Monday, October 19, 2009

It matters how money is made

"Everything happens in the context of relationships."

This concept was a revelation to me a few years ago. I'd been raised on a different business ethic: "Don't bring your personal life to work." In this way of thinking, your job specifies the 'role' you play.To be successful, you must not only embody the role, but also recognize the roles others are playing, and with them perform an unseen script. Bringing one's personal self to work, and interacting with others' personal selves, can't be tolerated, since this intrusion gets in the way of achieving business goals. Good workers must strive single-mindedly toward meeting the corporation's objectives. Those who do this well will be rewarded.

Being very driven operationally and technically, I was more than receptive to a de-personalized work place, and approaching my work this way usually produced good business results. But, when I sought feedback from peers and direct reports, I heard a consistent message that I was 'at times' not approachable. Those 'times' occurred when I was most intently driving to a business objective: meeting a project deadline; overcoming obstacles in reaching business goals. I was grateful that I had good enough relationships with others that they felt comfortable sharing this with me, and yet for years I failed to understand what I could do about it, other than try to play my role a bit differently.

And then a couple years ago, I came across what seemed a completely revolutionary thought: Everything happens in the context of relationships. If you care for those relationships, your outcomes will exceed your expectations. The person you are as a leader either enables or prevents others to be successful. If the people you lead are not being successful, look first to the relationship between you. Is it characterized by honesty and disclosure? Is it apparent to the other person that you care about his or her success, and that you bring a sincere interest in understanding both the facts and feelings of the relationship? As I've put this learning to practice, I have a growing appreciation for its power. A business is not a disembodied entity that people work for. A business is the people who work in it, and it changes measurably as the people within it change. It is simply the sum of the outcomes produced by those peoples' relationships, popularly called 'teamwork.' Moreover, the business exists within the environment of its community: consciously or not, the business contributes to community-based relationships, for good or ill.

Following the nation's economic news, I have come to realize a fundamental difference in the ethos of the community and that of many corporations. The people who work in businesses and whose communities are affected by them share a relationship-based ethos. Listen to interviews of workers who have been laid off recently. Whether the workers are young in their careers or have spent a lifetime with the company, they speak emotionally about their loss: not only of the loss of their livelihood, but also of the relationships lost to them. They speak of the close ties they have forged with co-workers, their 'second family' at work, and of the pride they have taken in what they accomplished together. People view work as more than an exchange of time for money. They bring to work not only their physical bodies but also all the complexities of their personalities, histories, emotions, and aspirations.They witness the contributions that they produce individually and with others for the business. All of the corporate talk of 'teamwork' just reinforces with them the importance of relationships as the singular engine for corporate success.

A corporation tethered by the concept of itself within its de-personalized person-hood can never understand the power that actually drives success in its business. The business's responsibility for its relationships with its employees and community trumps the profit imperative. In my work, I am responsible for profitability, and I take that responsibility seriously. So seriously, that I maintain that a business cannot be profitable both today and in the future unless its management understands that everything happens in the context of relationships. Failure to understand this leads to toxic debt packages that lead to rampant foreclosures that lead to ultimate insolvency (unless your business is 'too big to fail'). It leads to double-digit unemployment, with unimaginable human misery and long-term scarring with unknowable economic impact. It leads to toxic food, loss of life and health. The tolls are incalculable - and for what end?

Profits do not have to suffer as relationships are honored; my experience is that in fact, quite the opposite is true. This seems counter-intuitive only if you accept that the corporation is a mechanical entity that exists only to produce profits. However if you assume that the corporation is the sum of the people who work together to produce services or products profitably, and that the business exists within the context of the community upon which it depends, then it seems perfectly reasonable if not inevitable. I work in a company governed by a set of values that give shape to the relationships inside and outside the business. Not so coincidentally, the company has produced year-on-year growth every year (this one included) since embracing these values. The company's values are not just nice-to-haves; they are essential to the company's business plans and its success.

If all actions were based on the profit imperative, irrespective of relationships, human society as we know it would not be possible. Yet, even when our communities bear the manifold costs of the financial collapse caused by uncontrolled profiteering, society is reluctant to hold the bad actors accountable. I think our failure is partly grounded in an unmindful acceptance of their ethos, even when we do not share in it. We have accepted too readily that as long as it's legal, it's acceptable. But it matters how money is made. Legality is a low standard indeed for a society's norms, and you have to ask:who has decided what is legal and what is not?

Let us accept that human society is nothing if not the relationships that allow us to live together successfully to produce successive generations who may also thrive. Economic security and success are interwoven with those relationships. Everything happens in the context of relationships.

1 comment:

Anonymous said...

Some heady stuff there. Your analysis challenges decades of doctrine to the contrary. The economic dogma you speak of, the idea that corporations and corporate actors are not only allowed, but actively encouraged to act with the single-focus of short-term gain and short-term shareholder value, has become something of a matter of zealous faith in these times. It was not always so, and even today there is a healthy and even burgeoning sector of the business world that have embraced the ideas of context and responsibility and relationship as not only the right approach but also the best approach to long-term profitability. What is missing, I think, is more voices like yours. Voices that might help turn the tide back and reclaim the ethical high ground in matters of business. It is essential, I think, to the national economic health going forward, that we 'level the playing field,' as they say, in favor of the ethical. As it is, and as it has become over the last few decades, the field is tipped in favor of those who least represent even the most basic elements of decency and community awareness. Looting pension funds, bankrupting companies and turning those pension obligations over to federal government guarantees might be profitable - it has been for some. It is legal at this time. But is it ethical business? Is it even business? Perhaps what we need is to redefine what we mean by the term, doing business. Ethical businesses and responsible business people simply cannot compete effectively when the floor for behavioral standards is so utterly low.

Good post, big subject. Hope to see more in future.

Cheers,
anon