industry award, etcetera. For the employee, it typically relates to a higher salary and designation.
A big purchase order would make the owner happy, but the factory worker may view it as more work.
On the other hand, aspiration is about each person's need to keep becoming a better version of themselves. Each person intrinsically desires to achieve this, and they can use the organization as an available platform. When that is tapped into as a relentless work-in-progress by the person at the helm, there is scope for success, as everyone likes to emulate the example-setting leader at the top.
Eventually, there will be a significant enough critical workforce that âgets it.â
This is where transformation begins, first with the business owner, then the core team, and consequently, with the entire company. Once that is done, it becomes slightly less exhausting for the owner, who becomes a true entrepreneur. It is less about being in constant convincing mode now, as the team is well-aligned toward realizing a common goal. Everyone begins to perceive complex problems as interesting challenges. They participate in active resolution by offering more of themselves and, in the process, reinventing themselves into the next higher version of themselves.
Failure, which earlier brought panic and sorrow among members, will now only galvanize them. They learn from it by seeking constructive feedback. In fact, they even begin to contribute their learnings with risk-mitigating feedforwards. The setback merely acts as an insight for a more informed comeback. Through such an inside-out approach and clear understanding, personal victory supersedes the want for public recognition.
Then, the next stage takes shape.
A transformational strategy is required, where all actions or responses must be long-term and creative.
For our purpose, strategy is about operating in a niche area to achieve a specific objective without sacrificing core values or deviating from the vision. It also involves having a personalized approach while dealing with all stakeholders, ensuring overall organizational integrity is maintained.
A company without such a strategy is like a kite with no strings attached. It will float aimlessly in the marketplace winds for a while and soon crash to the ground.
Peter Drucker famously offered, âCulture eats strategy for breakfast." While it may have been evident to him, as an abundant clarity, culture, and strategy need not be considered separate and distinct entities outside the academic or consulting world. This is especially true for the owner entrepreneur or any leader, where there is a clear line of sight between the owner/leader and employees/followers. Merging culture with strategy will serve more, ensuring that the people who execute the plans and their collective mindset are aligned.
In other words, for the owner entrepreneur, culture is strategy.
Culture is defined as the characteristics of a group of people with shared cognitive constructs, leading to typical behaviour patterns. These are learned and fostered by observation and socialization.
The leader's job, therefore, is to strongly influence the people's minds within the organization so that they can effectuate a recurring winning behavioural pattern.
In other words, before any leader can sell their ideas, they must buy the minds of all the people within the organization with their authentic value-vision proposition.
Once they subscribe to it, it becomes the organization's Living Grand Narrative.
The leader is not required to always be physically present in such a scenario because their team willingly undertakes a larger collective responsibility, which allows the leader to get out of the way. Freed, the leader can then devote time to think of the next possibilities, keeping the organization ahead of the curve.
Such a company builds trust and can often turn around challenging trade-offs, converting many âthis versus thatâ binaries into the more accommodative âthis and that.â
Generalized Faulty Beliefs began to dissipate slowly. One need not stand on a pedestal and scream at the staff to extract more work from them. Instead, one can be nice to the employees and still function as an effective leader by bringing out the best in them. This kind of strategic work culture easily enrols the workforce in the organizational value-vision narrative.
A leader does not charge at them; he or she charges them up.
It is about coming close to them while remaining tall, as they hold the leader in high esteem.
Companies operating with this kind of a Living Grand Narrative are like an army unit. They are structured but not rigid. In fact, they are agile. That agility comes from the capacity of all individuals to experience a safe space, allowing them to promptly make relevant decisions at their respective levels. They can do so and act accordingly, as the company's Living Grand Narrative acts as a constant guide.
It eventually leads to the entire company becoming entrepreneurial.
That is in stark contrast to most of the typical companies, where the only decision that every junior employee takes is at the behest of the manager. They lack confidence and are further constrained by unnecessary moralizing policies. Hence, even when the situation demands, they are found twiddling their thumbs. They are not trained to seek out the moral from an emerging story and cannot act after making a principled decision.
