Ethical companies are stronger and last longer

10 years ago, Posted in Entrepreneurship, Leadership, Point of View

I read an interesting article in BusinessWeek where they referenced Harvard business Professor Beer and his book: High Committment, High Performance.  It looked at companies who achieved long periods of excellence. I found the article particularly refreshing considering how so many companies have lost their way as a result of a short term results mindset and greed.

One of the key takeaways from the research is that firms that win over the long term commit to a “higher purpose”.  This is typically led by the founders of a firm or by a transformational CEO’s who takes over in a crises. According to Beer; Committing to a higher purpose allows these leaders to achieve  the following 3 goals:

1.  Performance alignment: Managing with their head, leaders develop an organizational design, business processes, goals, and measures, and capabilities that are aligned with a focused, winning strategy.

2.  Psychological alignment: Managing with their heart, leaders create a firm that provides employees at all levels with a sense of higher purpose, meaning, challenging work, and the capacity to make a difference, something that people desperately need

3.  Capacity for learning and change: By keeping their egos in check, leaders of HCHP firms are able to avoid defensiveness and resulting blindness.

So what is our higher purpose at BuildDirect?  Transformation – To create a global business that positively transforms the building industry, our communities and all the people who join us in the adventure.


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