Effective Leadership and Management

Organizations need an effective leadership and management approach so that the right activities occur throughout the enterprise, and the organization as a whole benefits.

Effective Leadership and Management: Sinek and ″Leaders Eat Last″

Simon Sinek, author of Start with Why, emphasizes in his newer book, Leaders Eat Last, that organizations need to highlight the human need to feel safe.  Leaders, not unlike many military combat units, should strive to create teams that form life bonds. Sinek states that with the formulation of this type of bond people will do whatever it takes to protect the organization and advance everyone′s wellbeing. However, organizations can have difficulty creating this ″circle of safety.″

In Leaders Eat Last, Sinek stated that some companies have had leaders who have overcome this challenge: 3M, Costco, and Southwest Airlines. The view for these organizations has pointed to the horizon, not to immediate gain.  The long-term view can yield remarkable results through a safe and more stable work environment and teams that are highly engaged. These organizations have a quite different culture from that experienced by many companies in a decade of greed and tactics, where only short-term gains were the measurement of success.

This article will address highlights of Sinek’s book and how organizations can create a culture that leads to the 3Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time.

Effective Leadership and Management: Chemistry of the Brain

Sinek believes that brain chemistry plays a major role in the dynamics of a business environment. Five chemicals highlighted in his book for the creation or destruction of this environment are:

  • Endorphins: The principle function of endorphins is to inhibit the transmission of pain signals; they may also produce a feeling of euphoria.
  • Dopamine: Most types of reward increase the level of dopamine in the brain, and a variety of addictive drugs increase dopamine neuronal activity.
  • Serotonin: Serotonin is popularly thought to be a contributor to feelings of well-being and happiness.
  • Oxytocin: Oxytocin is sometimes referred to as the “bonding hormone.”
  • Cortisol: Cortisol is released in response to stress and blood glucose level.

Sinek considers endorphins and dopamine to be two selfish chemicals; i.e., endorphins mask physical pain with pleasure, while dopamine creates a feeling of satisfaction that is achieved after one has completed a task.

A brain surge of dopamine can result in a progress incentive, which isn’t necessarily bad; however, dopamine can be addictive. For example, if an organization gives focus to meeting the goal-based numbers (e.g., through red-yellow-green scorecards), dopamine is the primary means of the reward. Members of the organization can become addicted to “meeting-the- numbers”- arbitrary goals, rather than to motivating the people involved to do better, which is far more important.

Sinek described two not-so-selfish brain chemicals as being serotonin and oxytocin. Serotonincan be considered the leadership chemical; i.e., when someone likes or respect a person, it creates a general feeling of pride and well-being.. Sinek describes oxytocin as a contagious chemical that is responsible for love, friendship, and deep feelings of trust.

Sinek also discusses cortisol which increases in individuals when there is confrontation in an organization.  Cortisol curbs nonessential or detrimental human functions in a fight-or-flight situation. Cortisol involves a complex natural alarm system that communicates with regions of the brain that control mood, motivation, and fear. All these emotions, especially when they are frequently experienced, can impact one′s effectiveness.

Effective Leadership and Management: Brain Chemistry and Organizational Culture

Let’s now consider how the above chemicals can impact the culture of a company. Sinek states that leadership should address brain-chemical formulation to create an effective culture that gives focus to people.  In this balancing act, dopamine cannot be the primary driver; otherwise people will not be first in an organization. According to Sinek, over 80% of people have job dissatisfaction and it is the leader′s job to create a culture where people feel that they are loved, safe, and fulfilled.

Sinek wants leaders to create direction toward building a business, which provides a stable human environment in which all employees benefit and shared excellence is achieved.

Effective Leadership and Management: The Challenges

Sinek makes some very good points about brain chemistry and management in his book, Leaders Eat Last.  What organizations need is a system that can help leaders achieve a good chemistry balance so that both people and business needs are met.  If no structured system is used, an organization may be successful for a period of time when there is an effective leader; however, without an established long-lasting system, the organization could stumble when leadership changes.

One issue that is prevalent in many organizations is: meet the numbers at a designated point in time or else.  A goal achievement might be tied to a financial award.  The problem with this approach is that often any improvements thought associated with this goal are not long lasting. In addition, Sinek′s chemistry balance is jeopardized.

Organizations need goals; however, often a structured process improvement effort is not associated with the achievement of these goals.

Effective Leadership and Management: Creating a Long-lasting System

Effective leadership and management needs a system that provides performance metrics that have a balanced-mind chemistry so that they lead to the most appropriate behaviors that benefit the organization as a whole and its teams.

Fundamental problems that occur in organizations include some aspects of traditional scorecard reporting. These report-outs can lead to firefighting, frustration, and/or playing games with the numbers, which can result in triggering of endorphins and dopamine (i.e., Sinek’s two selfish chemicals), along with cortisol.  These chemicals can also be triggered when there is frustration with organizational improvement efforts that are not systematically addressed or carried through.

A system is needed where both short-term tracking of performance metrics and long-term metric tracking exists.  This metric balance needs to lead to the not-so-selfish brain chemicals (serotonin and oxytocin) prevailing so that the organization as a whole benefits.

The Integrated Enterprise Excellence (IEE) system provides a means for accomplishing effective leadership and management, along with a healthy brain chemistry balance.

Effective Leadership and Management - IEE System