Support to Develop

Trust is the lifeblood of human relationships, invisible, yet essential. It accelerates processes, unites teams, sustains societies.

It is a measurable skill, a biological mechanism, a social asset—it can be cultivated or lost.

This article explores trust as a living prism, refracting light into multiple dimensions: neuroscience, leadership, vulnerability, prosperity.

It offers tools to apply it in the digital era and beyond.

The science and economics of trust

Trust is rooted in the brain.

Paul Zak proves: oxytocin rises by 74% in those who trust, measured in economic games where quick decisions reveal instant bonds (Nature, 2005).

Environments with autonomy foster it.

At Google, the “20% time” program created Gmail and boosted productivity by 20% (Gallup, 2022).

It drives economies: Japan and Denmark, rich in social capital, have a GDP per capita 30% higher (World Bank, 2023). Trusting teams make decisions 60% faster (Journal of Organizational Behavior, 2021).

It is an invisible currency that slashes costs and saves time.

Cultures experience it differently.

In China, personal bonds prevail; in the USA, institutions dominate.

The digital era challenges everything—fake news reaches 62% of people weekly (Pew Research, 2023). Distinguishing truth from manipulation is critical.

The dance of building and breaking trust

Building trust is like weaving a web with threads of sincerity, reliability, competence, and care.

Each interaction forms a knot.

Transparency strengthens it; betrayal cuts it.

A tech company failed in 2019 with empty promises but recovered 85% of its credibility in 18 months by listening and acting.

Rebuilding requires vulnerability.

At Pixar, open sessions—where team members shared honest feedback—rewrote 80% of Toy Story, ensuring success.

Patrick Lencioni says: it’s essential.

Risks exist.

Blind trust sank banks in 2008.

Today, misinformation threatens.

Trusting AI too much deceives—algorithms fail without human oversight, and deepfakes, such as AI-generated fake videos of public figures, confuse even the most vigilant, eroding public trust in media.

Authenticity rescues: open gestures, like those of Jacinda Ardern during the pandemic, build bridges.

Types of trust and their boundaries

Trust changes form.

Self-confidence is the foundation of resilience; interpersonal trust connects people; institutional trust holds systems together.

Stephen R. Covey calls it a “Trust Account”: integrity deposits, breaches withdraw.

In healthcare, trusting doctors increases treatment adherence by 40% (The Lancet, 2022). In politics, its absence divides.

Vulnerability enlivens relationships.

Satya Nadella admitted mistakes at Microsoft in 2014, changing the culture—the company’s value grew 700% in ten years.

Authenticity guides: genuine leaders are 50% more trustworthy, says Harvard.

Tools to cultivate trust

Trust is built through clear steps. Here’s how:

In education, vulnerability boosts engagement by 25% (Edutopia, 2023); teachers who tested self-assessment united classrooms.

In sustainability, trust in the Paris Agreement, which demands annual public reports on emissions, lives on transparency.

A living ecosystem

Trust is an ecosystem: sincerity shines like the sun, reliability nourishes like rain, competence anchors like soil, care takes root.

Balanced, it flourishes—teams innovate, societies heal.

An imbalance, like betrayal or excess, devastates it.

Restoring it is like replanting a forest: slow, intentional, vital.

Conclusion: A future anchored in trust

Trust is a suspension bridge, fragile, yet firm.

It links minds and communities, demanding pillars—truth, action, care—and sways in storms.

Teachers build it in classrooms; leaders, in crises. In times of fake news and ruptures, cultivating it is boldness.

It is a bridge that refracts light for all, a step toward a just world.

Let us direct it well.

References

• Zak, P. (2005). “Oxytocin Increases Trust in Humans.” Nature.
• Gallup (2022). State of the Global Workplace Report.
• World Bank (2023). World Development Indicators.
• Journal of Organizational Behavior (2021). “Trust and Decision-Making Speed.”
• Pew Research (2023). “Digital Trust Survey.”
• The Lancet (2022). “Trust in Healthcare Providers.”
• Edutopia (2023). “Vulnerability in Classroom Engagement.”

