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Connected Again

         If you have really been around awhile (pre-1990,) you might remember a quarterly Connections newsletter published by PRISM, Inc., the consulting firm I established in 1983.  That was before most newsletters were replaced by e-messages, and before I sold my interests in PRISM to set out on my own again in 1998 as inTEgro, Inc.  Like most else in the '90’s, Connections has been streamlined and will be on the Net (www.integro-inc.com, after July 25).  Also, please think of this more as a "periodical" than a "newsletter," since I will distribute it periodically – whenever I think I have something of interest to pass along.

         If we have worked together before, I hope this premiere issue is a reminder and update of what I am working on and why. If we haven’t, I hope it serves as a useful introduction.


Integrity is Fundamental

         I had a wonderful opportunity in 1997 to participate in the Executive To Leader Institute offered by LeaderSource. Part of the experience involved crafting a personal mission statement, which gelled for me after a couple days as "Serving as a catalyst for Integrity." As I shared my evolving interest connecting integrity to organizational health and effectiveness with clients, I got some curious reactions. One client asked me if I had ever considered becoming a minister, which to me implied that matters of integrity were better dealt with at church or in a religious context than in "the real world." Another wondered if I had explored teaching at the college level, implying that integrity and topics relating to ethics were of academic interest, but hardly the stuff that was of concern to practical business executives. A third responded: "Al, God knows that our organization should pay more attention to these kinds of things, but will you be able to make any money?" Well, I am convinced today more than ever that integrity is fundamental not only to long-term organizational health and effectiveness, but to the quality of leadership, our personal lives and communities. It is not just about moral matters better dealt with by churches or of mainly academic interest, but a practical matter that is very much connected to the real world.

         In 1999 Walker Information conducted research validating that attention to integrity is not just a "feel good" matter or the right thing to do, but perhaps one of the most effective strategies for gaining competitive advantage – attracting and retaining talent as well as customers. Their research demonstrated that in terms of how people choose where to work, reputation for integrity and ethics is rated second only to treatment of employees as an influential factor. Three fourths of Walker’s same sample who said they were currently refusing to buy some product or service again cited a firm’s reputation for integrity and ethics as the second most influential factor, behind only service.

         Who knows where personal mission statements or callings to serve in one capacity or another come from? All I knew four years ago was that there was probably something to the "Integrity" call, and that I needed to check it out. I also remembered someone telling me a while back that "often, when we really know what we’re looking for, it finds you." Over the last few years I have had the opportunity to:

  • Co-facilitate CEO forums on organizational integrity and ethics in conjunction with the Minnesota Center for Ethical Business Cultures.
  • Co-facilitate the LeaderSynergy experience offered by LeaderSource to build the authentic leadership capacity of executive teams.
  • Facilitate dozens of experiences for clients to chart direction, form or revitalize teams, develop leaders or address organizational blockages.

         These experiences helped validate four dimensions of integrity that I believe are critical for organizations and leaders:

Identity

         Organizations, teams and individuals occasionally suffer "identity crises" that contribute to dysfunction. "Who are we and why are we here?" may be the oldest of questions and one that some organizations, teams and individuals I serve still wrestle with. A mission statement on the wall or a laminated wallet card doesn’t answer all of the questions or address some of the subtleties. For example, how a physician practice or other healthcare organization comes to really see its primary purpose has implications. Seeing it as primarily a business may suggest different "bottom line" measures than would defining it as a professional association for promoting health in the community, even though mission statements might be nearly identical. Or, as one client asked: "are we in health care choosing to operate as a business, or are we a business that is taking the form of health care?" The realities of the healthcare market these days hardly make that a fair question, but posing it as a catalyst for dialog stimulates important discussion that can lead to more clarity about the real mission and how to measure success.

         Knowing who we are means we know what we value – what we stand for, and also how we define ourselves in relationship to others. Should a business exist solely to maximize shareholder wealth, for example? What is the nature and scope of its responsibilities to employees, the community where it operates, others it impacts around the world and other stakeholders? What are the core values?

