The Currency of EmpathyThe Missing Link to Innovation and Inclusion

Jacqueline Acho, Ph.D.President, The Acho Group

Lightening Round PresentationCEO’s for Cities National Conference

Cincinnati, Ohio; May 17, 2012

WHAT IS INNOVATION?• Individual and collective creativity• Translating creative ideas into practical

new products, services, business models, etc.

• Sustainable growth and renewal, managed concurrently across 3 “horizons”1

• Disruptive technologies and ideas which shift whole industries – creative destruction

• Changing the course of human events1Baghai, Coley, and White; McKinsey & Co, The Alchemy of Growth; 20002 Christensen and Raynor, The Innovator’s Solution, 2003

WHAT IS INCLUSION?• Beyond compliance, diversity, and equity…• Inclusion is “creating an environment where

employees perceive a sense of efficacy, belonging, and value, and where they can lead in driving organizational success”1

• Participation economy

1Professor Diana Bilimoria, Weatherhead/CWRU KeyBank Chairing Ceremony, May 2012

Innovation and Inclusion – How are We Doing?

• “The top-performing 1% of companies create 40% of new jobs.”1

• 1 out of 10 companies sustain above average growth and innovation– Sustaining above average shareholder returns for more than a

few years 2

– Exceeding the growth of their industry for a decade 3

• Inclusion of Women4:– 46.6% U.S. labor force– 16.1% F500 Board Seats– 3.6% F500 CEOs

• Inclusion of African Americans5

– 1% of F500 CEOs 1 Kauffman Foundation, High Growth Firms and the Future of the American Economy, March 2010

2 Christensen and Raynor, The Innovator’s Solution, 20033 Baghai, Coley, and White; McKinsey & Co, The Alchemy of Growth; 2000

4 Catalyst, May 20125 CNNMoney, March 2012

What is Empathy?“The ability to understand and act upon the feelings of another”

3 parts: cognitive, affective, and moral“Zero positive” = autism and Asperger’s Syndrome“Zero negative” = narcissist, borderline, psychopath

Can come with unfettered pattern recognition/ systems thinking

Empathy can be measured

Source: The Science of Evil: on Empathy and the Origins of Cruelty, Simon Baron-Cohen

A Missing Link and Undervalued Currency - Empathy

A working definition of organizational empathy:

A systemic ability and willingness to discern and act on the emotions of other human beings in a way that results in mutual growth.

Empathy Enables a Positive Cycle of Innovation and Inclusion

Currency of

EmpathyInnovationInclusion

safetyunderstanding

valuerespect

• Innovation requires change

• Change is hard• Requires rewiring

of brain• Requires fear,

loss, and even pain

• Creativity is often preceded by frustration

• Empathy helps people move through suffering/pain/fear/ frustration

• Co-celebration of success is also an empathetic response

Empathy Enables a Positive Cycle of Innovation and Inclusion

Currency of

EmpathyInnovationInclusion

• Inclusion requires being able to hear what others contribute

• True inclusion requires that people feel safe and able to communicate disparate views

• Inclusion requires recognition of value in each human people

• Empathy puts you in a position to do all of the above

safetyunderstanding

valuerespect

Empathy Enables a Positive Cycle of Innovation and Inclusion

Currency of

EmpathyInnovationInclusion

• Connections across disparate sources are increasingly the source of modern creativity

• See a difference in how federal granting system require collaboration

• Accommodating diversity is easier in growing environments which have more “pie” for everyone versus shrinking ones

safetyunderstanding

valuerespect

2. CAN I GROW HERE? – PROVIDE THE

OPPORTUNITY FOR TRULY EXCELLENT PROFESSIONAL DEVELOPMENT (~8 things)

1. IS THERE A BIGGER VISION HERE NO ONE PERSON CAN ACCOMPLISH ALONE, AND DO I

MAKE A DIFFERENCE? - SYSTEMATICALLY HONOR THE HUMAN DESIRE TO WORK FOR

SOMETHING BIGGER IN COLLABORATION WITH OTHERS (~8 things)

3. CAN I LEAD AND STILL BE WHOLE HERE? – HARDWIRE YOUR CULTURE TO SUPORT IDENTITY AND SUSTAINABLE BALANCE BETWEEN WORK AND LIFE (~9 things)

INNOVATIVE ORGANIZATIONS STEWARD THE “CURRENCY OF EMPATHY” BY SYSTEMIZING INTERACTIONS THAT HONOR 3 BASIC HUMAN NEEDS

1. WORKING FOR SOMETHING BIGGER IN COLLABORATION WITH OTHERSTypical Exceptional

Vision and mission statements whose ultimate goal is profit/shareholder value

Vision and mission which drive to but beyond profit/shareholder value

Numerical goals Goals with a “human face” - that help people in some way (customers, community, make the world a better place) – in addition to numbers

Individual goals buried in or disconnected from organizational performance

Clear understanding how my job affects key measures on the performance scorecard

A culture of talking/air time A culture of listening

Systems that support persistent internal competition (grading on a curve, top-grading)

Systems that reward personal growth and collaboration toward ideals and end goals

Silos of “diversity” where people are taught how to conform effectively (separate women’s initiatives)

Clear goals of inclusion of diverse people, styles, views, and ideas toward the end of innovation/making new connections

A culture of perfection/judging failure A culture of collective pilots/experiments - trying/failing as opportunities to learn

Leadership = title and position Leadership = helping other people grow, delivering value from wherever you sit

2. CAN I GROW HERE?Typical Exceptional

Performance goals (yearly metrics and milestones tied to current role)

Performance goals + leadership development goals based on a variety of models for success in this organization

Annual reviews with objective measures for performance, subjective observations deemed important by boss

Semi-annual reviews which systematize subjective measures of leadership development

Review tone = judgment Review tone = growth

Review focus = solve issues, fill gaps Review focus = achieving thresholds + what’s special; emerging leadership strengths

No or occasional 360 feedback (every ~few years), left for individual to interpret

Regular windows into your “actual self” via upward/360 feedback, and exposure to other self-awareness/preference tools (e.g., MBTI, Kolb) and coaching to explore what they mean

Assignments to gain expertise Assignments to gain expertise + experience with servant leaders for high potentials

Rewards for hitting your numbers Rewards for hitting your numbers + for servant leadership

Up to the individual to find mentors A culture and system for exposing people to coaches, mentors, champions

CAN I BE WHOLE LEADER HERE?Typical Exceptional

Culture of meetings/updates Meeting when the assembled group is needed to 1) make decisions or 2) inspire a collision of creative thoughts across functions/boundaries

“Face time” requirements Clear focus on performance, allowing for flexible delivery appropriate to each job (e.g., working remotely, flexible hours)

Few or no role models A variety of role models = people I admire and would like to become at higher levels

A work self and a home self Similar you at work and at home

Community work (e.g., Board seats, networks) a personal choice

Work in the community encouraged and enabled as part of the job

An environment that consistently works against physical health

An environment and culture that supports physical health (e.g., sleep, food, exercise)

Minimal maternity leave Time off (paid + unpaid maternity/paternity leaves = 6 months-1 year) to get a solid start with kids

Part-time = off track Off ramp/on ramp options for talented leaders

A small, similar group of burned-out leaders on the fast track to positional authority

A diverse portfolio of leaders with holistic experience/wisdom, peaking later for longer

THE CURRENCY OF EMPATHY – CAN BE MEASUREDThe Dow Chemical Core R&D Experiment

Design/Choose

Measure baseline-empathy

-innovation-inclusion

Intervene –from the top down

Measure Impact-empathy

-innovation-inclusion

Incorporate

A Challenge

• I have yet to see any organization which does EVERYTHING at best practice to increase the “currency of empathy”

• Maybe you will be the first?!• Let me know! Jacho@theachogroup.com

Thank you!• Clients/Collaborators/Colleagues, especially:

– Dr. David Bem, Global Director, Core R&D, Dow Chemical– Dr. Diana Bilimoria, KeyBank Professor of Organizational Behavior,

Weatherhead School of Management, CWRU– Gary Hanson, ED; Gary Ginstling, GM; The Cleveland Orchestra– Chuck Houk, President, Tremco Sealants (RPM)– Dr. Elaine LeMay, Senior Director Human Resources, Agilent Technologies– Dr. Hunter Peckham, Donnell Professor of Biomedical Engineering, CWRU

School of Engineering– Marty Pollock, WIT Group– Jeff Sinclair, Director, McKinsey & Company– Sharon Sobol Jordan, CEO, the Center for Families and Children– Eliza Wing, President, Wing Consulting– Eva Basilion, collaborator of the Acho Group; Board Member, Hanna

Perkins Center for Child Development– The Education for Ministry class of 2012 at St. Paul’s Episcopal Church,

Cleveland Heights, OH• My family and friends

Handouts – Jackie will bring copies

The Currency of EmpathyThe Missing Link to Innovation and Inclusion

Jacqueline Acho, Ph.D.President, The Acho Group

Handouts to Accompany Lightening Round PresentationCEO’s for Cities National Conference

Cincinnati, Ohio May 17, 2012Jacho@theachogroup.com

2. CAN I GROW HERE? – PROVIDE THE

OPPORTUNITY FOR TRULY EXCELLENT PROFESSIONAL DEVELOPMENT (~8 things)

1. IS THERE A BIGGER VISION HERE NO ONE PERSON CAN ACCOMPLISH ALONE, AND DO I

MAKE A DIFFERENCE? - SYSTEMATICALLY HONOR THE HUMAN DESIRE TO WORK FOR

SOMETHING BIGGER IN COLLABORATION WITH OTHERS (~8 things)

