21st Century Leadership:

Prof.Chris Abraham
Source: h*p://www.globaltrends.com/knowledge--center/features/expanding--areas--of--compe==on/60--test--feature--g
CONSCIOUS CAPITALISM
&
CONSCIOUS LEADERSHIP
THE 21ST CENTURY LEADERSHIP MODEL FOR
ACTUALIZING BUSINESS & HUMAN POTENTIAL
WHAT CAPITALISM
HAS ENABLED IN A
VERY SHORT TIME
A Tale of Two Short Centuries
GDP per Capita, 2000 $

2010: $7,278

$6,055

$2,113

$1,262

$873
Industrial Revolution Begins

$596
$467 $667
$566 $615
$453

Year 0 500 1000 1500 2000

Source: www.VisualizingEconomics.com; Angus Maddison, University of Groningen; www.prb.org;www.worldbank.org
The Economic Success of Capitalism
is Unprecedented in World History
Real per capita income has increased:
16x in developed countries
35x in Japan
3x in Africa
100x in the U.S. (adjusting for quality
and affordability)
Capitalism is Ending Poverty on Earth
The percentage of
World Population Living on Less Than
people living on
$1/Day (in 03$ )
less than $1 per 100%
day has dropped
from 85% in 1820
to about 17% 50%
today.
If current trends
continue, poverty 0%
will be virtually
eliminated in the 1800 1950 1980 2003
next 50 years.

Source: World Bank (constant 2003 dollars)

 noble can value poverty h
Business isethical because itit creates elevate voluntary exist
Yet, Mistrust of Business is Pervasive
Americans confidence in big
business has declined steadily,
from about 34% in 1975 to a
historic low of 16% in 2009,
rebounding to 19% in 2011.
2011: 88% of Americans
believe that big companies
have too much influence on
government, up from 83
percent in 2004.
Only 2 percent of investors
believe that CEOs are very
trustworthy; 72 percent
believe that wrongdoing is
commonplace at companies.
2011: 79% believe
business is too
concerned about
making a profit and not enough
about responsibilities to
workers, consumers, and the
environment.
The whole growth
model we created over
the last 50 years is
simply unsustainable
economically and
ecologically Both
Mother Nature and
Father Greed have hit
the wall at once.

March 7, 2009
After just one century of modern living
75% of forests are gone
30% of arable land is gone
Large mammals are down 90%
Large fish are down 95%
Half of all species alive today are
likely to disappear in 50 years
Toxic burden on humans is rising
Oil supply is decreasing just as
demand is rapidly rising
After 1980, we started using more than
Nature can renew; now 1.3 times
If everyone lived as Americans, would
need FIVE earths
as Europeans, THREE earths
 Confidence in Big Business
% of Americans with a "Great Deal" or "Quite a Lot" of Confidence in Big Business
40%

35%

30%

25%

20%

15%

10%
Such cynicism and distrust have
5%
huge societal costs
0%
WHY has this happened?

THE WORLD has changed

PEOPLE have evolved

BUSINESSES have not kept up

We are changing
 1989
THE WORLD CHANGES
In 1989, for the first time in U.S. history, the
majority of adults were over 40
 Who is this
man?
What did
he do to
change the
Tim Berners-Lee world?
He invented the World Wide Web in 1989
 A finer sense of right and wrong
Understand all the consequences of our actions
Commitment to the truth
Fully mindful and awake
Reject violence
Live in harmony with nature

Peter Senge
 The dogmas
of the quiet
past are
inadequate to
the stormy
present.
What will it take for companies to
flourish in the future?

To flourish in the future, companies

will have be aligned with the new
realities of our lives and embody a
more conscious way of being
A conscious business fosters peace and
happiness in the individual, respect and
solidarity in the community, and mission
accomplishment in the organization.
Fred Kofman, Conscious Business
A HIGHER PURPOSE

DECLARATION OF INTERDEPENDENCE
19:1

93%

ANIMAL COMPASSION STANDARDS

MEETINGS END WITH APPRECIATIONS

MINISCULE MARKETING SPENDING

MEMORIAL DAY FLOOD

FUTURE SEARCH

1800%
The Tenets of Conscious Capitalism

STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT
Can you build a business on love?
 Can you build a
business on love?
 Heart
attacks are
highest on
Monday
morning.
An Epidemic of Apathy

