An Employment Revolution

"Without labor, nothing prospers." 

--Sophocles

Three industrial revolutions shaped how we live and work:

• First Industrial Revolution. Water and steam are used to mechanize production. 
• Second Industrial Revolution. Electric power is used to create mass production.
• Third Industrial Revolution. Electronics and technology are used to automate production.

            (World Economic Forum) 

The transition to a fourth industrial revolution--physical, digital, and biotechnology--appears to be accompanied by a human phenomenon.

British economist Dr. Charles Goodhart describes the turnabout this way: "Since the 1990s, hundreds of millions of inexpensive Chinese and Eastern European workers pushed down wages and prices of products they exported to rich countries. Together with female workers and baby boomers, the labor force in advanced economies more than doubled between 1991 and 2018." (The Great Demographic Reversal)

However, as the American economist Dr. Herbert Stein once said, "If something can't go on forever, it will stop."

Supply and demand reversed.

Keeping in mind Dr. Goodhart's concept of declining low-cost labor and scarcity of help, it's safe to conclude that the global economy is now experiencing an employment revolution akin to a "worker's moment." In nearly all sectors, especially manufacturing, employees gain the upper hand as employers scramble to retain and recruit a shrinking workforce. 

(C) Depositphotos

Worker shortages, clogs in the supply chain, and rising energy prices have resulted in 7.9 percent annual inflation in February, the highest in 40 years. In the U.S., average hourly wages in the private sector rose by one penny last month, falling behind inflation. War in Ukraine, and pandemic outbreaks in Europe, U.K., and China, further complicate matters.

In a recent FORTUNE magazine survey, two-thirds of respondents considered the labor market the force most likely to disrupt their business this year.  

Speaking to the U.S. Congress, Federal Reserve chair, Jerome Powell, underscored the nature of a highly competitive labor market this way: "What you have is 1.7 openings for every unemployed person. That's a very, very tight labor market. Tight to an unhealthy level," Powell said. 

An H.R. crisis

When it comes to people, here are five overlapping trends which help explain why management is facing labor shortages and employment conditions that will likely continue for some time:  

1. Free to choose. The "Great Resignation" is getting a lot of attention, and rightfully so. All told, over 38 million workers will quit their jobs in 2021. (Bureau of Labor Statistics)  Surveys with exiting workers show the reasons for jumping ship include higher wages, better conditions, or different opportunities. Half of Americans who quit their jobs in 2021 made a career change. 

Indeed found that 92 percent of those who voluntarily left their jobs since March 2020 did so because "the pandemic made them feel life is too short to stay in a job they weren't passionate about."

This doesn't mean that everyone will have a job. No job seeker is fit for every job. 

2. Job flexibility--the holy grail. Returning to the office may look different. The past two years have allowed white-collar workers to manage their schedules. Even while being on Zoom. And they like it. This arrangement proved helpful to parents whose children were in school online. 

The tech industry, and professional services, may find that a hybrid schedule fits well with newly adopted habits. As for a negotiating chip, flexibility could mean the difference between attracting qualified candidates and not. 

(C) US NEWS

Hiring will also be more geographically dispersed--removing the pressure to live in high-cost housing markets.    

Full-time remote work has a downside. As more employees gather in corporate spaces, those working from home will be disadvantaged regarding mentoring, acquiring behavioral skills, and collaborating with experienced colleagues.  

Former Google H.R. chief Laszlo Bock said, " 'Googlers' who come into the office less frequently will be at a disadvantage for promotions, pay bumps, and desirable assignments." 

The idea that out of sight is out of mind rings true.

3. Baby boomer retirements. From February 2020 to March 2021, up to 2.6 million more boomers retired than expected. (U.S. Federal Reserve, St. Louis) This heavily populated cohort might have left sooner were it not for the Great Recession (2007-2009). 

There are two sides to that departure coin. First, it opens opportunities for next-generation employees, but a good deal of corporate culture, history, and know-how walk out the door.

4. Demographic shifts. The working population has started shrinking across advanced economies--the first time since World War II. That decline squeezes the labor force, causing prices to go up and contributing to inflationary pressures. 

The Wall Street Journal reported that Germany seeks to attract 400,000 skilled foreigners a year. China, says the Journal, is expected to see its workforce shrink by 100 million over the next 15 years. That's like having nearly one-third of the current U.S. population disappear.

