Archives for category: Business

I get some perplexed looks when I mention ‘conscious business’, which are often initially followed by further confusion as I try to explain the concept. This is because on the face of it, it does not sound very ‘business-like’. But then, maybe the problem with business practice as we’ve always known it, is that it has actually remained too ‘business-like’ and that hasn’t evolved along with the needs, awareness and expectations of society. This leads me to my first point…

  1. Evolution through expectations in the workplace

It might be living in Brighton, it might be that I’m getting older, but it feels like we’re finally getting over the ‘greed is good’ hump and refocusing towards something a bit more enriching. Maybe trying to climb an increasingly greasy pole makes us pause for thought and wonder why we’re focusing so much energy on that specific objective and not so much on everything else in life, such as making it more enjoyable, or pondering what it would be like to look forward to going to work every day because we just love it there.

This is not unique to our generation, it’s the ongoing culmination of the evolution that has been before us and that continues every day. The same basic principles that eradicated slavery, for example, have influence on the increased adoption of flexible working hours, less structured working environments, less formality, project days once a week, etc.

We’re slowly realising that effective collaboration and a well boundaried democracy is far more productive, adaptable and enjoyable than a mono-focused dictatorship. Conscious business is the natural next step in the business evolutionary process and it’s already happening.

  1. Knowledge changes things

Being able to Google anything from your pocket – apart from ruining the pub quiz – has a more profound impact on how society functions because the wide distribution of knowledge means we’re no longer living in the dark, trusting only a few questionable sources.

Part of this shift to knowledge ubiquity has been the rattling of the skeletons in many company’s cupboards. In fact now it’s a bit like the cupboard doors have been removed so all can see inside. So if a company is less than honest and perhaps a little too cut-throat in their practice, the knowledge of this will increasingly decide how and more importantly if, we deal with these people now or in the future.

Consider the web site TripAdvisor: when people have good or bad holiday experiences they have a forum to publicise this information. This knowledge helps others decide whether they want to go to a particular hotel, for example, but most importantly it transfers control of the hotel’s reputation into the hands of the hotel users who are perhaps more objective than the hotel itself.

So if you are not open, honest and genuine in your dealing with your clients you rapidly risk being left behind as your potential customers go to those hotels that are. Wouldn’t it be better to be the hotel that they move to, rather than the one they move from?

Now this sort of balance is what we’ve always wanted but we’ve never had the tools to achieve it before. To that extent, though social media has provided the tool, it’s in response to an underlying desire for balance and fairness that is innate within us. And this is an important distinction: what we innately desire is conscious business, it’s just we’ve lacked the tools to achieve it. Without this desire, TripAdvisor would never have been conceived, let alone built.

On the other side of this the internet also empowers us to make change directly, hence:

  1. The empowerment of the general public

The other part of the ‘TripAdvisor effect’ is that if you’ve been poorly treated by a company as a customer or in B2B dealings, you can broadcast that experience to the world quite easily. So suddenly we’re empowered and the knowledge that we can do this makes us less likely to accept substandard practice.

Last time I got stitched up by restaurant owner, who admitting the mistake (thinking I was a tourist rather than a local) refused to do anything about it, I posted a factual article about the experience on a local restaurant review site for others to read. There were many similar complaints from others – maybe I should have checked first – next time I will.

Now I know most people reading this would never consider ‘stitching anyone up’ for anything but the point is in a business that attempted some empathy with their customers rather than just trying to say the right things to extract the maximum amount of money, one where the client is valued as an ongoing relationship rather than a ‘mark’ to fleece, that business would be full of clients throughout the sparse ‘tourist free’ winter months. This one is always empty. Now I know why.

Again my personal desire was to redress the balance because I’ve been swindled by sharp practice and left with an unwholesome taste in my mouth. It’s just that before I could never do anything other than mention this to a few friends, and now I feel a real sense of  redress because I have ‘outed’ them publicly.

Social media is the tool but it’s only used because there is a desire from me wanting to do something about the situation, to let them know that their behaviour is unacceptable in a way where they can’t brush it under the carpet and to warn others.  Personally I only want the nice, fair businesses to survive and I think I’m probably not alone in that.

