Viewing entries tagged
Business

Does Business Need Therapists?

Does Business Need Therapists?

Transient

Organizations can become highly functional or dysfunctional for any number of reasons. When highly functional, organizations are capable of beautiful things, both in what they contribute outside their firm and the atmosphere they create within. When highly dysfunctional they can be extremely toxic to everyone involved.

In both cases the effects extend far beyond the intended "audiences." These effects are not only business-related, but affect society at large. For example when a team works well they may develop a product or service that empowers somebody to do their job better and more effectively, but happier people are also more likely to make better decisions, think more clearly, and be more creative in their solutions. A toxic environment is one in which it becomes much more difficult for people to behave in productive ways. Toxic environments produce situations where there is a lack of trust, people feel as though they must fend for themselves, and a shared mission all but ceases to exist. Which workplace would you prefer the coach of your child’s little league team spend the majority of their waking hours?

In what ways can we create and foster business environments that are suitable for human beings? How can we encourage us to think within organizations about how to look at the way we impact society? We say things like, “think globally, act locally” but what does that really mean when we still throw around terms like “externalities?” We have business coaches, consultants, and trainers. Is it time to seriously consider business therapists?

Taking Ownership of "Externalities"

This post may also be read at Red, Brown, and Blue—a multicultural political commentary news site.

pollution.jpg

Ewww, gross! I know, I know. If you’re like most people you probably don’t want to think, hear, see, or say the term.

I think it’s funny, not so much that the study of economics is inherently humorous, but rather that we have taken something so nuanced and complex and simplified our understanding of it to nothing more than “supply and demand.” It’s about time we became more critical of a system that has such wide-ranging effects in our lives and helps shape the way we see and interact with the world. It’s about time we became more creative in the ways we address the economic issues that have plagued us for so long that the terminology has infiltrated common language (e.g., market, globalization, economy, interest rates, taxes, etc.).

After losing interest in economics during my undergraduate studies, it was renewed the moment I discovered Steven Levitt’s Freakonomics (I definitely recommend the book and the podcast,Freakanomics Radio). As I read the book I kept thinking, “Yeah, this is an economic analysis of this situation.” Although I enjoyed the book, I couldn’t put my finger on quite what it was that made it feel like such an important read. Of course the author kept the narrative interesting—in it he writes about sex, drugs, crime, and poverty. If he had added gummy bears I’d be all in. I finally realized, though, I found his relentless questioning of established institutions the most important constant. Many of us have lost our childlike drive to ask questions. After being told something so many times, we eventually believe “it is what it is.”

The problem with passively accepting what we’re told is that, in doing so, we perpetuate and excuse a lack of understanding and appreciation of the subject matter. We often see this lack of understanding manifested as stereotypes. Now, sure, the average person needs to know exactly how a Lorenz curve describes equality about as much as the average person needs to be able to explain every part of the process that makes your hair stand up when you drag your feet across carpet or play with balloons. However, we do need a basic understanding of economic concepts. The oversimplification of economics is detrimental because it allows us to be complacent when we should be active. We tend to accept things to be true just because we have been told that in some way, shape, or form we will inevitably reach equilibrium. We believe that it will all just work itself out. This thinking is dangerous.

We live in a society where unemployment, deaths of workers, and irreversible environmental and economic damage are considered externalities (which means a secondary or unintended consequence) that need to be internalized by paying settlements and fees rather than providing a system of change to prevent them from occurring in the first place.

Let’s delve a little deeper into the concept of externalities. Wikipedia says: “In economics, an externality (or transaction spillover) is a cost or benefit, not transmitted through prices, incurred by a party who did not agree to the action causing the cost or benefit. A benefit in this case is called a positive externality or external benefit, while a cost is called a negative externality or external cost.”

According to this definition, if we must reduce potable water in a rural town by 30 percent, subject marginalized communities to inhumane working conditions, or convert once lush lands into toxic waste dumps in order to produce goods for our ever-increasing consumption diet, then it just “is what it is.” What’s ironic is that this concept only truly applies to industrial and commercial organizations. If, for example, I caused half as much damage in the pursuit my own success, those “incurred costs” wouldn’t be called externalities—they’d be called crimes. While some of those crimes might only require I pay a fine or commit to community service, many would call for my incarceration. The real difference is that I wouldn’t be permitted to repeatedly commit those crimes, whereas businesses are. Now, I am not anti-business or anti-corporation. I think that a lot of companies are doing a lot of good things. I think, for the most part, we are doing the best with what we know.  But there is always room for improvement, always a reason to strive for better.

The preliminary count of fatal work injuries in the U.S. in 2010 was 4,547 (Bureau of Labor Statistics). I think we owe it to at least 4,547 families to keep working. They’re not externalities. They’re people. Let’s really look at the economic and value systems we have in place and make them better. Take action. Make changes. Make them work for us, not the other way around.

The True Mark Of A Leader Is Knowing When To Follow

Why are you trying to do that by yourself?

Sometimes, the true mark of a leader is knowing when to follow. We are taught from early on that leadership is to be valued and followership dismissed. We vote student body officers and make heroes out of historical figures based on their courageous acts, intuition, dedication and, you guessed it, leadership. While these characteristics are to be acknowledged - even celebrated, knowing how to let somebody take the lead when they are better suited is a sign of true leadership capabilities.

Letting go of control is always difficult, yet many times, is the right thing to do. Many companies have become irrelevant and fallen because the CEO doesn’t know when it’s time to hand responsibilities over to somebody who is more in tune with the current climate. Generals have lost battles because they commanded when they shouldn’t have. It can be difficult to think beyond yourself. Leading in a situation for which you are not qualified only exposes the fallacies that are inherent in every human being. Everybody has their strengths and weaknesses. True leaders know this and embrace it. When it is their time to lead, they lead. When it’s not, they select the best people for the job.

Stepping aside, whether temporary or permanent, doesn’t make you irrelevant. It makes you responsible for allowing the best course of action to take place. It makes you a hero.

Are you being the best leader you can be?