Inspiring Ethics: Designing More Moral Leaders, Kreps Symposium 2025

Key Concepts

• Inspiring vs. Infuriating Leadership
• Visionary, Exemplar, Mentor (VEM) Framework
• Fundamental Human Needs (Meaning, Passion/Protection, Belonging/Status)
• Leader Amplification Effect
• Ethical Architecture (Channel Design)
• Reap (Reflect, Emulate, Intend, Practice)

1. Introduction: The Dichotomy of Leadership

• The lecture begins with contrasting stories of two captains facing crises:
  • Tammy Joe Schultz (Southwest Airlines 1380): Calmly and competently landed a damaged plane, prioritizing passenger safety and exhibiting remarkable composure. Her focus was on the well-being of others, and her actions inspired hope.
  • Francesco Schettino (Costa Concordia): Acted selfishly, abandoning ship and passengers, attempting to deflect blame, and prioritizing self-preservation. His actions led to imprisonment for dereliction of duty.
• These contrasting examples illustrate a fundamental dichotomy in leadership: inspiring versus infuriating.

2. The VEM Model: Three Universal Factors of Inspiring Leadership

• Big Idea 1: Inspiring and infuriating leaders exist on an enduring continuum defined by three universal factors: Visionary, Exemplar, and Mentor.
  • Visionary: How leaders see the world (optimistic, big-picture, focused on "why").
  • Exemplar: How leaders act in the world (calm, courageous, authentically passionate).
  • Mentor: How leaders interact with others (empathetic, elevating, empowering).
• These factors are universal, appearing consistently across cultures and contexts.

3. Meeting Fundamental Human Needs

• Big Idea 2: The VEM factors are universal because they each satisfy a fundamental human need:
  • Visionary: Meets the need for meaning and understanding.
  • Exemplar: Meets the need for passion and protection.
  • Mentor: Meets the need for belonging and status.

4. Deep Dive into Each Factor

4.1. Visionary

• Being visionary involves having a big-picture, meaningful, optimistic "why."
• Example: Reflecting on personal values to create a sense of meaning and understanding.
• Study: A Swiss employment agency study showed that unemployed individuals who reflected on their values were twice as likely to find a job within two months. This saved the agency tens of thousands of dollars.
• Teaching Lesson 1: The power of personal reflections in generating ideas and possibilities.

4.2. Exemplar

• Being an exemplar means exemplifying the vision, avoiding hypocrisy, and demonstrating calm courage.
• Examples:
  • Bubalina and George Washington: Both leaders positioned themselves at the forefront, taking on the most risk to protect others.
  • Passion Exercise: Participants paired up to discuss a passion, demonstrating how authentic passion is contagious and inspiring.
• Research: A study analyzing "Dragon's Den" (Shark Tank) showed that a one standard deviation increase in expressed passion led to a 40% higher likelihood of securing funding.
• Priming Power: Thinking about times when one felt powerful and in control can boost confidence and performance.
• Study: Research demonstrated that priming power improves interview outcomes.

4.3. Mentor

• Being a mentor involves treating people like people, not objects.
• Quote: "Tell me and I will forget, show me and I may remember, but involve me and I will truly understand" - Confucius
• Inspiring leaders involve others, share credit, and take responsibility, while infuriating leaders micromanage, steal credit, and deflect blame.
• Perspective Taking: Putting oneself in another's shoes to understand their perspective.
• Study: A study with medical students showed that those who practiced perspective-taking were rated as more trustworthy by patients, leading to increased patient satisfaction and adherence to treatment.
• Downward Learning: Learning from those with less power.
• Study: Research showed that mentors who engaged in downward learning were rated higher on engagement and empathy by their mentees.

5. Real-World Examples of VEM in Action

• CEO During Financial Crisis (2009): Demonstrated visionary leadership by prioritizing employees, exemplifying calm courage, and acting as a mentor by sacrificing the most and patiently answering questions.
• Dean Responding to False Accusation: Emphasized integrity (visionary), authentically expressed feelings (exemplar), and initiated an investigation to support the accused colleague (mentor).

6. Leadership Development: Inspiring Leaders Can Be Made

• Big Idea 4: Inspiring leaders are not just born; they can be developed through practice and nurturing of the VEM attributes.
• Individuals can become more visionary by being optimistic and simplifying communication, more exemplary by cultivating calm and passion, and more mentoring by empowering and empathizing with others.
• Teaching Lesson 2: The power of comparative analysis (e.g., moral courage vs. cowardice) to deepen learning and understanding.
• Teaching Lesson 3: The power of exercises and small group discussions to facilitate reflection and learning.

7. The Leader Amplification Effect

• Big Idea 5: As a leader, neutrality is not an option. The leader amplification effect states that everything a leader does (verbal and non-verbal, positive and negative) is amplified.
• Emotions are contagious, especially from leaders. Courage inspires courage, while anxiety breeds anxiety.
• Examples:
  • Danny Kahneman: A casual negative comment had a deeply humiliating impact, while a brief positive comment had an overwhelmingly positive effect.
  • Barry Salsberg (Global Deloitte CEO): A slight enthusiasm for bananas led to bananas being present at every meeting.
  • Professor's Request to Meet: A simple request to meet caused significant anxiety due to the power dynamic.
• Solution: Self-awareness and perspective-taking are crucial for understanding and managing the impact of one's actions as a leader.

8. Ethical Architecture: Designing for Inspiration

• Big Idea 6: Think like an architect to design policies, practices, and processes that guide people towards inspiration.
• This involves opening the right channels and closing off the wrong channels.
• Example: Odysseus tying himself to the mast and plugging his crew's ears to resist the sirens' song.
• Casino Design: Casinos strategically manipulate the environment to encourage gambling (e.g., no clocks, maze-like layout).
• Organ Donation (Opt-in vs. Opt-out): Opt-out systems increase participation but can feel manipulative. Opt-in systems ensure quality participation but may result in lower overall numbers.
• Tools vs. Weapons: The same tool (e.g., a knife) can be used for inspiring or infuriating purposes depending on the intent.
• Examples of Architectural Failures:
  • Kravis Hall (Columbia Business School): Placing espresso machines on every floor reduced spontaneous interaction.
  • Google Cafeteria: The cafeteria's success lies in being a central hub, not a ubiquitous perk.
  • The Vessel (Hudson Yards): Lack of psychological consideration led to suicides and closure.
• Personal Example: Redesigning the school drop-off routine to accommodate both children's needs.

9. Reap What You Sow (REIP)

• Big Idea 7: The energy we put out into the world is what comes back to us.
• REIP (Reflect, Emulate, Intend, Practice):
  • Reflect: On experiences (inspiring and infuriating).
  • Emulate: Learn from inspiring figures.
  • Intend: Set intentions based on reflections and emulation.
  • Practice: Consistently apply these intentions.
• Example: Joseph Stiglianiano sending personalized birthday messages to every employee.
• CEO Sending Notes of Praise: A CEO started sending daily notes of praise or gratitude, which not only inspired employees but also brought joy to the CEO.

10. Conclusion: The Power of Small Actions

• The lecture concludes by emphasizing the power of small, consistent actions to create a more inspiring world.
• By focusing on what one small mitzvah can be done each day, individuals can create a ripple effect of positivity and inspiration.