5. A drift toward idleness. Absence is compounding the labor shortage. The labor force participation rate peaked at 67 percent in 2000 and is now 61.6 percent, 1.9 percent below pre-pandemic levels of 63.5 percent. 

One in eight men is neither working nor looking for work. (Nicholas Eberstadt, Ph.D.) Mail students now make up a smaller share of all enrolled students in the U.S. than ever; just 41% of students enrolled in postsecondary institutions in the fall of 2020 were men. (Brookings Institution)

This inactivity and an aging population help explain why there were 11.3 million job openings in the U.S. in February. 

Be creative

This is a time to innovate. That means solving problems. Differentiating from competitors. Keeping the business alive.

The rethinking process, like the hotel industry making daily housekeeping optional, is an economical way to maintain essential services. 

(C) USA Today

Even the smallest company can be innovative with feedback from customers and employees.

"The pandemic prompted a widespread re-evaluation of our lives," says Dorie Clark, who teaches at Duke University. One study reported that 54 percent of Americans are re-examining their life priorities. The situation is similar in the U.K. "More than three-quarters of Britons said they were considering major life changes, from moving to quitting their jobs, to ending relationships," according to Global Future. 

A 2021 Pew Research study showed that only 17 percent of adults now cite their job or career as a source of meaning--down 7 percentage points from four years earlier.  

To improve retention, Professor Clark recommends leaders understand what motivates employees. "Recognizing new forces shaping their career ambitions may enlighten what's going on with others."  

The most cost-effective H.R. initiative is to keep recruiting your own employees. Show your appreciation, dedication, and commitment to existing talent to retain and expand your base. (An Adobe Principle)

Strategist.com 

© Bredholt & Co. 

What Kind of Leader Are You?

"Never violate the sacredness of your individual self-respect."

--Theodore Parker

Leaders think differently.

About themselves, the organization, and the world around them. Thinking alike seldom contributes to anyone's success. How one develops personally and professionally benefits significantly by being distinctive. In the arc of life, it pays to be different.

Dissimilarity applies to ideas and people. "Leaders must bring together diverse ideas, which often means engaging with differing perspectives and those with diverse backgrounds." (Journal of Character & Leadership Development, Summer 2021)

When speaking about leaders, we're not necessarily equating that term with a position. However, untitled leaders are found throughout most structures.     

Leadership styles

Much that's written about leaders has to do with "style." For example, author, Joseph Garvey, reminds us of three from social psychologist Kurt Lewin:

• Authoritarian Leadership (Autocratic). The leader dictates policies and procedures and decides what objectives must be completed. Again, control is a significant theme.
• Participative Leadership (Democratic). Here the members participate in the decision-making process. As a result, team morale is higher, and members are more engaged. Unfortunately, this style is noted for an absence of clear communication.
• Delegative Leadership (Laissez-Faire). Team members need more guidance from leaders and are free to make their own decisions. Tools are provided along with processes to make good decisions. Then, the groups solve problems on their own.

Max Weber and Bernard Bass add to the list of styles:

• Transactional Leadership. This style focuses on the role of supervision, organization, and group performance. Employees perform well when there is an organization's transparent chain of command.

Professor Bass expands the work of James MacGregor Burns with another concept:

• Transformational Leadership. This style enhances the motivation, morale, and performance of followers. The traits of transformational leaders are energetic, enthusiastic, and passionate. 

Styles can fluctuate depending on the circumstances, such as crises or restructuring. Nevertheless, they generally return to a predominant pattern of behaving.  

Leaders' personalities have a direct impact on behavior and corporate culture. Attributes such as integrity, courage, maturity, and caring for others have been found to support and promote strong executive and managerial effectiveness. (European Scientific Journal, July 2016) 

Being self-aware is the secret to better decision-making.

(C)  Mark Sanborn

Program evaluation

The Training Industry Report estimates that approximately $70 billion is spent annually on helping individuals to learn, grow, and change. With such a large expenditure of time and money, why do so many programs come up short?  