Introduction

In the corporate world, organizational culture plays a crucial role in team success and business performance.

Researchers such as Amy Edmondson and Timothy R. Clark have made significant contributions to understanding work environments that foster innovation, collaboration, and high performance.

This article explores their findings, the relationship between their approaches, and how to transform environments from the Red Zone to the Blue Zone.

Additionally, we explore practical challenges, effective strategies, and real-life examples that demonstrate how psychological safety directly impacts organizational performance.

Studies show that companies that invest in a safe work environment tend to be more innovative, have higher talent retention, and significantly improve team productivity.

What Are the Blue Zone and the Red Zone?

The concepts of Blue Zone and Red Zone help visualize the impact of psychological safety in organizational environments:

🔵 Blue Zone: Healthy and High-Performance Environments

✅ Collaboration and trust.

✅ Encouragement of experimentation and innovation.

✅ Fast and constructive feedback.

✅ Healthy stress management, avoiding burnout.

✅ Culture of learning and continuous improvement.

✅ Promotion of self-efficacy and creativity.

✅ High talent retention and sustainable productivity.

🔴 Red Zone: Toxic and Low-Performance Environments

❌ Culture of fear and silence.

❌ Punishment for mistakes and risk aversion.

❌ Destructive internal competition.

❌ Delayed and filtered feedback.

❌ Burnout and debilitating stress.

❌ Forced conformity and lack of innovation.

❌ High employee turnover and low engagement.

The Blue Zone represents an environment where psychological safety is valued, allowing employees to express themselves freely and experiment without fear of retaliation.

The Red Zone, on the other hand, characterizes organizations that operate under fear, where mistakes are punished, communication is limited, and progress is hindered by a culture of risk aversion.

The Role of Leadership in Creating and Promoting Psychological Safety

Leaders play a fundamental role in creating and maintaining safe and productive environments. For the transformation from the Red Zone to the Blue Zone to be sustainable, leaders must:

• Model behaviors of openness and transparency. Leaders need to demonstrate vulnerability, admit mistakes, and encourage open discussions.
• Create accessible communication channels and encourage continuous feedback. This may include one-on-one meetings, anonymous surveys, and active listening moments.
• Ensure that mistakes are treated as learning opportunities rather than punishable failures. Establishing a culture of continuous learning is essential.
• Promote an environment of respect and inclusion, ensuring that everyone feels part of the team. This includes diversity and equity initiatives.
• Maintain a balance between challenges and support to stimulate innovation without generating debilitating stress.
• Act as facilitators of change, ensuring alignment between organizational values and daily practices.

🔹 Proven Evidence:

A Google study on team effectiveness identified psychological safety as the most important factor for team success.

Additionally, a Harvard Business Review study found that companies that promote safe environments experience a 76% increase in innovation and a 50% boost in productivity.

Practical Implementation Examples in Different Sectors

🔹 Technology Sector – Google:

The company has created an environment where employees can make mistakes and learn without fear, encouraging continuous innovation. The Aristotle Project proved that psychological safety is essential for productivity.

🔹 Financial Sector – ING Bank:

Implemented an agile work model where feedback is continuous, and leadership values experimentation, reducing hierarchical barriers.

🔹 Healthcare – John Hopkins Hospital:

Established a culture of error reporting without punishment, resulting in greater transparency and a reduction in medical incidents.

🔹 Education – Stanford University:

Adopted mentoring and inclusion programs to encourage collaboration and open idea exchange between students and professors.

Expanding Tools and Metrics to Measure Psychological Safety

To assess psychological safety and the impact of organizational transformation initiatives, companies can adopt various tools and metrics, such as:

✅ Psychological Safety Index (PSI) - A validated questionnaire that measures the level of psychological safety within teams and identifies areas for improvement.

