Name: Conscious Leadership
Rating: 3.7 (354 reviews)
Author: Steve McIntosh

In today's fast-paced business world, many leaders are solely focused on maximizing profits and beating the competition at all costs. But what if there was a different way to approach leadership - one that balanced purpose and profit, integrity and success? In his book "Conscious Leadership", Steve McIntosh presents a compelling vision for a new kind of business leadership that aims to do good in the world while also achieving financial success.

McIntosh argues that truly great leaders are driven by a higher purpose beyond just making money. They seek to create value not only for shareholders, but for employees, customers, communities, and society as a whole. By cultivating qualities like integrity, authenticity, and long-term thinking, conscious leaders can build thriving organizations that are forces for positive change.

Drawing on real-world examples and practical advice, McIntosh outlines the key principles and practices of conscious leadership. He shows how business can be a powerful vehicle for making the world a better place when guided by leaders with the right mindset and values. For anyone looking to step up their leadership game and make a meaningful impact, this book offers an inspiring roadmap.

Conscious Leadership Begins with Personal Transformation

At the heart of conscious leadership is a willingness to embark on a journey of personal growth and transformation. McIntosh illustrates this through the story of John Mackey, co-founder of Whole Foods Market.

In the late 2000s, Mackey found himself in a crisis. The Whole Foods board of directors was unhappy with his recent performance as CEO and considering replacing him. After a difficult meeting with the board, Mackey felt panicked and adrift. But as he wandered through some local Whole Foods stores, he had an epiphany.

Seeing the aisles of healthy food and happy employees, Mackey reconnected with his original purpose for starting the company - to inspire people to eat nutritious food and live healthier lives. In that moment, he rediscovered his "why" for wanting to lead a business driven by more than just profits.

This realization gave Mackey the motivation to fight for his job and convince the board to keep him on as CEO. But he knew he couldn't continue leading the same way he had before. To guide Whole Foods into a successful future, Mackey would need to grow and evolve as a conscious leader.

This story highlights a key principle of conscious leadership - it starts with personal transformation. To become a more conscious leader, you must be willing to:

Reflect deeply on your purpose and values
Identify areas where you need to grow and improve
Commit to an ongoing journey of self-development
Align your actions with your highest principles

As Mackey's experience shows, this process of personal growth allows leaders to tap into new wells of inspiration, creativity and resilience. By continually working on themselves, conscious leaders can guide their organizations to greater heights.

Profit and Purpose Are Not Mutually Exclusive

One of the core tenets of conscious leadership is that businesses can pursue both profit and purpose simultaneously. Many people assume that companies must choose between making money and doing good in the world. But McIntosh argues this is a false dichotomy.

In reality, profit and purpose can be mutually reinforcing. When businesses are driven by a higher purpose beyond just maximizing shareholder returns, they often end up being more successful financially in the long run. This is because purpose-driven companies tend to:

Attract more loyal customers who believe in their mission
Inspire greater employee engagement and productivity
Build stronger relationships with suppliers and partners
Develop more innovative products and services
Earn more positive brand recognition and goodwill

McIntosh points to outdoor retailer REI as a prime example. The company generates billions in revenue each year, but is guided by a mission to connect people with nature. This purpose manifests in initiatives like closing all stores on Black Friday to encourage customers and employees to spend time outdoors instead of shopping.

By staying true to its values, REI has cultivated a devoted customer base and consistently outperformed many of its competitors financially. This demonstrates how profit and purpose can work hand-in-hand when a business is led consciously.

To embrace this mindset, McIntosh encourages leaders to:

Clearly articulate their company's higher purpose beyond making money
Look for ways to create value for all stakeholders, not just shareholders
Measure success based on social and environmental impact, not just financial metrics
Make decisions through the lens of long-term sustainability, not just short-term gains

When profit and purpose are viewed as complementary rather than conflicting, it opens up new possibilities for business to be a force for good in the world.

Discovering Your Guiding Purpose Takes Time

While having a clear sense of purpose is crucial for conscious leaders, McIntosh acknowledges that uncovering your "why" is not always a straightforward process. Some entrepreneurs and leaders seem to intuitively know their purpose from the start. But for many, it's a gradual journey of discovery that unfolds over time.