Areas of deficiency:

No long-term measures prove the permanency of training (Kivland and King, University of Illinois); lack of support from upper management; decoupling reflection from real work situations (Gurdjian, Halbeisen, and Lane; McKinsey & Company); and the absence of interest on the part of employees. (Panopto, Inc.) 

Where programs may need greater emphasis:

By taking a more deeply person-centered approach the cultivation of character can help leaders to successfully engage the opportunities and challenges of leadership in our complex and uncertain times.

Intellectual virtues, such as truth and understanding, are what we need for good thinking across situations combined with moral virtues which are at the heart of a well-lived life. (Edward Brooks, University of Oxford) 

Full disclosure 

Where does the burden of learning rest? Mainly with the participants. Here's why:

1. You are ultimately responsible for your own development. Even if you attend corporate-sponsored programs with instructors, and relevant courses, in off-site settings, the application and practice are up to you. The pursuit of knowledge is a personal decision.

2. There's a need to acquire clarity on who you are. "The number one issue in leadership today is a failure of nerve to define oneself more clearly," wrote Edwin Friedman. He says, "Self-differentiation is the ability to be in charge of self, even when others are actually trying to make a person different from how the person really is." 

Styles don't exist on their own. They emanate from who we are or are emulations. Family backgrounds have some say about who a leader is, how they relate to colleagues, and how they conduct themselves on the job.

Remember, to be true to yourself, you must know who you are. 

3. Leading means taking personal responsibility for your actions. "Freedom and responsibility--two faces of a single coin--are philosophical and theological, even political concepts but not really scientific ones. And before you can use them, they must be clear to you," offers Dr. Peter Koestenbaum. 

4. Are you willing to follow? "He who has never learned to obey cannot be a good commander," said Aristotle. 

5.  Seventy percent of leadership development requires the right kind of experience. We sometimes need guidance to learn what good experiences are. Our life has the potential to become a deep well of past performance, good and bad. What do we take away from those experiences? That's what counts.

What makes up the 30 percent?  

Teachers. Networking. Peer learning. Reading. Continuing education. Colleagues and trusted friends. 

Employees don't work for an organization; they work for a supervisor. Having someone to properly observe us, help interpret our experiences, and offer wisdom about life is invaluable. A supervisor with the right temperament can be one of the best things that happen early in one's career. Retention begins here.

And good mental health results from these kinds of personal, not remote, interactions with colleagues.  

Regardless, raising the level of maturity in associates, which is what mentoring is about, is a gift that keeps on giving.  

Next-generation 

An extensive study of millennials (1980-1996) by Gallup gives us a closer look at a cohort that will be 40 percent of the U.S. workforce by 2025. (U.S. Department of Labor)

What are those findings? Here are four:

--Millennials don't just want a paycheck; they want a purpose.

--Millennials are not pursuing job satisfaction; they are pursuing development.

--Millennials don't want bosses; they want coaches.

--Millennials don't want annual reviews; they want ongoing conversations.

Millennials differ significantly from their older counterparts, especially when it comes to using mobile technology. Yet, Gallup finds that millennials have plenty in common with Gen-Xers, baby boomers, and traditionalists. 

Demographic labels aside, there remain shared generational values plus the enduring nature of human need, including the honor and dignity that come with self-respect.

Strategist.com

© Bredholt & Co. 

 

The Power of Belief

"Some things have to be believed to be seen."

--Madeleine L'Engle

An overlooked competitive advantage is a deeply held, empowering belief--in oneself, the enterprise, and its purpose. Shared belief makes execution possible. 

When embraced by a critical mass of employees (members, volunteers), beliefs or principles have a far more significant impact on your success than a plan. Why? A document seldom matches reality and needs to be updated before it's implemented.  

The right ideas or beliefs inspire; they are motivational and a form of differentiation. Beliefs create a vision and clarify purpose. They are characterized by their simplicity. One can begin to understand them when one hears them. And they can be explained to others. 

Plans are the opposite--verbose and filled with complexity. 

"If your business beliefs are solid, you will quickly find a way to create new solutions when the old systems break down," says Bedros Keullian in Entrepreneur Magazine. "Innovation and pandemic economies will make your operations look completely different. None of us can afford to get stuck on how we do business today. Hacks and quick fixes will become outdated almost as soon as they appear," notes Keullian.  

Loyalty is a two-way street.