✅ Engagement Surveys - Tools like Gallup Q12 and pulse surveys can help track the evolution of organizational culture and employee perception.

✅ Turnover and Absenteeism Indicators – Companies can analyze turnover rates and absenteeism as reflections of organizational health and the presence (or absence) of psychological safety.

✅ 360° Feedback Tools – Provide insights into how leadership and colleagues perceive the work environment, allowing for strategic adjustments based on real data.

Measurable Results and Corporate Benefits

Studies show that companies with high psychological safety experience up to 20% higher productivity, a 30% reduction in employee turnover, and 76% greater innovation, according to a study published by Harvard Business Review.

Additionally, a Google report found that teams with high psychological safety consistently outperform others.

Next Steps for Transformation

The transition from the Red Zone to the Blue Zone does not happen overnight.

However, with commitment, effective leadership, and structured processes, organizations can create more resilient, creative, and productive teams.

🔹 Reflective Question:

Is your organization closer to the Blue Zone or the Red Zone?

What steps can be taken to move forward?

🔹 Recommended Action:

Share this article with your team and start a conversation about psychological safety and organizational culture!

To deepen the discussion, consider scheduling a team meeting to discuss key challenges and opportunities related to this topic.

Use this article as a foundation for reflections and to develop a practical action plan within your organization.

In an ever-changing business world, the analysis and monitoring of the environment in which projects are developed are crucial for their success. For a project to succeed, it is necessary not only good planning and execution, but also a constant evaluation of the external and internal factors that impact its progress. Effective project management should, therefore, consider a comprehensive and continuous analysis of the environment in which the project is embedded.

1. Internal and External Factors Influencing the Project

The internal and external factors affecting projects do not work in isolation but interact with each other, creating a complex network of influences. For example, organizational culture (an internal factor) can influence how effective communication (a key factor) is implemented, and organizational strategy can be directly impacted by economic changes or legislative factors (external factors). Therefore, it is essential for the organization to understand not only the isolated factors but also their interrelationship, as this will allow a more holistic and informed approach to project management.

Integration of Factors: How They Influence Each Other

By integrating models like McKinsey's 7S + Technology with the analysis of internal and external factors, organizations can identify patterns of interaction and predict how changes in one factor (such as the introduction of new technologies) can affect other aspects (such as skills or organizational structure). For example:

• Technological changes may require new skills, modifying the organizational structure to incorporate new technologies.
• Legal or environmental changes may affect organizational strategy, which in turn influences communication between different departments or stakeholders.

This in-depth understanding helps develop more robust and adaptive strategies for projects, enabling organizations to anticipate problems and adjust quickly to new circumstances.

McKinsey’s 7S + Technology

The 7S model was developed by McKinsey & Company and is an organizational analysis tool that assesses how seven internal factors of an organization must align in order for the company to achieve its strategic goals. The seven factors are:

1. Strategy: The direction and long-term objectives of the organization, and the plans to achieve them.
2. Structure: How the organization is structured, including hierarchy, departments, and divisions.
3. Systems: The processes and workflows within the organization.
4. Shared Values: The organizational culture and core values that guide the organization’s actions.
5. Skills: The abilities and capabilities that the members of the organization possess.
6. Style: The leadership style and how leadership interacts with the team.
7. Staff: The organization’s human capital, including the workforce and how it is managed.

The addition of Technology to the 7S model has become increasingly relevant, as emerging technologies impact all aspects of the organization. Technology is now seen as an additional critical factor, as it defines how digital tools, automation systems, artificial intelligence, and other innovations influence strategy, structure, systems, and skills within the organization.

Financial Resources and Funding Capacity

Within internal factors, the availability of financial resources and the capacity for funding are decisive for the successful execution of any project. These factors directly influence the scope, feasibility, and cost control of the project. The organization should assess its ability to access external financing (such as loans or investors) or use its own resources to finance the project efficiently. Additionally, managing budget and cash flow is essential to ensure that the project is completed within the defined financial parameters.