Which neatly leads me to the last point and that’s all about spin.

  1. We are better spin detectors

Spin has been the norm in political messaging for a good long time, but because we are aware of it, we’ve got more cautious about believing it and on the whole we’re pretty sick of it. We know when we’re being spun and very often where to look to find the truth or at least what sort of questions to ask to reveal what the spin is designed to conceal. We’re tired of being lied to and want something better than that.

If you think about your relationships in general you will probably find that, if you are honest with yourself, what you prize more now than ever is truthfulness or congruence in how you’re communicated with. We’re tired of being bullshitted to and we increasingly know when it’s happening.  So a very positive differentiator when attracting customers is to be straight with them.

Also remember being congruent is just sooo much easier as well. One of my favourite quotes, from Oscar Wilde I think, is this: ‘People who never lie have it easy because they never have anything to remember.’ If you are always straight and open you will build trusting, long lasting and fruitful relationships.

So where does all this take us? Well, there are lots of reasons to make your business more conscious, but none better than to capitalise by being in front of the revolution as the sort of business that everyone in society wants you to be, rather than desperately trying to catch up when you’ve been left behind.

As I start to write this I wonder if I am simply recycling old material. After all I have written about the conscious business approach to setting up new business relationships before and before that.

But I recently came across an old article by Neil Rackham, of SPIN fame, called Avoiding the Traps in Selling Profesional Services (available here or email me if you can’t find it). Neil talks about the need for people selling professional services to be competent, concerned and full of candour.

Is selling professional services the same as selling generally? I think so: as we move towards a meaning-based economy, where more and more traditional, and tangible, products are commoditised, then each day service becomes more and more the only true differentiator.

Professional services involve helping the client understand their needs, as well as meet them. Again, in a meaning-based economy, helping someone understand their needs is increasingly a key part of any service.

So lessons that apply to selling professional services increasingly apply to selling anything.

And what are those lessons? For me, good selling is fundamentally about creating better relationships. Long-lasting, meaningful relationships.

To do that the first step is to get away from some of our own assumptions about the buyer-seller relationship.

For example, I think many business relationships start off on the wrong footing because there is a perceived imbalance of power.

It is easy to fall into the trap of believing that a corporate buyer has all the power. They may believe this, but do they really?

Think about it.

They can say yes, or no, to your offer.

But so can you, to their terms.

Perhaps you think you need them; but do you really? And do they also need you?

They can hurt you or help you – damage or build your reputation. But can they really? Or is it just that you imagine they can?

My experience is that the powerful corporate executive isn’t really as powerful as they may pretend.

They can strut. Show off their toys. They can shout and storm. But at the end of the day they’re simply an employee. They don’t own anything. Instead, sometimes their lives are owned by the corporation.

To achieve anything they need the buy-in of their colleagues, their bossess, their shareholders.

Often they need to follow a process. Simply to arrange a cup of tea or buy a paper-clip.

So, first, can you reset your perception of the relationship?

I like to assume that the person I am dealing with is simply another human being. Just like me, trying to make their way in the world. Living within the constraints of their world, and trying make things better, for themselves, and for others.

In other words, I’d rather approach this person with unconditional respect. Whatever their initial behaviour.

Working inside a corporate organisation is difficult.

It is frustrating: it isn’t easy to get things done.

It is scary: there’s a lot of pressure – and a lot of misused power.

So approaching this person with empathy – putting oneself in their shoes – can be a real help. We all know what frustration is like. And fear. Empathy is about seeing the world from their eyes, walking in their shoes. Experiencing that frustration and fear and seeing the world through that lens.

In selling, as Neil Rackham points out, candour is also essential.  In conscious business we might use a different word: congruence.

In selling, as in all relationships I value, I must be honest. If I don’t know something, or if can’t do something I must tell the client. Congruence helps build relationships – not least because we all detect its opposite: inauthenticity.