The Shame of Management

TODAY!
COMPASSION
LOVE
CARING
SOULFUL
JOY
AUTHENTICITY
 10.5-to-1
performance

FoE
(1646%)

S&P 500
(157%)

Stock Returns over a

15 Year Period (96-11)
 FoE Compared to Good to Great

15Year 10Year 5Year 3Year

Cumulative Annualized Cumulative Annualized Cumulative Annualized Cumulative Annua

FoE Return 1646.1% 21% 254.4% 13.5% 56.4% 9.4% 77.4% 21.1

GTG Return 177.5% 7% 14.0% 1.3% -35.6% -8.4% -23.2% -8.4

S&P 500Return 157% 6.5% 30.7% 2.7% 15.6% 2.9% 10.3% 3.3%
What is a Great Business?
Enriches the world
Brings joy, fulfillment, and a sense of
meaning to all its stakeholders
Maximizes total value created
Enhances the overall health and well
being of society
Businesses Create, and Destroy,
Many Kinds of Wealth

financial intellectual social emotional

spiritual cultural physical natural

The Tenets of Conscious Capitalism

STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP

HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT
Meaning comes Profit
from:
Happiness
ensues from
ensues from
working toward a
living a life of
higher purpose,
meaning and
building businesses
purpose
on love, and
Doing work that growing from
matters adversity
Finding meaning
Selfless love
in suffering
 Uncompensated effort is
Compensated engagement going up volunteer work
The Purpose Institute

is going down is nourishing people in a

way that paid isnt
 Great Purposes are HEALING

Healing: To restore to H Heroic

health or soundness; to E Evolutionary
cure; to restore to
spiritual wholeness; to A Aligning
become whole and
sound.
L Loving

In a world with too much I Inspiring

suffering and ill-health, N Natural

healing is divine work.
G Generous
 The Power of Purpose

The difference you're trying to make in the

world
Drives everything you do
Matters to all stakeholders
Is your reason for being that goes beyond
making money
YET typically results in making more
money than you thought possible
Southwest Airlines
Give people the freedom to fly
 Google
Organize the worlds information and
make it easily accessible and useful
REI
Reconnect people with nature
The Tenets of Conscious Capitalism

STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT
Whole Foods Market Stakeholder
Interdependence Model

56
 S P I C E E
SOCIETY PARTNERS INVESTORS CUSTOMERS EMPLOYEES ENVIRONMENT
Business, Society and the Planet

The PLANET

The PLANET SOCIETY

BUSINESS
BUSINESS SOCIETY

Traditional View Conscious View

 Conscious Capitalism CSR
Shareholder-centric
Independent of purpose
Often grafted on to
traditional business model
Easy to meet as a charitable
gesture
Performance implications
unclear
Independent of type of
leadership
Stakeholder-oriented
Incorporates higher purpose
Societal orientation is at the
core of business model
Requires genuine
transformation
Significantly outperforms
traditional business model
Requires conscious
leadership
The Tenets of Conscious Capitalism

STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT
We must be
the change we
want to see in
the world.
Conscious Businesses Need
Conscious Leaders

Authentic
Purpose-driven
Caring
Systems thinkers and systems feelers

Emotionally intelligent Spiritually evolved

Strong character and integrity Trustee oriented

The Tenets of Conscious Capitalism

STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT
 Culture
eats
strategy for
lunch!
breakfast!
Lunch &
Dinner !!
 T Trust

A Accountability

Cultures of C Caring

Conscious T Transparency
Businesses I Integrity

L Loyalty

E Egalitarian
 Humans are
born to care.
Our institutions
magnify or
depress the
human capacity
to care.
Jane Dutton
University of Michigan
 Conscious
Management
Beyond Theory Y

Self-Organizing
Self-Motivating
Self-Managing
Decentralization
Empowerment
Teamwork
Collaboration
Conscious Capitalism works Higher sales intensity & growth

Lower gross margins, higher net margins

Lower marketing, product return costs

Lower legal and administrative costs

Greater employee retention & engagement

Creative, Caring Human Energy!