Internal financial management must be aligned with the project strategy, ensuring that resources are available and that the organization can handle unforeseen financial issues during the project’s execution.

2. Practical Examples of Analyzing and Monitoring the Environment

Example 1 - PESTEL Analysis for an International Expansion Project

Imagine a technology company that wants to expand its operations into a foreign market. The PESTEL analysis can be used to understand how external factors influence the success of the project:

• Political: The government of the new country offers tax incentives for foreign companies investing in sustainable technologies, favoring the project.
• Economic: The local economy is growing, increasing consumers’ purchasing power.
• Social: There is a high level of cultural acceptance of innovative technologies, making the adoption of the new product easier.
• Technological: The market has a well-developed IT infrastructure, which facilitates the implementation of technological solutions.
• Environmental: Environmental laws are stringent, requiring the product to meet sustainability standards.
• Legal: There are laws protecting intellectual property, ensuring the company’s innovation is secure.

This example shows how the analysis of internal and external factors can guide expansion strategy and project planning, minimizing risks and maximizing the chances of success.

Example 2 - SWOT Analysis for a Technological Innovation Project

Suppose a technology organization is launching a new product to the market. A SWOT analysis can help identify:

• Strengths: Highly qualified team, strong brand in the market.
• Weaknesses: Limited production capacity and restricted financial resources.
• Opportunities: Growing market for AI solutions, with increasing demand for automation in businesses.
• Threats: Aggressive competition with cheaper products and faster innovations.

With this analysis, the organization can adjust its marketing priorities, optimize production capacity, and prepare to mitigate risks presented by competition and internal limitations.

3. Risk Management: A Proactive Approach

Risk management is a central activity in project management, but the complexity of modern project environments requires risk management to be proactive and dynamic. The project environment is not static; it is constantly evolving due to factors such as legislative changes, technological advancements, or even unforeseen economic crises. In this context, quickly identifying risks and assessing their likelihood and impact, considering the complexity of the environment, is crucial for the organization to develop effective contingency plans and rapid responses.

Each project may present a unique dynamics of risks and challenges, requiring a detailed and specific environmental analysis. Flexibility and adaptability to new risks and challenges become essential, allowing the organization to minimize negative impacts and maximize opportunities, ensuring the success of the project.

4. Continuous Monitoring and Control: Ensuring Alignment

Continuous monitoring and control are essential to ensure the project stays on track. However, as projects become more complex and external factors more unpredictable, the ability to continuously adapt must be incorporated into the control process. Agility in monitoring progress, identifying deviations, and taking corrective actions quickly are key factors to maintain alignment with project objectives.

In high-risk environments or those with many external variables, such as frequently changing regulations or emerging technologies, project teams must be able to make adjustments quickly based on up-to-date data and ongoing feedback.

5. The Complexity of the Project Environment

The complexity of the project environment is a factor often underestimated but extremely relevant. Each project can be influenced by a unique combination of internal and external factors, requiring the organization to adopt specific approaches for each situation. For example, a technology innovation project may be more sensitive to market changes and new regulations, while a construction project may be more affected by environmental or local factors.

Environmental analysis should be personalized for each project, considering its nature, scale, and potential impact. This means that while some projects may require a more rigid and predictive approach, others may benefit from agile methodologies that allow for greater flexibility and rapid response to environmental changes.

6. Organizational Process Assets

To ensure projects are developed as expected, it is important that the organization has various organizational process assets at its disposal. These assets can be divided into:

