It is safe to say today that “times they are a changing” at an unprecedented scale. Across all industries we are being bombarded with both challenges and opportunities at an exponential rate. These changes include not just technology but also business cultural norms. In this article, I outline the business cultural shift we have made in recent years both in terms of leadership power structures and in compensation.
The Servant as Leader
For those who have not yet read Robert Greenleaf’s 1970 essay “The Servant as Leader”, I recommend you do. His inspiration came from Herman Hesse’s book Journey to the East where the central character Leo is introduced as the party servant who does all the menial chores but who also sustains them with his spirit and song. When any trouble arose though, it was Leo who everyone looked to for guidance and wisdom. Leo was both a humble servant and the most critical person on the journey so much so that when he was called away, the mission failed. Later in the book the narrator discovers Leo is the guiding spirit and noble leader of the order that sponsored the journey. Leo was always the leader of the journey but deep down in his heart he was a servant first.
As part of our student intern interview process, I ask the brightest Gen-Z candidates to briefly research Servant Leadership and provide me with their take. The concept speaks very well to the vast majority of candidates with the most common response being “it flips traditional power structure on its head” which is apropos. Greenleaf’s take on leadership does this entirely with the elimination of coercion and a focus on personal support. For an organizational leader to truly be a servant requires complete humility as the first step. Only through this humility can leadership truly care for their fellow teammates. It is this level of empathy and care that younger employees are searching for today.
“A new moral principle is emerging which holds that the only authority deserving one’s allegiance is that which is freely and knowingly granted by the led to the leader in response to, and in proportion to, the clearly evident servant stature of the leader. Those who choose to follow this principle will not casually accept the authority of existing institutions. Rather, they will freely respond only to individuals who are chosen as leaders because they are proven and trusted as servants. To the extent that this principle prevails in the future, the only truly viable institutions will be those that are predominantly servant-led.”
– Robert Greenleaf, The Servant as Leader
The main criticism is the apparent contradiction of terms but that only holds true in the paradigm of traditional power structures. Ultimately for leaders the choice is, are you a leader first or are you a servant first? Essentially this question comes down to is your own personal sense of self gravitas more important than the needs of those you serve? Put this way, it is clear the truly fulfilling path is the one where you elevate others even at the expense of your own ego. Not only will this mindset lead to personal enlightenment but it also sets the best example for your team who look to you for guidance. Do you want your employees approaching your clients with a self-important ego or do you want them to put customer needs first with compassion and empathy? As a leader, this fundamental choice is yours. The leader first is a self-righteous path and the servant first is the righteous one.
Fundamental Fairness
Now, with a mindset of servant first this leads to a strong desire for fairness. You naturally want those you care for to be treated with respect and fairness not just in how they are treated but also in work life balance and compensation. The natural extension of this mindset is a profit-sharing business model. This satisfies your spiritual need as a servant first leader and it proves your authenticity. Each industry is different so it is important to find the right balance to satisfy the fairness mandate while also maintaining business viability. It is a common trope to say customers for life but what about employees for life? Fundamental fairness and openness are the answer.
As a rapidly growing consultancy, I put a lot of thought into what this balance looks like for John Consulting. For work/life balance, I decided to provide a minimum of 3 weeks PTO plus holidays for entry-level employees with increases to 5 weeks PTO for employees with tenure. For compensation, we provide performing entry-level employees with 40% of their personal productivity paid as quarterly bonuses. These increase to 50% for tenured employees. Additionally, team leaders also receive up to 5% of their performing team member's generated revenue as well as a share of product sales. As the popular saying goes, a rising tide raises all ships.
Times are indeed changing and it feels like things are coming full circle. Like in the “old days” the younger generation wants the stability of longer-term employment and they want to feel valued. Employers need motivated, high-performing employees with a great attitude. I say employers and employees can both get these by going back to basics as servant first leaders with a focus on caring for others and basic fairness.
