Inspirational Leadership in the Human Economy
Dov Seidman, CEO of LRN and author of 'How', will outline the implications of living and working in what he calls the ‘Human Economy’, where a person or orga...
Everything in Seidman's words revolves around culture. His ideas are fostered in creating a business that is internally interdependent.
He begins by quoting Southwest Airlines founder Herb Kelleher who said: "I am not in charge, I'm going to create a culture where everybody is in charge." A disruptive idea 40 years ago.
There is a current problem with employee engagement:
People with a job are leaning out, not leaning in.
The largest business problem we are facing is not a business problem, it is a human problem, and at the core of this is leadership malpractice.
Not only are employees not engaged, but also consumers are subject to more or less the same:
To extend the 'human problem' further, Seidman goes into how US citizens don't even trust their government:
"How did we get so disconnected in a world that is so connected" - Dov Seidman
We have moved away from the idea that you have to scale the idea of morality. If you don't work in a moral framework, you will disconnect into a world of greed. Seidman cleverly sites the godfather saying that workplaces now embrace 'It's nothing personal, it's just business' in everyday work.
"Technology has moved us from connected to interconnected, to interdependence." This is a powerful statement from Seidman that sets the landscape of the world we are living in.
As an example, he reflects about the time that Netflix added $5 to their price, and how 800,000 Netflix subscribers left in 48 hours. Reed Hastings now understood that the relationship with their consumers was centered around command and control. Once they embraced two-way dynamics, they created a massively successful business who is now making serious waves in their market.
The technological landscape have moved us to a new era. This the era is focused on human behavior.
Behavior matters more than ever. And the movement towards a human economy is evident.
Marketing departments job is to now find the social pulse, and declare their humanity. All messages speak to being more human.
Seidman then moves into the top behaviors that CEO's want. All driven towards building a culture that is interdependent and creates a collaborative environment.
The human economy will demand the declaration of values and embed them into their workplace in order to succeed.
He then creates a contrast of what human based organizations care about in contrast to rule-based or autocratic ran organizations.
So how do you become more human? There are specific values that need to a focal point:
These values together create an environment that encourages a purpose driven organization that freely collaborates. These values demand human connections.
Digitization Demands Human Connection
Fortune 500 companies are trapped in old ways of working. During the industrial revolution, these organizations flourished over a consistent and reliable operating system. This typical waterfall strategy segments an organization into a large hierarchy where influence is saturated at the top. This was built at a time when work was simple, and workers were lead by informed acquiescence.
Seidman has now identified the human economy exists, and human behaviors are more important than ever. He now moves into the 'how', and he firmly believes, it starts with inspirational leadership. He shows the next wave of leaders letting loose of top down power and into a more connected business.
He lays out three ways to shift behavior: coercion, motivation, and inspiration. He argues that inspiration is the only factor that can elevate behavior. Behaviors that are demanded today requires an elevated behavior, and therefore, inspirational leadership is the trigger to a human-centered business.
This will allow for true innovation. These will be the organizations that succeed in the future.
I highly recommend watching the presentation, it is a great angle on the current landscape we live in, and Seidman provides incredible insight on what will define a successful company.