• Policies and Procedures: These are the guidelines that direct the management of projects, ensuring that all parties involved follow the same guidelines and are aligned with the organization's objectives.
• Project Governance Models and Frameworks: Organizations should adopt governance frameworks that help ensure projects are managed efficiently, transparently, and aligned with the company’s strategy. Examples include PMBOK, agile methodologies like Scrum or Kanban, and even hybrid approaches.
• Tools and Techniques: Essential tools for planning, monitoring, and controlling projects include project management software like Microsoft Project, Microsoft Planner, Jira, Asana, and Trello. Collaboration platforms, communication platforms, databases, and document management solutions are essential for communication between teams and organizing information. Integrated project management platforms and project management SaaS offer complete solutions to centralize data and facilitate decision-making. Automation tools like artificial intelligence and augmented or virtual reality are also gaining prominence for their ability to optimize processes, perform predictive analysis, and improve project progress visualization.
• Historical Documentation and Lessons Learned: Knowledge gained from previous projects serves as a valuable repository for improving the execution of new projects. Documentation of failures, successes, metrics, and reports can help avoid repetitive errors and improve performance.

7. Knowledge Base and Types of Knowledge

The organizational knowledge base plays a critical role in the success of projects, as it provides the foundation for informed decision-making and the development of effective strategies. It involves both explicit knowledge and tacit knowledge.

• Explicit Knowledge: This is formally documented and easily accessible information, including manuals, guidelines, procedures, and tools. This type of knowledge is important because it can be systematically shared and used in different contexts.
• Tacit Knowledge: Refers to the knowledge people acquire over time, typically through practical experience. It is not easily documented but is essential for developing creative solutions, making complex decisions, and continuous learning. Team management, effective collaboration, and coaching are crucial for capturing and sharing this type of knowledge.

Combining both types of knowledge, in addition to ensuring innovation and adaptation, provides a solid foundation for project teams to develop and grow.

8. Project Governance as an Organizational Asset

Project governance is one of the most important assets within an organization. It refers to the set of structures, processes, and policies that ensure projects are managed in alignment with the company’s strategic goals. Governance ensures accountability, transparency, control, and proper decision-making throughout all project phases.

Effective governance involves clearly defining roles and responsibilities, managing risks, monitoring and controlling resources, and ensuring continuous communication with stakeholders. It allows organizations to align their project initiatives with long-term goals, ensuring that resources are well applied and that objectives are efficiently achieved.

9. The Importance of Continuous Environmental Analysis

Finally, continuous analysis of the environment in which projects are developed is essential for adapting to external changes and identifying risks and opportunities. Organizations must be prepared to react quickly to economic, cultural, technological, or environmental changes, adapting their strategies and project management approaches as necessary.

Conclusion

Effective project management requires an integrated and adaptable approach that takes into account internal and external factors, organizational assets, the knowledge base, effective communication, risk management, and continuous monitoring and control. By adopting this comprehensive approach and integrating adaptability and the analysis of the complexity of project environments, organizations can significantly increase the chances of project success and achieve their strategic goals.

Introduction

Governance and ethics are fundamental to the proper functioning of an organization. They ensure transparency, accountability, and fairness in operations and relationships with stakeholders. However, a formal governance structure alone does not guarantee that people will follow the established norms and principles. When governance practices are not internalized by the team, the organization faces significant risks, such as the erosion of trust, inefficiency, and even damage to its reputation. This article explores the relationship between governance and ethics, discussing how to implement an ethical culture that supports governance and how to overcome challenges when governance is disregarded by the members of the organization.

1. Governance: Structure and Control

Governance, as the foundation of organizational practices, has been widely discussed through models such as the Cadbury model and the King model, which emphasize the importance of good governance practices, transparency, and accountability. The Cadbury model, for example, highlights the need for a clear governance structure, including the separation of roles between management and the board, and the promotion of accountability.

Furthermore, corporate governance must consider not only compliance but also ethical behavior. Organizations must be concerned with how governance standards are implemented in the real context, where the behavior of individuals may go against formal policies. In this sense, models like the King model, which integrates governance and social responsibility, are crucial for organizations seeking to align governance and ethical practices, especially in a global and multifaceted context.

2. Ethics: The Foundation of Organizational Behavior

Ethical theories, such as deontology (focused on the duty to act correctly regardless of the consequences), utilitarianism (which considers the consequences of actions), and virtue ethics (which prioritizes the moral character of the agent), offer distinct approaches to understanding and applying ethics within organizations. Deontology, for example, can be applied to establishing clear and strict norms that employees must follow, while utilitarianism may be more relevant in analyzing the impacts of business decisions on society.