3. CAN I LEAD AND STILL BE WHOLE HERE? – HARDWIRE YOUR CULTURE TO SUPORT SUSTAINABLE BALANCE BETWEEN WORK AND LIFE (~9 things)

INNOVATIVE ORGANIZATIONS STEWARD THE “CURRENCY OF EMPATHY” BY SYSTEMIZING INTERACTIONS THAT HONOR 3 BASIC HUMAN NEEDS

1. WORKING FOR SOMETHING BIGGER IN COLLABORATION WITH OTHERSTypical Exceptional

Vision and mission statements whose ultimate goal is profit/shareholder value

Vision and mission which drive to but beyond profit/shareholder value

Numerical goals Goals with a “human face” - that help people in some way (customers, community, make the world a better place) – in addition to numbers

Individual goals buried in or disconnected from organizational performance

Clear understanding how my job affects key measures on the performance scorecard

A culture of talking/air time A culture of listening

Systems that support persistent internal competition (grading on a curve, top-grading)

Systems that reward personal growth and collaboration toward ideals and end goals

Silos of “diversity” where people are taught how to conform effectively (separate women’s initiatives)

Clear goals of inclusion of diverse people, styles, views, and ideas toward the end of innovation/making new connections

A culture of perfection/judging failure A culture of collective pilots/experiments - trying/failing as opportunities to learn

Leadership = title and position Leadership = helping other people grow, delivering value from wherever you sit

2. CAN I GROW HERE?Typical Exceptional

Performance goals (yearly metrics and milestones tied to current role)

Performance goals + leadership development goals based on a variety of models for success in this organization

Annual reviews with objective measures for performance, subjective observations deemed important by boss

Semi-annual reviews which systematize subjective measures of leadership development

Review tone = judgment Review tone = growth

Review focus = solve issues, fill gaps Review focus = achieving thresholds + what’s special; emerging leadership strengths

No or occasional 360 feedback (every ~few years), left for individual to interpret

Regular windows into your “actual self” via upward/360 feedback, and exposure to other self-awareness/preference tools (e.g., MBTI, Kolb) and coaching to explore what they mean

Assignments to gain expertise Assignments to gain expertise + experience with servant leaders for high potentials

Rewards for hitting your numbers Rewards for hitting your numbers + for servant leadership

Up to the individual to find mentors A culture and system for exposing people to coaches, mentors, champions

CAN I BE WHOLE LEADER HERE?Typical Exceptional

Culture of meetings/updates Meeting when the assembled group is needed to 1) make decisions or 2) inspire a collision of creative thoughts across functions/boundaries

“Face time” requirements Clear focus on performance, allowing for flexible delivery appropriate to each job (e.g., working remotely, flexible hours)

Few or no role models A variety of role models = people I admire and would like to become at higher levels

A work self and a home self Similar you at work and at home

Community work (e.g., Board seats, networks) a personal choice

Work in the community encouraged and enabled as part of the job

An environment that consistently works against physical health

An environment and culture that supports physical health (e.g., sleep, food, exercise)

Minimal maternity leave Time off (paid + unpaid maternity/paternity leaves = 6 months-1 year) to get a solid start with kids

Part-time = off track Off ramp/on ramp options for talented leaders

A small, similar group of burned-out leaders on the fast track to positional authority

A diverse portfolio of leaders with holistic experience/wisdom, peaking later for longer

Not used

Inclusion – How are We Doing?

Women in Leadership

1%

1 CNNMoney, March 2012

African American CEO’s

GOOD ADVICE – INNOVATION, GROWTH, RENEWAL, CREATIVITY

GOOD ADVICE AND A CALL TO ACTION – INCLUSION

Inclusion – How are We Doing?• “The United States government now has an African

American chief executive, but 99% of the nation's largest businesses do not. When Don Thompson assumes his role as CEO of McDonald's on July 1, a promotion announced Thursday, he will be only the sixth active African-American CEO at a Fortune 500 company.”1

1 CNNMoney, March 2012

1%

1. IS THERE A BIGGER VISION HERE NO ONE PERSON CAN ACCOMPLISH ALONE, AND DO I

MAKE A DIFFERENCE?

“CURRENCY OF EMPATHY” - WHAT’S DISCTINCTIVE?

2. CAN I GROW HERE? – PROVIDE THE

OPPORTUNITY FOR TRULY EXCELLENT PROFESSIONAL

DEVELOPMENT

“CURRENCY OF EMPATHY” - WHAT’S DISCTINCTIVE?

3. CAN I LEAD AND STILL BE WHOLE HERE? – HARDWIRE YOUR CULTURE TO SUPORT IDENTITY AND SUSTAINABLE BALANCE BETWEEN WORK AND LIFE

“CURRENCY OF EMPATHY” - WHAT’S DISCTINCTIVE?

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