Holistic Leadership
Leading with Virtue
by Jim Funk
I recently conducted a workshop for a group of successful physicians about leading with virtue. At the beginning of the session, I asked the question, “What comes to mind when you hear the word ‘virtue’?” The responses varied from one of the dictionary definitions (moral excellence), to things like seeking perfection, having integrity, doing what is right, having a strong character, and being courageous.
We agreed that these are all valid descriptions of a virtuous person, and then we talked about why virtue is important in leadership. Leaders become the way they are from the inside out—meaning that who they are as a person impacts what they do and how they lead. If integrity is lacking in a leader’s behavior, it is probably because integrity is lacking in the leader. Thus, virtues are not only behaviors, but positive dispositions and attitudes that can guide leaders in making decisions that are good, right, courageous and prudent—and that will help ensure the organization’s success.
“Virtuous” is one of the nine key characteristics I have identified for Holistic Leadership, which is a person-centered way to lead that considers the whole person—body, mind and spirit—in how others are directed, motivated, evaluated, rewarded, and given the opportunity to use their particular gifts and talents. This is important not only for the development of employees as people, it is also critical to organizations being able to meet its goals and objectives—to be sustainable and successful.
There are a number of virtues that I have observed to be critical to effective leadership, but I will focus on five in particular: Courage, Prudence, Justice, Temperance and Humility. What do we see in leaders who embody these virtues? Let’s use the leadership competency of effective decision-making as an example.
- Courageous leaders are able to overcome difficulties in seeking what is good and right, even in the face of adversity and pressure to make a different decision. For example, it requires courage to stand up for what the leader believes is right, even when his or her opinion is clearly in the minority, or unpopular.
- Leaders who practice the virtue of Prudence apply practical wisdom to their decision making. When pressured to make a quick decision, for example, the prudent leader knows when there has been the right amount of deliberation and dialogue before moving forward.
- Just leaders are fair, and they respect the rights of all human persons. For example, they make compensation decisions that ensure their employees receive wages and benefits that are competitive, and that even the lowest paid workers at least receive a “living wage” to be able to meet their basic needs.
- Temperance is acting in moderation, and keeping things in balance. Leaders who model work-life balance more often make the decision not to work that extra hour or two, but to go home to their families at the end of the workday.
- Humility is not only about not exaggerating our abilities and accomplishments, but it is about affirming the innermost, true nature of who we are. Leaders who are humble do not take credit for the work others do, and they are willing to admit when they are wrong. They decide to be vulnerable.
Some might say, “Sure, I agree that these are good qualities, but what do they really have to do with organizational sustainability and getting results? Isn’t it enough to just do what needs to be done, and hold people accountable?” Let’s go back to the physicians I described earlier. Can you imagine going to a doctor who takes a certain path simply because it is easier? Prudent healthcare professionals do not make decisions that way. Rather, they make sure various treatment plan options have been thoroughly considered before deciding which one to recommend. It wouldn’t take many situations with a lack of prudent decision-making in the practice of medicine to negatively impact the trust of colleagues and patients, and the sustainability of the practice.
While this might be obvious, we can call to mind numerous cases of executive and leadership decision making that was not virtuous, and the result was usually the removal of the leader from the role, and at worst, the demise of the company.
What does it take for leaders to be virtuous? First and foremost, they need to be willing to undertake the “inner work” of becoming aware of their own character strengths and opportunities. I recommend an instrument that I have used with various leadership groups called the VIA Survey, available through the VIA Institute on Character. Ideally take the free VIA Survey and then upgrade to either the VIA Pro or the VIA Me report for a nominal cost, which gives people good feedback and insight into their particular values and virtues. There are also many resources on their website about ways to both use one’s character strengths, and to boost those that are not as strong.
Leaders need to be lifelong learners and be willing to practice in order to be virtuous. They must learn from their own experiences and those of others, as well as remain open to honest feedback. Finally, they need to be willing to practice and build the skills and behaviors of virtuous leaders. Virtues develop through practice, and from cultivating them over time. Coaching or mentoring from a leader who has moved further along in the journey of becoming virtuous can be a particularly great resource.
Do you work for a leader who you would consider “virtuous?” What was it like? How do you think they got that way? I invite you to write about your experience in reply to this blog, or e-mail me at jim@jlfunk.com with your story. I would like to hear from you!
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
What Do Leaders Leave in their Wake?
by Jim Funk
We learn a lot about leadership from reporting to different bosses. Some inspire us and our teams while building trust, commitment and engagement. Under their leadership, people thrive. Other bosses drive people into the ground to get results, punish mistakes, and create fear. Under their leadership, talented people leave. So if we really look at the wake that leaders leave behind, we can decide what kind of leader we want to be and then aspire to become that.