Ethics should be seen as the force that gives purpose and direction to governance standards. In addition to being a set of rules, ethics shapes daily decisions and influences how employees and leaders interact with each other and with the external environment. When ethics are deeply embedded in the organizational culture, it not only aligns individuals with the formal governance standards but also helps foster trust among all stakeholders.

3. The Conflict Between Formal Governance and Real Behavior

In many organizations, governance is well established, but the lack of ethical commitment by people results in a failure to comply with it. The problem is not the absence of standards, but the resistance or lack of interest in following them. This may occur due to factors such as lack of awareness about the importance of the standards, resistance to cultural change, or failure in leadership.

When governance standards are ignored, the organization faces a series of negative consequences, such as the creation of a toxic work environment, loss of trust among employees, poor reputation with clients and stakeholders, and, in more severe cases, serious financial and legal damage. To overcome this challenge, it is necessary for governance to be lived and internalized by the members of the organization, not just followed as a set of formal rules.

4. Implementing an Ethical Culture in Organizations

For governance standards to be effectively complied with, it is crucial that they are supported by a strong ethical culture. Ethics should not only be an abstraction but a daily practice within the organization. Here are some approaches to implementing a solid ethical culture:

• Creation of Codes of Conduct: Developing a clear and accessible code of conduct is essential. This code should be reviewed periodically to reflect changes in organizational circumstances and the global context.
• Workshops and Training: Conducting regular workshops that address real ethical dilemmas can help internalize ethical practices. An ethical decision-making model, based on theories such as utilitarianism or virtue ethics, can be useful in guiding employees through difficult situations.
• Ethical Evaluation Checklists: Implementing tools like ethical checklists for evaluating decisions can be useful to ensure that employees' choices are aligned with organizational values. This could include assessing the social and environmental impact of decisions before they are executed.
• Debates on Ethical Dilemmas: Organizing debates on ethical dilemmas can be an excellent way to engage employees and leaders in a continuous discussion about ethical practices, helping to promote a culture of reflection and learning.

5. Real-World Examples of Organizations Overcoming Governance and Ethics Challenges

The Enron Case

A classic example of a failure of governance and ethics is the case of Enron, where the company became involved in fraudulent accounting practices that led to its collapse. The lack of a solid ethical culture and governance that was not robust enough to detect and correct these practices resulted in a financial disaster.

The Nestlé Case

On the other hand, Nestlé faced a significant ethical challenge when it was accused of aggressively marketing infant formula in developing markets, a practice that was harmful to children's health. The company implemented a new ethical code, invested in more transparent governance practices, and promoted awareness campaigns. This example shows how change can be achieved when governance and ethics align with social responsibility.

6. Evaluation Metrics

The effectiveness of governance and ethics initiatives can be monitored using clear metrics. Some important metrics include:

• Stakeholder Satisfaction Index: Measure the trust and satisfaction of employees and other stakeholders regarding governance practices.
• Compliance Rate: Assess adherence to codes of conduct and internal governance policies.
• Ethical Risk Assessments: Implement regular reviews to identify and mitigate ethical risks in the organization's operations.

7. Innovation and the Future of Governance and Ethics

Governance and ethics are constantly evolving, with the introduction of emerging technologies such as gamification, virtual reality, and AI offering new ways to engage employees in ethical practices. Gamification, for example, can be used to train employees interactively, while virtual reality can simulate ethical dilemma scenarios, allowing employees to make decisions in a controlled environment.

The future vision of governance and ethics requires organizations to prepare for global challenges such as climate change and globalization, and for the increasing impact of technology on how decisions are made. Organizations will need to adapt their governance practices to ensure they remain effective and ethical in a rapidly changing world.

