Windmills In My Mind

By Raghu Kalé — Founder & CEO — Striking Ideas LLC

Conversations on wide-ranging subjects with my Dad opened windows in my mind, and the breeze of reflections blows through even today. My curiosity touched many facets in casual conversations with him from my early days till the day he passed away over a decade ago.

EARLY IMPRESSIONS?

As a growing teenager, on one occasion, I distinctly remember my conversation captured his reflections about upholding principles and acceptable ways in boardrooms and power centers in organizations. He said it all so well: "In the highest echelons of powers, a tendency to favor personalities rather than adherence to prescribed norms exists."

Dad, I miss you.

My conversation with my father took place was well before Enron shook Wall Street and filed for bankruptcy. Later, in another incident, I learned that Siemens paid $1.34 Billion in fines for bribery to secure substantial contracts worldwide. Then followed Volkswagen AG, agreeing to pay € 30 billion in fines and settlements for its diesel cheating scandal. Time magazine published A Complete list of 25 People to Blame for the Financial Crisis — a list of 25 names responsible for the 2008 subprime crisis, a fascinating read of who they are and what they did.

If you are following the news as of today, you will know that trouble in the banking sector in Europe brews — as Bloomberg has reported that?"Deutsche Bank AG’s asset-management arm DWS Group slumped the most in almost 18 months after authorities in the U.S. and Germany began a probe into allegations that the firm exaggerated the environmental or social credentials of some ESG-labeled investment products."?

New York Times casts a headline on Aug 20, 2021 reporting from SIENA, Italy —?"Last month Banca Monte dei Paschi di Siena, the world’s oldest bank, acquired another distinction: Europe’s weakest lender. The bank performed worse than any other in a test of its financial health by European regulators, the latest gloomy chapter in a long-running saga of ill-fated deals, financial shenanigans, criminal wrongdoing and even a mysterious death."

The list is endless. I am sure — personalities played a defining role in each of these scandals.?

Over the years, I have recognized that: In the highest echelons of power centers, the aura of its shadows casts the tone. Between the letter and the spirit, the function for good governance gets crafted. Reality lurks between myth and perception. Humility evaporates in a high octane power environment, and personalities erode from within. Seemingly jolly good folks appear to get consumed by their arrogance and ego that comes with the ivory tower they ascend.

A recent incident shocked me when I heard that — a jolly good fellow we knew — after gracing a high office — now insists that the folks in his office refrain from addressing him by his name but strictly only as "Mr. Chairman." It strikes me as the worst bias towards personality disorder because when arrogance sets in, one can get consumed by the Golden Rule. After all?'One who has the Gold makes the rules.'?

WHAT NEXT?

"All this has happened before. All this will happen again."?The Battlestar Galactica science fiction television series had these opening lines that struck a deep chord with me. Indeed it is about what humans do — we never seem to learn from our mistakes.?

I also know that it is against human nature to ignore once awareness dawns. The power of transparency has its place but, that alone is not enough.?

Many have attempted to elaborate and explain Business Ethics and why it is essential. I have a simpler approach. Just replace the word "business" with "personal." And now the fun begins! I haven't met anybody eager to find friends with the lowest personal ethics. And why should anybody have such satanic and?diabolic?aspirations??

Here's the problem. Perhaps you've heard the phrase: it's just business. We can do that. It's not personal. Personality and business ethics, at many levels, is the same. Some people acquire two behaviors, one in the office and the other for family and friends. Greed in one quadrant and generosity in the other. Perhaps it is an excellent foundation for precipitating tragedy because we haven't learned from all that happened in and around too big to fail the arrogance of the boardroom. Well-known corporate names have bruised their brand due to lack of ethics or for playing lip service to it. Many enterprises have marched the courtrooms and got headlines worldwide for the wrong reasons.

EDUCATION AND ENLIGHTENMENT

Could replacing education with enlightenment turn the new wheels of progress???Educational institutions have a silent uncalled challenge of cultivating leaders for tomorrow. The bar on education is relatively low when we see colossal scandals that beg for enlightened souls as leaders who can be destiny shapers. I have seen some who possess a street-smart demeanor, and I often wonder if that is the secret sauce for long-term success??

The lowest form of compliance I know exists is to abide by the letter of the law. One is not breaking the law – but one can wink and find a way to beat the system. Then thump your chest and say that we are winners and the best, and we did nothing illegal. The lowest breed of businesses has this animal-like tendency.?

Then there are those a shade better. Such an organization aspires to abide by the spirit of the law. Accepting the letter is not a debate.

Then there are those beyond the realms of the letter and spirit of the law. These organizations strive for the highest ethical standards. Organizations are made up of people — people who lead other people. The leadership team of an enterprise is empowered to execute. Every personality is different — the code of ethics is less lucid than the letter of the law. Constant conversations are necessary to sustain an ecosystem that prevails the sensibilities of abiding by the spirit.

It can get even more complicated beyond the realm of ethics as it now begins to penetrate the highest domain. That's what we call morality. The sensibilities of the moral compass are highly personal.?

