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Hello and welcome to Modern CEO! Im Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages ofInc.andFast Company. If you received this newsletter from a friend, you cansign up to get it yourselfevery Monday morning. When Wendy Cai-Lee launched Piermont Bank in 2019, she says she didnt set out to build a board of directors ledand dominatedby women. I was so focused on finding the best board to help me, she says. Initially, her board consisted of seven directors, five of whom are women, including chairwoman Julia Gouw. In early February, Piermont added two more female directors, bringing its percentage of women occupying board seats to 78%. In comparison, women occupy about 30% of seats on Russell 3000 corporate boards, according to research from 50/50 Women on Boards. Steady as she goes Piermonts commitment to board diversitymany directors are also multiculturalcomes as many corporations and institutions are rethinking or scrapping initiatives aimed at increasing the participation of underrepresented groups in workplaces and leadership roles, including corporate boards, amid a changing legal landscape. The U.S. Supreme Courts 2023 ruling striking down affirmative action in college admissions has had a chilling effect on workplace inclusion efforts. Late last year, a federal court struck down a Nasdaq rule that required listed firms to include at least one woman, person of color, or LGBTQ director on their boards, or explain the absence of a diverse director. Research suggests diversity can improve board effectiveness, and Cai-Lee says that her female directors have helped steer the company in positive ways. The board has supported a permanent hybrid schedule even as other financial institutions are demanding that employees return to the office full time. We understand people have family lives, they need to buy their bus or train tickets, they need to make childcare arrangements, Cai-Lee says. Because we have female representation, the board was supportive from day one to have that commitment [to hybrid schedules] regardless of what happens at other banks. The governance gauntlet To be sure, Cai-Lee is in a unique position to shape her board. Because Piermont is a new bank, Cai-Lee says she had a blank slate rather than inheriting legacy directors who might have fit an outmoded definition of board representation. Piermont, a digital-only bank with about $550 million in assets under management, is also a Minority Depository Institution (MDI), which means it is a federally insured institution where 51% or more of the voting stock is owned by minority individuals or which serves a minority community. And while the bank is privately held, it is also a Federal Deposit Insurance Corporation (FDIC) bank and has to meet key governance standards. Last year, the FDIC issued a consent order instructing Piermont to review two years of transactions and strengthen its compliance and internal controls. In the last 18 months, we invested more resources in enhancing risk oversight programs and process improvements that align with regulatory needs, she says. We believe the fixes are behind us, and we are ready to serve our clients in a safe and sound way. So far, Cai-Lee says Piermont hasnt faced questions about its unabashed embrace of gender parity on its board. We have not received any pushback from clients or customers or investorsand these are my key stakeholdersand certainly not from employees because they joined Piermont mostly because of who we are, she says. Banking on women While Piermonts female board representation is impressive, it is worth noting that other banks have also achieved gender parity. Eight of Citigroups 14 directors are women, including CEO Jane Fraser, and half of Amalgamated Banks directors are women, including CEO Priscilla Sims Brown and board chair Lynne Fox. Elevating more women to board chair or lead director roleslike were seeing at Piermont and Amalgamated Bankmay be the next frontier in board diversification. