Innovation

The innovation is using data to connect the success of the business to the leaders’ character. This is the story from KRW International of how the innovation emerged:

You may think this question was answered long ago. Countless business authors and analysts have assured us that great leadership demands great character. Time and again, we've seen that truth play out, as once-thriving organizations falter and fail under the guidance of leaders behaving badly. Why, then, do so many executives remain skeptical about the true value of leadership character? A winning strategy and a sound business model are what really matter, they argue; character is just the icing on the cake.

What's been missing from this debate is hard evidence: data that shows not only that leadership character matters for organizational success, but how it matters; and concrete evidence that it leads to better business results. Now, in this groundbreaking book, respected leadership researcher, adviser, and author Fred Kiel offers evidence--solid data that demonstrates the connection between character, leadership excellence, and organizational results.

After seven years of rigorous research based on a landmark study of more than 100 CEOs and over 8,000 of their employees' observations, Kiel's findings show that leaders of strong character achieved up to five times the ROA for their organizations as did leaders of weak character.

Fred Kiel was the main researcher and founder of KRW International. Kiel was a psychologist who set out on a mission to “help leaders connect their heads to their hearts”. Kiel was the author of multiple books on consulting and character habits.

The innovation relates to the purpose of proving a hypothesis. KRW International was one of the first research firms to relate a leader’s character to the success of their organization. They’re mission now is set out to coach other CEOs based on their groundbreaking research.

“What we do that’s different is the way that we approach gathering data and delivering data. There are different kinds of methodologies out there and many of them rely on the expertise of the coach and so many people gather data about you, they synthesize it themselves, and then they tell you here’s what I learned and here’s the story about you and they tell you, in their expert opinion, is your impact also your implications for you. We think that that is essentially a flawed approach and is fundamentally arrogant…having just met the person the coach knows more about the persons’ life and context than the person does, how is that possible? Our approach is to get that data and instead sit down and go through that data with you. We ask the person we’re coaching what they think of it and what they make of it. Let’s put our expertise in coaching and your expertise in your life to create the best understanding and plan.”

Nikky Heidel on the results of the data collected:

“Our research tied those behaviors to business metrics. That is probably one of the fundamental and foundational things that we have achieved with that research. Not only did we identify specific behaviors that were often considered soft, unimportant behaviors, but then took that and tied it to overall success in the organization in better profits, business metrics, higher engagement, and lower risk for the organization. That’s what I think separates us from everyone else out there. That we actually have the data that connects the soft skills to bottom line.”

Inspiration

KRW International's innovative approach originated from a deep understanding of the evolving landscape of global consulting. The founders, inspired by their extensive experience in leadership development and organizational transformation, recognized a gap in traditional consulting models. The idea sprouted from a desire to create a consulting firm that not only addressed immediate business challenges but also focused on long-term leadership development and cultural transformation.

KRW International's innovation is motivated by a commitment to transforming leaders and organizations through values-based consulting grounded in rigorous research. Core values of integrity, responsibility, forgiveness and compassion form the foundation upholding evidence-based methods for improving executives and cultures. This dedication to ethical, compassionate leadership traces back four decades when KRW's founders pioneered 360-degree feedback techniques still used today. By continually advancing new behavioral methodologies, the firm lives its value of responsibility to leave the world better for future generations. KRW International operates with honesty and forgiveness of mistakes out of integrity and an adaptive forward-thinking model reflecting clients' complex realities. Ultimately, KRW International seeks to go beyond transactional engagements to form trusting partnerships that empower organizational development as well as societal improvement. Their rich legacy of pioneering combined with ethical, compassionate values drive a consultancy advancing both leaders and communities through a commitment to human potential and sustainable growth.

A quote that illustrates this is, “Coaching essentially is a practice of helping adults who are already high functioning to grow and develop. A lot of coaching emerges from psychotherapy practices. In many ways, it’s psychotherapy repackaged into the workplace. Psychology pulled into the adult environment, relevant to work relationships and systems. Giving feedback that is balanced, integrated, and actually helpful for growth and development. Feedback about support for others, to become a better leader.”