The hierarchy, as I see, it has, at the lowest layer, the legal codification of laws and its legal framework.?

The second layer is about consciousness around ethical practices and dynamics of group behavior abiding by governance standards that emanate from a code of ethics that sometimes has deep-rooted corporate values — some pay lip service to a fashionable corporate code of ethics.?

The third is a dizzying height with feet on the ground with a solid moral compass. Those who have a foundation of a moral compass with a steadfast anchor in core values and personal integrity are truly rare to find.?

Navy Seals are what they are because they are rooted in professional and personal integrity. A code of ethics and a moral compass to shape the destiny of the cause they serve. If only all boardroom members and leaders, heads of businesses, and every elected member in congress had the same deep-rooted standards of moral compass and ethical standards — the complexion of human progress could drastically get altered.

The idea of enlightenment is central to market capitalism, where the Individual is the dominant factor in the pursuit of self-fulfillment, personal authenticity, and equal opportunity, and going against the grain for the greater good is honored. History is witness that few good men and women have changed the trajectory setting a precedent for many to follow.

50 SHADES WITHIN

The American experiment proves that Individuality is the single most critical building block to elevate progress. There is no denying relevance of this inner force that can shape the destiny of an organization. The classical paradox that has haunted me over the years is a single question:?Are organizations built around people or built by people arranged along the lines of an organizational chart??Even as I pose this question, I know that life is not about digital outcomes, so it is clear that it is a combination of both.

Speaking of celebrating Individuality: numerous inspiring legends show us how a few good men and women have altered the trajectory of human progress. I see Steve Jobs, Mother Teresa, Marie Curie, Nelson Mandela, Mahatma Gandhi, JN Tata, and many others as Destiny Shapers. Their deeds are etched in my memory and have two common traits: Going against the prescribed norms and being selfless for the greater good of humanity.

Now, turning to the diagonally opposite to a selfless demeanor, some aggressively lead, manipulate, and muster their way by portraying — their existence —as a gift to humankind, which has scarred humanity's credibility. Some dictators plunged the nation into chaos, and there is no need to elaborate further. To mention just a few:?Charles Ponzi?and?Elizabeth Holmes, who lured many as she faces a trial and will face the jury verdict soon.

Then there is the third category: some prefer to stay under the radar and use others as surrogates sitting in their high offices by awarding someone else a position. Just because sitting in the high office, they want to manage or govern by remote control. They prefer to have a surrogate to be the face as the surrogate will not go against the will of the master and execute the master's plan. It is the ugliest and dangerous form of execution with no accountability for the action and no responsibility for the outcomes. It is difficult, with life-threatening consequences, because such acts destroy the career and life of an individual who puts all the faith and trust and gets carried away by self-empowerment to please the master. In some instances, that individual faces a prison sentence for all the wrong-doing by falling victim to personal ambition.?This has happened before and will happen again.

WHERE DO WE GO FROM HERE?

The unwritten social contract that power centers and businesses have with humanity is incomprehensible. It is not defined; it is elusive. Noble intentions to formulate frameworks and interventions such as Environmental, Social, and Governance (ESG) Criteria, several Excellence awards, and everything in between is all about progress in the right direction. But then the crux of the matter is that: In the highest echelons of powers, a tendency to favor personalities rather than adherence to prescribed processes exists.?

We know that Visionary companies are guided by a core ideology and a sense of purpose preserved over time. Recent history shows that some of the most outstanding companies dissipate their soul by overtly focusing on transactional ways without due attention to its core purpose. When values and heritage are referenced in the past tense and less frequently in everyday business decisions and dilemmas in the C-Suite and boardrooms. Such forces subvert the soul of an organization. Numerous variants of this core idea have made their rounds in re-affirming this fundamental tenet of human latitude in decision making. Whenever human interaction occurs in any walk of life, the basic principles of accommodation and adjustment persist. Most successful companies find a way to permeate these characteristics into their work culture internally and externally.?

At Striking Ideas, we have devised an approach to instill consciousness with a new vantage point and open a new conversation. We are enhancing timeless resilience and building stakeholder relationships.

The L&S? Engagement is about shining a light upon 'values' for their relevance and enabling the strategic intent to instill a?values-based spirit?within the organization by subverting the blind spots to nurture loyalty and build resilience with stakeholder relationships with The L&S? engagement. We may not solve all the pitfalls sketched in the windmills in my mind, but we are confident we can move the needle to secure a better ground for those willing to engage. Striking Ideas introduces new vantage points and supports corporate leaders by bringing their unique capabilities to business enterprises around the world.

The breadth and scope of human dimensions are far and wide within the realm of business arrangements. Although business is built on a transactional mindset, its foundation goes far beyond the non-transactional capacity to serve the common good for humanity. These are not abstract concepts. These are everyday occurrences. Between a healthy EQ and a robust IQ, the C-Suite can do far more to shape the organization's soul as custodians of its destiny.?

REFERENCES