McIntosh shares the story of Shawn David Nelson, founder of Lovesac furniture company, to illustrate this point. In his early twenties, Nelson's only goal was to create the world's biggest beanbag chair and have fun doing it. But as the company grew, he realized there was a deeper purpose behind his work - to make sustainable, long-lasting furniture that would reduce waste.

This evolution is common for many business leaders. Your initial motivations for starting a company may be relatively simple or self-centered. But as you gain experience and perspective, a more meaningful purpose often emerges. The key is to remain open to this process of discovery and refinement over time.

McIntosh offers several suggestions for uncovering and clarifying your purpose as a leader:

Reflect on what truly inspires and energizes you
Think about problems in the world you feel called to solve
Consider the impact you want to have on others' lives
Look for patterns and themes in your past experiences
Seek inspiration from leaders and thinkers you admire
Be willing to evolve your purpose as you grow and learn

Importantly, McIntosh emphasizes that finding your purpose is not a one-time event, but an ongoing practice. Your sense of purpose may deepen or shift as you progress in your leadership journey. The goal is to cultivate an ever-clearer vision of the positive change you want to create through your work.

Integrity is the Foundation of Conscious Leadership

Of all the qualities that define conscious leaders, McIntosh argues that integrity is the most essential. He defines integrity as consistently adhering to strong moral and ethical principles, even when it's difficult or unpopular.

To illustrate the power of integrity in leadership, McIntosh shares the story of Ramón Mendiola, CEO of Florida Ice & Farm Company (FIFCO). In 2008, FIFCO was experiencing rapid growth and strong profits. Many leaders would have been content to stay the course. But Mendiola felt the company could do better - not just financially, but ethically and socially as well.

Despite pushback from the board, Mendiola initiated a comprehensive review of FIFCO's social and environmental impact. Based on stakeholder feedback, he implemented major changes like:

Becoming water neutral by 2012
Increasing philanthropic giving from 1% to 8% of profits
Setting ambitious sustainability targets

These initiatives required significant investment and represented a departure from "business as usual." But by following his moral compass, Mendiola ultimately strengthened FIFCO's brand, improved employee engagement, and positioned the company for long-term success.

This example demonstrates how integrity empowers conscious leaders to:

Make difficult decisions aligned with their values
Challenge the status quo when necessary
Build trust with stakeholders
Create a culture of ethics and responsibility
Drive positive change beyond just the bottom line

McIntosh emphasizes that integrity is not just about avoiding dishonesty or unethical behavior. It requires proactively doing the right thing, even when it's uncomfortable or costly in the short-term. This often means:

Admitting mistakes and taking responsibility
Following through on commitments
Considering the impact of decisions on all stakeholders
Speaking up against wrongdoing
Making tough choices that prioritize long-term value over short-term gains

By cultivating unwavering integrity, conscious leaders earn the moral authority to guide their organizations toward a higher purpose. This provides the foundation for all other aspects of conscious leadership to flourish.

Honesty and Authenticity Are Essential Leadership Traits

Building on the foundation of integrity, McIntosh highlights honesty and authenticity as two critical traits for conscious leaders to embody. While these qualities may seem obvious, he argues they are often lacking in the business world.

Honesty goes beyond just not lying - it requires a commitment to proactively telling the truth, even when it's uncomfortable. This means:

Giving candid feedback to team members
Admitting when you don't have all the answers
Acknowledging mistakes and areas for improvement
Challenging false narratives or assumptions
Sharing difficult information transparently

McIntosh cites the example of former Medtronic CEO Bill George, who told a shy colleague that "integrity is not the absence of lying." Sometimes being truly honest means speaking up and saying things people may not want to hear.

Authenticity is about being genuine and true to yourself in all contexts. An authentic leader doesn't put on different personas for different audiences. Instead, they consistently act in alignment with their values and personality, whether presenting to the board or chatting with interns.

Cultivating authenticity requires:

Developing strong self-awareness
Acknowledging your strengths and weaknesses
Taking responsibility for your impact on others
Staying grounded in your core principles
Resisting pressure to conform to others' expectations

McIntosh emphasizes that authenticity doesn't mean oversharing or lacking professionalism. Rather, it's about bringing your whole, genuine self to your leadership role.

