Decision making and acting fairly
The key to sustaining a purpose-led culture is the way in which decisions are made and communicated. Especially when times are hard, there may well be no straightforward purpose-led option, and some trade-offs are always inevitable. In such situations, it is important to recognise that being purpose-led matters. The purpose sets the direction of travel and shapes how difficult decisions are made, including the quality of dialogue in reaching the decisions, and the care and consideration given to all affected.
Then there is the question of who decides. The principle of subsidiarity which is one of the behaviours in the Blueprint Framework, speaks to the importance of delegation, trusting and enabling others in decision taking to help them thrive and grow. Clearly, this needs to be done in an appropriate way, but delegating the decision making invites people to contribute and take responsibility, builds trust and fosters innovation, creativity and a sense of shared responsibility. As many businesses found during the COVID pandemic, clarity of shared purpose and delegation through changes in working practices have created powerfully positive and liberating patterns of working, releasing energy and building shared trust.
Vas Narasimhan and author Dan Pink talk culture and leadership in this video [4 minute watch]
This discussion on leadership and culture culminates with the message that leaders should talk less and listen more and start with the premise that people are autonomous and trustworthy.
In facing very difficult business decisions, it is always possible for a business to act fairly in pursuit of its purpose. Many genuine business dilemmas are about justice – ways in which different people, parties, employees or stakeholders are potentially being treated fairly or unfairly. And whilst a business cannot always be fair to everyone, it is possible for a business to act fairly when decisions are made, and to avoid manifest unfairness to anyone.
There are three elements to acting fairly:
- The frame of mind in which a decision is made
- The process used to take a decision
- The outcome of the decision
The frame of mind refers to how the decision taker is approaching the decision – what are they really seeking to achieve, and what (perhaps conflicting) motivations do they have. Reflective leaders take the time to approach a major decision from a place of inner freedom. – that is, striving for a degree of detachment, objectivity and balance. The process of consulting, seeking different perspectives to challenge partiality is crucial. For major decisions, businesses need also to consider the wider social context in which a decision is viewed by others in society and consider fairness from an external perspective. The emphasis on seeking to act fairly is a powerful expression of the desire of a business to be purpose-led – respecting the dignity of each person affected by a decision as a someone not a something.
Fairness is discussed in more detail in this paper: Fairness in Business.