The Modern Leadership Issue - 37

PERFORMANCE MATTERS / PG 37
Understanding the
performance factors at play
By knowing which part of the system you're addressing, you can
better identify gaps arising from tension or unintended consequence
elsewhere. At TiER1, we call these parts of the system performance
factors. Conscious leaders take a curious look at where they can
maximize value across the system. Here are interconnected factors
and contexts that impact performance:
Individuals: What are the skills, mindsets, knowledge, and
well-being factors at play? How might we think of our own
individual leadership practice and leading self?
Roles: How does the design of roles, the technology and tools
of the role, and the work environment in which the role is
performed impact individuals?
Relationships: Across teams, interactions with clients, or shared
ways of working for units or departments, how do the dynamics
between people impact an individual's ability to be their best
selves? How are we supporting healthy and thriving relationships
that demonstrate a concern for our impact on people?
The organization: What are the systems, policies, processes, and
practices at play that impact people? How might they support or
hinder individuals and teams?
The world: What global factors within your industry, the economy,
and the broader world are impacting your organization? Which
global factors might your organization positively impact?
With greater clarity of our various leadership contexts, we
can better understand who is impacted by our decisions.
(For further assessment, go to page 28.)
Over the years, we've seen a positive shift in the role of
business at many organizations-from a narrow focus that
delivers profit to shareholders, to a holistic focus that's
oriented to serving a broad set of stakeholders. When we
can identify changes and systems that positively impact
multiple stakeholders while still serving our organizational
mission, we significantly amplify our potential for impact.
Identifying and serving
broad stakeholders
Sustainability within the workforce and our communities requires
a long-term view on leadership as well as clarity on how decisions
impact various stakeholders. Conscious leaders embrace a
mindset of abundance to find multi-way wins and to unlock
opportunities that others might not have seen before-like an
employee-owned business model or investing in mental wellness
for multiple stakeholders (such as employees, suppliers, and the
community at large).
Here are some common stakeholders that many organizations
serve (you might have others):
Employees: We believe organizations exist to serve people,
not the other way around. When we focus on employee well-being,
we free up their energy to better serve clients, customers, and
potentially the broader community.
Clients, customers, patients: Without the people we serve,
we wouldn't have a viable organization. Do our decisions
make their lives easier or harder?
Local and global community: You may have heard the phrase
" triple bottom line " -looking at the impact of an organization
on people, profit, and planet, which includes both the local
and global community.
Suppliers and vendors: How are we supporting and influencing
our suppliers and vendors to understand the alignment of their
business practices and values with ours as an organization?
Shareholders and investors: How are we providing value to shareholders
and investors while also maximizing the organization's long-term
value? For instance, investing in upskilling employees for critical roles
to evolve the business might not immediately maximize shareholder
value, but it can create positive long-term impacts.
Every business needs
a clear strategy to
achieve meaningful
business goals and
performance. Yet
leaders can expand
the potential
for growth and
impact by being
conscious about
how each part of
the organization
is connected and
interacts with the
broader world.
Think of your
next leadership
decision as a drop
of rain. What are
the ripple effects?
What growth
might you be
nourishing for
years to come?
about the author
Sarah Ehrnschwender is a Principal at TiER1 Performance. She serves
on the Conscious Capitalism Cincinnati board, has led the B Corporation
certification process for TiER1, and is passionate about social impact
and workforce talent pipeline initiatives. Sarah earned her MBA and
MS at University of Cincinnati and is pursuing her PhD in Leadership
and Change at Antioch University.
https://tier1performance.com/author/s-ehrnschwender/
The Modern Leadership Issue

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