I like to challenge leaders to evaluate their own leadership by pausing to reflect on what it is like to work for certain types of leaders. In one of my workshops I divide the team in two and ask one group to imagine working in an organization led by fear and a philosophy that only results count—not people. In this scenario, employees are simply resources to be used to get to the desired outcomes. The other group is asked to imagine working in a place where leaders put people at the center, and where creativity and teamwork is encouraged. In this scenario, people are truly valued.
After some discussion, each group then shares what it is like to work in their respective organizations. The fear-driven group typically describes the working environment this way:
- Distrust and anger
- Dysfunction, rumors, blame
- Punishment for taking risks that don’t work out
- A feeling of powerlessness, helplessness
- A negative atmosphere, tension, disorganization
- Less engagement and commitment
And the person-centered group? Their working environment is quite different:
- Energy, creativity
- Personal, timely and open communication
- Freedom to take risks and learn from failures
- Empowerment to help others succeed
- A family atmosphere
- A desire to make a personal contribution to the vision
These are nearly exact opposites. And I also found it very interesting to watch the passion that the two groups display when sharing their reports, probably because they are speaking from real-life experiences. To some degree, they relive their experiences just by talking about them. The fear-driven group has sullen faces, a tone of voice that exudes anger and frustration, and they even seem to be anxious. Conversely, the person-centered group speaks with enthusiasm, excitement, and they can hardly stop talking about how engaging and satisfying the work environment is.
What is the difference? In my leadership development work I describe person-centered leaders as “holistic” because they bring their whole selves to their leadership role—body, mind and spirit. In doing so, they treat others as whole people too, rather than just resources.
Let’s look at a couple of examples of how this plays out in the real world. What is it really like to work for a person-centered leader?
Merle Tebbe works for John Mundell, president of Mundell & Associates, an environmental consulting firm and Economy of Communion business. He tells a story about Mundell’s leadership that demonstrates how he puts into practice the person-centered principle of Economy of Communion businesses. Some time ago a former co-worker from another company was out of work and recuperating from a significant medical issue. He wanted to start his own business and get back on track as soon as he could, but he didn’t have a place to work. Mundell offered him free office space in the building so he could successfully start the business, and he allowed him to use it for several months. Later on, the company landed a project that actually required the skillset of the former employee, so he was offered his first paid work in quite a long time. The result of Mundell’s person-centered leadership? Tebbe points out that this was truly a win-win, which resulted solely from the generosity of Mundell in giving the former employee the break that he needed without expecting anything in return.
In another example, Lori Shannon reports directly to Blake Dye, president of St.Vincent Heart Center. While the Heart Center is not an Economy of Communion business, they are part of Ascension Health, the largest Catholic health system in the country. Ascension also has a principle of being person-centered, and in particular providing for those who are poor and vulnerable. Shannon says she quotes her boss frequently because she admires his style. One of her favorite quotes is a statement he made to her when she first started in her role as an executive. He said, “You know what you are doing, Lori. I am getting out of your way so you can do it. Let me know if you need anything from me.” His trust in her skills and abilities was a real compliment. She also points out that he expects his entire team to manage their work-life balance, and he sets the example himself. The result of this person-centered leadership? An engaged executive team—both individually and collectively—that successfully leads facilities that provide the best heart care in Indiana, and explore innovative technologies that are helping to establish new standards of care.
We can see in these examples that person-centered leaders like John Mundell and Blake Dye inspire and motivate others, not only because of their leadership capability, but because of who they are as people—and how they treat others. I refer to this as holistic leadership.
Do you work for a holistic leader, or have you in the past? What was it like? What difference did it make to you, to your team, and to your organization? I invite you to write about your experience in reply to this blog, or e-mail me at jim@jlfunk.com with your story. I would like to hear from you!
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
9 Characteristics of Holistic Leaders
by Jim Funk
Traditional leadership competence has been about behavior—what a leader is capable of doing in the workplace. That approach describes desired actions, but it overlooks the character traits that are crucial for guiding those actions. A more complete model of leadership competence goes beyond actions to describe who the leader is as a person. I refer to this model as holistic leadership.
Holistic leaders know how to integrate their character and values into their leadership, and they understand that they bring their whole selves to their leadership role – body, mind and spirit. In observing these leaders, I have identified the following nine key characteristics that I believe set them apart from others.
Virtuous
Virtue is defined in Webster’s Dictionary as, “Conformity to a standard of right; a particular moral excellence.” It is not only the holistic leader’s behavior that is virtuous, but his or her disposition and attitude toward the good; toward what is right. When virtues become part of who a person is, the person is in turn more disposed toward virtuous actions. These show up as behaviors and decisions, which are guided by moral excellence. One particular virtue that is critical to holistic leadership is that of humility. The humble leader is able to admit faults, to ask forgiveness, and to be vulnerable and authentic.
Ethical
Leaders are frequently faced with making decisions when circumstances aren’t black and white. Critical thinking skills and an acute sense of right and wrong are paramount to being able to consistently and reliably evaluate possibilities and make ethical choices before moving forward. When it comes to the ethical treatment of people, it really boils down to treating others the way he or she would like to be treated—known as the golden rule.