A while ago, employers practiced handing out pink slips to employees, often due to restructuring a business undone by management mistakes. Unfortunately, the reverse is underway, where employees hand out pink slips to employers.  

The number of U.S. workers who quit their jobs reached a new high in November 2021, when 4.5 million people resigned. That's up from 4.2 million in October of the same year.  

According to the Society for H.R. Management (SHRM), workers are taking advantage of strong demand to look for jobs with better pay or working conditions. As a result, flexibility, not remote work, is becoming a driving force for departing associates.

The other side of the strategy

What else should job seekers be looking for in their next employer?

A business with a strong sense of purpose at its core.

The more admired small and medium-sized workplaces among millennials (NerdWallet, Better.com, Evergreen Loans) or larger companies (Cisco, Salesforce, Red Hat) long ago moved away from outdated strategy structure systems created at the turn of the last century. That design made people irreplaceable parts, especially in manufacturing.

In 1994, Christopher Bartlett and Sumantra Ghoshal published an article in Harvard Business Review and described purpose-based cultures this way:

1. First, they emphasize following a clear strategic plan rather than building a rich, engaging corporate purpose. 
2. Next, they focus less on formal structural design and more on effective management processes. 
3. Finally, they are less concerned with controlling employees' behavior than developing their capabilities and broadening their perspectives. 

Bartlett and Ghoshal show that adaptive organizations "have moved beyond the old doctrine of strategy, structure, and systems to a softer, more organic model built on the development of purpose, process, and people."

The research reveals that employees want to work for something other than a company. Instead, they want to belong to an organization. 

The redemption of Delta Air Lines*  

In 2020, U.S. airline travel plummeted by 90%. 

When Covid made its disruptive appearance, Delta Air Lines lost 95% of its revenues in 30 days. The steep fall was more than financial. Leading up to that moment, Delta was the best-performing airline in the world. 

"While we were seen as the leaders in the industry, as the champions in our own way, Covid leveled all of that. It took all of our advantages away, and we had to start over again," said Ed Bastian, Delta's CEO, in an interview with Chief Executive Magazine.

"We're emerging on top with an even stronger brand, a stronger company, a stronger passion and purpose for where we're going. That comes from the fact we've had to learn. We had to listen to each other, we had to rely on each other, we had to follow our instincts, and we had to keep very focused," Bastian added.  

Consider the backdrop for this current turnaround--9/11; a 2006 takeover attempt by U.S. Airways; Delta files for bankruptcy in 2007; and a 2008 merger with Northwest. 

(C) Delta Air Lines, Inc.

Within that historical context, Delta's leader let it be known there are more questions than answers in a global pandemic.  

The CEO offered this candid appraisal of the circumstances facing Delta--

"Leaders are looked to for direction and guidance, and there's a vulnerability and authenticity to letting people know that I'm just not sure where this is going, but having the confidence to know we're going to figure it out."

Consequential decisions 

"I set out the principles, right in the second week of March 2020, that we would focus on protecting each other. We didn't know how the business would return, but we would do our best to protect our people, customers, and their safety. We were going to protect our cash but also protect our future. And those were the guiding principles throughout the pandemic," Bastian emphasized in that interview.

The reward?

Delta Air Lines came out on top in The Wall Street Journal's 14th annual ranking of nine significant airlines by operational performance in 2021. Delta took the top spot in five categories, with a cancelation rate of just 0.6% in scheduled departures.

"If employees are to put out extraordinary efforts to realize company targets, they must be able to identify with them. It's fine to stress what to aim for, but people also need to know what the company stands for," Bartlett and Ghoshal conclude.

Delta's redemptive story makes the point.

Headwinds remain

Any comeback for the travel industry faces turbulence. In addition to Delta, other carriers such as American Airlines, United, and Southwest are looking at a potential loss of highly profitable business travelers, though what percentage is an educated guess. 

Face-to-face still makes a difference. As someone observed, "The beauty of communication is found in the nuance that's only felt with in-person conversations." How true that is.    

As a friend and global traveler, Bobbi Smisko likes to say, "To know you got to go."  

Covid variants, unruly passengers, and 36% higher jet fuel costs than a year ago, according to Aviation Weekly, require confidence to "figure it out." 

Look in the mirror first.