Being honest and open is also essential so that my company can be held to account for delivering the service I am selling. When I am selling I am responsible for helping the client gain the value they need from me. If I set things up wrongly at the beginning, I will surely jeopardise later success. Theirs and mine.

I also need to tell clients what I think and how I feel about our relationship, especially about this power imbalance if it exists. That last may be very hard. Certainly, it may not be something we are used to doing.

By I think it is the secret to successful selling – to creating that real, long-lasting relationship.

Fairly regularly I find myself trying to explain what a Conscious Business is.

I have answered this in terms of strategy before; and also in terms of what CB is not.

But this time I thought I’d try to answer a variant of the question: “What does a Conscious Business look like from the inside?”

At the core of a Conscious Business are people, of course. In my view, every business is simply a bunch of people, when you boil it down.

And in a Conscious Business these people are – well – conscious.

By that I mean self-aware. They reflect regularly. They assess themselves. With compassion for themselves – and with respect, empathy and congruence for others.

They’re also as open as they can be to change. They learn all the time, and a lot of that learning is about themselves.

And they work together in certain ways: for example, they challenge each other’s ideas, decisions, and behaviour. They’re open and honest – about strengths and failings.

They believe in possibility, not certainties. They’re humble. They have fun. They take responsibility – and are able to hold each other to account.

And they take joy in working with others – trying to create something valuable for themselves and others.

Having all this at the core means the business has a clear identity and is suffused with meaning and purpose. It is transparent and open to the outside world.

It is resilient and flexible, profitable, does less harm, offers truly valuable products and services, is highly attractive to customers, and is better able to attract and give a great home to key employees.

Of course, there are many businesses that are already like this. I’ve worked in some, and you may have too. (We’re not “inventing” anything new here. We’re just trying to help businesses as they grow and become more conscious.)

And a conscious business isn’t really a thing at all; it isn’t any of these things in a static sense. It’s a process – of growth and development – something that is always changing, always becoming.

For some years many years ago I worked for a very successful US company, which is now part of HP. There was a popular saying in the company: “everything before but is bullshit”.

What this meant to me was that we should look out for the occasions when people might try to soften the impact of saying something tough by saying a list of positive things first. The saying drew awareness to a lack of directness and a tendency to evade.

I also remember reading somewhere that women use the word “and” at the beginning of sentences more than men do. Men engaged in a conversation will often start a sentence “But…”. Where women will respond “And…”.

The suggestion is that women are trying to build on what has just been said, where men are trying to knock it down.

Thinking about these words – “and” and “but” – puts me in mind of Conscious Business.

Conscious Businesses aim to put people and their development and growth first. And they aim to make very decent profits.

People who work in Conscious Business seek wealth. And health. And psychological well-being. And relationships.

Conscious Businesses seek to provide real value to employees. And to customers.

Today’s customers. And tomorrow’s. And people who might never be customers but who share the same planet with us.

Conscious business is also about communicating clearly, directly and congruently. It’s about less bullshit.

It’s also about taking action. Despite our fears that we might not get where we want to go. Getting past the excuses.

So not about buts. All about and.

I have lost count now of the number of times I have been asked what Conscious Business is.

And I have also lost count of the numerous ways I have explained it.

I suppose it is a bit like trying to describe a mountain. It all depends which face you climb. Or whether you are interested in geology and what’s underneath it.

But here’s one more go. An attempt to boil it down to something people can take away and use.

Conscious business is a strategy – for personal, business, and ‘planet-wide’ use.

As with all strategies we tend to be interested in the outcomes it produces. Are they good, bad or indifferent?

I think it’s a good strategy for personal use because it produces good outcomes:

  • it is more enjoyable – being based on authenticity and congruence;
  • it is more fulfilling – leading to better, more stimulating, and richer relationships;
  • it feels better – moment by moment, it leads away from disquiet towards more energy and peace.

It’s a good strategy for business because it produces good outcomes:

  • better short-term profits – through differentiation, reduced costs, more creativity and innovation;
  • better medium-term profits – through increased customer loyalty and lower staff turnover;
  • better long-term profits – through more resilience and flexibility in the face of market upheaval and change.