Honesty and authenticity are powerful because they build trust, respect and connection. When leaders embody these traits:

Team members feel psychologically safe to share ideas and concerns
Difficult conversations become easier and more productive
The organization develops a culture of openness and transparency
Stakeholders have confidence in the leader's integrity
Decision-making becomes clearer and more principled

While not always easy, committing to radical honesty and authenticity allows conscious leaders to create environments where people and purpose can thrive.

Pursuing Win-Win-Win Solutions

A key mindset shift for conscious leaders is moving beyond win-lose or even win-win thinking to seek out win-win-win solutions. This means looking for ways to create positive outcomes not just for your company and immediate stakeholders, but for the broader community and world as well.

McIntosh contrasts this approach with the "dog-eat-dog" mentality that often prevails in business. Many leaders operate from a scarcity mindset, assuming that for them to win, someone else must lose. This leads to ruthless competition, short-term thinking, and a disregard for negative externalities.

Conscious leaders reject this zero-sum game in favor of abundance thinking. They believe it's possible to grow the pie for everyone rather than just fighting over the biggest slice. This involves:

Considering the needs and interests of all stakeholders
Looking for synergies and mutual benefits
Thinking creatively about how to create more value
Taking a long-term, systemic view
Factoring in social and environmental impact

To put this into practice, McIntosh suggests asking questions like:

"Is anyone losing in this proposal?"
"Does anyone perceive themselves as getting the short end of the stick?"
"How can we collaborate to create a better solution for everyone involved?"
"What additional value could we create for the broader community?"

He emphasizes that win-win-win thinking doesn't mean ignoring business realities or giving away the farm. It's about expanding the frame to consider more holistic measures of success and value creation.

Some examples of win-win-win solutions in action:

A company partners with a nonprofit to provide job training, gaining skilled workers while helping the community
An eco-friendly product innovation that boosts sales, reduces costs, and benefits the environment
A profit-sharing program that increases employee engagement and retention while improving company performance

By consistently seeking out these multi-stakeholder wins, conscious leaders can drive sustainable growth and positive impact far beyond what's possible through traditional competitive approaches.

Investing in Long-Term Value Creation

One of the biggest pitfalls for leaders is getting caught up in chasing short-term gains at the expense of long-term value creation. McIntosh argues that truly conscious leaders resist this temptation and take a more far-sighted approach to decision-making and strategy.

He uses the example of Iceland's economic boom and bust in the late 2000s to illustrate the dangers of short-termism. Icelandic companies pursued rapid growth through risky borrowing and acquisitions, creating a bubble that eventually burst spectacularly. This left businesses, workers and the broader economy in dire straits.

In contrast, conscious leaders look to create sustainable prosperity over multi-year or even multi-decade timelines. This involves:

Understanding long-term trends and dynamics
Making strategic investments that may not pay off immediately
Prioritizing innovation and adaptation
Building strong foundations and capabilities
Considering future scenarios and preparing accordingly

McIntosh highlights Panera founder Ron Shaich as an exemplar of long-term thinking. Even when Panera was thriving, Shaich continued pushing for transformative changes and investments to keep the company creating value over time. This included embracing new technologies, developing a loyalty program, and innovating healthier menu items.

To cultivate this long-term mindset, McIntosh recommends practices like:

Conducting "pre-mortems" to envision potential future outcomes
Setting ambitious long-range goals and working backwards
Regularly reviewing and updating multi-year strategic plans
Educating stakeholders on the importance of long-term value creation
Aligning incentives and metrics with long-term objectives

Importantly, taking a long-term view doesn't mean ignoring short-term realities or results. It's about striking the right balance and avoiding destructive short-termism. By consistently investing in the future, conscious leaders position their organizations to thrive sustainably over time.

Creating a Conscious Work Culture

A critical responsibility for conscious leaders is cultivating an organizational culture that embodies their values and supports their higher purpose. McIntosh emphasizes that this starts with attracting, hiring and retaining talented employees who are aligned with the company's mission.

He shares the example of Steve Hall, founder of car dealership driversselect, to illustrate best practices in this area. Hall realized early on that investing significant time and resources in hiring was crucial for creating a thriving culture. His approach includes:

Hiring for potential, looking for people who can grow into higher roles
Providing extensive leadership training and development opportunities
Focusing on cultural fit as much as skills and experience
Creating clear career paths and growth opportunities

As a result, Hall's company has much lower turnover than industry averages and has built a strong, purpose-driven culture.