Transparent
Holistic leaders are open, honest, direct and forthright in the way they act and communicate. This doesn’t mean they are indiscriminate with the timing and information that is shared. Rather, they understand when people are impacted by certain situations and they willingly share the information that matters at the appropriate time. Transparency is also linked to the virtue of humility, because holistic leaders are willing to be vulnerable and admit when they don’t have all the answers or things don’t go according to plan.
Trusted
When leaders are truthful and follow through with what they say they will do, they build strong relationships with their colleagues. This becomes the foundation for trust, which at the end of the day also enables getting work done efficiently and effectively. It is also important to recognize that trust comes not only from one’s character, but also from competence, or capability. It is one thing to make a promise, but the leader needs to be able to follow through with more than just good intentions.
Capable
This characteristic is about being able to functionally get the job done. Effective leaders must be able to craft a vision, engage others in following that vision, create a plan, execute the plan, and drive results. While character matters to a very great extent, a leader will not be effective without these competencies that deem him or her capable.
Balanced
Holistic leaders have a balanced view of others, work, teams, and themselves as a composite of body, mind and spirit. These leaders take good care of themselves while supporting others in self-care as well. This plays out in a positive work-life balance, but also as avoidance of any negative “isms” that can be extreme (e.g., workaholism, absolutism, dualism, egoism, and hedonism.)
Aware
Awareness is a critical characteristic of holistic leadership, because it is required for emotional intelligence. As described by Daniel Goleman in his book, Emotional Intelligence: Why it can matter more than IQ, awareness of self and others is key to being able to manage one’s emotions and relationships. Leaders who are not open to feedback, do not ask for it, or do not know how to receive and process it with an open mind, continue to have blind spots that can derail them. Self-awareness also requires humility—the ability to see ourselves as we really are, even when we don’t care for some aspects of that picture.
Servant
Much has been written in recent years on the topic of Servant Leadership. Robert Greenleaf wrote, “The servant leader is servant first. It begins with the natural feeling that one wants to serve. Then conscious choice brings one to aspire to lead.”* This dynamic is similar to what I described earlier for Virtuous. When being a servant becomes part of who a person is, the person is in turn more disposed toward service. Holistic leaders are servants first because they are focused on people and their needs. They know that work gets done through people, and when their needs are met they are more likely to be engaged and be at their best.
Inspired
I once got into a debate with a colleague about whether holistic leaders are inspired or inspiring. Which comes first? I believe it is both. The leader’s own inspiration becomes inspiring to others. When the leader brings inspiration along with authenticity, people can sense that the leader is genuine—the real deal. There is also an aspect of inspiration that is linked to faith. While this may or may not be religious faith, it is when leaders recognize they are part of something larger. They know that inspiration comes not only from within, but from outside oneself as well.
How Can You Develop Holistic Leadership?
If you aspire to be a leader who embodies these characteristics, or if you would like to adopt this leadership model in your organization, there are several things you can consider. Individual leadership coaching can be a very effective way of gaining self-awareness and building holistic leadership practices. And organizationally, creating a leadership competency model that spells out the expectations and development opportunities for the 9 characteristics of holistic leadership is a good place to start. But in the end, a leadership program will only be effective if it also addresses who the leader is as a person and not simply what he or she can do. That is the key to holistic leadership.
In my next blog I will talk about what it is like to work for holistic leaders who have the characteristics I am describing, including some compelling stories from members of their teams.
Source:
*Robert K. Greenleaf, The Servant Leader, 1970
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
Three Ways Holistic Leadership is Different
By Jim Funk
What does leadership mean to you? Is it a style? Behavior? Charisma? Engaging others? Getting results? Leadership is all of these things to some degree, and more.
But holistic leadership is different. Holistic leadership recognizes that people are multi-faceted by nature. Whether they like it or not, everyone brings their whole person to work—body, mind and spirit. Acknowledging this fact changes the way people lead, the experience for their teams, and perhaps most notably, meaningful business outcomes such as retention, productivity, and profits.
There are three main differences between holistic leadership and other leadership models, all based around the leader’s understanding of:
- the purpose and dignity of work
- the workplace community
- self
Understanding the purpose and dignity of work
A job is important to people not only because it enables their livelihood, but also because it gives them the opportunity to make a contribution. People want and need to feel useful. Whether it’s contributing to producing something or helping people in some way, there is dignity and value in having a purpose. Holistic leaders understand that work enables people to contribute their gifts and talents to something that has meaning, and they help employees see the difference they make every day.