And it is a good strategy for the planet because it produces good outcomes:

  • it naturally leads to the creation of products and services that are less harmful and more beneficial;
  • it is more aligned with our deeper collective needs as humans – to collaborate, to support each other, and evolve in a positive direction;
  • it builds value for everybody, including future generations.

That’s it.

What a week that was.

Momentous change in Egypt, people power in action – again. The process that Ghandi helped start in India in the 1920 to 40s, that continued in the U.S. Deep South in the 1950s and 60s, continues today. And, it seems, enabled by ever faster, more democratic media to be, if anything accelerating. Despite the fears of a surveillance culture, centralised control and so forth, we seem (at least to this optimist) to be moving slowly in the right direction.

And on another front it was pleasing to read and hear Michael Porter, the eminent business guru, apparently joining the bandwagon of “democratic business” (WorldBlu?), “social business” (Yunus?), “sustainable business” (Anderson?) and “conscious capitalism” (Mackey?) – all things related to what we might call Conscious Business.

Pleasing as it demonstrates how mainstream these ideas are becoming.

But beyond that it is also interesting to ask “how are we to ensure that this innovation, once underway, continues?”. Many, many forces are able to kill off good ideas long before they really get established. Indeed, does entering the mainstream always represent a good thing?

Two very familiar phenomena are backlash and whitewash.

Examples of backlash are all too common – everyone is watching Egypt with concern, for example. Will the “uprising” cause a backlash from the “system” that initially appears to allow it?

Whitewash, while less violent, is perhaps more worrying. And it is equally common when change “threatens”: for example, we all recognise ”greenwash” in relation to the response of mainstream business to environmental concerns. As this new type of conscious business emerges, as my friend and colleague Tom Nixon asks: “how many of, say, the FTSE 100 or the Fortune 500 have made it real?”

In response, I’d like to quote Hunter Lovins: “Hypocrisy is the first step to real change.” His point is that once somebody says something, then we can hold them to account for it.

So let’s listen to what Porter and the gurus have to say. Then see whether corporate America and corporate UK actually change. Or if they just pretend to.

And then, personally, we need to hold the line. Hold on to our own beliefs and hold others to account for what they are saying. To make sure their actions follow their words.

Of course, that requires awareness, self-knowledge and, most of all, personal strength and courage. It’s all too easy to want throw in the towel when faced by force and threat or by duplicity and pretence. Easier to give in – especially when the power of the “establishment” seems overwhelming.

For me, overcoming those desires is what Conscious Business is really about – not the big trends, not what happens in the world, not what others say and do – but what goes on inside me, the choices I make, and what I do as a result. Exploring that, in the context of business, is “the road less travelled”. But also the route to momentous change.

A recent news piece on BP’s behaviour in the Gulf of Mexico made me wonder about the use of the word ‘systemic’.

I know it’s probably not what was meant. But when I read this article, “systemic” started, to me, to sound like an excuse. A reason why BP and others didn’t do what they could have. Should have.

The first time I heard that word in relation to a disaster, or a scandal of some sort, it seemed to be properly used. Indicating that there are features of the system that make a problem likely to reoccur. That the problems are deeply entrenched in the design of the system, and that these conditions ensure that individuals often behave in certain ways. That we need to reform the system. Not just scape-goat individuals.

But now, and maybe it is me, it begins to sound as if the word is trotted out whenever a major disaster or scandal occurs to absolve any individual of responsibility.

“It’s the system’s fault, I couldn’t do anything!” comes the plaintive cry.

But as Margaret Mead said:

“Never doubt that a small group of thoughtful, committed citizens can change the world.

Indeed, it is the only thing that ever has.”

And where does that small group of thoughtful, committed people start? It starts, of course, with the individual. One individual needs to take a risk, change their way of thinking, say something others daren’t.

An individual within a system is, I believe, the only thing that really can start to change a system. The individual is the catalyst for system-wide change. Somewhere, sometime, were there perhaps people in BP would could have said something and didn’t? Who went along with crowd-pressure and followed the herd mentality? When there was an opportunity to say or do something different?