Beyond hiring, McIntosh outlines several key elements of creating a conscious work culture:

Clearly articulating and reinforcing the organization's purpose and values
Fostering psychological safety so people feel comfortable speaking up
Encouraging collaboration and breaking down silos
Recognizing and rewarding behaviors aligned with company values
Providing opportunities for learning, growth and meaningful work
Promoting work-life balance and employee wellbeing

He emphasizes the importance of leaders modeling the culture they want to see. This means embodying company values, building strong relationships across the organization, and consistently "walking the talk."

McIntosh also recommends regular "chemistry checks" to assess how well the culture is functioning. This involves asking questions like:

How high is the level of trust between team members?
Are people collaborating effectively across departments?
Does anyone seem to be disrupting morale?
What could we do to further strengthen our culture?

By proactively nurturing a conscious culture, leaders create an environment where employees can thrive and the organization's higher purpose can flourish. This ultimately drives better business results as well as positive impact.

Balancing Stakeholder Interests

A core principle of conscious leadership is considering the needs and interests of all stakeholders, not just shareholders. This requires carefully balancing competing priorities and finding ways to create value for employees, customers, communities, and the environment alongside financial returns.

McIntosh acknowledges this is no easy task. Different stakeholder groups often have conflicting wants and needs. Short-term pressures can make it tempting to prioritize profits above all else. And some stakeholders may resist changes that benefit others.

To navigate these challenges, he recommends:

Clearly defining your various stakeholder groups and their interests
Developing a decision-making framework that factors in multiple stakeholders
Looking for creative solutions that address multiple needs simultaneously
Being transparent about tradeoffs and how decisions are made
Regularly engaging with different stakeholder groups to understand their perspectives
Setting goals and metrics related to each stakeholder group's wellbeing

McIntosh emphasizes that balancing stakeholder interests doesn't mean trying to make everyone happy all the time. Sometimes difficult choices must be made. The key is thoughtfully considering impacts on all groups and striving for the greatest good overall.

He shares the example of Unilever CEO Paul Polman, who faced pushback from some investors when he eliminated quarterly earnings guidance and shifted focus to long-term sustainable growth. By clearly articulating how this approach would benefit all stakeholders over time, Polman was able to get buy-in and drive strong results.

Other strategies conscious leaders can use include:

Creating stakeholder advisory boards to provide input on key decisions
Implementing profit-sharing or employee ownership programs
Partnering with local communities on social impact initiatives
Setting science-based environmental targets
Providing radical transparency on supply chains and business practices

By consistently considering diverse stakeholder needs, conscious leaders can create more resilient, purposeful organizations that generate value on multiple levels.

Embracing Systems Thinking

To be truly effective, conscious leaders must develop a holistic understanding of how their organizations interact with broader economic, social and environmental systems. This requires moving beyond linear, siloed thinking to embrace a more interconnected worldview.

McIntosh argues that many of today's most pressing challenges - from climate change to inequality - stem from a failure to see the big picture. By cultivating systems thinking, leaders can:

Identify root causes rather than just symptoms
Anticipate unintended consequences of decisions
Find leverage points for creating positive change
Develop more innovative, integrated solutions
Build more resilient, adaptive organizations

He offers several practices to help develop a systems mindset:

Map out key stakeholders and their relationships to your organization
Trace inputs and outputs through your entire value chain
Consider impacts across multiple time horizons (short, medium, long-term)
Look for feedback loops and compounding effects
Study natural ecosystems as models of interconnected systems
Collaborate across traditional boundaries (departments, sectors, etc.)

McIntosh cites Interface founder Ray Anderson as an example of systems thinking in action. When Anderson set out to make his carpet company fully sustainable, he looked at every aspect of the business - from raw materials to manufacturing to product lifecycle. This holistic approach led to breakthrough innovations that benefited the environment and the bottom line.

Other ways conscious leaders can apply systems thinking include:

Implementing circular economy principles to eliminate waste
Developing products and services that regenerate natural systems
Creating multi-stakeholder collaborations to address complex challenges
Using scenario planning to prepare for different possible futures
Measuring success based on integrated dashboards, not just financials

By zooming out to see the bigger picture, conscious leaders can guide their organizations to create positive ripple effects far beyond their immediate sphere of influence.