Understanding the workplace community
People are relational beings and have an innate need to connect with others and belong. Recognizing this, holistic leaders work hard to build and maintain positive relationships with others, while also helping people relate to one another. Work is almost never done in a complete vacuum, even when there’s only one contributor in a given role. At multiple levels there is a community of work, whether that community includes co-workers, customers, consumers, suppliers, partners, or even neighborhoods where the workplace is located. Holistic leaders see this big picture as an opportunity to instill a sense of community into the organizational culture, which creates a more meaningful and cohesive environment for employees.
Understanding self
To drive positive change around them, holistic leaders first look inside themselves. They know they are not just a set of leadership skills and behaviors; they also have a body, mind and spirit that they bring to their leadership. They take a holistic approach to their own personal development because who they are as people will impact how they lead, and how others will experience their leadership. Holistic leaders know they are continually on a journey of becoming the best leader they can be, and that they can never truly arrive at that destination. They are lifelong learners, they want and ask for feedback, and they are willing to invest in their own ongoing formation and development. They are courageous enough to face even uncomfortable truths, and are willing to do the “inner work” of continually becoming more self-aware.
When leaders understand the importance of these three elements, they are able to connect the organization’s goals with the goals of individual employees. These leaders make their coworkers and direct reports feel valued as human beings. As a result, people become more motivated to reach their full potential, and to help the organization fulfill its mission and goals.
It isn’t a complicated leadership model to follow, but so many organizations and individuals overlook the obvious. If you want to achieve excellence, lead transformational change and reach goals in your organization, start with these three principles.
My future blogs will more fully describe this leadership model and its characteristics, how leaders can become holistic leaders, and how organizations can select and develop these leaders.
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
Spirituality in the Workplace: It’s not what you think!
By Jim Funk
When we enter our workplace are we expected to bring only our body and mind, and leave our spirits at the door? Much has been written about spirituality in the workplace, and there are many different interpretations of what that means. Some of my clients say there is no way that anything spiritual can be introduced into their workplaces. Others believe that recognizing the fact that the whole person—body, mind and spirit—comes with us to work provides a greater opportunity for personal, as well as organizational, transformation and development.
First of all, by spirituality I do not mean religion. While religious beliefs and faith traditions give us a way of expressing our spirituality and practicing our beliefs, our spirit is something different. The human spirit enables us to have an awareness of meaning, to form values, to have relationships with others, and to make choices through reflection and the use of our intellect. Some believers, philosophers and theologians would say our spirit connects us with God, and reflects our relationship with the Mystery that created us. But whether we believe in God, or are atheist or agnostic, most people will agree that the human spirit does exist, and that it is more than just a part of our physical being, personality and mental state. In fact, the human spirit is what distinguishes us from all other living creatures. It allows us to hope, to dream, and to yearn for a greater meaning and purpose in life.
So how and why should we talk about spirituality in the workplace, and how can it be done? Just as our physical self enables us to complete tasks, and our mind allows us to think, judge and act, our spirit gives us the capacity to bring our passions, deeply held values and motivations into our work. Recently I heard a person reflect on the life of a famous actress when he said, “She brought a wonderful spirit to her work.” What does that mean? I think it means we are in fact able to “see” and experience the spirit of people, which shows up as authenticity. When we invite spirituality to be expressed and nurtured in the workplace, we don’t mean proselytizing or converting people; rather, we simply allow time and space for people to be themselves—to be “integrated” (meaning to have integrity) without duplicity. When we are able to integrate all the aspects of our lives, how we make decisions, and how we relate to others, then we can be at our best and give our best as authentic and whole persons—not just skillsets.
When we invite spirituality to be expressed and nurtured in the workplace, we don’t mean proselytizing or converting people; rather, we simply allow time and space for people to be themselves—to be “integrated” (meaning to have integrity) without duplicity.
Some might think that spirituality in the workplace should be reserved only for faith-based or church-sponsored organizations. I worked for a faith-based organization for many years that I thought did an excellent job of spirituality at work, even in the midst of a very diverse workforce and leaders with different or no faith traditions at all. I also came to understand through that experience that people everywhere have a need for spiritual expression and development, not just in workplaces where spirituality is natural or expected. The spiritual nature of people can be respected, acknowledged and nurtured in any work environment without engaging in religious practices, but rather by making spiritual practices acceptable and normal for anyone who wishes to participate in them.
One of my clients, a for-profit company, has a moment of silent reflection before every staff meeting. During this pause everyone is free to use the time however they wish, and the client feels that it allows people to become more centered and fully present at the meeting. Recently I facilitated an off-site retreat for a government client, and I tried something similar. I invited the group to take a few moments for personal reflection and journaling on their vocation of service to others, as well as gratitude for what they personally believe is the source of that vocation or calling (e.g., how they got there). Was that praying together? No. Was that religion? No. Was that a spiritual practice? Yes. It simply provided space and a way for the spirit in each person to be expressed, in whatever way the person decided to express it.
What can you do with Spirituality in your organization?
Any workplace can recognize the body, mind and spirit of people when leaders are willing to make space and time for the whole person to come to work. Besides the examples I gave from my two clients, here are some additional ways for people to express spirituality in the workplace:
- Designate and dedicate a space where employees can go for personal reflection on breaks. Wherever possible, offer access to green space, nature or indoor plants.
- Encourage and give employees time off for service to the community, and/or for retreat days sponsored by their church if they belong to one.
- Have a memorial service (non-denominational) annually for employees or their family members who have passed away in the last year.
- Celebrate team and individual accomplishments, and acknowledge the gifts and talents that brought it about.
- Provide a retreat day at least once a year for the executive team, the entire leadership team, and for all employees in groups.
- Offer classes in mindfulness, tai chi, yoga, meditation, or other practices that help people experience the connection between their body, mind and spirit.
Implementing these ideas in the workplace might take extra effort, but it’s worth it. Holistic organizations that treat people as whole human beings rather than expendable “human resources” find their employees experience deeper meaning in their work, discover more of their gifts and talents, and grow personally and professionally. I’ve seen firsthand that employees are more satisfied, engaged, and happy because they feel appreciated for who they are on a personal level. Bringing spirituality into the workplace also addresses the problem of duplicity, where people feel they can’t be themselves at work and have to play a role that is different from who they actually are. Duplicity causes stress and an uncomfortable dissonance within a person. The results can range from slight dissatisfaction to actually becoming physically sick. A holistic workplace is a healthier workplace.
A holistic workplace comes from holistic leadership. My next blog post will introduce a model of holistic leadership which brings out the best in people, teams and organizations.
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
Humanizing Human Resources

Years ago, when Personnel Departments around the country were beginning to change their name to Human Resources, I proudly told a friend that my job title at the time was changing from Personnel Director to Director of HR—we were coming into the modern business age. I was taken aback when he retorted, “How dehumanizing to refer to people as resources!” I thought a lot about his reaction, and in many ways he was absolutely right. At least “personnel” had a connotation that the work is about the people. By definition, “resources” means “money, or any property that can be converted into money.” In other words, resources are things we own and/or use. This is not typically the way people like to think of themselves.
Before I go any further, I want to clarify that the purpose of this article is not to criticize Human Resources departments, or the moniker. Companies can call their HR departments whatever they want, but it isn’t the name that’s going to make the difference. It’s how they treat employees. That’s why this blog post raises the big picture question of how companies think about their employees: as usable resources or as people?
I had another friend who told me why he left a good job at a company he originally thought was a great place to work. As a consultant he worked hard and put in lots of time, churned out many billable hours, and did excellent work for his company and their clients. One time his boss said something quite chilling to him, something to the effect of: “You know, you are like inventory to me. When I need you, I take you down from the shelf and put you in service. When I don’t, I put you back and you stay there until I need you again.” It was at that moment when my friend realized he was not in a place that respected him as a person, and so with his highly sought-after skills he quickly found another position elsewhere.
My friend’s story is the perfect example of an inhuman approach to management. His boss treated him as a resource to use up and wear out. And soon enough, he did just that.
Wouldn’t it be better to value your employees, work to develop and engage them, and keep them around? I sure think so. Far too many organizations today need to put the “human” back in human resources.
There is a quote attributed to four sisters of the Daughters of Charity who came to Indianapolis in 1881 to open a new hospital at the request of Francis Silas Chatard, Bishop of the Catholic Diocese of Vincennes. In speaking of their mission, the sisters said, “We have a mission, a reason for being here. To keep health care human, human for our patients, human for our families, human for our doctors and human for all associates. The poor will come and the rich will come, if they know they are going to be treated as people.” Their philosophy worked, as that was the beginning of what is now St.Vincent, a thriving, successful, mission-focused health system of hospitals and care providers in Indiana.
When you treat employees as people, you acknowledge that they are more than just their job title. They have a mind, body, and spirit that make them a human being; a person with dreams, goals, and a life outside of work. I believe that whether we can successfully treat employees as people in the workplace depends on the leader.
I was speaking with an executive at one of St.Vincent’s facilities recently, Blake Dye, President of St.Vincent Heart Center. He told me how important it is to have a balanced, holistic view of work, self and others, and to model and encourage work-life balance. When every new leader comes on board, Blake talks with him or her about his belief that we bring our whole selves with us to work, and that who we are is not just made up of our skillsets. He points out that being successful is first about being capable, but it is also about balance. He stresses that he doesn’t want his leaders to just have the appearance of being busy and working hard, but to do excellent work and achieve results within a reasonable workweek. He tells leaders that if they have to work excessive hours to get the job done, then they aren’t doing something right. He acknowledges that leading healthcare is hard work, so he takes an interest in making sure their work doesn’t overtake and exhaust them, knowing they cannot be at their best in any aspect of their life if that happens.
What Can Leaders Do?
Meaningful change comes from the top. As a leader, what can you do to make your workplace more human?
