MAXIMIZING THE TRIPLE BOTTOM LINE THROUGH SPIRITUAL LEADERSHIP Louis W. (Jody) Fry lwfry@ct.tamus.edu http://www.iispiritualleadership.com/ 1 AGENDA • • • • • • Definition of Leadership Religion and Spirituality Definition of Spiritual Leadership Performance Excellence and Spiritual Leadership The Spiritual Leadership Balanced Scorecard Business Model Implementing the Spiritual Leadership Balanced Scorecard Business Model to Maximize the Triple Bottom Line 2 LEADERSHIP “Leadership is the art of mobilizing others to want to struggle for shared aspirations” Kouzes and Posner (2003) 3 RELIGION AND SPIRITUALITY Religion is concerned with faith in the claims of one faith tradition or another, an aspect of which is the acceptance of some form of heaven or nirvana. Connected with this are religious teachings or dogma, ritual prayer, and so on. Spirituality is concerned with those qualities of the human spirit-such as love and compassion, patience tolerance, forgiveness, contentment, a sense of responsibility, a sense of wholeness and harmony-which bring happiness to both self and others. (C) IISL 4 RELIGION AND SPIRITUALITY The common bridge between spirituality and religion is Altruistic love – regard or devotion to the interests of others. In religion this is manifested through the golden rule which is common to all major religions. 5 RELIGION AND SPIRITUALITY From this perspective, spirituality is necessary for religion but religion is not necessary for spirituality. Spiritual leadership can therefore either be inclusive or exclusive of religious theory and practice. 6 EXTRINSIC VS. INTRINSIC MOTIVATION EFFORT EXTRINSIC = MOTIVATION REWARD PERFORMANCE (GIVE ME A REWARD TO WORK) EFFORT PERFORMANCE INTRINSIC = MOTIVATION REWARD (MY WORK IS MY REWARD) 7 SPIRITUAL LEADERSHIP Spiritual leadership comprises the values, attitudes, and behaviors necessary to intrinsically motivate one’s self and others to satisfy fundamental needs for spiritual well-being through calling (a sense that one makes a difference and their life has meaning) and membership (a sense that one is understood and appreciated), which positively influences employee well-being, sustainability and corporate social responsibility, and financial performance – the triple bottom line. 8 ORGANIZATIONAL SPIRITUAL LEADERSHIP Initiated by the developing a vision that vividly portrays a journey of service to key stakeholders which creates a sense of calling. Implemented through a culture and ethical system based on the values of altruistic love that creates a sense of membership. Enables/supports the unit members’ inner life or mindful practice (e.g., spending time in nature, prayer, meditation, reading inspirational literature, yoga, observing religious traditions, writing in a journal). 9 QUALITIES OF SPIRITUAL LEADERSHIP Hope/Faith Vision (Effort) •Endurance •Perseverance •Do What It Takes •Stretch Goals •Expectation of Reward •Victory (Performance) •Broad appeal to key Stakeholders •Defines the Destination and Journey •Reflects High Ideals •Encourages Hope/Faith •Establishes a Standard of Excellence Altruistic Love (Reward) •Forgiveness •Integrity •Honesty •Courage •Humility •Kindness •Empathy/Compassion •Patience •Trust/Loyalty 10 SPIRITUAL LEADERSHIP SPIRITUAL LEADERSHIP HOPE/ FAITH + SPIRITUAL WELL-BEING VISION + + TRIPLE BOTTOM LINE CALLING Make a Difference Life has Meaning/ Purpose + + Organizational Commitment & Productivity, Financial Performance Employee Life Satisfaction Corporate Social Responsibility INNER LIFE Mindful Practice + + + + ALTRUISTIC LOVE MEMBERSHIP + Be Understood Be Appreciated 11 SPIRITUAL LEADERSHIP Values of Altruistic Love Altruistic Love : A sense of wholeness, harmony, and wellbeing produced through care, concern and appreciation of both self and others. TRUST/LOYALTY - In my chosen relationships, I am faithful and have faith in and rely on the character, ability, strength and truth of others. INTEGRITY - I walk the walk as well as talk the talk. I say what I do and do what I say. If for some reason I can’t and you’re affected, I let you know as soon as possible. HONESTY - I seek truth, rejoice in it and base my actions on it. 12 SPIRITUAL LEADERSHIP Values of Altruistic Love COURAGE - I have the firmness of mind and will, as well as the mental and moral strength, to maintain my morale and prevail in the face of extreme difficulty, opposition, threat, danger, hardship, and fear. HUMILITY - I am modest, courteous, and without false pride. I am not jealous, rude nor arrogant. I do not brag. KINDNESS - I am warm-hearted, considerate, humane and sympathetic to the feelings and needs of others. 13 SPIRITUAL LEADERSHIP Values of Altruistic Love PATIENCE/ENDURANCE - I bear trials and/or pain calmly and without complaint. I persist in or remain constant to any purpose, idea, or task in the face of obstacles or discouragement. I pursue steadily any project or course I begin. I never quit in spite of counter influences, opposition, discouragement, suffering or misfortune. EMPATHY/COMPASSION - I read and understand the feelings of others. When others are suffering, I understand and want to do something about it. EXCELLENCE- I do my best and recognize, rejoice in, and celebrate the noble efforts of my fellows. 