Overall impact

As far as the impact of the innovation on the business, KRW International has been extremely successful in terms of connecting the success of the business to leaders’ character. Some of the measurements that our team believed were the most impactful were improving leadership effectiveness, improving decision-making, personalizing leadership development, and boosting long-term cultural sustainability. These four aspects are arguably some of the most important when it comes to consulting and having a meaningful impact. KRW International uses evidence-based insights that have helped to guide decision-making, which in turn, lead to strategic choices that positively impact the overall success of the business. Their emphasis on leadership character and safe risk-taking practices help to transform and transcend work culture, and helps to build a foundation for success and adaptability in an ever-changing and evolving business landscape. KRW International has no direct effect on society or the environment through their leadership consulting program. However, they indirectly contribute to society by fostering responsible, and ethical business practices.

Through our interview with Nikky Heidel, she revealed to us that leaders who undergo KRW’s consultation program are more likely to act ethically with regard to decision-making. The emphasis on cultural sustainability fosters an inclusive and supportive workplace, which helps to enhance employee well-being and work-life balance. Organizations with a heightened sense of environmental responsibility, influenced by the long-term cultural sustainability emphasized by KRW, may implement eco-friendly policies, reducing their environmental footprint. The positive impacts that KRW International has within organizations may indirectly influence other businesses to act in the same capacity as one that has had a leader partake in their leadership development program. As far as short-term effects, the implementation of KRW’s data-driven leadership development program within organizations is difficult to measure. Leaders that develop and grow with KRW would most likely have a different perspective of their leadership styles, and a more nuanced understanding of character traits.

Business benefit

KRW is focused on character as they believe that is important to be successful and promote creative ideas. Innovation is a key driver to build a successful organization and having a bright leadership who foster a great culture can lead to success. They are one of the first companies to do leadership care and build a great culture so that they can further innovation within the company. KRW is trying to create a return on character from the clients they work with to increase employee performance, engagement and business skills. In low cultures, KRW found that there is less innovation and people don’t take risks because of the lack of culture and people are too scared to fail. That is why there is a ton of benefit for the employees and KRW is able to provide that for the clients.

Social and environmental benefit

KRW's innovation has not only brought about primary benefits but has also contributed to secondary advantages for society and the environment. According to Fred Kiel, co-founder of KRW, "Societal change begins in the hearts and minds of people - that's where all the change happens." Functioning as a consulting firm, KRW dedicates itself to enhancing the organizations and companies that hire them. Consequently, these companies undergo improvements and enact meaningful transformations in society. KRW has collaborated with sustainable and ethical brands like P&G and Hormel Foods, among others. While KRW concentrates on elevating sustainable brands and cultivating ethical leadership within organizations, they are indirectly steering society and the environment toward positive outcomes. Another pivotal aspect of KRW is its emphasis on fostering innovation, ultimately yielding sustainable and environmentally friendly results.

Lastly, in terms of the UN’s 17 Sustainable Development goals, we believe that KRW furthers five of these goals. The first goal that KRW furthers is Goal 4: Quality Education. KRW does this by providing a range of services and solutions in organizational development, leadership development, and talent management. These services may include training and development programs that help leaders and employees acquire the skills and knowledge they need to succeed in their roles. The second goal that KRW furthers is Goal 5: Gender Equality. KRW’s evidence-based approach to leadership development may help promote gender equality by providing women with the tools and resources they need to succeed in leadership roles. The third goal that KRW furthers is Goal 8: Decent Work and Economic Growth. KRW’s focus on improving the performance of leaders and their organizations may contribute to economic growth by helping businesses become more efficient and effective. The fourth goal that KRW furthers is Goal 9: Industry, Innovation, and Infrastructure. KRW International's services and solutions in organizational development may help businesses innovate and improve their infrastructure to better meet the needs of their customers and stakeholders. The last goal that KRW furthers is Goal 16: Peace, Justice, and Strong Institutions. KRW International's focus on high character and principled leadership may contribute to the development of strong institutions that promote peace and justice.

Interviews

Nikky Heidel, Associate

Kelly Garramone, CEO of KRW International & Executive Director of the KRW Research Institute