How (book)

How is a philosophical framework for the changing role of behavior, governance, culture and leadership in contemporary society.

How was introduced by The New York Times best-selling book of the same name, written by Dov Seidman in 2007 and expanded with a foreword by former United States President Bill Clinton in 2011.

The How philosophy has been cited as influential by Nobel peace prize laureate Elie Wiesel, New York Times columnist Thomas Friedman, and is frequently discussed in the New York Times, business thought publications and books.

Since 2011, The HOW Column has appeared in Forbes and several international publications and it previously appeared in Business Week. How has been a presentation topic at the World Economic Forum, the United Nations and the Aspen Ideas Festival.

Overview

Individuals

How refers to "how should" individuals and organizations behave, rather than "how can" they behave. Instead of thinking about behavior in terms of obeying rules, and whether behavior conforms to regulations, How advocates thinking about behavior in terms of values.

Since the world has become more transparent, connected and interdependent, especially because of communications technology, the How framework says that behavior matters more than it has in the past and in different ways. Individual behavior can impact the world much more than it has previously, for good or bad. It also can have an impact on people and organizations far removed from the individual. The world is in an "era of behavior", according to How.

How argues that principled behavior provides a sustainable competitive advantage to people and organizations. Behavior provides a means of differentiation, even in circumstance where goods and services become commoditized. "Outbehaving" as opposed to just "outperforming" or "outproducing" has become a source of advantage.

How, when referring to behavior, means all ways that humans and organizations act and relate to one another, including with collaboration, sharing, extending trust and innovation.

Organizations

In the The World is Flat, by New York Times columnist Thomas Friedman, How is number eight in his rules for the new world: "HOW you do things as a company matters more than ever."

According to How, the most sustainable organizations are also the most moral — via “sustainable values” (as opposed to “situational values”). Such organizations have a culture of sustaining human relationships integrated into their daily practices. Organizations that "outbehave" their competition are more likely to also "outperform" them as measured by more traditional metrics such as revenue.

In this business context, How a company is operated, led, and governed is just as, or more, important than what the business makes. How argues that companies need to differentiate themselves via behavior toward customers and clients because globalization has made many products and services commodities. The rise of networked technology has amplified the consequence of good and bad behavior and made it more difficult to hide the latter.

The theory has been questioned in Strategy + Business by an editor who argued that among "the most successful companies were quite a few that were known for visibly amoral — or, in some cases, exploitative — values and practices." But Seidman maintains the the global trends of interdependence and transparency will make such behavior increasingly difficult to sustain.

How says a better way than rule making, or top down command and control is for community members to regulate and guide their own behavior based on shared values. How says there three models of organizational governance, culture and leadership: "Blind Obedience", "Informed Acquiescence", and "Self-Governance." How promotes self-governance as the most transparent, values-based model and therefore, most likely to facilitate "principled behavior." The idea is further developed in the How book as the "human operating system" which is a methodology for systemizing and scaling values.

In an independent study of several thousand corporate employees conducted by Boston Research Group, and designed by Dov Seidman's company, LRN, 43% of company cultures were top-down management; 54% were "informed acquiescence” and 3% were “self-governance.” More than 90% of employees in self-governing firms, and two-thirds in the informed-acquiescence category, agreed that “good ideas are readily adopted by my company.” At blind-obedience firms, fewer than one in five did.

Leadership in the How framework is best practiced by fostering a culture of values rather than "command and control" acquiescence. The most effective leaders use inspiration, rather than just using coercion or motivation. Creativity, collaboration, helpfulness and hopefulness can only be inspired, not commanded, How maintains.

Inspiration can catalyze a "Wave" - a ripple effect of "human energy" that is amplified as a leader shares a vision and enlists others to a common purpose. The "Wave" is a leadership metaphor based on the practice in a packed stadium when successive groups of spectators briefly stand, yell, raise their arms, then sit down again - generally kicked off by an individual using nothing but passion to inspire those around them to participate.

According to How, as the world has grown more uncertain, people rely more on trust to feel confident about outcomes. Companies that earn trust can translate it into direct economic benefits, such as more consumer sales or lower interest rates. In regards to transparency, organizations behave better when their behavior is public, and in the information age, it's difficult for organizations to keep practices secret, in any case. More open organizations tend to gain customer, staff and other stakeholder respect more easily, resulting in greater loyalty. The cumulative consequence of behavior is earned reputation. Reputation, more than product or price, ultimately determines success in business, according to the How framework.

Winning organizations build cultures based on humanity, How argues, defining humanity as "how you connect with and inspire other humans."

Applications in Society

A wide range of organizations have engaged in formal How education. These include the NFL, the U.S. Army, and Kelloggs. U.S. Army Chief of Staff Ray Odierno included the How book on his recommended Leadership reading list.

References

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