- Speak to your employees at the time of their orientation and acknowledge the importance of work-life balance, and share some practices that encourage it. Model what you say, and ask yourself if you are also allowing yourself to be human and practice work-life balance.
- Integrate your messages to employees so that excellence and respect for our human nature are balanced. Emphasize that excellence includes learning from mistakes, and if we are too afraid of failure we may not be bold enough to create new solutions and find better ways of doing things.
- Create policies and practices that encourage new skill development within your workforce. Plan and budget for employee training and development.
- Assess your workplace culture. I have done this with clients using a Cultural Health Indicator (CHI) tool, and have found it to be very revealing about what makes for a flourishing workplace.
- Add a “People Report” to the Board agenda—before the Financial Report—to emphasize the important work people are doing to help meet organizational goals and to discuss what could be improved.
Making a workplace human is not only the right thing to do, it engages people because they are able to flourish and be at their best. The sisters who came to Indianapolis to start St.Vincent 135 years ago knew that, and they also knew that patients, families, doctors, associates, and people of all types and socioeconomic levels served by the hospital would be attracted to that kind of place. They were right.
My next blog post will explore what it means to attend to the body, mind and spirit of people at work, and how spirituality in the workplace is not limited to faith-based organizations.
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
Business Results Can Soar When People Are Treated As People
By Jim Funk
Why do you do business with particular companies, stores or individuals? They certainly must have the product, quality and service you want; but what else beyond that? Being treated as a whole person is what makes the difference. It’s good for people—and good for business. Let’s look at two real-life examples.
- Treating Customers Right…is good for business
John Mundell knows a thing or two about taking care of customers. As President of Mundell & Associates, an Economy of Communion (EoC) business in the field of environmental consulting, he takes pride in exceeding clients’ expectations and bringing a sensitivity to all stakeholders in every project. In fact, the company website describes their innovative solutions as a combination of “scientific knowledge and a person-centered approach,” and highlights one of the Economy of Communion’s top values: Considering the Human Person in business.
I spoke with Mundell about their philosophy and he explained how it’s actually helped them build and retain a loyal client base. One example that he felt was particularly impactful was a time when they were able to solve a client’s engineering problem quickly and inexpensively, considering the situation, but their $3,000 fee was still more than the client wanted to pay. Even though Mundell thought it was a fair price, rather than insist on the full payment he said the client could pay what they thought the service was worth. They paid $1,000. But it wasn’t a loss for Mundell & Associates. The client wanted to continue the relationship and over the next three years brought them over $1 million worth of new business. The client let Mundell know he earned their loyalty when they felt they were treated fairly in that very first decision regarding the invoice and the client’s concern was put ahead of the company’s.
Mundell is convinced that when businesses consciously put people and relationships ahead of profits, value team interests over self-interests and intentionally serve the other person, clients want to work with that kind of company. For Mundell & Associates, besides being the right thing to do, they believe treating customers right has translated into millions of dollars in revenue that the company would not have otherwise received.
- Put Employees First…and they will in turn put customers first
Cameron Mitchell Restaurants is a privately held company that is not affiliated with the
Economy of Communion, but they have adopted many of the same principles and business practices as the EoC. Mitchell began with one small restaurant in Columbus, Ohio in 1993, which has now grown to 25 units and 12 different restaurant concepts with locations in 11 states. Their website explains that they use the term “associates” instead of employees in order to recognize and respect their importance. Putting people first is core to Cameron Mitchell’s way of doing business, which he believes is their differentiating strategy. Mitchell says they don’t just hire great people; they make sure to treat them great once they’re on board. That, in turn, inspires a genuine hospitality that guests, vendors and even members of the community sense and appreciate. Mitchell is convinced that the spark for their growth and success is the “people first” culture they have deeply embedded in their restaurants.
I asked Chuck Davis, the Vice President of Human Resources for Cameron Mitchell, what they do to create and sustain their “people first” culture and what difference it makes. He told me how they treat associates well from the time they are recruited, through their orientation and throughout their employment. Specifically, they have practices like closing their restaurants for seven major holidays, plus Super Bowl Sunday—unheard of in the restaurant business—so associates can enjoy those events with their families. They emphasize reward and recognition that associates appreciate. One small example is they hand out delicious milkshakes to reward associates regularly. To Mitchell’s associates, a milkshake is much better than a handshake! And as a “topping” they pay competitive wages and benefits that attract and retain their valuable associates. They also emphasize their development and give associates opportunities to learn, grow and build skills. They promote from within more than 75% of the time.
The result?
- Mitchell’s employee engagement survey had 99.57% participation.
- Employee satisfaction registers in the mid to high 90th percentiles.
- Associates receive better tips than the industry average.
- Turnover is lower than it usually is in the restaurant business.
- And when it comes to business results, they have financial outcomes that exceed industry standards.
These results support the company’s belief that treating associates as whole persons translates to customer satisfaction, which in turn improves the bottom line.