"The level of success you see in your life directly results from your belief system. But, of course, I mean your belief in your ability to succeed," advises Lyn Christian.  

Christian goes on to say, "Believing in yourself means having faith in your own capabilities. It means believing that you CAN do something--that it is within your ability. When you believe in yourself, you can overcome self-doubt and be confident to take action and get things done."

After two harrowing years, Delta Air Lines team members can testify to the power of belief--in leadership, themselves, and above all, a reason-to-be.  

*I am a long-standing Delta SkyMiles member. 

Strategist.com

© Bredholt & Co. 

Making the Most of 2022

"Don't miss out on something that could be great just because it could also be difficult."

--Unknown

How well are you positioned to take advantage of the next 365 days?

To sort through that question, here's an outline for thinking about 2022. 

Assumptions

In calculating risk, we prefer to identify "assumptions" since they have to be updated less often than predictions.  

Here are three to consider:

1. Even with vaccines and newer medicines, COVID-19 remains a variant of interest (VOI) or a variant of concern (VOC) like Delta and Omicron for another year. Suppose the coronavirus moves from a pandemic (spread is exponential) to an endemic or flu-like status (consistently present in certain areas). How will that transition affect government policy, business practices, consumer behavior, and civil liberties?    

2. It costs more to live and operate a business. Energy costs continue climbing though gasoline has declined for now. Food and major purchases such as housing and new and used vehicles are experiencing significant price increases. Returning to offices raises the cost of operating buildings (cleaning and air filtration systems). The poor and middle class are most directly impacted by price inflation. Flush with cash, higher-income households are keeping segments of the economy robust.

3. The hunt for talent heats up. Professional workers are gaining the upper hand regarding salaries and benefits. However, work-from-home (WFH) is still up for grabs. Changes in compensation are squeezing small businesses and nonprofits, with larger companies finding ways to adjust. Hiring the right people was challenging before the pandemic and has only gotten worse with baby boomer retirements in the past two years. In the U.S., more than 24 million people have left their jobs since April 2021. Most are still in the labor market but looking for greener pastures and less career stress. 

No matter the unemployment trends, good people (character, work ethic) are hard to find.  

Five propositions

• It pays to think ahead. Incrementalism influences strategy as the private sector responds to changing consumer demands and government mandates. For the longer term, the discipline of thinking two steps ahead should find its way into thought processes and decision-making. Constantly reacting exacts an emotional toll. Those who are most likely to do well in 2022 have an idea of where they want to be in 2023, 2024, and 2025--even if they can't know the details ahead of time. Likewise, those fighting for survival need to keep the future in mind. Struggling to stay alive is often motivated by a strong sense of livelihood and imagining what could be.  
• Reduce the noise. Questionable values are vying for the hardest for our attention. Too much of what's allowed in our minds is morally suspect. Media and technology capture and sell personal data offering little in return. Most of what we hear are loud and unpleasant noises. And the clamor is a nemesis to clarity. "Noise is the unwanted variability of judgments," writes Nobel prize-winning authors Daniel Kahneman and Olivier Sibony. Screens of all sizes are like thieves stealing our most valuable possession--time and the potential to improve what we do. How to fit moments of silence and reflection somewhere in busy lives. Why? To increase self-awareness, have greater discernment about people, and carefully consider the opportunities before us.
• Don't borrow trouble. That short phrase recalled by Grammarist is an idiom that means don't worry about something before it's time to worry about it. Worrying doesn't solve anything, and we often worry about things that never happen. The editors say that this kind of worrying wastes time and energy and distracts from something that should command our attention today. So, whenever possible, don't make an issue critical before it's time.
• Justified concerns need attention. Another incentive for not appropriating trouble is that it frees up time for scrutinizing and solving more severe problems. Identifying and making these concerns a priority could save your business. Not responding promptly to real trouble endangers lives. As someone once observed, "Disasters are most often an accumulation of events." The fatal Space Shuttle Challenger accident in 1986 comes to mind.  
• Courage triumphs over fear. Wisdom and courage make it possible to do something demanding--like running a business, college, medical practice, house of worship, or charity--in the middle of a pandemic. An important lesson about fear and courage comes from "The Wizard of Oz"--Don't be a victim of disorganized thinking, which is a principal source of anxiety. "You have plenty of courage, I am sure," answered Oz. "All you need is confidence in yourself. There is no living thing that is not afraid when it faces danger. True courage is facing danger when you are afraid, and that kind of courage you have in plenty."  