What does this all have to do with you and your business?

Maybe you are in a business, running it or working at the front-line, and everyone blames everyone else? Maybe everyone is rubbish at their jobs. Maybe you don’t like the way the company is set-up or structured. Maybe your boss is an idiot. Maybe the reward systems are set-up to reward the wrong things. Maybe the company regularly does bad things, or allows poor quality work in the pursuit of short-term profit.

If any of those things is wrong with the system – please don’t blame others. Don’t blame “the system”. Take responsibility. Change yourself. Be the catalyst. Be the change.

Happy New Year.

I’ve written before about what a Conscious Business is. And what it is not. But no man, and no business, is an island. Businesses live and operate in a market.

And what kind of market is that? At the moment, for example, we seem to have:

  • Web 2.0 people theorising about the importance of ethereal content over physical objects, of production versus consumption;
  • psychologists, and even the UK government, propounding the importance of well-being and happiness;
  • an ever-growing discussion of environmental sustainability;
  • the feminisation of the work-place;
  • the rise of long-term, inter-generational thinking;
  • and, of course, the rise of Conscious Business – in all its various shapes and forms.

Could this all be part of an even bigger trend for the market? A shift towards what we might call a “meaning economy“? We’ve had the information economy, and the knowledge economy. (Once I even heard talk of a “wisdom” economy.)

A meaning economy for me is one in which people’s basic needs are already met through the producing power of our industrial economy. And instead people start to change their focus towards gaining more meaning in their lives.

But what is meaning? Meaning is an answer to the question “why?”, not the industrial age questions of “how many?”, or “how much?. We know how to answer those questions and we know how to answer questions about “what”, ”who”,  and sometimes even “when”. Why we want things, why we have things, why we do things: the answers remain much more elusive.

Put another way, is the overall market changing so that people are no longer satisfied with just goods, and no longer satisfied with shabby, or any, “services” – are they seeking instead to fulfil their higher values?

Of course this won’t mean much to the billion at the bottom of the pyramid. But for the aspirational 5 billion people in the world – is that where we are heading?

If so, this might mean different things in relation to each of the product types we are already familiar with, and we can see that some of these trends are already underway in some areas of the economy:

  • for a physical, tangible product it means valuing the associated brand and reputation more than just the product itself;
  • for a service it means valuing the associated relationships more than just the service itself;
  • for content it means producing something that deeply touches the heart and soul, not just the mind.

In business more generally it might mean shifting our emphasis as we try to build revenue and profitability. Shifting it:

  • from technological innovation to service innovation;
  • from growing functional value to growing relationship value;
  • from improving process quality to a focus on the quality of the customer experience;
  • from strategies that grow transactional volumes to those that grow loyalty and retention;
  • and even from strategies designed to reduce cost to strategies of investment;
  • and so on.

All of these things have been identified before, of course. And some would say that a knowledge economy leads to some of these things. So, I wonder, does it add anything to see this as a change in the market to meaning away from information and knowledge? What else might that ‘frame’ tell us?

Sometimes I want to give the people who run our government, banks and largest companies a shake.

Yesterday at a meeting of the MDHub in Brighton I listened to a fascinating presentation by Jeremy Beckwith of Kleinwort Benson about the state of our global economy. It was a story of how all governments since the last World War, aided and abetted by the banks and large corporations, have systematically grown our public debt to a point where our economy is in such a state that no one will lend us any money. Where we can’t borrow to spend our way out of our troubles. Where things are going to get a lot worse before they get better.

Other highlights:

  • nearly every country in the world is in dire financial state
  • there are many further backed-up economic problems to come
  • some countries will almost inevitably drop out of the Euro, causing untold disruption
  • 40 million Americans are receiving food stamps
  • if you’re relying on a state pension, you better make alternative plans
  • large private corporations are making record profits – based on population growth and a resulting unskilled global labour price of $2 a day
  • economic policy is out of control: we are entering a twilight zone of currency wars and other unknowns.