Conclusion

Governance and ethics are not isolated elements, but must be considered together to ensure long-term organizational effectiveness. Adopting effective governance models, aligned with a strong ethical foundation, allows organizations to tackle contemporary challenges, such as the ethical dilemmas of AI and social responsibility in global supply chains. The application of practical tools, such as codes of conduct and ethical checklists, can help ensure that standards are followed. The future of governance and ethics is closely tied to technological innovation and adaptation to new global demands.

Call to Action

I invite leaders and managers to reflect on how their organizations are implementing governance and ethics in an aligned manner, using practical tools and ethical theories that help promote a strong and resilient ethical culture.

Introduction

Leadership is one of the most powerful forces that shape societies, organizations, and social movements. However, the way leadership is exercised varies significantly depending on the approaches adopted by leaders. Three central elements stand out in this context: power, influence, and reason grounded in principles. Each of these aspects plays a crucial role, but their impacts can be quite distinct depending on how they are applied. In an increasingly complex and interconnected world, ethical leadership has become essential. The pressure for quick results, globalization, and constant change require leaders who are capable of making effective decisions that are not only efficient but also ethical and sustainable.

This article explores the conflict between power, influence, and principles, highlighting how these forces manifest in various contexts such as politics, business, non-profit organizations, and civil society. The analysis also addresses the impact of organizational and social culture on how leaders exercise power and make decisions. The discussion delves into the "gray zone," where choices between power, influence, and principles are not clear, forcing leaders to face complex ethical dilemmas. Finally, the conclusion offers practical insights for leaders, providing useful tools for making more conscious and responsible decisions.

1. The Perspective of Immediate Power and Influence

Definition and Context

Power is the ability to control or influence others, either through authority, resources, or coercion. Influence, on the other hand, is often subtler, arising from characteristics such as charisma, persuasion, or manipulation, but is equally effective in mobilizing people and ideas. Both are essential when quick results are needed, particularly during times of crisis or urgent decision-making.

Advantages and Disadvantages

In the short term, power and influence are highly effective. Leaders like Winston Churchill during World War II and Angela Merkel used their authority to make quick and efficient decisions. However, the excessive use of these tools can lead to resistance and distrust, especially when decisions are not supported by solid principles.

Practical Example

Margaret Thatcher is a classic example of how power can bring rapid results but also lead to deep divisions. Her economic reforms brought short-term gains, but the resulting social tensions led to long-term resistance. Elon Musk, with his leadership of Tesla and SpaceX, uses a combination of power and influence to achieve disruptive results. However, his quick decisions, often made without wide consultation, create divisions and may harm his long-term image.

2. The Perspective of Principle-Based Reasoning and Values

Definition and Application

Leaders who base their decisions on ethical principles—such as justice, transparency, empathy, and respect—seek long-lasting results, creating relationships of trust and commitment. This approach leads to sustainable growth, where leaders are concerned with the long-term impact of their actions.

Advantages and Challenges

Although slower, principle-based leadership results in more authentic relationships and a solid foundation of trust. However, it can be seen as indecisive, especially in times of crisis, when quick decisions are needed.

Practical Example

Nelson Mandela, by choosing reconciliation after his release, exemplified how principle-based leadership can transform a nation. More recently, Jacinda Ardern was widely praised for her compassionate leadership, particularly after the Christchurch attack and during the COVID-19 pandemic, showcasing how ethical values can create profound change.

3. The “Gray Zone”: The Dilemma between Power, Influence, and Principles

Exploring the Gray Zone

The gray zone is where decisions are not based on clear choices between right and wrong but rather on a complex web of conflicting values, divergent interests, and immediate pressures. In this space, leaders often need to make quick decisions, where the line between power, influence, and principles is not defined, creating moral uncertainty. The central dilemma is choosing between preserving core values and ensuring quick results, often without time for deep reflection.

The Role of Intuition and Emotion

In the gray zone, emotional factors and intuition play central roles. Often, quick decisions are driven by urgency or the emotional pressure to respond in the moment, causing leaders to prioritize actions that seem "easier" or "more effective" in the short term but compromise long-term values.

