Career » Successful Business Leadership

1st March 2008

Business Wisdom 101

Wisdom is knowledge of what is true or right coupled with just judgment as to action. It is also said in business and life that knowledge is power. We all have, however, different experiences and backgrounds, strengths and weaknesses, meaning none of us have all the knowledge (or wisdom) for the best use of power. Mahatma Gandhi said “It is unwise to be too sure of one’s own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err.”

People, in general, should seek to develop their wisdom and skills in three critical areas for any business model to operate effectively:

Leadership

Teamwork

Communication

Everyone throughout an organization is a leader to some degree, needs to work collaboratively with others, and can only accomplish a job successfully with healthy communications between departments. On the other hand, not all employees have the same knowledge and understanding of a business, its markets, as well as what makes for effective leadership, teamwork and communication.

You see, none of us are perfect and possess all the knowledge or wisdom for organizations to succeed. But collectively, we have a much higher capability. Meanwhile, human behavior, being what it is, can prevent achieving different, sometimes conflicting objectives and motives. Otherwise, all business organizations would be more successful. There is information, understanding, and experience which can lead to knowledge. But it is wisdom that enables us to utilize our knowledge to achieve the diversity of objectives in an organization.

Proverbs 4: 7 says “Wisdom is supreme, therefore, get wisdom.” One wonders, though, is there a “business wisdom” for us to think about? Here are some ideas and thoughts:

Leadership

A leader should trust in his/her own knowledge and experience, but also trust and depend on others for a full understanding (e.g., the salesperson is closest to the customer). You don’t know what you don’t know. Respect not only your expertise, but that of others.

The leader’s behaviors and actions are in full view for all to see and sets the tone for the culture. There are five behaviors that leaders must not exhibit if a business is to succeed:
- Excessive or false pride (a business should not delude itself of its position in the market, markets have a way of punishing those who do not see changing customer trends and needs)
- Lying and gossiping (it stirs up dissension and distrust)
- Shooting the messenger of bad news (otherwise, no one will ever bring up the tough issues that need to be solved)
- Taking the credit for what others have done (otherwise people will stop producing and working to accomplish tough goals)
- Seeking personal goals at the expense of the business goals (everyone then begins to look out for themselves instead of customers and employees.

The nature of work is stressful and can create anxiety, leading to lower productivity and morale. The leader, and everyone, should take the time to express a kind word to lift up and encourage people, especially when things are tough. Stay in touch with people to know how they are doing and what they need help with.

Examine people’s motives, not just their words or behaviors. Sometimes people can simply choose a poor word to use, or we misunderstand someone’s meaning because of our own bias. Motives tell us more about the desire, need or action that is being communicated.

Teamwork

There is a time to lead and time to follow. The wise person can discern that time and accepts the role of a follower, when needed.

Teams can consume a lot of time in meetings with endless talk. Be patient and listen. Let all participate as they likely have information or understanding that is valuable. The smart person knows they do not have an understanding of everything.

Nevertheless, there is a time to stop talking and take action. After all, a team is there to achieve a purpose, usually to bring about some type of change for the better of the business. Obtain the advice, consider the options, know the risks, but take action. Consensus does not mean that all agree, but that the majority agree and the dissenters can live with the chosen action.

Communication

Effective communication requires more than talent. It involves trust, respect, understanding, empathy and resolution.

Share information openly, it builds trust and understanding.

Listen first and fully. Look people in the eye. Don’t be trying to conduct other activities while in a conversation (it’s disrespectful). Then think and respond.