One of the more common refrains I hear in business is managers saying, "my team … ". On the face of it the statement seems innocuous, almost throw away. Dig a little deeper and it seems natural that if someone is the line-manager it is their team. But dig deeper still, right down to the philosophical underpinnings of the comments, and we find a mindset that is fundamentally flawed. A mindset that can, and all too frequently does, lead to negative outcomes for organisations and employees.
In contrast to a possessive, and arguably narcissistic approach, is a custodian mindset for management. This custodian approach can lead to more ethical, sustainable, and effective management practices. Ensuring that as managers, we better protect and serve our organisation and safeguard valuable assets.
A Custodian Approach to Management
In his seminal work, The Theory of Social and Economic Organization, the German sociologist, historian, jurist, and political economist Max Weber identified three types of legitimate authority: traditional, charismatic, and rational-legal. While a lot of managers like to think of themselves as charismatic, and in family owned businesses there are often 'traditional' leaders who hold the role because they are the grandson of the founder, for the overwhelming majority of managers their appointment and source of authority is rational-legal. This is because they hold positional authority which is based on clearly defined rules, processes, and procedures — all strictly tied to their role, not their personal characteristics. You see this in situations where it makes sense to follow the guidance of a colleague because they are brilliant, but instead everyone must wait for the line-manager with positional authority before the next step can be taken.
In this positional authority model, managers are not sovereign rulers, merely agents who are operating within a patchwork of rules and responsibilities which require the occupant use the temporary power they hold in a way that is ethical, judicious, and in the best interest of the organisation. This perspective, and legal responsibility, aligns seamlessly with a custodian mindset because it situates managers as stewards of human and material resources. A stark contrast to managers whose first concern is their brand, closely followed by their personal objectives within the organisation (read growing their empire).
In a custodian model, managers are entrusted with the responsibility of guiding, developing, and utilising resources to achieve organisational goals. This trust is not a form of ownership but a temporary custodianship. The distinction between ownership and custodianship is crucial: ownership implies control and personal benefit, whereas custodianship emphasises responsibility, stewardship, and the broader good of the organisation and its people.
Benefits of the Custodian Mindset
1. Fostering Employee Autonomy and Growth
When managers view their team members as independent professionals, it fosters autonomy and professional growth. Employees feel valued for their contributions and are more likely to take initiative and develop their skills. Studies have consistently found, and by consistently I am talking over a 30-year period, that leadership which empowers positively impacts employee creativity, organisational commitment, job satisfaction, and performance. Further highlighting the importance of fostering an environment that values autonomy and professional development.
2. Promoting Ethical Leadership
Custodianship in management promotes ethical behaviour as it reframes a manager's thinking away from pursuit of personal agendas and toward making decisions that benefit the organisation and its employees. Once ethical leadership is in the mix, positive organisational outcomes ensure — including increased trust and commitment among employees. Benefits that underpin more transparent and fair work environments.
3. Sustainable Resource Management
Viewing company resources from a custodian lens, as assets to be managed rather than owned or possessed by right of job title, encourages sustainable practices. This is because a custodian manager's focus is on ensuring the long-term health of organisational resources, particularly people, for the next person to occupy the role. Rather than merely focusing on their short term KPIs and how to push the appearance of deliverables to achieve personal brand development. Sustainable resource management is crucial for maintaining organisational resilience in the face of economic, societal, and environmental challenges.
4. Enhancing Organisational Agility
When managers have a custodian mindset, they are more adaptable to change. This prepares them to hand over responsibilities smoothly, facilitating succession planning and organisational agility. Agility is essential for organisations to remain competitive in rapidly changing markets and essential to Forging Resilience Through Adaptability. A process with which the OODA Loop method can assist.
Practical Applications
1. Empowerment and Delegation
Managers can begin to adopt a custodian mindset through a pr0cess of empowering teams by delegating authority and encouraging decision-making at all levels. This not only builds trust but also prepares employees for future leadership roles by encouraging discretionary boundary spanning (informal leadership). Empowerment invariably leads to increased innovation and efficiency within teams as employees move from following directives to thinking about their work and generating solutions to problems.
2. Transparent Communication
I have written before about the benefits of an open model to knowledge access when examining Are Hierarchies Healthy for Organisations? and this principle remains equally valid for the custodian approach to management. This is because open and transparent communication fosters an environment where employees understand their roles and the broader objectives of the organisation. It helps align individual goals with organisational goals and reinforces the sense of shared purpose. Transparency is key to building trust and engagement within teams.