Practical Example 1: The COVID-19 Pandemic

During the pandemic, leaders like Angela Merkel and Jacinda Ardern had to balance public health with economic impact. Merkel prioritized public health, while Ardern carefully managed economic restrictions. Both faced criticism, but their decisions were based on values, adjusting policies as needed, exemplifying the tension between values and urgent needs.

Practical Example 2: The 2008 Financial Crisis

In the 2008 financial crisis, Ben Bernanke and Tim Geithner faced ethical dilemmas about how to save the global economy without compromising financial responsibility. The decision to bail out banks generated criticism for ignoring principles of justice, exacerbating social inequalities, and undermining trust in financial institutions.

4. The Impact of Lies and Manipulation

Lies in the Context of Power and Influence

Lies and manipulation may seem effective in times of crisis, but their long-term consequences are devastating. The lack of transparency erodes trust, the foundation of true leadership.

Long-Term Consequences

Leadership built on lies loses credibility. Even if manipulations generate momentary success, they cannot sustain power in the long term. When the truth comes to light, everything falls apart.

Practical Example

The Watergate scandal involving Richard Nixon is a clear example of how lies can destroy leadership. Recently, the scandal involving Elizabeth Holmes and Theranos showed how manipulation to maintain a public image can destroy a career, even with initially impressive results.

5. Moral Philosophy and Behavioral Psychology

Moral Philosophy

Leadership ethics involves a tension between principles and results. Immanuel Kant argued that morality should be grounded in universal principles, while John Stuart Mill proposed that actions should be evaluated based on their consequences for the greatest number of people. This tension is central to leadership decisions.

Behavioral Psychology

Trust is essential for effective leadership. Leaders who maintain transparency create a sense of security. The use of authoritarian power or manipulation generates distrust. Moreover, emotional intelligence is crucial for leaders seeking to make balanced decisions, especially under pressure.

6. The Role of Principle-Based Reasoning in Long-Term Sustainable Success

The Multiplying Effect of Ethical Leadership

Leaders with solid principles create a cycle of trust and loyalty, resulting in sustainable success. As more people engage with the leader’s goals, the mission strengthens.

Practical Example

Companies like Patagonia and Ben & Jerry’s exemplify how adherence to ethical principles generates not only financial success but also deep loyalty among customers and employees. Satya Nadella, by transforming Microsoft with a focus on inclusive culture and sustainability, demonstrated how ethical leadership can generate extraordinary results.

Conclusion

The balance between power, influence, and principle-based reasoning is crucial for effective and sustainable leadership. While power and influence provide quick results, it is solid principles that ensure long-lasting and respected leadership. True leadership is built on trust, transparency, and empathy—qualities that sustain genuine authority.

Leaders must be prepared to deal with ethical dilemmas and the pressure for quick results. Ethical leadership is the most sustainable, creating a solid foundation for long-term success. Leaders who choose to follow principles rather than giving in to immediate power will build a legacy that stands the test of time.

Practical Insights for Leaders:

Mentoring and Feedback:

Invest in mentoring and provide constant feedback to your team, which strengthens trust and promotes an environment of continuous growth.

Reflection and Self-Awareness:

Question your motivations and consider the long-term impact of your decisions. Continuous reflection on your choices is crucial.

Decision-Making:

Use the Practical Framework for decisions aligned with your principles, ensuring your leadership is transparent and just.

Behavior Adjustment:

Be willing to adjust your decisions when necessary, based on solid principles. Ethical flexibility is crucial for success.

Leaders who remain true to their principles while adapting to context build a legacy that inspires others to follow ethical and responsible examples.

Practical Framework for Leaders:

How does this decision affect the fundamental values of my organization?

Am I sacrificing any important principle to achieve quick results?

What are the long-term impacts of this decision on my team and society?

Am I being transparent and fair in my decisions?