A New Paradigm: Successful Leadership Beyond The Bottom Line
Have you ever noticed that many leadership experts and coaches often draw parallels between the world of leadership and that of professional sports?
Why is that?
Perhaps because sports analogies evoke a sense of teamwork, effort, and victory.
However, my next guest on the extra-Ordinary Leaders podcast, the wonderful Fabrice Desmarescaux, author of the highly rated The Art of Retreats: A Leader's Journey Toward Clarity, Balance And Purpose, points out that these analogies often oversimplify the complexities of leadership.
Partner at McKinsey & Company and with extensive experience in leadership development, Fabrice and I delved into an intriguing exploration of how we can challenge traditional notions of leadership and encourage a more nuanced discussion of what exactly makes effective – or rather, extra-Ordinary – leaders.
Changing the conversation
In sports, the goals are typically clear: essentially, your sole aim is to win the game whilst adhering to predefined rules.
In contrast, leadership in the corporate world involves navigating a constantly changing environment where the rules are far from clear and the goals extend beyond simple win-lose scenarios.
This distinction highlights something that is, unfortunately, rife in many organisations – the laser-like focus many leaders have on the ‘end result’ (be it profits, KPIs, or the bottom line) without considering the sustainable practices needed to nurture a company’s long-term health.
Rethinking the bottom line: profit vs. wellness
The "bottom line" has traditionally been considered the ultimate measure of a company’s success. However, this focus can lead to short-term thinking and strategies that sacrifice employee well-being and long-term sustainability for immediate financial gain. Fabrice emphasised the importance of questioning how much we worship the bottom line and whether it should be the sole focus of business endeavours, advocating instead for “deep, generative conversations.”
Fabrice: “Everything starts with the quality of the conversation we're having with the team. Very few teams have... conversations where they truly listen to each other and truly create a safe space to debate, disagree, hear every voice in the room."
In practice, this means regularly scheduling meetings not just to go over numbers or KPIs, but to ask open-ended questions that probe deeper into team dynamics, personal challenges, and new ideas. Leaders should aim to foster an environment where conversations are not just heard, but actively encouraged and facilitated, allowing every team member to feel valued and heard.
In fact, Fabrice posits, these types of conversations become increasingly difficult the larger a team gets. He sets the number at 15, suggesting that teams larger than this might struggle to create and hold the space necessary for such conversations.
A focus on the bottom line often drives leaders to prioritise short-term gains over long-term sustainability – an approach that, Fabrice argues,has led to significant global challenges, including market instability, environmental destruction, and growing inequalities.
Fabrice advocates for a complete paradigm shift in which leaders embrace a broader array of success indicators. This includes not only financial outcomes but also how well a company takes care of its employees, the environmental impact of its operations, and its contributions to the community. Integrating these factors into the core metrics by which a company measures success can lead to more responsible and ultimately more sustainable business practices.
This is not to suggest that businesses have to choose one or the other – either you focus on the bottom line or you focus on the health and wellbeing of your team. Effective leaders understand that these aspects can – and should – coexist. This approach aligns with the concept of “conscious leadership”, which we’ve covered before on the show, and encourages us to be aware of our impact on not only our internal teams but our stakeholders, communities, and the environment in which we work.
The power of consistent leadership
All of this, however, requires consistency. A holistic, birds-eye view of leadership and the broader impact of our actions requires dedication. It requires an awareness of ethical practices and a long-term view, resisting the temptation to make expedient decisions that may ultimately compromise the company’s core values. It won’t always be easy.
Fabrice: "For me, being a consistent leader is that you remain the same person and you continue applying the same values and principles, even when the going gets tough... It's hard to measure how good a leader we are when things go well, but we're all going to be tested at some point, that's pretty much a certainty of life. Perhaps the markets will turn, a supplier will disappear, we'll lose an account. It's these times when we're tested that we see whether a leader is consistently good."
The challenge, however, is that consistent leadership is hard to maintain. It demands continuous self-reflection and a commitment to personal growth and development. Leaders must consistently engage in self-awareness practices, reflecting on their actions and decisions to ensure they align with their values and the long-term goals of their organisation.
Creating a culture of continuous improvement
Building and leading great teams is foundational to effective leadership. Fabrice pointed out that this involves breaking down silos within organisations and fostering an environment of trust and psychological safety. Leaders should focus on nurturing their teams, promoting a culture where continuous improvement is valued over short-term achievements.
Fabrice: “[There are] multiple indicators of success, including the bottom line, but also including how do we truly take care of our employees? How do we take care of the ecosystem or the environment or the communities in which we operate?”
The well-being of employees, which goes beyond standard benefits, is a cornerstone of any successful company. This means:
Nurturing and encouraging growth
Considering what makes employees feel motivated and valued at work
Investing in career development programs
Being open to more flexible working conditions
Exploring initiatives that enhance work life balance.
This culture encourages team members to innovate and collaborate, contributing to the overall success of the organisation. It requires regular and intentional efforts from leaders, including setting aside time for team development activities, regular feedback sessions, and opportunities for professional growth.
A call for new leadership paradigms
My conversation with Fabrice revealed profound insights into the complexities of leadership and the vast ecosystem within which all organisations operate. Winning, bottom lines, and KPIs are not so much a thing of the past (after all, they are essential for successful businesses) as they are a secondary focus.
By prioritising quality conversations, redefining success metrics, nurturing employees, and finding joy in their role, leaders can drive their organisations toward more ethical and sustainable futures.
As leaders, it’s crucial to continually evaluate and adapt our strategies to ensure we’re not only achieving that long-held traditional view of success, but that we are also making a positive impact on the world around us.
For those interested in more insights on value-led leadership, the full conversation with Fabrice Desmarescaux offers a treasure trove of wisdom and practical advice. It’s a must-listen for anyone committed to elevating their leadership to the extraordinary.
Available here.
