The Conscious Leader

Conscious leadership (CL) is a leadership theory that focuses on increased self-awareness of the leader as a means of creating a conscious business (CB), which is defined as a business that operates with three primary goals: operating with a higher purpose than profitability; sincere concern for all stakeholders; and creating an organizational culture founded on trust, honesty, social responsibility.

Unlike transactional and transformational leadership, CL is based on the premise of regulating emotions in the decision-making process and personal behavior. CL is thought to be more practical than other leadership theories that are based purely on behavior and profit-making strategies. According to Standard and Poors, CBs operated by conscious leaders have outperformed traditional organizations in the marketplace by a 9-to-1 margin over a ten-year study period.

Organizations are thought to be the most influential bodies in modern society because organizations achievement goals and solve problems. Therefore, if society expects to transform our world into a better place, it seems reasonable that transformation must begin within the four walls of our organizations. This fact places a significant responsibility on those who desire to lead organizations.

Conscious leaders lead others with an expanded view that is necessary to effectively maneuver organizations in the complex and constantly changing global society in which they operate. This type of expanded view requires both horizontal and vertical growth of the leader, which occurs through increased and deep self-awareness as opposed to self-focus. Horizontal growth is accomplished through the more common life experiences, e.g., education, training, and experiential learning. Vertical growth is a much more uncommon type of growth, that transforms one’s perspective in terms of how you think, feel, and behave. Vertical growth moves the leader from ego-centric to a broader perspective that understands the connection between organizations and the needs of society.

If we compare transactional leadership theory where intrinsic and extrinsic rewards are used to achieve desired performance, although rewards and/or punishments may be effective for a season, they do not create transformation within the worker, e.g., developing a better work ethic, or commitment to organizational goals. Workers are inspired by rewards, and not necessarily by the corporate vision. Although conscious leaders may also use rewards and punishments, their vertical growth which encompasses morality and a spiritual core, will use rewards in a way that does not merely improve performance, but that is also consistent with the conscious culture, thus benefiting the entire organization and society in the process.

In the case of transformational leadership, a leadership theory based on changing a flawed status quo by appealing to the values of followers, transformational leaders are often charismatic leaders who are adept at casting vision and building trust by raising the level or standard of human behavior. This trust, however, is based on their ability to deliver and to walk-the-lofty-talk, somewhat of a heroic image. In our very complex and public society, living up to the heroic image is virtually impossible. It is obvious that no one person has all the answers to the complex issues of our day.

The shortcomings of our more traditional leadership theories accentuate the need and value of conscious leadership theory, which removes the focus of leadership from the imperfect leader to the higher purpose of the organization, the welfare of all stakeholders, and the development of a conscious culture. It is this conscious culture led by conscious leaders that is most capable of transforming society by embracing the whole leader and follower.