27 September 2023

Why compassion is a key business tool

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Lisa Earle McLeod* says a compassionate workplace is more productive, operates with greater efficiency and has lower turnover rates.


For decades, leaders and teammates were told to “leave emotions out of it.”

That’s terrible advice.

Business is a human endeavour and humans are emotional.

It’s our superpower.

The Harvard Business Review describes a landmark study analysing more than 3,500 business units with more than 50,000 individuals.

Researchers found that acts of courtesy, helping and praise were related to core goals of organisations.

Higher rates of this behaviour were predictive of productivity, efficiency, and lower turnover rates.

The data tells us what we know in our hearts to be true; work is better when the people around us truly care.

Here are three ways you can bring compassion to your team.

Assume good intent

We judge ourselves on our inner intent, but others on their outward actions.

It’s one of our less helpful human quirks.

When we are running late to a meeting, it’s because there was an unavoidable delay.

Not our fault.

When other people run late? It’s because they don’t care or aren’t organised.

Making a practice of assuming good intent doesn’t mean you never hold people accountable; you’re simply not jumping to conclusions when you don’t know yet.

Start with yourself

If you’re tough on yourself, it’s a matter of time before you become tough on the people around you.

Instead, try to treat yourself as you’d treat a good friend.

Let yourself make mistakes, embrace your growth journey, and take steps to tame your inner judgements.

Grant people grace (even when they’re annoying you)

In all reality, you have no idea what’s going on beneath the surface.

Some people have challenging childhoods, tough circumstances, or are facing immeasurable hardships they’ll never speak of in the workplace.

Compassion isn’t in conflict with performance, it’s connected to it.

When we have compassion for each other, and for ourselves, the entire organisation rises.

*Lisa Earle McLeod is the leadership expert best known for creating the popular business concept Noble Purpose. She is the author of Selling with Noble Purpose and Leading with Noble Purpose. She can be contacted at mcleodandmore.com.

This article first appeared at mcleodandmore.com.

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