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A Thanksgiving Reflection
Along with the 4th of July, Thanksgiving is one of the most celebrated and welcomed feasts of the year. I like this day because it’s also among the least commercialized holidays. Of course, Black Friday follows Thanksgiving, but I digress.
History of Thanksgiving
I was studying Thanksgiving, and I found that the tradition can trace its American roots to Plymouth Plantation in Massachusetts. The colonists held a 3-day feast that included local Native Americans in the fall of 1621. They celebrated and gave thanks for their first harvest.
In 1789, during George Washington’s presidency , the federal government sanctioned the first official national Thanksgiving. What I found interesting was how the President described it, so I provided a few excerpts from his proclamation:
“Whereas it is the duty of all Nations to acknowledge the providence of Almighty God, to obey his will, to be grateful for his benefits, and humbly to implore his protection and favor, and Whereas both Houses of Congress have requested me ‘to recommend to the People of the United States a day of public thanks-giving and prayer, acknowledging with grateful hearts the many signal favors of Almighty God’.
“Now therefore I do recommend (this day) to be devoted to the service of that great and glorious Being, who is the beneficent Author of all the good. That we may then all unite in rendering unto him our sincere and humble thanks, for his kind care and protection of the People of this country, for the signal and manifold mercies, for the great degree of tranquility, union, and plenty, which we have since enjoyed humbly offering our prayers and supplications to the great Lord and Ruler of Nations.”
A lot to be Thankful For
Wow, Washington certainly wasn’t shy about invoking God’s name and encouraging Americans to thank and honor Him. And there’s plenty for which we can give thanks. Consider the following:
- Most Americans own homes. Ownership rates grew from 43.6% in 1940 to 64% today. Not including a few outliers (NY, DC) the rates are closer to 70%.
- Current unemployment is 4.1%, lowest in 17 years.
- GDP is growing rapidly hitting 3.0% in the 3rd quarter of 2017.
- The Dow continues expanding, 45 highs since last November and it now exceeds 22,000.
- Some 60% of us are optimistic and hopeful about America’s future.
- 87% of Americans believe in God and most believe faith is very important.
I could go on, but suffice it to say there is much for which we can be thankful. Sure there’s poverty and other problems in the US. There’s also growing inequality here, and it needs our continuing attention. Yet, a Forbes report gave an interesting perspective on poverty in the US. “The poor in the US are richer than around 70% of all the people extant (In existence). It is true that there is more inequality in the US: but this isn’t because the poor are poorer, the rich are richer.”
Prager on Happiness
When talk show host, Dennis Prager, wrote Happiness is a Serious Problem, he said this about gratitude:
“Because gratitude is the key to happiness, anything that undermines gratitude must undermine happiness. And nothing undermines gratitude as much as expectations. There is an inverse relationship between expectations and gratitude: The more expectations you have, the less gratitude you will have.”
Not that we shouldn’t have expectations, but every once in a while it’s also important to give thanks. According to a recent Harris Poll, only 33% of Americans say they’re happy. A little time for reflection and thanks might go a long way in improving that number; and what better time for that than the Thanksgiving holiday!
So to all of you who follow our blog, thanks and happy Thanksgiving!
Defeat Does Not Have to Defeat Us
A disturbing headline recently told us of yet another mass shooting; this time in Texas. I write about it because though disturbing, there’s also something different about this. It’s the same “different” we saw in Charleston South Carolina.
The News
Of course, what I mean is faith, the same difference last week’s blog covered. How should people respond when 9 people are killed in Charleston and 26 in Sutherland Springs, Texas? I don’t have the clear answer for that, but let me show you how some have responded.
The Response
The Washington Post carried an account of what Nadine Carter, daughter of 70-year old Ethel Lance, said to the suspect in a South Carolina courtroom. “I forgive you,” her voice breaking with emotion. “You took something very precious from me. I will never talk to her again. I will never, ever hold her again. But I forgive you. And have mercy on your soul.” There were no riots or rage, just forgiveness.
In Sutherland Springs, Texas where 26 people were killed, there were also no riots or turmoil. Victims ranged from 18 months to 77 years, yet there was not a hint of violence. Instead, CNN reports that residents hugged each other. They held candles, sang hymns and prayed in a candlelight vigil less than 24 hours after the tragedy.
