Leading for the Long Haul: Mintzberg & Gosling on Regenerative Leadership’s Benefits for Your Business

Nearsighted leaders can be fatal.?

In the U.S. and several other countries, leaders – particularly in business – tend to take very short-term views. The next quarterly earnings report rules all. The next election matters more than legislation. But as the American automobile industry proved in 2008-2009, those near-term views eventually kill a company.

That’s when General Motors and Chrysler floundered, going into bankruptcy and requiring multi-billion dollar government bailouts to stay alive. But not Ford.

According to Greg Moran, a former Ford senior exec, their leaders kept a focus on long-term health over short-term gains. Back then, it was called “smart.” Today, we see it as an early form of regenerative leadership.?

Our podcast guests Henry Mintzberg and Jonathan Gosling detailed the definition (and benefits) of regenerative leadership. Broadly, it means keeping an eye on the long-term future instead of focusing on those short-term gains. It’s perfect for these chaotic, VUCA times; regenerative leadership encourages deep adaptation. We must evolve or risk collapse. Nor is it directionless – the ultimate goal is to restore balance, rather than mindlessly sustaining current systems.

Breaking free of the status quo is always difficult. How do you shift from today’s short-termism to become a regenerative leader?

Start by digging below surface issues to find their root causes. Treating symptoms is easy and fast (“Let’s have an office cookout to boost morale!”), but the costly problems return without taking the time to cure the disease (“Engagement and productivity are back to all-time lows already?!”). Root causes tend to be systemic. That’s why they take long-term effort to reform.?

Next, look at your organization’s pressure points. In the private sector, does stock market pressure for immediate returns prevent investing in the company’s future through R&D, infrastructure improvements, or new talent? Similarly in the non-profit world, does your board make you live fundraiser-to-fundraiser? Incentives may reflect this in both worlds: are senior execs rewarded for stability, or do their bonuses hinge on quarterly financials??

More directly, on a personal level:

• Develop self-awareness. Understand when you’re making a short-term decision out of convenience; step back and assess how your decision will look in a year or a decade from now. Do your own biases (we all have them) taint your decisions? What systems are you maintaining…or disrupting?
• Redefine success for the organization. Move beyond quarterly profit metrics. What ensures strong financials AND strong employee engagement over the years? What’s your social and environmental impact? As we’re seeing in California this week with State Farm Insurance’s filing for post-fire rate increases, environmental and climate issues are social and business issues.
• Champion ethical influence. Corporate or non-profit, we don’t operate in a vacuum. How we treat our people and our communities impacts our organizations’ health, too. Recognize the impact of your power structures.
• Redefine success for you. This is already underway for many of us. The Great Resignation a few years ago showed that large numbers of workers define success in ways beyond salary and bonus: flexibility, fulfillment, benefits, time for family or volunteering, work-life balance – seeing success differently leads to different impacts on family, community, and the environment. With this lens, you begin rebalancing yourself.

Rebalancing yourself and your organization moves you toward rebalancing society. Ford proved regenerative leadership works. They’re far from alone. Mars Incorporated, Lego, Tata, and more show that long-term vantages provide greater stability and, over time, profitability. But by redefining success beyond profit, a bigger truth emerges:

Leadership is not just about managing organizations, but shaping society.

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This article was adapted by Dan Mushalko from our podcast episode How Your Leadership Can Rebalance Society - Solutions from Henry Mintzberg & Jonathan Gosling.

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