Leadership Excellence: Beyond Self-Interest.

As leaders, we are taught to make decisions that are not self-serving, even though people generally tend to prioritize self-interest in their actions. To complicate matters further, aligning the interests of an organization and its stakeholders is ideal, but it is not always simple or easy because there are multiple interests at play at any given time. A broad-minded leader with selfless motives and an organizational culture that makes decisions for the collective success of all involved exemplifies true leadership.

Good leadership is about having good intentions while making critical decisions. The Roman philosopher king, Marcus Aurelius, defined one of the important characteristics typically shared by men and gods as locating goodness in thinking, doing the right thing, and limiting one’s desires to just that. He encouraged people to make carefully considered decisions rather than impulsive ones and to govern their emotions and desires wisely. Ultimately, this leadership philosophy emphasizes the importance of doing what is right, accepting what happens, and speaking the truth without selfish motives.

Recently, a friend told me about a meeting he attended during the peak of COVID-19, where senior executives in his company were considering cutting benefits and salaries for rank-and-file employees to manage costs during a challenging business environment. However, the executives conveniently forgot to discuss and debate their own benefits and salaries and how they might need to sacrifice more than regular employees to make the cost-cutting measures effective. A component of selfless leadership is sharing the wealth and challenges proportionately amongst all members. Private equity firms often get criticism for aggressive cost-cutting and hoarding the wealth at the top. But recently, companies such as @KKR and @Blackstone have been sharing wealth with their broader teams by providing company stocks to more than just the top executives – another tool in the value creation toolbox.

A renowned Indian philosopher, A. Parthasarathy, outlines three common traits found in leadership – selfish, self-centered, and selfless. A selfish, narcissistic leader is motivated by their egocentric desires. This person is willfully vicious, catering to their personal interests. They plan, scheme, manipulate, and maneuver in their corrupt way of living. A self-centered leader is always thinking about what is in it for them. A selfless leader serves the group for the greater cause. They are less motivated by personal gain but rather inspired to serve others for the collective success of the group. They speak the truth. It is rare to find selfless leadership in our complicated world. When the work is done with a spirit of dedication to higher ideals, it is most satisfying and rewarding to all involved, highlighting the unique value of selfless leadership.

When ethical culture and selfless leadership are absent in an organization, its employees become disenfranchised, which leads to a decline in productivity and engagement. Whether dealing with employees, customers, or business issues, one must do it with integrity, honesty, and positive intent. There are many ways to solve a problem, but there are only a few ways to get it right. Seeing the potential solutions through the broader lens of selfless leadership gives the optimum results.

The traits of selfless leadership can vary depending on context and perspective, but from my experience, the SHIRE model - Servant Leadership, Humility, Integrity, Respect, and Empathy - represents universally recognized qualities. In servant leadership, leaders prioritize their team's needs and growth. Selfless leaders embody humility by acknowledging their limitations and crediting others. Integrity is shown through consistent honesty and ethical behavior. They demonstrate respect by treating everyone with dignity and fostering a culture of mutual appreciation. Lastly, empathy is evident as they listen to, understand, and support others, creating an inclusive work environment.

There is no shortage of leadership advice in the annals of leadership lessons. Leaders often face a choice: to make decisions that benefit most or all stakeholders or to make decisions that are primarily self-serving while pretending to serve a larger purpose. However, leaders sometimes resort to taking shortcuts in decision-making due to the pressure on organizations and their leadership to achieve more with limited resources and human tendencies to prioritize self-interest. This can negatively affect the organization's culture and overall success. Truthfully, there is no shortcut to embracing servant leadership, humility, integrity, respect, and empathy (SHIRE) when making good decisions. Also, self-serving bad decisions cannot be hidden, and their consequences become evident over time, underscoring the importance of adopting selfless leadership practices.

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“First, see clearly. Next, act correctly.” ??- Ryan Holiday.