The biggest difference between

ordinary and conscious businesses?
 We are all in the
same boat.

71
I would not give a fig for the simplicity
on this side of complexity but I would
give my life for the simplicity on the
other side of complexity.
Oliver Wendell Holmes, Jr.
US Supreme Court Justice
 Humanity Natural Our inner
is one resources are resources
spirit finite are infinite
Ron Pompei
 The Opportunity
Those of us alive today have the
opportunity to lead the most
meaningful lives ever lived
Our challenges are great, but so
is our consciousness and our
ability to change things

We have all the tools we need;

we just need to unleash human
ingenuity on our challenges in a
holistic, conscious, caring way
Lynne Twist
Conscious Leadership As An
Empowering Leadership
Practice
Agenda for the Day

u Reflective and critically look at an alternative

leadership model/framework

Create A
New Cycle
Of Thinking
& Change
We Think of Leadership As

u A Developmental Process...
u Authoritarian
u Management
u Visionary
u Strategic
u Systemic
u A Practice...
 Leadership Styles: The
Condition of Our Thinking
 Types of Leadership Models

u Traditional (Fragmented)
u Authoritarian leadership (chain of
command)
u Charismatic leadership
u Trait leadership
u Transformative (Networked)
u Love-Based leadership
u Soul leadership
u Personal leadership
 Ethos of Work Environments

Fragmented/
Networked Orientation
Hierarchical Orientation

u 1. Whole system
u 1. Past perspectives
u 2. Blurred boundaries
u 2. Distinct boundaries
u 3. Non-linear causality
u 3. Linear causality
u 4. Dynamic flux
u 4. Change incrementally
u 5. Increased complexity
u 5. Simple Complexity
u 6. Can be influenced
u 6. Can be controlled

Allen & Cherry, 2000

 Why Are Styles Important?

Because the style of an organizations leadership is

reflected in both the nature of that organization and its
relationship with the others
Motivation To Change

u Learning organizations are emerging

u Creativity and innovation are unfolding as
drivers within organizations
u Unprecedented meeting of worldviews, belief
systems, and ways of engaging reality
u Globalization and changing work
environments now require cooperative &
collaborative interactions
 A Need To be Different

"We cannot solve our problems with the

same kind of consciousness with which
we created them. ~Albert Einstein
 Conscious Awareness

u Is a process of recognizing what is going on

inside and outside of you
u That decisions and actions have effects and
the interaction between a complex array of
factors and forces that are not necessary
controllable
u Awareness is a powerful tool for transcending
unconscious patterns, fostering an expanded
perspective and openness to new possibilities

http://www.triplepundit.com/2011/08/conscious-
leader/
So What Does it Mean to Be Conscious?

u Simply put we are aware

u Work from a place of possibility
u Understand that our thoughts have power
u Develop skills that can match our inner capacities
to the outer complexities of life (balance)
How Do You Know You Are
Conscious?

The best indicator of your level of consciousness

is how you deal with lifes challenges when they
come. Through those challenges, an already
unconscious person tends to become more
deeply unconscious, and a conscious person
more intensely conscious. You can use a
challenge to awaken you, or you can allow it to
pull you into even deeper sleep

~Eckhart Tolle
Hidden Message in the Water

u http://www.youtube.com/watch?v=zpnlCo5APrE
 Neuroscience says

"We are shaped by our thoughts; we become what we

think.
 Consciousness Can Be Measured!

u Tool
u CQ-Consciousness Quotient
u Term coined by Romanian professor of psychology-
Dr. Ovidiu Brazdua
u www.consciousness-quotient.com
 Consciousness Quotient

u Psychometric tool used to measure dimensions of

consciousness
u Measures the amount of access we have
simultaneously to information from a vast field of
possibility
u High CQ = Broader perspective/higher level of
awareness
u Low CQ = Assess less information
u Higher CQ enables greater consciousness and
greater awareness and choice
u No awarenessno choice!
 Six Dimensions

u Physical conscious of your body and physical

elements in your environment
u Emotional Mental conscious of your feelings and
any emotions
u Spiritual conscious of yourself as being part of a
larger whole and your connection within it
u Social/Relationship conscious of human
relationships and the People you connect with
u Self-conscious/Self-awareness consciousness of
self; awareness of your self-awareness-of the
observer who is doing the observing of yourself
 Nine sub-categories