The Secret
How could people from either community maintain such composure? Simply stated it’s faith, and faith would not let them be defeated. One of the Texas congregants put it this way. “Sutherland Springs is the kind of place where everybody knows everybody. This is a small, Christian community where everybody’s united. Everybody’s so close.”
The Hardships and Failures
Faith never guarantees we’ll be spared from hardship. In fact, there’s a significant history of persecution in the church. Jesus predicted a long time ago that in the world we’d have trouble, but He also encouraged us not to fear because he’d overcome the world. Now the overcoming he’s talking about didn’t come through blessing but through the hardship of rejection, scourging and crucifixion.
Michael Jordan on Defeat
I love what Michael Jordan said. During his career he lost 300 games, missed 9000 shots and 26 times he was trusted to make the last shot and he missed. Said Jordan, “I failed over and over and over again and that’s why I succeed.” He didn’t complain about the failures; he used them as an incentive to build grit, skill and determination to not be defeated.
From 2008-2012, after 12 straight years of growth, our fundraising consulting business declined substantially. Yet, as a person of faith I believed in the purpose God had given me and in the purpose of our business. I just knew things would get better. It was my job to continue to work as hard and as smart as I could. I knew that if I did that and prayed, somehow all of it would work for good. And I knew that even if I lost my business, God would still provide for us because He always had.
The Victory
Do these events sadden us? Absolutely! However, if we’re people of faith we also shouldn’t be discouraged. We have a promise; one-day, things will get better. That’s really the basis of our faith, to trust that God will eventually bring perfect justice to the world.
Until then we’re challenged to believe when there’s so much doubt, failure and tragedy around us. Yet, that’s the sustaining effect of faith. As it says in the book of Hebrews, “Faith is the substance of things hoped for; the assurance of things not seen.” So whatever you’re facing, faith can get you through it!
Let There Be Light
The Plot
A few days ago I saw a movie that I strongly recommend. Opening in a limited number of US theaters, it still ranked 11th in earnings, with an 84% approval rating.
“Let There Be Light,” stars Kevin Sorbo (TV’S Hercules) and his wife Sam. Sorbo plays Sol Harkins, a famous atheist and Sam plays his former wife. He’s a classic Richard Dawkins type character, who mocks Christianity and all the faithful who try to challenge him.
Early in the movie Sol gives a dramatic soliloquy in a “debate.” One instantly knows that he’s an antagonistic atheist. While his “sermon” lacks substance, it hits multiple clichés that strike a chord with his audience and provokes an emotional applause.
Of course, Sol is both a popular professor and world famous author of a best-selling book entitled, “Aborting God.” He has all the trappings of wealth and is surrounded by worshippers, who seem ready to hang on his every word. Yet as the movie progresses, it’s obvious that he’s unhappy.
The Pain
In fact, despite his acclaim, Sol is lonely. He drinks heavily to ease the obvious pain he’s experiencing as a result of his son’s death. One night after a reception, Sol had too much to drink and crashes his car. A near death experience challenges Sol about faith, the world, man’s purpose and his dead son. Through the witness and love of his wife and her pastor Vinny, (a former mafia hit man played by Michael Franzese, who’s actually a former mafia member), Sol finds faith and purpose.
While the story is fictional, the problems are quite real. Pain, substance abuse, death, the quest for success, divorce and the search for truth are all part of life. In fact, the death of a child puts enormous stress on a marriage, and this movie clearly conveys that.
The Antidote
The movie also gives us the antidote, which simply is faith. Therein lies the hope of this story and for most of life’s problems. It tells us that faith can cure alcoholism, ease worldly failure and pain, put marriages back together and give us purpose.
Well, what kind of faith? First, it’s not blind faith. I’m reminded of a great book entitled, “God: The Evidence”, by former atheist and professor, Patrick Glynn. He writes that new discoveries in medicine, cosmology and psychology all add up “to a powerful, indeed, all-but-incontestable, case for…the existence of soul, afterlife and God.” And in this day and age of bickering and cynicism, I find this idea refreshing.
Second, I’m talking about faith in God, which leads to faith in both the mission and the people around you. With real faith, no matter how dire the circumstances, you can always find a way out, which leads me to yet another association.
The Association
As fundraising consultants, we work with many non-profit organizations and churches. I find that those driven by faith tend to do better than those that are not. While all problems don’t immediately disappear, the faith of leaders really makes a difference in the organization’s success. Faith helps us understand our individual purpose, but it also helps us better understand and serve the organizational purpose, which leads to organizational harmony.