 

Authenticity

         If we know who we are, we need to be who we are. I have witnessed physical and emotional health problems when people who are one thing the rest of their lives feel constrained to act differently at work. Other kinds of secrets can make people and organizations sick as well. I think that often I am hired by clients consciously or unconsciously to flush out previous "undiscussables" and make them safer to talk about.

         One of the things that puts people I work with in organizations off the most is when their organization or leader acts inconsistently with who they say they are and what they value. I think that Warren Bennis put it well a number of years ago when he said that the best leaders are "all of a piece," or "tapestries of intentions;" they "walk their talk."

         Technology has given us many new capabilities, but has also made it more difficult to distinguish what is real or authentic from what is not. NASDAQ’s recent plunge reflects how many technology companies and investors lost track of what constitutes real value. Authentic leaders need to see things clearly for what they are, and to distinguish what is true and valuable from what is not. Authentic organizations facilitate truth telling.

         What is true these days? In a global marketplace and multicultural settings, who is to say that certain values or views are correct while others are wrong? On a smaller scale, I have facilitated meetings where multiple factions each argued passionately for what it firmly believed was the truth and only way to look at things. Sure enough, if I can help them relax their assumptions and certainties, sooner or later real dialog usually reveals common ground or at least a path forward that works for all parties.

 

Alignment

         For organizations, teams and leaders that have integrity, everything seems to fit; there is congruence, or a kind of harmony. Just as with fine works of art, architecture or literature, every feature complements the main purpose or message. Occasionally I encounter organizations that are out of alignment, or lose integrity, when they engage in "the folly of expecting A while rewarding B" as Douglas McGregor put it many years ago. A company I am familiar with, for example, touts the importance of teamwork and desires to be an "employer of choice." Its performance evaluation process for engineers in production, which it positions as a "development tool," is primarily peer evaluation – so far, so good. The problem is that the company is now going through downsizing, and guess what they use to a great extent for determining order of layoff: peer evaluations. How far do you think that goes promoting teamwork? Do you think using performance evaluation as a tool for learning and development has any credibility? Another classic example of mixed signals, often encountered in the public sector, is production of voluminous position descriptions and policy manuals while expecting employees to be innovative and customer-responsive.

         Integrity and alignment do not mean staying the same or rigidly adhering to positions. Integrity (Fr. Latin integritas, wholeness) and integration (Fr. Latin integratio, a renewing or restoring) share the same root. To remain whole we must renew; to have integrity we must integrate information about the world around us so we are "in synch" with our environment and customers. While core values and purpose remain stable, strategies should evolve to keep in step and continue being of service. Organizations that are aligned with their external environments and customers are, as Peter Senge put it, learning organizations; they are able to challenge their own mental models.

Accountability

         Integrity means keeping promises. Mission statements, values and goals are important kinds of promises, so staying true to those intentions is fundamental to integrity. Staying true to our intentions means that we need to pay attention to the things that matter, and measure them in some way if we can. Financial goals and budgets are among the easiest things to measure. For that reason, as well as incentives and penalties for meeting or not meeting them, financial indicators typically receive the most attention. We will die for lack of food or water, but we will die quicker for lack of water. Likewise, the consequences for missing financial goals may be quicker, but no more sure than for not living up to more intangible promises like values.

 

         inTEgro has developed a "360°" survey for providing feedback to individuals, teams and organizations around these dimensions of integrity – Identity, Authenticity, Alignment and Accountability. Let me know, and I will be happy to provide you with a sample and more information.

 

         After 25 years of service in organizations and as a consultant to organizations, I have come to agree with Suresh Srivasta and David Cooperrider in their Introduction to Executive Integrity (Jossey Bass, 1988:) "Integrity is the pivotal force behind organizational existence itself. Executive mind is impotent without power, power is dangerous without vision, and neither is lasting or significant in any broad human sense without the force of integrity."

 

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