Why is a Person-Centered Philosophy Good for Business?
From these examples we can see that customers want to do business with companies that treat them well, and employees want to work for an employer that respects and appreciates them. Further, this effect isn’t limited to only customers and employees. It’s true for the board room, company leadership, suppliers, partners, communities where they are located, and for anyone who interacts in some way with a company. Not only is it the right thing to do, but good reputations spread—which leads to customer and employee loyalty. It becomes a cycle that translates into higher volumes, increased revenues, lower costs and higher margins.
Person Centered Practices
How does an organization become person-centered? Like for Mundell and Mitchell, focusing on people must become embedded in the culture: leadership, policies and practices, and how everything plays out day-to-day in real situations. Here are some of the suggestions I make to my clients who want to build a person-centered culture.
- Empower employees (or better yet, “associates”) at all levels to be able to address customer concerns.
- Take quick “pulse” surveys (not long and arduous opinion surveys) to check in quickly and regularly with people about how they’re doing, what they need to be at their best, and how to get those needs met.
- Describe the desired culture, and then hire for fit to that culture, especially in leadership positions where being person-centered is modeled and held up as “how we do things.”
- Give employees opportunities to reward and recognize each other, ask what makes them feel appreciated, and encourage it at all levels.
- Check out important decisions with some key stakeholders before you proceed, and ask questions about how will they be impacted, what pitfalls have you not thought of, and how the decision could best be communicated.
In my next blog we will look at what makes a workplace human. You might be surprised at my ideas, especially coming from a person who has spent most of his career in Human Resources!
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
5 Things Employees Need to be at Their Best
By Jim Funk
People love hearing the words, “You did a great job on that project!” Most people want to do a good job, and are willing to work hard to do their best. But in the world of work, the reality is that it doesn’t always happen. Why? Certain circumstances play a role in how engaged employees are in their jobs, and these factors impact performance.
I believe that enabling employees to do their best boils down to the ability to meet 5 important needs:
- To be treated as a whole person – body, mind and spirit. People want to be recognized for who they are, and not simply a set of skills or productivity numbers. They bring their whole selves to work, and need some degree of nurturing and expression in each of the dimensions of the human person: physical, intellectual, spiritual, social, and leisure.
- To be treated fairly. Policies and practices provide clarity regarding expectations, and they help ensure that people will be treated fairly. But as everyone knows, a policy manual doesn’t provide answers to every situation. Leaders must be able to make decisions that are just. Don’t get me wrong, everyone won’t always agree with every decision a leader makes, but all decisions should be supported by a rational explanation.
- To have safety, security and trust. The workplace must be one that feels safe and secure, with ready access to assistance if a safety or security issue arises. But more than physical safety and security, employees in this day and age seek job security. People need to feel the organization’s leaders can be trusted to keep their word, and communicate with honesty and transparency, especially as it relates to job security. When layoffs are expected or people are let go, they should be told the truth and assisted in making the transition.
- To have a thriving community at work. By definition we could say that any work group is a community of people. But a thriving community is one in which people are individually and collectively at their best because the work culture recognizes the importance of relationships and teamwork. Competition between teams can also be healthy, and fun!
- To have meaning in their work. While work is certainly a means to making a living, people need to feel that their work makes a difference in the world. Further, there is an inherent dignity in work because it allows the person to become more fully who he or she is. People need to feel that their talents and skills are being used, and want to be given the opportunity to grow and develop so that they can reach their full potential.
When these 5 needs are met, people feel more fulfilled and more committed to doing their best work for the organization. It might seem obvious, but what does it really take to meet these needs? First of all, organizations whose values include statements like, “a great place to work,” or “people are our most valuable asset,” must be able to live up to those and not just give lip service. Leaders who understand these needs and intentionally work to meet them are what make the difference. I would call this “holistic leadership,” because the holistic leader treats people as people and not just a skillset or a “human resource.”
What Can Leaders Do?
When I consult with organizations, I recommended that leaders ask each of their employees to write down answers to three questions:
- What do you need in order to do your job well and be at your best?
- What will it take for you to ask for and get what you need?
- What types of rewards motivate you and make you feel appreciated?
I suggest that they keep this sheet of paper in all of their employees’ folders, so when they meet with them or want to reward them they can be more personal and specific in addressing their needs. It works!
Please share any comments, reactions or questions you have about these ideas. If you believe you are working or have worked in an organization with leaders like those I am describing, I invite you to write about it in a reply to this blog or contact me directly. I would like to talk with you. In my next blog post we will look at the business case for holistic leadership, and what difference it can make in terms of actual outcomes.
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
Connecting The 3 Ps: People, Productivity and Profits
By Jim Funk
What is most important in your organization? People, productivity or profits? Many people look at the 3 Ps as independent or competing priorities; but what is often misunderstood is the dynamic connection between the three.