Regardless of the kind of organization, I can always tell if it lacks faith. There is typically limited focus on the central purpose and more free agency, infighting and organizational chaos. Without faith, people tend to work for a paycheck and not a purpose.
Now, if you want to restore order, stop the infighting, boost fundraising and move the organization forward with hope and optimism about the future, as John Hyatt said in his song, “Have a Little Faith.”
Overcoming Fundraising Fears…Part 3
Over the past two weeks we’ve been covering fundraising fears. In the first blog we discussed the fact that face-to-face visits are the most effective and productive way to fundraise. Yet, many CEOs and/or Development Officers just don’t do it. And even if they do, they lack the bodies to help them get around to visit with all of the people who can make a major gift.
Why is that? Last week we covered at least three reasons or fears:
- They’re afraid they’ll make a mistake
- They’re afraid the prospect will get angry
- They’re afraid they’ll say “no.”
Now today we’ll continue by covering a few more fears.
“I’m afraid I won’t have enough time.”
Often people express to me their love and passion for nonprofit organizations with great platitudes. However, when I ask them if they’d be willing to help raise funds, many of them tell me that they just don’t have the time. To some extent it’s true for all of us. However, that’s really not the point. We need methods to deal with this and there are several.
First, it starts with the recruitment and orientation of Board members. Preferably they’re passionate about the mission. If possible it also helps if they are people of means and influence. Beyond that, they need to be properly oriented and at least part of that orientation should include giving and fundraising expectations.
It never ceases to amaze me how frequently nonprofit organizations either have no board orientation or they don’t include fundraising as part of the job description. In fact, as fundraising consultants we frequently talk with board members who had no idea that fundraising was part of their job description.
Second, beyond inadequate board recruitment and orientation, there is also little to no training provided in nonprofit fundraising. Yet training alone can often reduce fundraising anxiety, which often is the real reason that board members don’t have time.
Third, while fundraising does take time, it actually takes less time than you might realize. Of course, it certainly takes a little time to set the appointment, but we recommend that the actual meeting be completed in 30 minutes or less. Also, we don’t ask volunteers to make too many calls, somewhere between 4-6 and usually over a period of 4-6 months.
“I’m afraid I will annoy my friends”
This is another version of, “I’m afraid they’ll say no.” First, 70% or more of the time the answer is “yes” and not “no.” Second, if they do get annoyed they’re probably not very good friends. Again, you’re not asking for yourself. You’re asking on behalf of the people your nonprofit is helping.
“I don’t know how to fundraise and I can’t get comfortable with the idea”
The answer to this is also training and practice. Actually, people are more uncomfortable with the idea of fundraising than the act itself. True, the idea may make you nervous, but once you try it the anxiety tends to diminish. It’s really the same in anything. When I was a basketball player and a coach, I was always nervous prior to games; but once the game started my nerves usually abated.
Put it into Practice
That’s why when we conduct major gift training with volunteers, we always have them practice telling the story and making a solicitation before they actually go out and make live asks. In addition, we also cover such things as How to set the appointment, How to tell the story, How to make an ask, How to handle objections and more. The point is that the way to make people more comfortable with fundraising is to teach them how to do it.
A Halloween Special on Fundraising Fears…Part 2
Last week we started a series about fears of non-profit volunteers in making face-to-face requests for support. Though it is by far the most productive and least expensive form of fundraising, it is also one of the most neglected methods. We posed several fears and concerns, and today I would like to begin addressing some of them.
People Are Afraid They’ll Make Mistakes
Actually we began to cover this fear in our last blog when I said our experience has been quite the opposite. As fundraising consultants, we usually try to cover this and other fears in our stewardship training sessions, because we know they exist. I’ve found that the best way to begin to address a fear is simply to begin with some logic.
First, mark this down. There are no perfect people and no perfect performances. In any venture individuals are bound to “make mistakes.” Watch your favorite college football team on any Saturday, and you’re likely to see someone or several someones make a mistake… a turnover…an offside…a wrong route. That doesn’t mean they pack up and quit. Instead they resolve to be successful and try to learn from their mistakes and improve their performance.
Successful fundraising happens the same way. If you’re resolved to be successful, then the route to success is to practice and then get busy asking. However, it’s important to understand that you are not likely to yield results if you don’t show up in the first place.
