Think of the classic corporate leader.
What, or who comes to mind? Maybe Bill Gates, Steve Jobs, Richard Branson or perhaps Henry Ford. Let’s keep going, Elon Musk, Jeff Bezos or perhaps Larry Page.
What do all of these leaders have in common?
They all represent a certain type of leadership; a leadership style that is defined by the traits of
command and control and a leader-knows-best mindset; they represent classic leader / follower models in which the leader tells and the follower does. They also represent the classic notion of leadership as the iconic hero – the individual genius.
Finally, they represent the notion of leadership as whiteness and leadership as maleness. In a classic paper on leadership John P. Kotter reminds us that the role of leaders, unlike that of managers, is to cope with and guide their followers through times of change. And that facilitating change involves creating a vision for the future and actively engaging, motivating and inspiring those who you seek to lead. Today, change is the new norm. It is, paradoxically, a constant factor on the landscape of 21st Century business leaders. Managing change is, or at least should be, at the top a leader’s ‘to do’ list’.
As stated by Rosabeth Moss Kanter, professor at Harvard Business School and Chair & Director of the Harvard Advanced Leadership Initiative, Surprises Are the New Normal. Thus, the role of today’s leaders has become more critical in navigating these often and unforeseen surprises, the constant turbulence of markets, the changing values and demands of customers and investors alike. The changing landscape - radical breaks with once unquestioned norms – think Brexit and US
President Donald Trumps’ reframing of established trade agreements.
In addition to surprises, growing uncertainty and complexity, Moss Kanter adds an additional factor for consideration for today’s business leaders – diversity. The new social and business landscape is and will continue to be defined by new diverse talent pools and customers. And yet many business leaders, unconsciously informed by social and cultural biases, continue to operate under the old rules; hiring people like them, turning a blind eye to bad corporate behaviour and remaining fixated by a single model of both what leadership is and what leadership should be.
This report aims to assist leaders and others to re-conceptualise the notion of what an effective leader is by providing a framework for a new and inclusive model for thinking and doing leadership in the 21st century.
Our research mapping has identified 5 key ways in which inclusive leadership supports high performing work cultures, business innovation, employee purpose and corporate profit.
When leadership teams are populated by - or dominated by – individuals who look, sound and think
the same they are more likely to suffer from Groupthink, which narrows a leaders’ decision-making field of vision. This in turn reduces an organisation’s ability to tap into the constantly changing global marketplace. Groupthink restricts cross-cultural insights which are essential when developing products and services for culturally diverse customers and clients.
In a 2017 paper by the global consulting firm McKinsey and Co, they identified team composition
as the starting point for creating high performing teams, of which diversity is a central element. The
paper suggests that small teams of senior people – fewer than six people – may be particularly vulnerable to poorer decision-making, because a lack of diversity leads to a lack of bandwidth in leadership thinking.
This research is supported by work from the cloud-based decision-making platform Cloverpop, which has shown how diversity in teams, together with inclusive decision-making, significantly increases business performance.
Cloverpop’s research has shown how teams of individual decision-makers make better business decisions than individuals about 66% of the time. This is perhaps not surprising and aligns to research carried out by James Surowiecki and shared within his influential work on the Wisdom of Crowds, in which he argues that groups of individuals make smarter decisions than individuals, and that diversity of opinion amongst groups of individuals results in better decision-making.
According to Cloverpop, teams of people are better at:
While many research studies focus solely on the relationship between gender diversity and business
outcomes, Cloverpop were able to measure decision-making outcomes using a wider range of diversity characteristics, including age and geographical location.
Research by Deloitte University Press stresses three key benefits to organisational performance from
diversity of thought:
A 2017 study by Boston Consulting Group (BCG) – The Mix that Matters: Innovation Through Diversity - found a positive relationship between diversity and business innovation. Measuring outcomes from 171 companies, the study found a statistically significant relationship between management diversity and business innovation, meaning that companies with higher levels of diversity get more revenue from new products and services.
Specifically, the research found:
Following the success of Google’s Project Oxygen, where its People Analytics team studied the key dynamics of ‘what makes a great manager’, Google launched Project Aristotle, a two-year study on team performance. Google wanted to research the key factors which create and sustain high performing teams. The overarching factor of a high performing team is the level of ‘psychological safety’ that exists between team members. Psychological safety is defined as the extent to which colleagues feel able to take risks in the interest of the business without fear of judgement from teammates and leaders.
Psychological safety, and the positive impact on team performance, is closely aligned to a sense of
belonging from diverse individuals within teams. As stressed by Alex Pentand from MIT, the number one predictor of team performance – more than skills and intelligence – is what he calls ‘belonging cues’; equal air time in team meetings, eye contact between colleagues and non-hierarchal communication.
