Stewardship

1. Stewardship: Choosing service over self-interest

Stewardship is the choice for service.

Service-oriented mindset. Stewardship represents a fundamental shift in organizational governance, focusing on service rather than self-interest. It involves holding power with grace, distributing ownership and responsibility widely, and being deeply accountable for outcomes without resorting to control or compliance.

Key principles of stewardship:

• Balancing power between all stakeholders
• Committing to the larger community
• Allowing each person to define purpose and decide on organizational culture
• Equitably distributing rewards

Stewardship challenges traditional notions of leadership by emphasizing partnership, empowerment, and service. This approach creates a strong sense of ownership and responsibility at every level of the organization, fostering a more engaged and committed workforce.

2. Shift from leadership to partnership and empowerment

Leadership has often claimed to be in service of those they lead, but the leader's "service" took the form of giving direction and protection. Stewardship serves through the form of giving a basic structure and supporting self-direction.

Redefining power dynamics. Stewardship advocates for a shift from traditional leadership models to partnership and empowerment. This transition involves moving away from hierarchical, control-based systems to more collaborative, trust-based relationships.

Key aspects of this shift include:

• Treating employees as partners rather than subordinates
• Giving people at all levels more choice and control over their work
• Fostering a sense of ownership and responsibility throughout the organization
• Encouraging self-direction and initiative

By embracing this approach, organizations can tap into the full potential of their workforce, leading to increased innovation, adaptability, and overall performance.

3. Rethinking organizational structures and practices

Management becomes a set of tasks and activities, not a full-time job title. Everybody manages, although some have a wider view and a longer time perspective.

Flattening hierarchies. Stewardship calls for a fundamental restructuring of organizational practices and structures. This involves breaking down traditional hierarchies and integrating management functions with core work processes.

Key changes include:

• Reducing the number of management layers
• Organizing around customers or products rather than functions
• Empowering teams to make decisions and manage their own work
• Redefining the role of managers as supporters and facilitators

These structural changes help create a more agile and responsive organization, better equipped to meet customer needs and adapt to changing market conditions.

4. Redesigning financial practices for accountability

When we try to initiate reform by measuring each of the steps along the way, we are in effect trying to control the means of performance instead of the results.

Transparency and trust. Stewardship requires a reimagining of financial practices to promote accountability and trust. This involves moving away from top-down control mechanisms to more collaborative and transparent approaches.

Key financial practices under stewardship:

• Full disclosure of financial information to all employees
• Involving core workers in budgeting and financial decision-making
• Focusing on measuring outcomes rather than controlling processes
• Decentralizing spending authority and financial responsibility

By adopting these practices, organizations can foster a culture of financial stewardship at all levels, leading to more responsible and effective use of resources.

5. Transforming human resources to end paternalism

Human resources practices do not impact the culture of an institution; they are the culture.

Empowering employees. Stewardship calls for a radical transformation of human resources practices, moving away from paternalistic approaches to those that empower and support employees.

Key changes in HR practices:

• Rethinking performance appraisals and compensation systems
• Shifting responsibility for career development to employees
• Redesigning training and development programs to support self-direction
• Focusing on building capabilities rather than controlling behavior

These changes help create a more dynamic and engaged workforce, where employees take greater responsibility for their own development and contribution to the organization.

6. Overcoming cynicism and fostering commitment

Stewardship is an exercise of faith, responsibility, and commitment.

Cultivating belief. Implementing stewardship often faces resistance from cynics, victims, and bystanders. Overcoming this resistance requires a thoughtful approach that acknowledges doubts while inviting commitment.

Strategies for fostering commitment:

• Acknowledging the truth in cynical perspectives
• Framing stewardship as a choice rather than an inevitability
• Inviting others to make the same choice for faith and commitment
• Providing exemptions and pilot programs to demonstrate feasibility

By addressing resistance head-on and inviting active participation, organizations can build the momentum needed for lasting change.

7. Extending stewardship to the common good

Every business organization also is already in this conversation to some extent. The domain is usually called social responsibility.

Broader impact. Stewardship extends beyond individual organizations to address broader societal and environmental concerns. This involves recognizing the interdependence of business, society, and the environment.

Ways organizations can practice stewardship for the common good:

• Developing clear statements of values and commitments to the wider community
• Supporting employee volunteer efforts and board participation in nonprofits
• Establishing foundations to distribute earnings to community causes
• Engaging in social entrepreneurship initiatives

By embracing this broader view of stewardship, organizations can contribute to solving societal problems while also enhancing their own long-term sustainability and social license to operate.

Last updated: September 20, 2024