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Banff Executive Leadership News
- Issue 17 - April 2004
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It seems stewardship is at once both a simple concept and yet a difficult one to actualize. As senior executives and Board members, it is a particularly important calling upon which to reflect. For if stewardship is to be anyone's responsibility it must first start with you. Clearly, executives
and directors of government bodies, privately held companies,
As you can see, we often have a sense for what it means - but incompletely so. Religions of many forms have tried to teach stewardship to each new generation. However, with fewer individuals regularly partaking in religious practice today, these stewardship lessons are starting to miss mainstream western society. Some indigenous cultures have taught through stories and ceremony, "Seven Generational Thinking". This means to project-forward seven generations to foresee the impacts of your decisions on your grandchildren's, grand children's, grand children. The first few bullet points of definition above are positive, partial elements of stewardship. But, by themselves they are not sufficient. The last few bullet points start to get closer to representing the full concept - especially the final one. Perhaps one definition that is thought provoking and useful comes from Ted Mollegen, an Episcopalian Minister, who has a website dedicated to the topic (see web-link below). Stewardship means being in charge of something that is entrusted to you, but not your own possession, It implies accountability
to the true owner for what we do with and how we ensure a return on the
things we are in charge of, such as:
Peter Block in "Stewardship - Choosing Service over Self-Interest" suggests: Stewardship is an alternative to leadership. Stewardship asks us to be deeply accountable for the outcomes of an institution, without acting to define purpose of others, control others, or take care of others. It can be most simply defined as giving order to the dispersion of power. An organization called "The Stewardship" adds: Stewardship is a force in the universe which acts to preserve the universe from harm - which takes place through the actions and the will of individuals. Finally, the Alliance for Regional Stewardship contributes: Stewards are committed
to the long-term well being of their region and recognize the interdependencies
between four spheres:
What is particularly exemplary from these diverse sources is the recognition of both financial, as well as other elements. Clearly stewardship goes beyond only fiscal concerns. Stewardship in
the Public Domain Many of the senior bureaucrats I have been fortunate to work with over the years (in several countries) have shown a strong commitment to and sense of stewardship in their work. This sense of stewardship (by name and action) seems stronger than in their counterparts in business and other organizations. It is not uncommon for those in government to actualize the concept through the development of 50 year strategic plans; to give careful thought to long-term preservation and protection of national parks, wildlife and natural resources; or to facilitate multi-party agreements towards sustainable communities, knowledge and innovation sharing, and social development. Indeed, we often wait for, or expect, government leaders to legislate practices, standards, etc. having considered the various tradeoffs between short-term gain for the few and longer term care and stewardship concerns. Most politicians come to their role with a passion for "making a difference" or creating long-lasting impact around a particular challenge. And, while this is a powerful motivation for policy development and electioneering, this passion must often be tempered by a broader understanding, systems/network-thinking, and impact analysis when given the responsibilities of power and stewardship. Leadership and stewardship in this domain is characterized by doing what is "right" and beneficial to the citizenry over the long-term, rather than just what is popular in the short-term. This suggests the need for regularly educating community on issues, open communication, and transparency of decision-making as crucial components to effective stewardship in the public domain. The Corporate Domain This said, it appears recently that more shareholders, pension funds and the citizenry at large see the fallacy of such short-term thinking and are starting to demand (especially with shares trading at 30-times annual earnings), answers to long-term sustainability concerns. Such concerns include: plans for sustained profitability and dividends, reasonable growth; innovation-driven product/service replacement; local jobs vs. global outsourcing; environmental liabilities and bio-mimicry manufacturing; succession in leadership and professional expertise. Imagine the changes to corporate governance and leadership if we started considering the decision-making impact on seven generations of shareholders! In the manufacturing
sector for example, stewardship-in-action would have corporations engaged
in total product lifecycle management. Companies like Ford and Nike are
now working with noted architect William McDonough to implement the principal
that: In North America, there exists The Product Stewardship Institute (web-link below). This group assists regional and local government agencies to establish co-operative agreements with industry and develop initiatives to reduce the health and environmental impacts from consumer products. For years now, European countries have required manufacturers to design products that could be shipped to consumers without wasteful packaging - a practice yet to be adopted in North America. Some North American jurisdictions have required paint manufacturers to work with retailers to ensure that consumers can simply return unused paint to their retailer for disposal. Sadly, many of these stewardship practices have not been applied in lesser developed areas of Asia, South America, and Africa - making them somewhat of a dumping ground for western prosperity's garbage and resource extraction toxins. This presents both a leadership and stewardship "test" to global companies that work across these different regions. And, admittedly there are some complexities involved. However, will the corporate governance bodies and executive leaderships assert stewardship to ensure that say, the European standards of total life-cycle management and packaging are adapted equally in Asia and North America? Similar stewardship "tests" exist in other business sectors in such areas as: reclamation of flora/fauna in mine sites; down-wind health issues from oil and gas exploration/extraction; energy and eco-friendly practices in hospitality, energy reduction and packaging in the service sectors - all the while still ensuring profitability and "return" to their owners. The Association
Domain
Yet again, these mandates do have striking similarities. And, if they are not for profit, what are they for? I would suggest the provocative question for association/leaders and governors to examine today would be:
I think most members of a community expect associations to really contribute something beyond solely service to the members. And, think of the exciting and highly valuable stewardship contribution to society these associations could make.
Religions Congregations A look through the voluminous literature and references regarding stewardship in this domain begs the question - why has so much of "stewardship" talk in congregations and the religious hierarchy become only about money? Stewards are seen primarily as fund-raisers and collectors, with the topic of tithing, closely linked. Sure, sustainable congregations and institutions require a flow of funds. And, the funds have to support value creation and community stewarding practices in an active manner that is truly visible and appreciated. However, congregations which focus first on providing sustained support, guidance and facilitating service to community, see vitality in membership and funding-financial sustainability. Similar to associations, congregations and religious institutions have to be seen to be making a difference in the community. This might include cross-connects to health care, social services and more as a base for: meals-on wheels; specialty counseling, support for AIDS groups, diabetes and others; providing a home for youth groups while also injecting some important values, ethics and spiritual understanding, even leadership development of the next generation or community at large. Outreach and In-reach simultaneously! Stewardship practices in the religious domain have to strive toward being tangible and broadly valued just as in any other sector. The Stewardship-Leadership
Link It could be argued that the average individual who is working hard to earn a living, improve the standard of living for their family, and trying to give to their children a better opportunity in life than they had, does so with an inherent sense of micro-stewardship for their family. However, we can unwittingly do this to the detriment of broader stewardship at the community, national, and international levels. It is up to our senior executives and those in governance roles to see the bigger picture, to access wider perspectives, knowledge and information, and to action stewardship on behalf of those who have entrusted additional resources to their care. Those with more resources, have a lager stewardship responsibility. Being given power and charge over something which is entrusted to us, but not our possession, is both an honor and a privilege. It also carries with it an awesome responsibility and requirement for accountability to ensure we recognize the interdependencies of economy, community, social inclusion, environment and health. And, in so doing, make decisions that support not only financial return but also allow us to proudly talk to our grandchildren in our later years about the sustainable legacy we have left for them to steward further for their grandchildren. Banff Executive Leadership Inc. offers public and customized programming to improve Board Governance and Executive Leadership Practices. We also provide coaching and consulting services to Boards and Executives to help enhance their leadership practices. Please contact us if we can be of further assistance. If you found this article useful, please forward the article's web link to a friend!
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