Practice, Practice, Practice
How does one practice? You practice by telling the story first to a mate, a colleague or a close friend. If you do that a few times, you’ll gain an advantage already. Also, you might consider bringing someone with you when you go to make the call. There is strength in numbers, although I don’t advise having more than two people when you visit with a donor. Any more than that can be a bit overwhelming.
Consider that during his career Michael Jordan missed over 9,000 shots, lost 300 games and 26 times he was called on to make the last shot in a game and he missed. To this apparent record of failure he commented, “I’ve failed over and over and over again and that’s why I succeed.” The point is, the more you try the more you’ll eventually be successful.
People are Afraid the Prospect Will Get Angry
Over my 30-year career that includes many hundreds if not thousands of major gift solicitations I’ve had only one occasion when a person expressed anger. My response to that was simple, “I’m not asking for myself. I’m asking for these kids that your giving helps. I’m sorry if I appeared to be bold, but these kids have no one else to be bold for them.”
That pretty much ended any ill feelings, and this individual actually gave the amount for which I asked him. Later on he also offered an apology and told me that he had been having a bad day. As I said earlier, people rarely if ever get angry.
People are Afraid that the Prospect Will Say “No”
While a person may believe this is true, the facts just don’t measure up. As I mentioned in a previous blog, 70% of the time a peer visits a peer in a face-to-face solicitation the answer is “yes” and not “no”. Their gift may not be for the amount you ask, but it’s usually “yes” at some amount. In fact, in our campaign consulting we’ve seen some organizations exceed 80%. People want to help, and when you tell the story of the organization effectively they usually respond.
Next week we’ll cover more fears!
A Halloween Special - Overcoming Fundraising Fears
Halloween can be a scary time, not only for trick or treaters but also for fundraisers. By far, December is the best month for fundraising results. In fact, in a typical organization, 31% of all donations come in the month of December.
Preparing for the End-of-the-Year
However, to have a good December, non-profit organizations need to have active Septembers, Octobers and Novembers. Initially, you have to cultivate and then put a request in front of donors to receive a donation in the first place. Then it’s important to understand that it often takes time for people to make giving decisions, and the larger the decision the more time it can take.
Sure, organizations are pretty good at direct mail and special events. However, I often find that many non-profits miss out on the biggest source of potential income, and that is face-to-face solicitations of donors and friends. Simply stated, one successful major gift can exceed the proceeds from a direct mail piece or a fundraising event or both.
Face-to-Face is Still Best
For example, a study conducted by Cathlene Williams, revealed that the vast majority of nonprofit fundraising events yield $100,000 or less. After expenses, the yield is closer to $50,000 to $60,000. Yet, with a large enough database, the likelihood is high that there are several $50,000 to $100,000 donors right there and available to be cultivated and asked.
Also, according to Charity Science, the average response rate for donor renewal direct mail is about 8%, with the total giving from that source accounting for about 7.5% of the organization’s income. Likewise the ROI for fundraising events is often a lot less than anticipated.
Now I’m not suggesting that those efforts should be eliminated. They are important parts of the overall fundraising strategy, but they are not the only part. That’s where major gift, face-to-face solicitations enter the picture. While direct mail is the most expensive and least effective form of fundraising, face-to-face solicitations are the least costly and most effective form.
Why Face-to-Face?
In our research on capital campaigns we’ve found on average that face-to-face solicitations typically yield a positive response 70% of the time. Of course, well-balanced development programs include all of these methods and more. My point here is simple…when nonprofits neglect face-to-face solicitations the program is far from being balanced.
In fact, gifts are much larger in face-to-face visits than in any other form of fundraising. Well then, if 70% of the time (many of our campaigns have achieved rates in excess of 80%) a peer visits a peer in a face-to-face solicitation the answer is “yes”, why wouldn’t an organization want to do more face-to-face solicitations?
So What’s the Problem?
Well it’s time consuming and labor intensive, but mostly it’s fear. There are many fears non-profits face in asking volunteers to help them make calls. In order to get individuals comfortable in soliciting major gifts, organizations often have to work through those fears. Some of the more prominent fears include the following:
- They’re afraid they’ll make mistakes and not be successful
- They’re afraid the prospect will get angry
- They’re afraid that the prospect will say “no”
- They’re afraid they don’t have enough time
- They’re afraid they will annoy friends
- They’re afraid they don’t know how to fundraise or they can’t get comfortable with the idea
Actually, we’ve found all these fears among volunteers, but none of them is insurmountable. In fact, with appropriate and strategic responses and training each one of them can easily be overcome. In fact, over the next week or two we will address each and provide remedies to overcome them.
Americans Are Incredibly Generous
The annual results of Giving USA are in, and once again Americans gave in unprecedented fashion. Specifically, $390.05 billion was gifted in one of four categories: direct gifts ($281.6 billion or 72% of the total), foundation gifts ($59.28 billion or 15% of the total), bequest gifts ($30.36 billion or 8% of the total) and corporate gifts ($18.55 billion or 5% of the total).
What I’ve found interesting though, is the fact that individuals play such an important role in giving. For example, individuals make bequests, so that brings the total giving by individuals to 80%. Yet, it doesn’t end there. About half of all foundation gifts come from family foundations, which are mostly controlled by individuals. That raises the total given further to almost 88% or $343 billion.
I offer a few points of reflection about these numbers:
First, America is amazingly generous
Our level of giving is unparalleled anywhere in the world. For example, last year charitable giving as a percentage of America’s GDP was 1.44%. The countries closest in giving to the US are New Zealand at 0.79% of GDP, Canada at .77% of GDP and the UK at .54% of GDP. In contrast, the countries that were furthest away from the US were France (0.11% of GDP) and China (0.03 % of GDP). Fully, 83% of American households donated to charity in the last year compared with China (11% of households) and India (14% of households). Those were among the least charitable countries.
Second, too often nonprofit fundraising depends on corporations and foundations almost to the exclusion of individuals
All too frequently, nonprofits rely on a few foundation and corporate gifts and not enough gifts from individuals. No doubt, they receive gifts from individuals, but those usually come through direct mail or special events. Executives often work hard, but they sometimes fail to work smart by locating, cultivating and eventually soliciting major gifts in face-to-face visits.
That’s where doing your homework and building relationships with individuals pays off. Certainly that takes time, but the transformational potential of a large major gift is well worth the effort. And there is a high probability that there are people in your universe who regularly make major gifts. In fact, 93% of high net worth households ($1,000,000 or more) gave to charity, and their average gift was $25,000 or more. The money is there, but nonprofit executives will have to work and be resourceful to get their case in front of these donors.
Third, If you haven’t experienced increases in funding over the last year, you may need help.
Giving USA tracks nine sectors annually, and all of them experienced increases. These include giving to religion; education; human services; foundations; health; public-society benefit; arts, culture and humanities; international affairs; environment/animals; and individuals. Additionally, giving by individuals (the largest source of gifts) grew by nearly 4%.
The results are impressive, but what if your organization hasn’t experienced such increases? There may be several reasons. As a fundraising consultant, I would counsel clients to start by answering a few questions:
- How many individuals give?
- What has the trend been over the last few years?
- What sources give (individuals, foundations, bequests or corporations)?
- How do we grow our donor base and how can board members help?
- What is our donor retention rate?
These are just a few questions to answer if you want to experience the increases other organizations have been experiencing. Professional fundraising audits and fundraising plans are also quite helpful. However, regardless of what you do, it will require deliberate work that includes analysis, strategic planning and action to move your organization forward. Yet, if you’re up for the task, it is well worth the effort!
What Exactly is Leadership…Part 6 (Conclusion)
For the past few weeks we’ve been studying principles/characteristics of covenant relationships that effective leaders use. Today we’ll cover the last principle/characteristic that covenant leaders apply in their relationships.
Transformational More Than Exploitative
The leader-follower relationship, if it’s to be effective long-term, is more about transformation than it is about exploitation. Essentially, it’s the intentional transformation of people and organizations for the better. That clearly is a theme of Dickens’ Christmas Carol. As a result of being led by spirits of Christmas Past, Present and Future, Scrooge was transformed. These spirits led him through a series of purposeful and sometimes painful experiences that changed Scrooge and eventually achieved their intended outcomes. They brought him to an understanding of his own selfishness and awakened him to the needs of others around him. Scrooge chooses to use his resources to transform the lives of others because he himself had been transformed.
Transformational Leadership
James MacGregor Burns refers to this as transformational leadership. It’s a relationship where leaders recognize higher needs in followers (love, hope, meaning, esteem) and engage their full person by seeking to meet those needs and convert followers into leaders.
According to Burns,
“Transforming leadership ultimately becomes moral. It raises the level of human conduct and ethical aspiration of both leader and those led. It occurs when one or more persons engage with others in ways that leaders and followers raise one another to higher levels of motivation and morality. Purposes, which may have started out as separate, become fused.”
In other words, though leader-follower relationships begin with transactions, they shouldn’t end there. As leaders earn credibility and trust through transactions they also gain more power to influence and elevate followers in transformational ways. Using power to elevate followers and as Burns says, move them “…to higher levels of motivation and morality,” is primary evidence that leadership instead of power wielding is operating. It implies regard, respect and commitment to followers, apart from which leadership is relegated at best to supervision.
Jesus, A Transformational Leader
Over some 2,000 years of history and mounds of convincing evidence, no leader has influenced people or changed the world more profoundly than Jesus of Nazareth. In Jesus we have arguably the best example of a transformational leader.
Witness His relationships with disciples. Jesus understood both their intrinsic value and very human needs. Based on those needs, He engaged them in a transaction that He initiated, filling their boat with fish, and thereby gaining credibility. And as Jesus delivered on other promises to disciples, His credibility grew. Jesus related to followers in ways that demonstrated genuine regard. That regard was manifest in the many acts of love, kindness and service He extended to them. No doubt, these relationships were covenants, covenants so powerful that they changed their lives permanently.
Leadership that Deepens Commitment
As a leader, Jesus transformed followers in ways that deepened their commitment both to Jesus and to the common purpose they shared. Specifically, by teaching, healing, challenging and loving these mostly uneducated and sometimes cowardly followers, Jesus transformed them into courageous and committed leaders. His mission and values became their mission and values. In fact, so powerful was their transformation that they boldly carried on the organizational mission in ways that cost most of them their lives. Yet, the power to lead and transform His followers did not come through any worldly position Jesus held. Instead it came through the relationships Jesus established and the love, commitment, respect and sacrifice for followers He demonstrated. It’s a clear illustration that leadership is not a position; it is a relationship with enormous potential to achieve and transform people and organizations for the better.
What Exactly is Leadership …Part 5
Mutually Beneficial More Than Selfishly Prosperous
In the midst of all the turmoil occurring across our country daily, the news about the hurricanes was almost welcome relief. Not that we get relief from the hardship of others; we don’t. Yet, it focused our attention on the very real challenges our neighbors were facing and gave us the opportunity to try to provide some help. Clearly, for more than 2 centuries, Americans have believed it to be mutually beneficial when all of our citizens are safe and secure.
Corporations Care
That belief is shared not only by individual Americans; it is also shared by our corporate citizens who have been increasing donations to help with relief efforts. Consider just a few examples:
- Walgreens committed $200,000 to the American Red Cross for hurricane relief, and their customers can also donate at their stores. They are also donating food items, first aid and medical equipment to the American Red Cross.
- The Kroger Foundation has committed $100,000 to the Houston Food Bank.
- HCA Healthcare will donate $1 million to the American Red Cross. It will also match up to $1 million in employee donations.
- Verizon has pledged $10 million to Harvey relief efforts.
- NFL star J.J. Watt personally raised $30 million for hurricane relief and these are but a few examples.
All of this shows that there is a great deal more to relationships and business and life than making a profit and serving self. In fact, that was exactly the point Charles Dickens made when he wrote about the self-centered Scrooge in A Christmas Carol.
What We Can Learn from Scrooge
Jacob Marley, Scrooge’s deceased business associate, appeared one night in the form of Marley’s Ghost. As Marley explains his earthly regrets, Scrooge challenges him saying, “But you were always a good man of business, Jacob.”
At this, Marley’s Ghost replies, “Business! Mankind was my business. The common welfare was my business; charity, mercy, forbearance, and benevolence were all my business. The dealings of my trade were but a drop of water in the comprehensive ocean of my business!”
In addition to being a beloved and enduring Christmas story, Dickens’ work is also a commentary on business and the social conditions that existed in England around the time of the Industrial Revolution. Through the dialogue between Marley and Scrooge, Dickens points out that business exists for purposes beyond just making money for the owner. There is a responsibility for business leaders to attend also to the human needs of workers and others rather than exploiting or commodifying them. It is only in realizing and acting on the fact that Bob Cratchit is actually a person with a family and needs, that Scrooge finds redemption and becomes a leader. Essentially, Scrooge stops commodifying every aspect of his relationship with Cratchit and starts treating him as a person with value beyond what he can do for Scrooge.
Business Should be Mutually Beneficial
In order for leadership actually to be leadership, it necessitates that relationships between leaders and followers address a set of mutual needs and aspirations, not just those of the leader. Scrooge’s inability to recognize that point made him a selfish, commodifying power wielder instead of a leader. Certainly heads of corporations can drive performance and profits, but that doesn’t make them leaders. As Dickens and many others have expressed; leadership requires the presence of a common and ethical purpose that promises to benefit everyone involved in its pursuit. Beyond that, leadership is also a relationship in which people are respected, and leaders and followers are bound together by and freely give themselves to that common purpose. Simply stated, people are not commodities and they cannot be led effectively by treating them as such.
America at its Best
That’s what is happening in Houston and Florida today. Our citizenry is intervening because they believe people have inherent worth. Individuals and corporations alike are demonstrating this kind of leadership both in fundraising and volunteer efforts over and over and over again, and we are all better off because of it.
What Exactly is Leadership…Part 4
So, our series on What Exactly is Leadership has covered several characteristics of covenant leadership including relationships that are:
- Influential and Dynamic more Than Positional and Controlling…
- Developmental More Than Dictatorial…and…
- Humane More Than Commodified
- Committed To and Valued More Than Used and Consumed…
Today, we will discuss another characteristic, Respectful and Loving More Than Intimidating – One of my favorite authors is the late Henri Nouwen, who wrote about the temptation of leaders to rely on power. In talking of his own struggles as a leader, he noted, “I still have moments in which I clamp down and tell everyone to shut up, get in line, listen to me and believe in what I say.”
Wisdom from Nouwen
Nouwen offers a profound answer to the important question of why “leaders” sometimes do this: “Maybe…power offers an easy substitute for the hard task of love. It seems easier to be God, than to love God, easier to control people than to love people, easier to own life than to love life.” He explains further that many people opt for power and control because they don’t know how to develop healthy relationships. So what’s the answer?
At Southwest Job Satisfaction Flies High
It starts with respect for others, which allows leaders to resist the power temptation and share rather than wield power. That allows building relationships and focusing on what Nouwen calls “the hard task of love.” Consider Southwest Airlines (SWA), a place where employees are known to work hard but also have fun while doing it. Recently it was named one of Fortune Magazine’s” top 10 most admired companies in the world. Uniquely, Southwest executives work hard to create partnerships, including with the unions. It makes sense because the focus within the organization is on building healthy relationships and a sense of ownership for the common purpose they serve.
The atmosphere commenced with former chairman Herb Kelleher, who talked consistently about respecting and even loving his people. Witness the big heart painted on the airplanes symbolizing that love and the energetic friendly demeanor of employees that reflects it. These and other attitudes at Southwest help explain why the company has lower turnover rates than any other airline. And evidently, all this talk and practice of love doesn’t compromise profitability. Consider that in 2016, for the 44th straight year, SWA netted $2.2 billion in net profit, despite the turbulence in the airline industry.
This stands in considerable contrast to the concept of commodification. Commodification works well with the purchase and consumption of actual commodities like groceries and cattle. However, it clearly inhibits the development of relationships in which people give themselves to a common purpose. That’s because commodification is dehumanizing and relies on power and sometimes intimidation to move people. When that is prevalent, then potentially everyone becomes a free agent looking for the best deal.
Examples from the Sports World
As my value in a relationship is measured and rewarded by my ability to perform and serve someone else’s self-interest, then my focus will be on keeping my perceived value high. The problem with that is the higher the stakes the more relational dynamics lend themselves to deception, manipulation, power wielding and even cheating to enhance my performance and keep my value high. Consider the results of increased commodification in professional sports. The growing incidence of illegal steroid use and other forms of cheating may enhance performance short-term, but they injure the long-term health and credibility of athletes and they diminish the respect of fans. Witness the rapid decline in popularity of Sammy Sosa, Mark McGuire, Barry Bonds and more. In the final analysis, it’s difficult to embrace a cheater either as a hero or a trusted leader.