To better understand what is on offer, let us take the example of the army unit again. Each member of the unit holds high moral values, and so, as a civilian, or in a non-war situation, will never kill anyone on their own accord. However, the same person in a soldierâs role would readily kill the enemy on a battlefield. Thatâs not all. They will use their personal morals and professional ethics as a foundation to reason and make a principled decision as the changing situation demands. If a situation so arises, they are capable of deciding when to kill an enemy soldier or capture and take the opponent as a prisoner of war. A soldierâs primary objective is to win the war. So, the soldier will not hesitate to eliminate anybody who blocks that path. The captured prisoner of war is not blocking the path anymore. So, the soldier takes the call on the spot and may even decide to feed or administer first aid to the enemy, who is now incapacitated and deemed benign.
For the Indian army, one of the best in the world, such a scenario has actually come about in several wars, including the last one at Kargil. That war was televised, and the nation witnessed firsthand how the Indian army had not only tended to the POWs but did not fire on the retreating enemy once the war was called off. They even gave an honourable burial to the fallen Pakistani soldiers that were left behind, as that nation sadly refused to claim their own dead. That pretty much defines the Indian army and itsâ evolved culture.
In the companyâs context, an evolved culture is about executing work that continually raises standards, thereby adding to the sustainability and growth of the organization while building pride amongst the stakeholders. An organization has no expiry date. Thus, a high-quality output must be produced without feeling fatigued.
When children play hard on the field, they, in fact, feel relaxed. An evolved culture is as much about work gamification, where various departmental teams stop competing with each other. Instead, they cooperate with each other without losing their competitive spirit to take on the competition.
A larger purpose coalesces them together and lifts them above petty squabbles to become a team for the greater good of the company and the individuals.
The TEAMâs meaningful backronym is âTogether Everyone Achieves More,â such that âTogether Each Achieves More!â
For such an evolved culture to form, the onus is on the leader to set a powerful tone for the organization. Communication from the leader is the key that opens the door to possibilities. Communication is not simply speaking or oratory skills.
The single biggest problem with communication is the illusion that it has taken place - George Bernard Shaw
Communication involves verbal and nonverbal messaging. Its impact is influenced by the emotional context in which employees perceive the leader's thinking, speaking, and behaviour. For the message to be heard effectively, it must be completely in sync with the audience's background, culture, and the occasion or situation.
In their book, The Three Laws of Performance, Steve Zaffron and Dave Logan have explained the connection between leadership and performance with the following:
1. How people perform correlates to how situations occur to them.
2. How a situation occurs arises in language.
3. Future-based language transforms how situations occur to people.
These laws can be applied to any general or specific situation.
From the employeesâ point of view, their biggest âsituationâ is - what kind of leader they have to deal with every day in the organization.
It has a lot to do with how the leader comes across in their communication. Communication is all-encompassing in both the evident and silent messages being delivered. It includes light banter in the lunch area, daily conversation in the corridor, tone and topics during meetings, formal internal memos, and town hall speeches. Overall, how is the leader perceived? Does the language and tone sound like a mandate or a statement of intent? Does the intent stick to or betray the values and vision of the organization? What emotions do they evoke? Is the person self-centred, or do they consider the employeesâ point of view too?
What does it all say about the unborn future under the leader?
Only when the leader sticks to the stated value-vision path do they appear empowered and capable of empowering all others on the same route. However, if the leader deviates, the person saps energy and does a disservice to their charisma.
Perception matters!
A leader is the company's living, walking, talking notice board.
Communication does not depend on syntax, eloquence, rhetoric, or articulation but on the emotional context in which the message is being heard. Even the choicest of words lose power if used to overpower. Attitudes are the real figure of speech â Edwin Friedman
Consider this: People from different professional or socioeconomic statuses in the present are still drawn to a school reunion because they are still compatible with the past, where they have shared fond memories. That evokes certain emotions and propels them to come back together. The leader's job is to mirror just that, to create a vision of a common aspiring future in the collective imagination. It occurs through the right language, which triggers positive emotions.
Spoken and unspoken communication reveals a lot about us and forms the basis for how we judge each other.
What you are shouts so loudly in my ears that I cannot hear what you say - Ralph Waldo Emerson
Only if employees perceive their leader to consistently demonstrate integrity towards the stated purpose without sacrificing any underlying values and show them the way by going the way will that leader be respected. They will then accept them as their leader, be drawn to the person, and assist in the common cause of creating a better future. Language can influence, motivate, enable, and empower a team. Language is contagious. Therefore, the leader's language can change the conscience and energy of an organization and its cultural setting and even decide its destiny.
In the final reckoning, only effective communication leads to an evolved organizational culture that brings about an enabled strategy. Let our values and vision communicate who we are!