Cultivating Emotional Intelligence

While much of conscious leadership focuses on purpose and principles, McIntosh emphasizes that effectively putting these ideas into practice requires strong emotional intelligence (EQ). This means developing self-awareness, self-regulation, empathy, and social skills.

He argues that EQ is often more important than IQ when it comes to leadership success. Leaders with high EQ are better able to:

Understand and manage their own emotions
Read and respond to others' emotional states
Build strong relationships and trust
Navigate conflicts and difficult conversations
Inspire and motivate team members
Create psychologically safe environments

To cultivate emotional intelligence, McIntosh recommends practices like:

Regular self-reflection and journaling
Seeking honest feedback from others
Practicing mindfulness and meditation
Learning to identify and name emotions
Developing listening and communication skills
Putting yourself in others' shoes

He shares the example of Microsoft CEO Satya Nadella, who made improving the company's emotional intelligence a key priority when he took over. By modeling vulnerability, empathy and inclusivity, Nadella shifted Microsoft's culture and drove a dramatic turnaround.

Other ways conscious leaders can apply emotional intelligence include:

Creating opportunities for team bonding and connection
Providing training on EQ skills like active listening
Recognizing and rewarding displays of empathy and emotional awareness
Implementing policies that support work-life balance and wellbeing
Using storytelling to tap into emotions and inspire action

McIntosh emphasizes that improving EQ is an ongoing journey. But by consistently working on these skills, conscious leaders can create more engaged, collaborative and purposeful organizations.

Leading with Courage and Resilience

Conscious leadership often involves making difficult decisions, challenging the status quo, and persevering in the face of setbacks. This requires cultivating courage and resilience - the ability to stay committed to your purpose and values even when it's uncomfortable or unpopular.

McIntosh argues that many leaders default to playing it safe, avoiding risks and hard conversations. But truly conscious leaders are willing to:

Stand up for their principles, even when it's costly
Make tough calls that may be unpopular in the short-term
Admit mistakes and take responsibility
Have difficult conversations and give candid feedback
Push for needed changes, even in the face of resistance
Keep going when faced with obstacles and failures

He shares the story of Rose Marcario, former CEO of Patagonia, as an example of courageous leadership. Marcario consistently took bold stands on environmental and social issues, even when it put the company at odds with political leaders or industry norms. This included suing the Trump administration over national monument protections and implementing a self-imposed "Earth tax" to fund grassroots activists.

To build courage and resilience, McIntosh recommends:

Clarifying your core values and non-negotiables
Visualizing yourself succeeding in challenging situations
Building a strong support network
Reframing setbacks as learning opportunities
Practicing self-care and stress management
Celebrating small wins along the way

He emphasizes that courage is like a muscle - it gets stronger with consistent practice. By regularly pushing outside their comfort zone in small ways, leaders can build the resolve to take on bigger challenges.

Other ways conscious leaders demonstrate courage include:

Setting ambitious "stretch" goals for positive impact
Speaking out on important issues, even if it's controversial
Making significant investments in long-term sustainability
Radically transforming business models to align with purpose
Stepping down if no longer the right person to lead

By modeling courage and resilience, conscious leaders inspire their organizations to reach for audacious goals and persevere through difficulties. This ultimately allows them to create meaningful change in the world.

Fostering Innovation and Adaptability

In today's rapidly changing business landscape, conscious leaders must cultivate cultures of innovation and adaptability. This means embracing experimentation, learning from failure, and being willing to continuously evolve.

McIntosh argues that many traditional leadership approaches stifle creativity and agility. Excessive hierarchy, risk aversion, and rigid planning can prevent organizations from responding effectively to new challenges and opportunities. Instead, conscious leaders should:

Encourage calculated risk-taking and "intelligent failure"
Create space for divergent thinking and wild ideas
Empower employees at all levels to innovate
Build in flexibility and rapid iteration cycles
Stay attuned to weak signals of change in the environment
Foster cross-functional collaboration and knowledge sharing

He points to Amazon as an example of a company that has maintained a culture of innovation at massive scale. Despite its size, Amazon preserves a "Day 1" mentality focused on customer-centric experimentation. This has allowed it to continuously enter new markets and create breakthrough products and services.

