
Itโs a source of endless irritation for my wife, but Whataburger is usually the first subject I bring up when introduced to someone who lives in Texas, or is from there. It also comes up when talking with friends who still live there. Breakfast at Whataburger would be my โDeath Rowโ meal, and itโs what I tell all Texans with utmost sincerity.
What irritates my wife will perhaps surprise readers of this book review. You see, this one analyzes Conscious Leadership, the excellent new book by John Mackey, and his colleagues Steve McIntosh and Carter Phipps. Mackey is an ethical vegan, but more importantly he is the founder of Austin, TX-based Whole Foods. How odd for a writer who plans his trips to Texas around Whataburger visits to be reviewing a book by the creator of a business who arguably created the healthy eating movement.
So while Mackey and I would almost certainly order different things if we were ever sitting across from each other at a restaurant, thereโs broad agreement on matters of public policy. Mackey believes capitalism โis the greatest thing humanityโs ever done,โ and I agree with him. When he writes, I read. Conscious Leadership was a great read.
Probably the best place to begin is to start where Mackey and his co-authors do: itโs the early 2000s, the initial internet boom was heading toward a healthy bust (the previous truth eluded politicians, regulators and most media members, but thatโs another column), and the bust took Whole Foodsโ internet concept WholePeople.com with it. The failure of WholePeople imperiled Mackeyโs spot as CEO, and it brought him to Florida where he would make a case for being retained as CEO in front of the companyโs board.
Rather than pace the floor of a hotel room or run numbers, Mackey chose to rediscover Whole Foods itself. He visited a nearby store. The latter reminded him that his creation was โbeautiful stores filled with smiling team members.โ Mackey found his โown purpose renewed,โ but also realized that his own โleadership style had to evolve.โ Since that fateful walk of the aisles Whole Foodsโ annual sales have soared from $1 billion to $19 billion as Mackey and the team he rebuilt stepped up โto a much higher level of integrity and responsibility.โ Conscious Leadership was one of the informative results of this Mackeyโs journey.
Mackeyโs reminiscence of a more troubled time is firstly a crucial lesson about โrecessions.โ Theyโre a good thing. Bad times set the stage for much better precisely because they force us to look inward, to fix what weโre doing wrong, and to think hard about ways to improve. Regarding the previous sentence, it should exist as a reminder that what tens of millions of Americans are enduring right now is not a recession. Recessions are healthy. What way too many Americans are suffering right now is a forced contraction whereby economic freedom was replaced by command-and-control. In Mackeyโs case, bad times planted the seeds for better.
Fast forward to the present, and Mackey has thankfully been very publicly against the hideous lockdowns that have bankrupted millions of U.S. businesses, and put tens of millions out of work. And when itโs remembered that the only closed economy is the world economy, the lockdowns have brought on disastrous implications of the poverty and starvation kind for a world very much reliant on American dynamism.
As for me, Mackeyโs reminiscence of troubled times didnโt just work as powerful evidence of the curative power of downturns. It also helps explain my interest in Mackeyโs book beyond our policy agreements. While my dietary choices probably wouldnโt impress the author, or authors, Iโm always made giddy by a walk through Whole Foods. The stores are surely beautiful, and as my wife is a big fan of healthier, more sophisticated food, Iโm at Whole Foods several times a week. The stores energize those within them given their vibrancy, and the team members are most certainly always smiling. Better than their smiles is how helpful they are. No matter what item asked about, and no matter how far it is from where itโs asked about, team members always make time to walk me over to what Iโm looking for. And since Whole Foods has an expansive selection of meats, thereโs much for people with my dietary limitations too.
Mackeyโs evolution, and the one he engineered within Whole Foods, was decidedly โnot about market share and products.โ As this introduction alludes, the reboot of his innovation was about โleadership and people,โ and in particular the person in the CEOโs chair. As Mackey puts it, โan organizations potential is constrained by the abilities of its leader.โ Mackeyโs personal recession forced him to improve.
All of which brings us to a point-of-view that some who lean capitalist might quibble about with Mackey. Itโs apparent that he at least on the surface rejects the notion that businesses exist wholly to create profits for shareholders. Stakeholder Integration is crucial in Mackeyโs eyes. Better yet, itโs โa shift away from the traditional conception of a corporation, in which increasing profits for shareholders is seen as the primary responsibility of the businesses. Instead, we think of businesses as serving a wider community of stakeholders, all of whom are connected through mutual interests and benefits.โ
Some who are capitalist in orientation might read the above and immediately be triggered in the figurative sense. The view here is that their ire would be wasted. Mackey isnโt rejecting profits as much as heโs saying that the path to rewarding shareholders is very much one in which various stakeholders are rewarded first.