So make sure to take advantage of the good 2022, has in store-difficult though the times may be.

Strategist.com  

© Bredholt & Co.

Can You Be Trusted?

 "No virtue is more universally accepted as a test of good character than trustworthiness."

--Harry Emerson Fosdick

2021 is a milestone, having now spent 50 years in business. Nine years working for closely-held companies; 41 years in private consulting with corporations and nonprofits. There was a concurrent 21-year collaboration with The Gallup Organization as well.

Summer employment during college expands the mix to include practical experience gained at General Motors in Flint, Michigan. Thanks to Howard Johnson and Richard Wirsing, my principal assignment at GM in the 1960s was that of an office clerk.  

I served plant superintendents when full-time clerks went on vacation. Typing letters. Screening phone calls. Scheduling meetings with union representatives. Make sure company-provided white dress shirts get sent to the laundry each week. And most importantly, keeping a superintendent's confidence.

Our time at GM was priceless.

Backdrop

According to the website thebalance.com, there were six U.S. recessions since the early 1970s:  1973-75; 1980-82; 1990-91; 2001; 2008-09 (Great Recession); and 2020 (the worst since the Great Depression).

Covid-19 and a global pandemic (March 2020 to the present) caused the U.S. economy to contract a record 31.4% in the second quarter of 2020, with a loss of nearly 21 million jobs in April last year. A strong recovery is underway, but it's uneven among businesses, households, and communities.

It's always a shock to the system (ego) when, in a crisis, variables we think we control and manage are found to control and manage us. Think about how much we don't know. 

Last year's initial exposure to a global pandemic, subsequent lockdowns, with cries for help (from businesses and nonprofits) should have humbled everyone. But humility is rare and fleeting.     

Observations

A lot has happened in five decades. Thus our observations and formal studies of leaders and leadership (they're not the same things) allow us to draw some conclusions.  

What have we learned?

... Like vehicles from the auto industry, influential leaders (executives, managers, supervisors) come in all makes and models. Likewise, consistent performers offer an assortment of styles complemented by healthy dispositions. 

Dynamic personalities make good cover stories, but introverts make great leaders. "They are calm, good listeners, don't like to micromanage, and tend to resist self-defeating impulses," according to a Great Place to Work analysis.

... Not far from any successful leader is an executive or administrative assistant who helped that person function well under tight deadlines. Assistants make an executive's promptness and preparedness possible by serving with diverse skills. The ones we met knew how to hold trust.  

... Employees gravitate not to politicians but to leaders who know who they are and what they believe. Who let everyone know what they will and will not do. Those values and clarity give voice to moral authority and create boundaries for acceptable behavior. 

... A chief executive role is demanding. From 2003 to 2013, about a quarter of CEO departures from Fortune 500 companies was involuntary, according to the Conference Board.   

... What contributes to any leaders' problems? Poor hiring decisions; postponing decisions; avoiding conflict; lack of truthfulness; and the economy. 

Mercurial temperaments are not necessarily controlling but tend to make people unreliable.

... Someone to observe is Satya Nadella, Microsoft's CEO since 2014. His company priorities of creating clarity, energy, and success, regardless of the circumstances, are secondary to family commitments. Known for empathy and a relational style, the India-born Nadella is leading Microsoft to a new level of success. Approximately 90% of Microsoft's value has been generated under Satya Nadella's leadership. 

Satya Nadella, Microsoft Chairman and CEO
(C) Microsoft

... "Where are all the women CEOs," was a February 2020 headline in The Wall Street Journal. The article asked why, when women earn most college degrees and make up roughly half the workforce, few occupy the chief executive job. Women today lead 167 of the U.S.'s top 3,000 companies. That's more than double the share a decade ago but still under 6%.  

What explains this imbalance?

... Wanting to improve their performance, leaders sometimes chased fads, imitating celebrity CEOs like Steve Jobs of Apple and Jack Welch of G.E.  More recently, Elon Musk of Tesla and SpaceX fame.

However, any time a leader moves from their natural state, they risk losing their genuine identity. Comparing oneself to others produces what results? It's a practice that makes it harder to discover our inner self--the only one that can be improved.  

"Be like me" was an enticing message for those climbing the corporate ladder. Unfortunately, most pied pipers offered formulas that proved difficult to replicate as organizational culture and competencies are seldom transferable. Buying ideas and clothing have this in common--both should have a proper fit.

... Publishers took advantage of the next big thing by selling millions of books now available on eBay or sitting on shelves in the basements of public libraries. The exceptions may be "Good to Great," by Jim Collins (four million copies), and "The Five Dysfunctions of a Team," by Patrick Lencioni (three million copies).  

(C) Canberra Weekly

... Several management concepts spread quickly over the past 50 years, including "teams."  A few theories have proven themselves, such as execution, a learning organization, and having the correct corporate values. Conversely, 360-degree feedback, business process reengineering, and management by objectives are long past their prime.  

Nevertheless, organizations face a troubling inversion--the more the concept of leadership is promoted, the less there is of it. A CareerBuilder survey of 3,625 workers in the government and private sectors found that only 34% of respondents have the goal of moving into a management position. 

Conclusions

What does a half-century career bring to mind about leadership? The absence of wisdom.

Having experience in finance, marketing, or operations is a given. But, in addition, people skills and an ability to communicate are musts. Add to that an understanding of deploying technology to compete in a digital economy. 

However, our interest in this post is examining the attributes that support or the deficiencies which detract from those leadership skills. 

Here are five:  

• The importance of character and trust. No matter an enterprise's nature, size, or structure, nothing substitutes for having trusted leaders, those with strong moral character. It's difficult for anyone who betrays trust to remain in a position of authority and responsibility. The goal is consistency, not perfection, as human beings make mistakes. 
• Being self-aware, with an awareness of your surroundings. How many leaders have you worked for who are not mindful of their character? Some have self-awareness but are oblivious to the conditions around them. Holistic leadership requires internal and external awareness, especially when the environment changes, and everyone knows it but you. 
• Leadership development is self-development. Programs improve the quality of leaders when everyone knows they are responsible for their own development. Getting the right experiences, and learning from them, is like attending an Ivy League school. 
• Most leaders don't want feedback. It's rare for an individual to seek your opinion and like it. When an idea is on the table, it's close to being approved. It may be worth asking those who have to execute change what they think. 
• Leadership at the top is overrated. While leadership across the organization is underrated. Associates don't work for a company; they work for supervisors. Those on the front lines with excellent communication skills help create a positive attitude with customers and employees. Employees who have a good relationship with a supervisor or manager enjoy their job more and stay at the company longer. What's that worth in a season where a record-high number of people are quitting their jobs? 

Validation 

May it be said that one of the distinguishing qualities of your life and work is that you are trustworthy in all things.  

Strategist.com

© Bredholt &  Co. 

Quiet Generosity

"You have not lived today until you have done something for someone who can never repay you."

— John Bunyan

In 2020, a year marked by a global pandemic that caused the world to stand still, financial giving to charitable organizations in the U.S. reached a record $471.44 billion. Those contributions came from individuals, bequests, foundations, and corporations.

This information, reported by Giving USA, shows that total contributions for various causes grew 5.1%, measured in current dollars.

Laura MacDonald, chair of the Giving USA Foundation, says, "2020 represents the highest year of charitable giving on record."  This generous response is attributed to a robust year-end stock market, the COVID-19 pandemic, and concerns about racial justice.  

The donors

Here's a look at giving by source--

Giving by individuals totaled an estimated $324.10 billion, a 2.2% increase in 2020.

+Giving by foundations increased 17.0% to an estimated $88.55 billion, reaching its highest-ever dollar amount.

Giving by bequest was estimated at $41.91 billion and grew by 10.3% from 2019. This category fluctuates from year to year. 

-Giving by corporations is estimated to have declined by 6.1% in 2020 to $16.88 billion.

The recipients

Who were the top beneficiaries?

+Giving to religion grew slightly by 1.0% between 2019 and 2020, with an estimated $131.08 billion in contributions. However, adjusted for inflation, giving to religion was flat in 2020.

