Why Compassionate Leadership Makes Both Dollars And Sense

Why Compassionate Leadership Makes Both Dollars And Sense

Leadership development has always been and will continue to be a pressing need in the workplace. Trouble is, “people development” is often among the first budget items to take a hit in tough times.

You may have noticed: We’re living in tough times.

But rather than hunker down in a hidey-hole, smart leaders are upgrading their own skills and those of their team members. In today’s world, we see rapidly accelerating technology and a five-generation workforce. So, proficiency with communication, transparency, and adaptability will continue to make sense. And rising to the top of the must-have list are empathy and compassion.

Putting people first and delivering results are not incompatible goals, Tramuto says. Rather, a strong focus on people drives results, creating the double bottom line. Company leaders can measure their success by producing strong financial results as well as a positive impact on their people and the community.

Tramuto’s book is based on decades of experience as well as numerous studies, original qualitative research of more than 1,500 people, and in-depth interviews of nearly 40 successful leaders who practice compassionate leadership.

His findings provide helpful tips on the leadership skills that are most pertinent in today’s workplace.

Rodger Dean Duncan: Although there are still plenty of old-school, dictatorial managers around, you say there’s an acceleration in the rise of “compassionate” leaders? To what do you attribute this change?

Donato Tramuto: Over the last 30 years, we’ve seen a continual “trust decay” in our organizations and institutions. Workers have become increasingly disengaged and dissatisfied. The pandemic greatly accelerated these issues and workers emerged with stronger, more clarified views about what they want out of work and life. This is especially true in younger generations.

Today’s workers want to feel respected, included and empowered at work. They want to feel that their professional growth and personal wellbeing are supported. They want to feel a sense of purpose in their work. Compassionate leaders are uniquely equipped to address these needs. Their approach creates stronger teams and healthier cultures that get the best from their people and deliver stronger results. This is what I call the double bottom line.

Duncan: From your research on the workplace, can you cite two or three key data points on evolving views regarding the effect of leadership approaches on productivity and profitability?