u Internal State Awareness - refers to the ability of being

conscious specifically about the inner changes
u Self-Reflectiveness - refers to the ability of being
conscious in a reflective way about you own person
u Mindfulness - refers to a way of looking at yourself and
your environment in a non-judgmental way
u Autonomy - refers to the degree of autonomy- the
individualization of a person; in other words, the ability
to function autonomous, without requiring external
support
u Personal Growth - refers tot the ability of being
conscious about the evolutionary transformation one
person goes through
 Nine sub-categories

u Positive Relations with Others - is the ability of being

conscious about inter-personal relationships.
u Purpose in Life - refers to existence of a purpose in life.
Purpose is the context of meaning within which one
makes life choices
u Verbal Expression - describes the ability of expressing
the conscious content through verbal communication.
The items are spread one in each main factors
u Openness toward new experiences - refers to the
ability of being conscious about new information;
generally it is the ability of being open to any new
things happening to one
Peter Drucker

Every few hundred years in Western

history there occurs a sharp
transformation. Within a few short
decades, society its worldview, its
basic values, its social and political
structures, its arts, its key institutions
rearranges itself. . . We are currently
living through such a time
Pillars of Conscious Leadership

Purposeful Intentional

Responsible &
Accountable
Grounding and Approach.

Conscious leadership is a conceptual framework that

is grounded in the sociocultural knowledge of
reciprocity, which allows leaders to perceive patterns
in the environment, see the interconnectivity of
multiple problems, and subscribe to a participatory
leadership style, which incorporates the idea of
shared responsibility and problem solving.

_Jones, 2012
Leadership On A Continuum
 Attributes of a Conscious Leader

u You are your greatest asset!

u Embrace Your Authentic Self
u Self-knowledge, Self-mastery and Self-
confidence
u Purposeful and Intentional
u Develop Active Listening Skills
u Believe in Reciprocity
u Capitalize on Community Wealth (Partnership
Mastery/ Communities of Practice)
 How Are Conscious Leaders Different?

u Self-aware and less clouded by their identity. Thus, having the

freedom to be more flexible. Create rather than react and is a critical
thinker
u Have personal power and focus on the leadership of "doing" rather
than "being." A conscious leader considers all the player in the
organization as they lead and act in a ways which supports the
balance of the whole
u Are self-aware enough to know that they can always explore their
limitations further and as leaders, they set the tone for an
organizations of continual self-examination and evolution
u Aware that they have access to broader and multiple sources of
information simultaneously
u Open to dealing with things as they are, which implies a greater
capacity to influence situations and effect change
 So What Does It All Mean?

u Understanding of organizations as networked systems that are

interconnected
u Promote organizational learning, innovation, creativity and shared
leadership
u Compassionate
u Increased wisdom
u Cooperative and collective
u Understand the POWER of choice
u Ability to guide change
u Create opportunities for transformation and change
u Tap into the collective awareness of the group
u Building relationships/partnerships
 Organizations Who Practice
A More Conscious Leadership

u GOOGLE
u SOUTHWEST AIRLINES
u THE CONTAINER STORE
u ZAPPOS
u PATAGONA
u WHOLE FOODS
u THE CONTAINER STORE
 Conscious Leadership Tool Kit

uConscious Leadership Framework

uA Leadership Platform Statement
uA Portfolio of Your Work

uLeadership Action Plan (Leadership

Options, i.e. education, corporate,
non-profit)
uJournal
Final Thoughts.

u Deconstruct
u Reconstruct
u Construct
 Questions?

Women dont want a divided life; they

recognize that career is not enough;
they want to be interconnected with
people. They want to keep growing
throughout their different lives, adjusting
as needed to different circumstances.
They want to live a balanced life

_Jamila Aswad, 2013

Essential Reading for Conscious Capitalists
Some Questions

Can successful profitable organizations

really be built on love?
Is a Conscious agenda realistic in tough,
recessionary times?
How can we embed conscious living and
conscious business principles in young
people early on?
LETS BRING BACK
COMMON SENSE