A study by Catalyst, the global not-for-profit organisation, found that companies with the most
women board directors outperformed those with the least on return on sales (ROS) by 16% and return on invested capital (ROIC) by 26%.
The Center for Talent Innovation examined 40 business case studies and found that publicly traded companies with two-dimensional diversity were:
Research from McKinsey and Co. in 2018 found that companies in the top-quartile for gender diversity on executive teams are:
Behavioural psychologists such as Daniel Kahneman suggests that a leaders’ ability to navigate an ever-changing business landscape is hampered by a set of cognitive biases. Behavioural science tells us that leaders, like all human beings, depend on a dual processing system for thinking and decision-making. System 1 – which Kahneman refers to as fast thinking – is governed by emotion, intuition and impulse. System 2 – referred to as slow thinking – is partly designed to regulate the impulsive nature of System 1 and is governed by logic and deliberation.
The evolution of human decision-making is related to risk and safety. In order to survive human beings often had to make fast decisions within a limited time frame. To help us to do this we have developed a complex process of neuro networks that rely on pattern recognition or heuristics. These heuristics or mental short-cuts help executives to make decisions based on previous experience and can be effective when developing new strategic goals.
However, as stressed by Andrew Campbell from Ashridge Strategic Management Centre the heuristics which leaders rely on are prone to a set of cognitive biases which in turn leads to errors in leadership thinking, judgement and decision-making. Here are 5 common biases that impact leadership thinking and decision-making:
In a Harvard Business Review article entitled Why Good Leaders Make Bad Decisions, the authors warn us of the dangers of "emotional tagging", a process by which leaders attach emotional information to their thoughts and views of other people. The risk is that leaders are more likely to add positive emotional weight to people who are ‘like them’, whereas they are more likely to add negative emotional weight to individuals who are less like them.
We at FAIRER Consulting, have for the last few years been researching the topic of inclusive leadership. Our project was governed by two very simple questions:
Thus, the focus of our research was to develop a competency and behavioural framework in order to measure the current state of play and to assist leaders to develop their inclusive leadership skills.
Through a mapping of existing research, supported by a series of global workshops our research has identified seven core traits of the inclusive leader. Under each competency or trait, we have identified a set of inclusive leadership behaviours.
The seven core traits are:
“The way you see people is the way you treat them, and the way you treat them is what they become”.
- Johann Wolfgang von Goethe
Human beings are social creators. We like to hang out in groups. It makes us feel good. But leaders, like all humans see things and people from their own subjective – biased – viewpoint. And the thoughts and feelings that leaders carry in their heads about people who are similar to them and people who are difference from them affects three basics drives:
Understanding the psychology of difference helps leaders to pause and reflect on the biases that they carry around with them and how these cultural mind-bugs create a set of unconscious behaviour patterns. Being aware of personal biases and the impact these have on organisational fairness and perceived levels of respect is one of the foundation stones of inclusive leadership. Perceptions of workplace fairness and respect are closely associated with perceptions of belonging.
Research by BetterUp defines belonging as being associated with mattering, identification, and social
connection. As they state: The unifying thread across these themes is that they all revolve around the sense of being accepted and included by those around you.
Their research found the following:
Our research on inclusive leadership identified a number of ways in which leaders can promote fairness, respect and a sense of belonging. Here are 5 tips:
“Alone we can do so little; together we can do so much”.
- Helen Keller
As global businesses move increasingly towards highly networked cultures, linked together by cross–team and cross–border working, collaborative styles of leadership will increasing become an essential part of maintaining competitive advantage and promoting high performance team cultures.
Scott E. Page, Professor of Complexity, Social Science and Management at the University of Michigan, has, through many years of research, demonstrated how the power of collective wisdom leads to more informative and intelligent decision-making. By drawing on the collective wisdom of diverse groups, businesses can learn to mitigate human mind-bugs and the associated business risks, and instead, foster greater creativity innovation and problem-solving.
In a 2016 White Paper from Oxford Leadership, researchers identified a number of key dimensions of
collaborative leadership. These include:
Here are 5 inclusive leadership behaviours that foster collaboration:
“Emotions are contagious. We’ve all known it experientially. You know after you have a really fun coffee with a friend, you feel good. When you have a rude clerk in a store, you walk away feeling bad”.
- Daniel Goleman
Many of today’s leaders have traditionally been taught that showing emotions is a sign of weakness. Instead, so they are taught, we need ‘tough guys’ (and they are usually guys), who can make tough decisions.