Let’s say you believe that profits are most important. It’s true that an organization can’t exist for very long without a black bottom line and a good return for shareholders (or financial stewardship in not-for-profits and government sectors). Or, if you say that productivity is most important because without it profits will suffer, that is true as well. Productivity is certainly a key to success. But productivity doesn’t guarantee profitability or financial stewardship, because there are too many other variables involved. And high profits may only demonstrate short-term success that could change in the future.
On the other hand, giving people first place in the equation may be altruistic, but it’s also logical. People have the power to do what is required to be productive, generate a profit and manage resources effectively. That’s why people are the foundation of the three Ps. The innate human ability to think, judge and act is the only way to drive business outcomes and reach organizational goals. The variables within people are capability, capacity and motivation. Leaders must attend to all three of those variables, not only in selection, development and recognition, but in the engagement of people in the vision and what it will take to bring that vision to reality.
First and foremost, leaders must make the mission and vision clear and communicate it on a regular basis. Where are we headed and why? When leaders understand people and provide what is needed in order for them to do their best, creativity, engagement and excitement are unleashed both individually and collectively. That energy is what drives increased productivity and innovation. This spreads beyond employees and engages suppliers, partners, affiliates and others, because people want to give their best to an organization and its leaders that give their best to people. This is not simply a “quid-pro-quo;” it is a true energy that cannot be defined by a social or legal contract – and it’s powerful.
Further, customers want to do business with the organization that puts its employees first because they sense and experience what it means to be treated as a person. This in turn increases market share and company profitability. In the not-for-profit and government sectors it increases effectiveness, efficiency and good stewardship of available resources. This is not to say that a sound business plan, strong fiscal management and the market forces of supply and demand don’t play an important part in productivity and profitability – that’s a given. But keeping the person in the center of the business or organization is just as conscious a choice, and is what makes the real difference to both productivity and profits.
Please share any comments, reactions or questions you have about these ideas. If you believe you are working or have worked in an organization with leaders like those I am describing, I invite you to write about it in a reply to this blog or contact me directly. I would like to talk with you. In my next blog post we will look more closely at what people need to be at their best.
Jim Funk is a consultant who helps leaders, teams and organizations discover and develop their full potential. He is passionate in believing that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and driving business results. In addition to his work at J L Funk & Associates, Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
The Power of the Person-Centered Business
This is the first of a series of blogs I am writing about what makes people, teams and organizations successful, based on my experiences with clients and my years of working in leadership, organizational development and human resources. I am eager to share what I have learned about successful leaders, and how they got to be the way they are.
My first premise is that people are the heart and soul of any organization. When the person is kept at the center, every single decision that is made considers how people are impacted and whether people, teams and the organization will flourish as a result. There are many mission statements and lists of core values that include a focus on people, customers and service. Isn’t that the same thing as having the person at the center? Well, mission statements and core values are only words. They might represent an intention, or how an organization wants to be viewed by others. But whether the person is truly at the center of the business depends primarily on one thing: the leader’s understanding of people, and what people need in order to be at their best. And when leaders invest in people and their development, ahead of productivity and profits, it actually leads to increased productivity, higher profits, and personal and organizational success.
People have an innate desire and need to develop their human potential, to flourish, and to become who they were made to be. Person-centered organizations not only focus on the customer, but they encourage leaders, employees, associates, partners and suppliers to reach their potential and find meaning in their work. When leaders recognize the gifts and potential in others, and encourage them to fully develop and unleash those gifts, people thrive. People engage.
In addition, the products and services of person-centered organizations serve the common good – because it is good for people. Profit is seen as a means to this end rather than an end in itself. When profit is at the center, people are disposed of when they do not contribute significantly enough to profits, or when they do not meet expectations that may actually be unrealistic. This is not to say that employees, suppliers and partners should not be held accountable for meeting or exceeding expectations. But what is key in the person-centered organization is that people know the expectations and can meet them because they are clearly articulated, well-communicated and achievable. People can connect what they do to the organization’s mission, vision and goals. They have the clarity, support, development opportunities, trust and the desire to pull their weight and contribute. It’s a win-win for people, teams and organizations.
Please share any comments, reactions or questions you have about these ideas. If you believe you are working or have worked in a person-centered organization, I invite you to write about it in a reply to this blog or contact me directly. I would like to talk with you. In my next blog post we will look more closely at the connection between the Three P’s: People – Productivity – Profits.
Jim Funk is a leadership and organizational consultant who works to help leaders, teams and organizations discover and develop their full potential. He believes that strong leadership competence combined with the leader’s personal characteristics, values and virtues are key to achieving goals and reaching desired outcomes. In addition to his portfolio of consulting assignments Jim has served on various boards and commissions, and is currently a member of the Economy of Communion in North America Commission. He provides workshops for leaders and is a guest speaker for groups and organizations. Learn more about Jim’s work at www.jlfunk.com and www.linkedin.com/in/jlfunk or e-mail him at jim@jlfunk.com.
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