Oh, and the good news? Gold is at a record high. If you want to live somewhere with a reasonable economy, well you could move to New Zealand, Australia or Sweden. If they’ll have you.

So why do I want to shake them? These people who run our government, banks and largest companies? Because my first reaction is that they seem to be asleep. Asleep as they wave their children off to their private schools. As they play with their Blackberries and laptops. As they tramp from their cars and trains to their glass sky-scrapers.

Obviously these aren’t theoretical problems, in some economic text book. There are real people out there, millions and millions of them, suffering the indignity of relying on a government for benefit, having to leave home and hearth to chase that $2 a day, suffering the uncertainty of losing their home, their job, their income.

But the strange thing is I also know that many government leaders, and bankers, and the leaders of large corporations are, like all of us, trying to do the right thing. They want the best for themselves and their families, yes. But they also want the best for the rest of us too. Just as I do. Just as you do.

Of course, if asked, they’d also say that we sleep-walked too – the rest of us. And, I agree, it would be failing to acknowledge our share of the responsibility to suggest that we didn’t enjoy the good years. Why didn’t we ask those difficult questions – like how does the economy work, or why are we building up all that debt – when there was still time? Do we have so little self-responsibility we’ll just blame them for our current situation?

And I guess, if I think about it for a moment, that it hurts those government leaders, and bankers, and CEOs too – and especially it hurts them to know that all their brains and money and power and effort didn’t help them make things better.

To know that they failed.

So maybe what I really want to do is give them a hug.

I love clear roles and responsibilities.

I bang on about them endlessly. To the point of driving some of the people I work with crazy.

What do I mean by clear? I mean written down. I mean completely unambiguous. Completely focussed. Like a laser beam. Sharp, accurate and to the point.

A Format

The format I usually prefer is a Role Purpose statement – just one (or possibly two) simple statements that sum up the role.

Like “Make money for the company”. “Make sure we have the information we need to manage the business”. “Find us new customers”. “Ensure we have the best team on the planet”.

It must be only one or two things – more and people can’t hold them in their minds. Too many goals creates confusion – internally.

And then a list of Responsibilities. No more than 7 or 8 (one of the few papers I remember from my first degree was on the “magic number 7″).

Things that support the Purpose, like “Create the processes we need to supply accurate and timely information”, “Recruit and manage a team”, “Work with the other directors to grow the business”, etc.

Why am I so obsessed with this?

Why am I so obsessed by these single sheets of paper (I usually suggest we add in a few KPIs for good luck)?

Because they are one of the best ways I know to create an opportunity for real accountability in a company. If the role description is clear, then holding people to account is easy. If it is wooly – well, then anything can happen, and usually does.

I am also obsessed by empowerment. I believe deeply that people should be given, and take, all the responsibility they need. I don’t believe it works for people to tell other people what to do – except in exceptional circumstances.

So, a clear role is a complement to this. It’s the Yin to the Yang.

In my view, everyone in a conscious business needs an individual, clear and unambiguous role description that describes their Role Purpose and Responsibilities. Make no mistake, these can’t be imposed from above. They need to be agreed – that is, taken on by each individual, and “owned”.

They shouldn’t overlap – or we reintroduce ambiguity. And they need to fit together as a set – so that everything really important gets done.

Without them no one can hold anyone to account, we fail to get the collective results we need as a team, and we lose our focus on our business imperatives. The things that keep our businesses alive.

WIIFM

And whose responsibility is it to ensure that everyone has these? Mine. Yours. Everybody’s. All of us that want great results from our companies.

What’s in it for me? How does it help me, or anyone else, to define my own responsibilities? Well, my life becomes simpler. I can focus. I am clear what I need to do. Maybe more importantly, I am clear what I don’t. Doing less is the key to a life of sanity.

And truly, being held to account is a good thing – not a bad thing. We sometimes think that accountability benefits the person doing the holding to account. But I think there is even more benefit to the person being held to account: we learn.

Feedback on what we do and how we do it is perhaps the most useful gift we can get from others in life.

I feel really annoyed with myself when I let people off the hook on this. But, sadly, I do. Note to self: clarify my role.

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