Mackey believes great leaders โconnect people to purpose.โ The purpose of Whole Foods is to โnourish people and the planet.โ In shifting the stated mission from profits to something bigger, or as Mackey phrases it, something โvivid and exciting,โ heโs energizing the very people and customers who will ultimately reward shareholders.
Mackeyโs view of the world doesnโt just apply to businesses. Indeed, it would be great if more politicians and economists would read his book. โVivid and excitingโ is operative here when itโs remembered that witless economists routinely make a case for what is usually a pretty daft policy idea by talking in terms of what it might mean for โGDP growth.โ Ok, not only is GDP a hopelessly backwards way of measuring economic progress, itโs also a total bore. Economic growth that is always and everywhere a consequence of free people is an exciting thing, itโs a beautiful thing, so make it that way. Connect people to it.
In much the same way, more than a few who lean right politically have taken to saying about their ideological enemies that โthey offer handouts, while we offer spinach. We canโt win.โ Whenever I hear that, I either write an op-ed rebutting such a view or I tell the individual expressing such nonsense to try some other vocation. Think about it. Government spending is the economy-sapping process whereby Nancy Pelosi and Mitch McConnell plan the allocation of resources instead of Amazonโs Jeff Bezos, FedEx founder Fred Smith, and yes, John Mackey. In that case, if allegedly right leaning political types feel tongue-tied when making a case for spending cuts, then itโs rather apparent they have no clue why theyโre for limited government, for capitalism, or realistically both. The main thing is that for those who believe in economic growth and limited government, Conscious Leadership is a reminder that winning arguments are the ones that vivify the genius of politicians consuming less so that entrepreneurs can experiment and innovate more.
Mackey also rejects the perception that business is a Game of Thrones episode. Through his eyes, business is more โan expression of love in actionโ Itโs serving others. A โservant leader prioritizes the needs of others,โ and derives authority from doing just that. This isnโt about kill or be killed. Mackey asks who but โa very brave or foolish person would climb into a tank of hungry sharks?โ This read beautifully. Mackeyโs not out to vanquish other grocery providers as much as heโs in this so that he can lead customers in a new direction. Peter Thiel would obviously appreciate his point of view in that Thiel too has long marveled at businesses that would rush toward competition. Why? Why look for fights? A true entrepreneur leads. Steve Jobs didnโt build another Blackberry with the original iPhone; rather he created something entirely different. Customers followed.
Mackey writes that โas leaders, we are only as good as our teams.โ Some will read this as trite, or clichรฉd, but itโs true. Thereโs a reason the best companies put so much effort into building cultures, that Goldman Sachs is so heavily focused on developing โculture carriers,โ that Pixar is, and that any corporation with designs on greatness is. Mackey may be a one-of-a-kind visionary, but Whole Foods is a consequence of remarkable people brought together by the visionary. About the people who make up corporations, Mackey writes that businesses โdepend on interacting networks of actual people โ engaging, refining, inventing, imagining, sharing, and building on one anotherโs work.โ What Mackey is implicitly stating is that all this nonsensical speculation about the end of office buildings as workers retreat to their houses, apartments and WiFi connected Zoom meeting brings aggressive new meaning to ridiculous.
Successful businesses donโt invest enormous sums in office space as a vanity play. In truth, they do so because a neglected corporate culture quickly develops โtoxicโ qualities. Mackey argues energetically that an โorganizational culture is a bit like a garden โ it takes careful tending to turn a patch of soil into an abundant, verdant, flowering, productive ecosystem.โ Readers and writers would be wise to file away the myriad opinion pieces about the end of the office. Those who would make such a ridiculous claim have plainly never worked for a good company.
In considering culture, it has to be remembered that this essential book is about leadership, and Mackeyโs view that leadership heft as it were is derived โfrom the heartfelt impulse to help.โ Develop talent and talent will follow you. Mackey makes the crucial point toward bookโs end that IQ is overrated, that there are โmultiple kinds of personal competence.โ So very true. And it speaks to the true beauty of the free trade that Mackey believes deeply in. No doubt the lower prices that spring from open markets are brilliant, but whatโs truly spectacular about the global division of labor is that it shines a bright light on โmultiple kinds of personal competenceโ that have in the past been suffocated by autarky.
John Mackey leads by finding ways to lift those in his employ who will run through walls for someone who will put them in a position to thrive. Conscious Leadership is an essential book for helping readers understand that leadership isnโt decreed as much as itโs a consequence of the would-be leader serving those around him.
Reprinted from Forbes
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