The following is an interview excerpt from Strategy+Business Magazine’s interview of HOW author and LRN CEO Dov Seidman. Dov Seidman talks about the findings in LRN’s Global HOW Report which reveals new metrics for a new reality and helps companies rethink the sources of resiliency, innovation and growth in the 21st Century. You can read the full article here.
The Self-Governance Premium
S+B: What surprised you most about the results?
SEIDMAN: We didn’t realize how much blind obedience still exists: About 43 percent of the companies we surveyed fit into that category. Informed acquiescence came in at 54 percent. Only 3 percent of the responders worked for self-governance-style companies.
But those 3 percent have a definite premium. Ninety-two percent of those in self-governance systems viewed their financial performance to be above average — compared with 77 percent of those in informed acquiescence organizations, and 52 percent of those in blind obedience.
Self-governance companies also scored well on ethics — 94 percent said their companies had above-average reporting of misconduct (people report unethical behavior when they see it), compared to 62 percent for acquiescence and 26 percent for blind obedience. Among those self-governance company respondents, 94 percent also agreed their company was superior in terms of the rapid adoption of new ideas, compared with 67 percent for informed acquiescence and 18 percent for blind obedience.
The study also found that companies with consistent behavior reflecting trust and a sense of higher purpose — key indicators of self-governance — scored 87 percent on employee loyalty. These were the people who said, “I will still be working for this company 12 months from now.” Self-governance company respondents were also much more likely to score high on customer satisfaction (“My company has very satisfied customers”).