7 Virtues of the 21st Century Organization

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My current Weekly Leader series is on the 7 Virtues of the 21st Century Organization. Check here, here and here

The 7 Virtues are a system of values that can be used to improve the functioning of an organization.

7 Virtues 21stOrg

In this post, I look at the 7 Virtues through the lens of the Circle of Impact Leadership Guides. The Circle of Impact is built around two sets of ideas. The first is that all leaders must address themselves to the Three Dimensions of Leadership: Ideas, Relationships and Structure. The key is to align the three so that they work together. The way this alignment is achieved is by being absolutely clear about the Four Connecting Ideas: Values, Purpose, Vision, and Impact. The key here is that every facet of the organization is focused on Impact, which is defined as change or a difference that matters.

Impact as change or the difference that matters is a very general definition. This means that each organization, and each division within it must define for their own purposes what impact means. As a function of leadership, this requires each person within the organization to be able to state the impact that they seek to create by their work within the system. This is how leadership becomes a shared responsibility, and not simply a positional one.

Circle of Impact- simple

The 7 Virtues

 1. Collaboratively-led:

This idea encompasses the other six virtues into a singular perspective that defines what it means to be collaborative. It means that a collaborative leader will focus on aligning the three dimensions and the four connecting ideas so that the people who are a part of the social and organization structures may have relationships that enable them to fulfill their shared vision for impact. This is what a collaborative leader does.

2. Decentralized, local control:

This function of the structure of the organization, created by policy governance and design, establishes a system of communication and accountability, built around collaboration.

3. Long tail internal operational structures:

This is a function of the alignment of structure with relationships. This means that the people who are bound to one another by a clear purpose and set of values have the freedom and may take the initiative to organize how they work together.

4. Purpose-driven organic adaptability:

This is also a function of the alignment of structure and relationships. In this context, the group or team adapts freely and with great agility to changing circumstances in order to keep their purpose foremost in their relationships.

5. Relational-asset based:

It may seem that this is a function of the relationships, and at one level it is, but the importance to treating the group or company's network of relationships as a relational asset is that these connections bring value that does not exist when the people of an organization are viewed as human resources. Relational resources are the assets to come from having a large, diverse, and widely dispersed network of relationships that feed information, insight, talent and business to the organization. From a structural point of view this is a fourth classification of resources, along side the financial, material, and human. The higher level of collaboration that takes place through these relational assets, the great value they bring to the company. These assets are what are commonly understood as social capital.

6. Values that are operational:

This a function of the alignment of the Ideas and Relationships dimensions with the Structural. Values, which inform an organization's purpose, is the core strength of a business. It is the only thing that is unchangeable. An organization's purpose can change as circumstances change. The structure can change to remained aligned with a vision that is constantly adapting to the current context of business. But the values of a company remain constant, though not necessarily acknowledged or practiced. This virtue, therefore, focuses on applying the company's values operationally. This done by asking the question how are our values represented in this decision or this policy? The greater alignment between values and practice, the greater the integrity, confidence and impact from the collaborative work of the people of the company.

7. Ownership culture of giving:

This virtue is a function of the whole community of the company.  It is the responsibility of the company's leadership to foster a culture of giving. The aim is to encourage people create a culture of giving through their own initiative and expression of gratitude. This is the kind of culture that is represented in the Five Actions of Gratitude (Say Thanks Every Day).

The complaint that I've heard over the years about a more relationally oriented business structure is that these are soft skills, not the hard skills of finance. True they aren't the same, but they are also not contradictory either. Create a culture of the 7 Virtues, and you'll see not only a transformed workforce, but a transformed business environment. If you do it sooner than later, you'll be ahead of the curve, and be recognized for leading rather than following.