How Compassionate Leaders Achieve Better Business Results
“Compassionate leaders create cultures that create safety, belonging, and connection.”
When we think about the upheaval in our daily lives since early 2020, compassionate leadership may be a philosophy whose time has come. Employees are demanding change in the workplace and from their leaders. In our conversations with organizational leaders, there’s an acknowledgment that leaders are stressed out, and in turn, their people are stressed to the point of problematic behaviors and retention impacts.
You could be forgiven for not having heard of the term Compassionate Leadership, or maybe you’ve come across it, but dismissed it as another in-vogue (or weak/soft) leadership concept. This post offers a short introduction and makes the case for building compassionate leadership skills personally, as well as throughout your organization.
In their new book, “Compassionate Leadership: How to Do Hard Things in a Human Way,” Hougaard et al ask how we as leaders can do the hard things that come with leadership responsibilities while remaining good human beings and bringing out the best in others.
In their multi-year study of leaders and employees in approximately 5,000 companies and almost 100 countries, Hougaard and his colleagues identified two key traits that were present in leaders who mastered what seem to be two incongruous leadership demands:
Wisdom, which they define as the courage to do what needs to be done, even when it is difficult
Compassion, which they define as the care and empathy shown towards others, combined with the intention to support and help
In case you are wondering why these qualities matter, Hougaard et al’s research found that job satisfaction is 86% higher for an employee who works for a wise and compassionate leader in comparison to an employee who does not. You can translate this into higher retention, greater productivity, and stronger business performance/success.
What Is Compassionate Leadership?
There are different perspectives, definitions, and models, based on who you ask, but the bottom line is that compassionate leaders are strong leaders; they make tough decisions with compassion, and they connect with their people in a way that inspires and gains trust.
According to the Center for Compassionate Leadership, the discipline is evolving and:
“… sits at the intersection of multiple disciplines, including brain science, positive psychology, organizational and leadership development, quantum physics, and a range of contemplative practices including mindfulness. New science, new business data, new practices, and new methods shed light on how we can grow as individuals, teams, and organizations.”
Jan Vermeiren, considered by some to be the founder of compassionate leadership, provides a definition in his post that is well worth the read.
“The ability to take yourself, individuals, teams and organizations to a higher level of performance and well-being in a safe and stimulating way when tensions occur.”
Vermeiren draws a practical contrast between teams with and without compassionate leaders, using the concept of high and low vibes, as shown below.
Source: What is Compassionate Leadership? Jan Vermeiren, founder and author of the Compassionate Leader
“In an era where we see a transition out of dominant masculine energy, Compassionate Leadership is a balancing factor. So, it is not about going from one extreme (dominant masculine energy) to another (dominant feminine energy). It Is about balancing both energies.”
Donato Tramuto is the former CEO of Tivity Health and author of ‘The Double Bottom Line: How Compassionate Leaders Captivate Hearts and Deliver Results.’’ His compassionate leadership model is based on the three ‘t’s of tenderness, trust, and tenacity. He argues that leaders must “listen to understand” and that too many “listen to react.” Gaining trust involves listening to understand. We recommend this 30-minute podcast, “The Compassionate Leadership Interview” in which Tramuto draws on his life experiences and cites an example of compassionate leadership in action.
Are You a Compassionate Leader?
In their research, the team at Potential Project identified four skills that were present in wise, compassionate leaders: presence, courage, candor, and transparency. As you can see in the chart below, men scored higher on presence, while women scored higher on the other three skills, most noticeably on transparency. Does this explain why women are given high marks for their leadership in the pandemic era?
4 Skills That Yield Wise and Compassionate Leadership – Potential Project
Of course, few leaders might describe themselves as lacking in compassion, but how would you benchmark yourself against your peers? Would your direct reports concur? The researchers at the Potential Project invite you to take their free 360-style assessment. They will collect and provide feedback confidentially on your behalf.
What Stops Leaders from Being Compassionate?
In a series of posts, the Center for Compassionate Leadership identified four barriers to compassionate leadership:
time pressures
perfectionism
lack of know-how
organizational/external challenges
They consider each one and offer advice on how to overcome them. The first post in the series starts here. Do one or more of these barriers affect you personally or the culture within your organization?
In our leadership coaching work, it’s clear that the need for compassionate leadership has never been greater as leaders and their teams try to combat work pressure and high stress. If your organization needs to build more compassionate leaders and/or you want to take the temperature within one or more high-profile teams, let’s talk. Contact me Jonathanlparker@outlook.com to explore the possibilities.
Reading & References
BOOKS
Hougaard, Rasmus, et al. Compassionate Leadership: How to Do Hard Things in a Human Way. Harvard Business Review, 2022.
Tramuto, Donato, and Tami Booth Corwin. The Double Bottom Line: How Compassionate Leaders Captivate Hearts and Deliver Results. Fast Company Press, 2022.
Vermeiren, Jan. The Compassionate Leader: How to Create the Space for an Inspiring Vibe. Life Is a Game, 2019.
PODCAST
Whitehead, Chris. “Donato Tramuto, the Double Bottom Line.” The Compassionate Leadership Interview, 11 May 2022.
self-ASSESSMENT
Compassionate Leadership Are You Able to 'Do Hard Things in a Human Way'? This is a 360-style survey including both self and employee ratings. You will be asked to rate a series of statements about your leadership preferences and styles. You will also be asked to nominate up to 5 followers/direct reports, who will receive a similar survey to rate your leadership preferences and styles. Your survey responses may be used for research purposes but will always be kept anonymous and reported in an aggregate format only.
RESOURCES
The Potential Project - Rasmus Hougaard is the founder and CEO. Its mission is to create a more human world of work through data-driven research (in collaboration with researchers from Harvard, Columbia, and Berkeley). The site includes research reports, articles, and a blog. Sign up for email updates and/or follow on LinkedIn and Facebook.
The Center for Compassionate Leadership - is on a mission to “… advance compassionate methods of leadership by integrating best practices of modern leadership, evidence-based science, and contemplative wisdom. The Center accomplishes this through thought leadership, research, curriculum and training, community, and collaboration.” Subscribe to the newsletter, connect on social platforms, and browse the site for a wealth of information.
The Compassionate Leaders & Facilitators Community - Join the free community to “Inspire, be inspired by, and connect with other (aspiring) Compassionate Leaders & Facilitators.”