14 SPIRITUAL LEADERSHIP Values of Altruistic Love FORGIVENESS/ACCEPTANCE/GRATITUDE I suffer not the burden of failed expectations, gossip, jealousy, hatred, or revenge. Instead, I choose the power of forgiveness through acceptance and gratitude. This frees me from the evils of self-will, judging others, resentment, self-pity, and anger and gives me serenity, joy and peace. FUN -Enjoyment, fun, and playful activity must exist in order to stimulate minds, foster creativity and bring happiness and a sense of well-being to one’s family and place of work. I therefore view my daily activities and work as not be dreaded but as reasons for smiling and having a terrific day in serving others. 15 PERFORMANCE EXCELLENCE THROUGH SPIRITUAL LEADERSHIP The Spiritual Leadership Balanced Scorecard Business Model provides a process for fostering the development of the motivation and leadership required to maximize the triple bottom line. 16 SPIRITUAL LEADERSHIP AS THE KEYSTONE FOR THE MAXIMIZING THE TRIPLE BOTTOM LINE Spiritual Leadership Organizational Commitment Employee Well-Being Productivity Calling Quality Membership Customer Satisfaction Corporate Social Responsibility Financial Performance Performance Excellence People & Planet Well-Being 17 Balanced Scorecard Areas of Focus and Measures Vision, Mission & Values Internal & External Stakeholder Analysis Strategic Scorecard Areas of Focus Quality Create a culture of service excellence and perfect order fulfillment Stakeholder Focus Deliver superior value for our Customers & Key Stakeholders Learning & Growth Provide for employee growth and high levels of employee commitment Finance Maintain focused and profitable growth Measures % On-time Delivery % Defective Product % Accurate Orders % Complaints % Satisfied Customers Commitment Index % Productivity % Best Practices % Revenue Growth % Return on Assets % Market Share 18 BALANCED SCORECARD Strategic Scorecard Quality % On-time Delivery % Defective Product % Accurate Orders Customer Focus % Complaints % Satisfied Customers Human Resources Commitment Index % Productivity % Best Practices Finance % Revenue Growth % Return on Assets % Market Share Goal Jan Feb . . . Dec Includes those critical and strategic indicators derived from the firm’s mission, vision and values as well as an internal and external stakeholder analysis. The scorecard identifies those measures that are essential to the successful implementation of the strategic plan. 19 INTEGRATING BALANCED SCORECARD MEASURES ACROSS FUNCTIONS, BUSINESS UNITS AND REGIONS Category Strategic Indicator Employee Commitment/ Satisfaction Level 1 Region 1 Northwest Employee Turnover Human Resources •Well-being •Commitment Employee Capabilities/ Trained Region 2 Northeast Region 2 Southwest Employee Productivity Employee Best Practices Region 2 Southeast Level 2 Region 1 Business Unit 1 Region 1 Business Unit 2 Region 1 Business Unit 3 Level 3 Business Unit 1 Marketing Business Unit 1 Operations Business Unit 1 Finance Business Unit 1 HR 20 SPIRITUAL LEADERSHIP BALANCED SCORECARD BUSINESS MODEL Strategic Management Process Internal Internal & & External External Analysis Analysis Mission Mission & & Vision Vision Strategy Strategy & & Objectives Objectives Leading Indicators/Managing Metrics Inputs Inputs Scorecard ) Input/Output Model Processes Processes Performanc Performance e (Vision) (Vision) Effort Effort (Hope/Faith) (Hope/Faith) Work Works s Reward Reward (Altruistic (Altruistic Love) Love) Implementation Implementation Evaluate Evaluate Outcome Indicators/Strategic Performance Indicators Outputs: Outputs: Quality Quality Delivery Service Calling Calling Make a Difference Difference Make a Life Has Has Meaning Meaning Life Membershi Membership pUnderstood Understood BeBe BeAppreciated Appreciated Be Customer Customer Satisfaction Satisfaction Learning & Growth Org Commitment Member Well-Being Commitment Corporate Social Responsibility Growt h Spiritual Leadership Process Financia Financia Performanc Performance ll e Balanced Scorecard Performance Categories 21 IMPLEMENTING SPIRITUAL LEADERSHIP • Administer Organizational Spiritual Leadership Survey. • Conduct Vision/Stakeholder effectiveness analysis with the organization’s leadership team to: 1. Create a dialog for shared organizational 2. 3. 4. 5. vision/purpose/mission/values. Identify stakeholder expectations and isues. Organize empowered teams/task forces around key issues. Develop and implement goals and strategies to address these issues. Review/develop information systems to measure stakeholder effectiveness 22 IMPLEMENTING SPIRITUAL LEADERSHIP • As appropriate conduct skills training in: 1. Collaborative, consensus-based decision making. 2. Managing conflict. 3. Managing and overcoming resistance to change. 4. Overcoming anger, resentment and fear through forgiveness, acceptance, and gratitude. • Align changes with organization design variables, especially reward systems, 360 degree and stakeholder evaluations, and recruiting and selection process. 23 ORGANIZATION DESIGN VARIABLES Structure Integrity •Interdependence •Variability •Analyzability/Difficulty Patience Task Trust Cultural Values •Centralization •Standardization •Formalization •Departmentalization Information Technology Fun Humility •Scope of data base •Frequency •Formalization •Access Caring Reward System •E P R Motivation •Compensation •Promotion •Leadership Style People •Recruiting. •Selection. •Training. 24 (C) IISL MAXIMIZING THE TRIPLE BOTTOM LINE (PEOPLE, PLANET & PROFITS) THROUGH SPIRITUAL LEADERSHIP ? 25