(C) WDHN.COM

+Giving to education is estimated to have increased by 9.0% to $71.34 billion. Educational giving includes contributions to K-12 education, higher education, and libraries. This category benefited from a robust year-end stock market.

(C) College of Charleston

+Giving to human services increased by an estimated 9.7% in 2020, totaling $65.14 billion.

(C) ISTOCK

+Giving to foundations is estimated to have increased by 2.0% to $58.17 billion.

(C) Foundation Group

An uneven picture

There are other aspects to this nearly half-trillion-dollar story.

Ms. MacDonald, the Foundation chair, notes that while the totals are record-setting, individual households and specific charities may experience different outcomes, with many facing hardships.

"In some ways, 2020 is a story of uneven impact and recovery. However, many wealthier households were more insulated from the effects of Covid-19 and the ensuing economic shock, and they have had a greater capacity to give charitably than households and communities that were disproportionately affected and struggled financially," said Amir Pasic, Ph.D., Dean of the Lilly Family School of Philanthropy.

Motivations for giving

The Lilly research briefly highlights why people gave. Donors responded to urgent needs in a pandemic-ravaged 2020. Individuals increased their support for charitable organizations through mutual aid efforts and person-to-person giving. 

"Nonprofit leaders and fundraising professionals helped themselves by showing innovation in fundraising methods and donor outreach in raising financial support under difficult circumstances," Lilly notes. 

For most, pre-existing relationships provided a support base, while forming new connections was more challenging.  

A spirit of generosity

The 2020 Giving USA report focuses on financial giving. However, other ways people can give don't require wealth, such as donating to local food banks and volunteering time to feed the homeless.  

The University of Notre Dame's Science of Generosity initiative offers an insightful examination of the concept itself. In its roots, generosity meant "of noble birth." However, over time, that meaning began to change. Generosity evolved from a family heritage to a nobility of spirit that is found in people everywhere. It no longer depended on family history but on whether a person possessed a spirit of generosity.   

"Generosity, properly understood, could call any given person to a higher standard," the Science study concludes.

An up-to-date definition of "generosity" refers to giving good things to others freely and abundantly.

The Notre Dame research offers plenty to think about--

• Generosity is a learned character trait that involves attitude and action.
• Generosity is not a random idea or haphazard behavior, but a mature form —a basic, personal, moral orientation to life.
• Generosity also involves giving to others, not simply anything in abundance, but giving things that are good for others.
• What generosity gives may vary- money, possessions, time, attention, encouragement, emotional availability, and more.
• Thus, generosity, like all virtues, is in people's genuine enlightened self-interest to learn and practice.

Gratitude makes a difference

There may be times when, for good reasons, lead gifts in a financial campaign come with naming privileges. Or major donors give publicly, encouraging others to do the same. Notable in a culture of self-gratification is that the vast majority of the $421 billion in charitable donations in 2020 were made unobtrusively. Those donors are grateful for what they have and are willing to share with others.

And who gives might be surprising.

Sociologists Christian Smith, Michael Emerson, and Patricia Zell Herzog examined giving in detail, broadening our understanding of the social character of those who give generously. They found a reservoir of value in giving time, emotions, and energy through volunteer work.  

"Volunteering is, in fact, a consistent bright spot among researchers," they wrote. "People who do it tend to do it often and support thousands of institutions, nonprofits, and other groups that would not exist without this free work." 

In a 2000-person Internet survey conducted in 2010, the authors found that approximately 60% of the people surveyed living below the poverty line gave something, compared to 32% of those above the poverty line.

Developing cheerful givers

Looking for teachable moments? Here are four from "American Generosity:  Who Gives and Why:"

1. Seasonal giving helps build a habit in busy lives. 

2. The amount of time, energy, and money people give goes up if it's routine.

3. A huge predictor of giving is exposure to generosity as a child.  

4. Most people who participate in giving as kids, especially as volunteers, continue that habit as adults.  

What else do we need to know? 

The writer, D. L. Hope, suggests that giving is best carried out by not mingling motives.

"If you want to call attention to your good deed, then it isn't a good deed; it's a self-serving one."

(C) 123RF

From Notre Dame's study on the science of generosity to 2020's record results, there's much to be said about the practice of cheerfully giving good things to others freely, abundantly--and quietly. 

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