This style of leadership leads to what we call Zombie leaders. That is, leaders who lack authenticity, compassion and empathy as well as curiosity and openness to difference. These Zombie leaders cover
their emotions for fear of being seen as too human, which in many corporate environments is seen as a sign of weakness and vulnerability. These Zombie Leaders:
Zombie leadership results in a decline in employee motivation, engagement and performance. Feelings of dis-empowerment from diverse colleagues together with the need to cover key aspects of who they are for fear of being seen as different and therefore, not one of the team grows. Innovation and creativity decline.
Here are 5 ways in which inclusive leaders reject these Zombie norms through behaviours that promote EQ and CQ:
“An empowered organization is one in which individuals have the knowledge, skills, desire, and opportunity to personally succeed in a way that leads to collective organizational success”.
- Stephen Covey
Why do so many of today’s workers feel dis-empowered? What is it that leaders do to their people
that drains their energy and passion? What are the consequences of dis-empowered employees to business innovation and performance?
These are just a few of the questions that any leader interested in high performance and inclusion might want to reflect on. To help, here are a few responses.
Leaders disempower their people by:
From our research here are 5 inclusive leadership behaviours that foster empowerment and employee growth:
“I think self-awareness is probably the most important thing towards being a champion”.
- Billie Jean King
“Awareness of others is a beautiful thing. Learning how to support and encourage, and stopping long enough to pay attention to someone other than yourself, is a truly beautiful quality. There are a thousand beautiful things we can find about ourselves”.
- India de Beaufort
Having true insight into one’s own motivators, drives and ways of working is a key leadership competency. However, insight into one self alone is not enough to create meaningful and inclusive insight. It is simply one side of a two-sided coin. Inclusive leaders are also required to gain insight into difference – that is, the thoughts, feelings, life experiences and ambitions of individuals and groups who are unlike them.
It is only through this level of dual perspective taking can a leader truly lead inclusively. As stressed by Gillian Ku, Associate Professor of Organisational Behaviour at London Business School (LBS): perspective-taking is “the active cognitive process of imagining the world from another’s vantage point”.
Perspective-taking, stresses Dr Ku, should not be confused with empathy. Whereas empathy is about connecting with another person’s moods, perspective taking is a cognitive – thinking – process.
From our research here are 5 behaviours that build inclusive leadership through insight.
“Low levels of psychological safety can create a culture of silence. They can also create a Cassandra culture – an environment in which speaking up is belittled and warnings go unheeded.”
- Amy C Edmondson
Understanding psychological safety
As stated by Amy C Edmondson - Novartis Professor of Leadership and Management at the Harvard Business School - psychological safety is the belief that the environment is safe for interpersonal risk taking. People feel able to speak up when needed — with relevant ideas, questions, or concerns — without being shut down in a gratuitous way. Psychological safety is present when colleagues trust and respect each other and feel able, even obligated, to be candid.
As the global economy shifts ever more towards a VUCA environment, the need for employees to speak up and speak out, to challenge and question existing world views will grow.
And yet, so many employees, even when they feel the need to speak up, stay silent. Why is this? In one word: Fear.
Reviewing the results from employee engagement surveys from numerous global companies, together with focus group data, we have spotted a repetitive trend:
In short, many employees don’t experience psychological safety or feel psychologically safe. In this context, the "psychological contract" as defined by Denise Rousseau from Carnegie Mellon University is broken. This is one of the biggest leadership challenges of the modern era.
Helpfully Any C Edmondson offers a tool kit for leaders to build psychological safety. This includes 3 key steps:
“Over time, I have come to this simple definition of leadership: Leadership is getting results in a way that inspires trust”.
- Stephen M.R. Covery
Think of a leader that you fundamentally mis-trust. What is it about his or her behaviours that have led to your perceptions of such a leader? My guess – based on research, would be something like this: They say one thing and yet they do something contrary, they lie, they talk down to people or have little respect for people who are less like them.
Now think of a leader that you trust. What values do they hold? What behaviours do they demonstrate?
According to David M. Long, assistant professor of Organizational Behaviour at the Mason School of Business at the College of William & Mary, there are three pillars that create bonds of trust between leaders and followers – one of them is integrity.
Other research studies have identified integrity as a key leadership competency. In our own research integrity was seen as a trust generator, which in turn facilitates strong emotional bonds between diverse colleagues and their leaders.
As stressed by Paul J. Zak, Professor of Economic Sciences, Psychology & Management at the Center for Neuroeconomics Studies and author of Trust Factor: The Science of Creating High Performance Companies, employees in high-trust organisations are more productive, have more energy at work, collaborate better, and stay with their employers longer than people working at low-trust companies.
However as stated in a HBR article (January–February 2017 Issue), in its 2016 global CEO survey, PwC reported that 55% of CEOs think that a lack of trust is a threat to their organisation’s growth.
The stakes for leaders have never been higher.
5 inclusive leadership behaviours that build trust include: