Day: August 24, 2017

What Exactly is Leadership? … Part 2

In Part 1, we started to define what leadership is and discuss the tendencies of covenant leadership including relationships that are:

Influential and Dynamic more Than Positional and Controlling, and
Developmental More Than Dictatorial…

Now today we’ll discuss a third tendency.

Humane More Than Commodified

Being humane, usually means recognizing the intrinsic worth of individuals and treating them with dignity and respect. That happens not because of your power, abilities or personal attributes, but simply because you’re human and therefore worthy of dignity and respect. Organizations built on covenants are humane simply because leaders value people intrinsically.

The Commodities Model

By contrast, valuing and affording people dignity and respect only when they produce, is actually commoditizing them. What is a commodity? Investorwords.com defines commodities as, “Substances like food, grains, or metals, interchangeable with other products of the same type. Commodities are bought or sold, usually through futures contracts.” Because corn in Indiana is really no different than corn in Indonesia, the value is quantified by its utility in consumption and is subject to fluctuations in supply and demand. Commodities markets are clearly of great benefit to both investors and producers. But what happens when the model extends into other areas of life?

Learning from Gary Becker

This was the proposition of Nobel Prize winner Gary Becker in, A Theory of Marriage: Part II. He demonstrates how even the most intimate of human relationships can be commodified. Becker cautions, “Economic theory may…(soon provide)…a unified framework for all behavior (and)… marriage is no exception…”

He argues that decisions such as spouse selection, marriage timing, children, divorce, etc. can be quantified with certain utility functions including income level, physical capital, and intelligence. Becker is not suggesting that vast numbers of people test mathematical correlations to select spouses. However, it’s clear that this thinking is becoming more prevalent.

If commodification influences marriage, it surely influences our relationships at work. Jeremy Rifkin, President of the Foundation on Economic Trends, speaks of that trend growing. Organizations attempt to get larger shares of customers, members or donors by becoming trusted advisors. According to Rifkin, “These ideas boil down to the commodification of a person’s entire lifetime of experiences assigning lifetime values to people with the expectation of transforming their lived experience into revenue.”

Covenants Provide More Benefits

Ironically, studies related to productivity imply that the relationships that yield the most benefits in any kind of structure are covenants. In fact, there’s substantial research suggesting that marriage covenants are more rewarding and beneficial than single life or cohabitation. Likewise, growing evidence suggests the covenant model applied in business or fundraising is also far more productive and profitable. That’s because commodities can be manipulated, but people must be led. It makes sense that individuals perform better when they’re respected. Valuing donors and gratefully acknowledging their gifts is a proven method of increasing donations.

Nevertheless, organizations today (including churches, non-profits and businesses) still cling to a model where the “value” of individuals is measured solely by how well they serve the self-interests of decision makers. This is not to suggest that people shouldn’t be productive or held accountable, but when there’s constant emphasis on production the intrinsic worth of individuals can be lost.

Power Wielders vs. Leaders

Power wielders commodify people; leaders don’t. That’s why covenanting with people to achieve common purposes is far more humane and productive than commodifying them. If that’s true then the decision should be clear. If you’ll never achieve optimal success through commodification, it defies logic to continue doing so. When people are commodified, they may perform temporarily, but they also lack long-term commitment. That’s because the product of the relationship is valued over the people of the relationship. Conversely, when people are treated humanely and bonded together in a humane culture, they’re free to give themselves fully to a common purpose and the sky is the limit.

by Len Moisan

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- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

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- Dan Jones, CEO - 21st Century Parks

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-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

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- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

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- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

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- Daniel Montgomery, Pastor - Sojourn Community Church

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- Ron Poisel, Pastor - Christ Lutheran Church