To foster innovation and adaptability, McIntosh recommends practices like:

Hosting regular hackathons or innovation challenges
Creating cross-functional "skunkworks" teams to tackle big problems
Implementing lean startup methodologies for testing new ideas
Providing resources and autonomy for bottom-up innovation
Celebrating and learning from productive failures
Staying connected to startups and emerging technologies in your industry

He emphasizes that leaders must model comfort with ambiguity and a growth mindset. This means being willing to admit what you don't know, ask questions, and evolve your own thinking.

Other ways conscious leaders can drive innovation include:

Setting aside dedicated time and budget for experimentation
Creating incentives aligned with innovation goals
Streamlining processes to enable rapid prototyping and iteration
Building diverse teams to spark creative collisions
Looking to other industries for inspiration and cross-pollination

By fostering cultures of innovation and adaptability, conscious leaders position their organizations to thrive amid uncertainty and create breakthrough solutions to pressing challenges.

Developing Future Conscious Leaders

A key responsibility of conscious leaders is cultivating the next generation of purpose-driven business leaders. This ensures the continuity and expansion of conscious capitalism over time.

McIntosh emphasizes that developing conscious leaders requires a different approach than traditional leadership development. Beyond just building business and management skills, it involves nurturing:

A strong sense of purpose and values
Systems thinking and long-term orientation
Emotional intelligence and empathy
Comfort with ambiguity and paradox
Ethical decision-making capabilities
A global, inclusive mindset

He recommends a multi-faceted approach to leadership development that includes:

Formal training programs on conscious leadership principles
Mentoring and coaching relationships
Stretch assignments that push people outside their comfort zones
Exposure to diverse perspectives and experiences
Opportunities to lead purpose-driven initiatives
Regular reflection and feedback on leadership growth

McIntosh highlights Unilever's UFLP (Unilever Future Leaders Programme) as an exemplary model. This program immerses high-potential employees in sustainability challenges, cross-cultural experiences, and purpose-driven projects alongside traditional management training.

Other strategies conscious leaders can use to develop future talent include:

Creating a leadership competency model that incorporates conscious business principles
Implementing job rotations to build systems understanding
Encouraging participation in social impact initiatives and board service
Providing resources for ongoing learning and self-development
Modeling vulnerable, authentic leadership

He emphasizes that conscious leadership development is not just about grooming successors for top roles. It's about infusing conscious business thinking throughout the organization at all levels.

By intentionally cultivating conscious leaders for the future, today's pioneers can ensure their legacy of purpose-driven business continues to grow and evolve long after they're gone.

Conclusion: The Ongoing Journey of Conscious Leadership

In concluding his exploration of conscious leadership, McIntosh emphasizes that this is not a destination to be reached, but an ongoing journey of growth and evolution. Even the most enlightened leaders must continually refine their approach and expand their impact.

He encourages readers to view conscious leadership as a practice - something to be cultivated daily through intention, reflection and action. This involves:

Regularly reconnecting with your core purpose and values
Seeking out new learning and diverse perspectives
Reflecting on decisions and their broader impacts
Pushing yourself to take on new challenges
Remaining humble and open to feedback
Evolving your leadership approach as contexts change

McIntosh acknowledges that the path of conscious leadership is not always easy. It often requires making difficult tradeoffs, having uncomfortable conversations, and swimming against the tide of conventional business thinking. But he argues the rewards - both personal and collective - make it deeply worthwhile.

By committing to conscious leadership, he believes business leaders can:

Create more meaningful, fulfilling work for themselves and others
Build more resilient, innovative and purposeful organizations
Generate sustainable value for all stakeholders
Tackle pressing social and environmental challenges
Inspire others to embrace a more conscious approach to capitalism

Ultimately, McIntosh sees conscious leadership as key to evolving our economic system to better serve humanity and the planet. While the challenges we face are immense, he remains optimistic about the potential for business to be a powerful force for positive change when guided by truly conscious leaders.

He encourages readers to start where they are, taking small steps to incorporate conscious leadership principles into their work and lives. Over time, these ripples can grow into waves of transformation - in individuals, organizations, and society as a whole.

The journey of conscious leadership is lifelong, but it begins with a single choice to lead with greater purpose, integrity and care for all. McIntosh invites readers to embrace this path and discover the profound impact they can have as more conscious leaders.