3. Continuous Learning and Development
Investing in continuous learning and development programs ensures that employees are equipped with the skills needed to adapt to changing business environments. It is also vital in an employment landscape where it is a A Challenging Time for Talent Management. This is because investing in the development of people is not only good business, it is vital to give employees a sense that the organisation and their line-manager are committed to their professional growth.
4. Ethical Decision-Making Frameworks
Implementing ethical decision-making frameworks helps ensure that all managerial actions are aligned with the organisation's values and long-term objectives. Ethical frameworks reinforce the principle of custodianship over ownership and guide managers in navigating complex decisions and maintaining organisational integrity. Of course, in increasingly diverse organisational environments, establishing ethical frameworks that work for all your people is much easier said than done. For this reason, organisations are well placed to bring in true experts (philosophers or clinical psychologists) with a track record as thought leaders in this space to help develop the process. Do NOT rely on self-appointed 'experts' who assume their job title, and an aggressive "we are the experts" approach, makes them an actual expert in the domain of ethics and human behaviour.
The Opportunities of a Custodian Mindset
While the custodian mindset offers numerous benefits, it is not without challenges. Managers may struggle with balancing empowerment and oversight to ensure accountability while fostering autonomy. This is particularly challenging when organisations are facing difficult times as the knee jerk reaction from the average manager is to double down on micro-management — ensuring employees don't have a moment free from metrics and oversight. Additionally, implementing transparent communication and ethical decision-making requires consistent effort and commitment from senior managers. Efforts that need to balance clear expectations, regular feedback, and a supportive environment that encourages calculated risk-taking.
The principles of transparent communication and ethical decision-making must be consistently applied across the organisation. Inconsistencies can undermine trust and lead to confusion among employees. Leaders must model these behaviours and create systems that support their consistent application.
Adopting the custodian mindset in management is not just a theoretical exercise but a practical approach that can transform organisational culture. By embracing the principles laid out by Max Weber and viewing themselves as temporary custodians of resources, rather than seeing people as 'their' employees or financial resources as 'their' budget, managers can foster a more ethical, productive, and agile workplace. This shift in perspective not only benefits the organisation but also empowers employees, promoting a culture of trust, growth, and mutual respect.
In the end, recognising that it's "not my employee, not my team" but rather "our collective responsibility" leads to more sustainable and ethical management practices. It is a reminder that while we may hold positions of authority, our true role is to serve as custodians of the organisation's assets for future stakeholders.
Good night, and good luck.
Further Reading
ASX Corporate Governance Council (ASXCGC) (2019) Corporate Governance Principles and Recommendations. Retrieved February 9, 2024.
Brown, ME, and Treviño, LK (2006) Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595–616.
Denison, DR (1996) What is the Difference between Organizational Culture and Organizational Climate? A Native's Point of View on a Decade of Paradigm Wars. The Academy of Management Review, 21(3), 619–654.
Eisenhardt, KM (1989) Making Fast Strategic Decisions in High-Velocity Environments. Academy of Management Journal, 32(3), 543–576.
Hart, SL, and Dowell, G (2011) Invited Editorial: A Natural-Resource-Based View of the Firm: Fifteen Years After. Journal of Management, 37(5), 1464–1479.
Joo, B-K, Yim, J-H, Jin, YS, and Han, SJ (2023) Empowering leadership and employee creativity: the mediating roles of work engagement and knowledge sharing. European Journal of Training and Development, 47(9), 881–899.
Kirkman, BL, and Rosen, B (1999) Beyond Self-Management: Antecedents and Consequences of Team Empowerment. Academy of Management Journal, 42(1), 58–74.
Men, LR (2014) Strategic Internal Communication: Transformational Leadership, Communication Channels, and Employee Satisfaction. Management Communication Quarterly, 28(2), 264–284.
Senge, PM (1997) The fifth discipline. Measuring Business Excellence, 1(3), 46–51.
Spreitzer, GM (1995) Psychological Empowerment in the Workplace: Dimensions, Measurement, and Validation. Academy of Management Journal, 38(5), 1442–1465.
Teece, D, Peteraf, M, and Leih, S (2016) Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. California Management Review, 58(4), 13–35.
Treviño, LK, Weaver, GR, and Reynolds, SJ (2006) Behavioral Ethics in Organizations: A Review. Journal of Management, 32(6), 951–990.
Weber, M (1947) The theory of Social and Economic Organization: Being Part I of Wirtschaft und Gesellschaft (A. M. Henderson and T. Parsons, Trans.), London: W. Hodge.
Cover image generated by DALL·E.
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