Regulating Disruption
Living in COVID, we were all were forced to cope with an unprecedented experience. No one ever was forced to live through a pandemic, and for those such as myself in leadership, we were faced with a plethora of emotional upheavals, daily changes, uphill obstacles, and no apparent expiration date to this life-altering experience. We all seemed to be building an airplane while in the air with no playbook. As life and the natural things we were accustomed to appeared to return back to a semblance of normalcy, we were then able to look back and glean from this multi-year disruption with a new path forward and a lot to ruminate over as we were faced with the challenge where do we go from here.
Andrew N. Liveris’ writing, Leading Through Disruptions A Changemakers Guide to Twenty First Century Leadership is a book that postures readers and leaders on a path forward. Liveris is the former Chairman and Chief Executive Officer of The Dow Chemical Company and former Executive Chairman of DowDuPont. A top-tier global business leader with more than 4 decades at Dow and experience in manufacturing, engineering, sales, marketing, and business and general management. Detailing how the complexities of the 21st Century were unpredicted, he draws upon three major disruptions that he encountered as a CEO with four decades of experience; he shares insights on leading companies in an era of disruption and geopolitical uncertainty.
The premise of his book refers to the period after COVID-19 as the new abnormal stating, institutions cannot do what they used to do. [1] Liveris makes an argument for Inclusive Capitalism. He argues capitalism and democracy are not coexisting well. [2] He believes that capitalism should be the lead responsibility of business as it is a trusted institution as government has persistently dropped the ball.
Acknowledging the tension in regulation Liveris states: Business and government don’t understand each other. People working in the public sector don’t understand business and people who work in the corporate environment only dimly understand the corporate sector. [3]
Similar to Polyani, Liveris calls for an embedding of different sorts through the use of ESG metrics. E stands for environmental, S stands for social, and G stands for governance. Liveris was a member of an elite group called the B-Team, which looked at the global disruption caused by COVID and other events. When weighing the ESG metrics, the group came to some interesting discoveries.
1) The current economic model has been broken and can’t be fixed.
2) A model that business should be motivated by profit is a method– that no longer works. [4]
Liveris uses a four D Model to sum up corporate responses to the disruption: denial, defiance, debate, and dialogue. As I read this, I noticed some commonalities with last week’s reading. The group had some commonalities around regulation, touting that the government and banks were the beneficiaries of bailouts, but these entities failed to provide a safety net for workers. To counter this, Liveris suggests ESG metrics should be discussed at board levels using external experts. To create employee buy-in, he suggests when a plan is reached, don’t share it immediately but instead apply new metrics to handle the disruption while experimenting with them for one to two years.
Calling it a broad mandate, Liveris believes that regulatory changes can create a more inclusive capitalism. To accomplish this, he suggests an all-encompassing approach, using methods such as raising the minimum wage, increasing business incentives to solve offshoring, making US income taxes more effective, and improving the American education system.
I enjoyed this book because, amidst today’s challenges, Liveris inserts practicality into the mix. As he talks about a new abnormal, I am reminded of how this disruption has caused seismic shifts that will posture us differently as a society. I am mindful as I seek solutions in my own context towards what lies ahead, I can say what got us here, will not get us there. As we attempt to navigate amidst a capitalistic and non-inclusive society, I am mindful of how Liveris is not lost on bringing equality and equity for others in the midst of it all from all sectors of life. Capitalism has many victims, but everyday people cannot be the ultimate casualty.
I am reminded of Jesus’ statement in the gospel of Saint Matthew:
Then they also will answer, ‘Lord, when was it that we saw you hungry or thirsty or a stranger or naked or sick or in prison and did not take care of you?’ Then he will answer them, ‘Truly I tell you, just as you did not do it to one of the least of these, you did not do it to me. (Matthew 25;44-45, NRSV)
Liveris, Andrew. Leading through Disruption: A Changemaker’s Guide to Twenty-First Century Leadership. (New York, NY: HarperCollins Leadership, 2023).
[2] Andrew Liveris, Leading Through Disruption, 29.
[3] Andrew Liveris, 164.
[4] Andrew Liveris, 2.
About the Author
Daren Jaime
15 responses to “Regulating Disruption”
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Hi Daren,
In your readings, how can ESG metrics be utilized to create more resilient and adaptive business strategies in times of disruption?
Hi Shela. Utilizing ESG metrics allows businesses to be proactive and adequately prepared for disruptions. This can pave the way for embedding both resilience and adaptability. This would not just allow a business merely to survive disruptions but to leverage them for sustainable growth and future competitive advantage.
Daren,
Good job tying this to last week’s reading. In your church leadership role how did the post-Covid response change what you were doing? Did you return to doing everything the same as pre-Covid or were there some changes made?
Hey Adam, Thanks for this. As with most churches, COVID changed the way we approached worship. We have enlisted shorter services, and those have proven fruitful and more impactful as we have eliminated a lot of the unnecessary fluff. We have adopted Zoom, which was once frowned upon but now embraced. COVID really created an opportunity to approach things from a nontraditional lens, and most of our congregation is on board.
Hi Daren, One thing that struck me in your blog was your statement that “what got us here will not get us there.” Do you think the pandemic could be a player in the cause of young adults not attending church? and, do you think Jesus’ words in Matt. 25 might be a road to address your NPO?
Hi Diane! Great question. To be honest, I think COVID further exacerbated and accelerated the departure of many disgruntled young adults and congregants. The apathy is real, and it is hard for young adults to be connected to church when there is a sentiment that their presence is being devalued or the ministry is not accommodating.
Daren, thanks for the blog. Do you agree with Liveris’s view that integrating ESG metrics at the board level could pave the way for a more inclusive form of capitalism?
Hey Glyn! Honestly I like and appreciate Liveris perspective it is very tangible. beginning from the top down is a good start. His take on inclusive capitalism had some lofty goals. The process to achieve them are not quite as simple though.
Daren, Great blog and I was interested in how you are applying it to your context. You asked me about ‘measuring’. How can you envision applying ESG metrics to the church in a helpful way?
Hi Daren – what kind of disruptions did your church experience from covid that are still present today?
Hi Christy. The attendance disruption is still a factor and we still have a percentage that is not in the building. We are not operating at full capacity in our ministry as congregants are not grabbing the leadership baton as fast as pre COVID. We also are facing the technology challenge which has been a disruption as we are trying to rampo up to meet the needs of in person and online.
Daren, thank you for your reflections on Andrew N. Liveris’ work and for introducing his views on leadership during disruption. How can leaders in business and nonprofits implement Inclusive Capitalism principles? What steps can they take to foster collaboration between the public and private sectors to address the inequalities highlighted by the pandemic?
Hey Chad. Thanks for asking. By embedding purpose, accountability, and equity into the core of their operations, business and nonprofit leaders can help to foster a system, which in turn prioritizes human and environmental well-being alongside financial performance.
Hi Daren, Thank you for introducing me to this book. I was fascinated by Liveris’s 4-D Model of denial, defiance, debate, and dialogue. We definitely saw this played out in churches during the pandemic. I appreciate Liveris’s thoughts. They bring a lot of insight. I am curious if Liveris mentioned anything about finding healing after disruptions? What healing have you seen take place in your community after the major disruption of the pandemic? What are some wounds that still need to be healed?
Hi Elysee. Healing is a huge factor in my context. Many are struggling with the loss of income, business and resources as a result of the economic spiral. Some businesses have closed their doors by being unable to recover. Healing has come as entities have realized the challenges business has faced and opportunities are being created to bridge the gap.We were in denial about the widespread affects, but now corrective dialogue is on the table to help many recover.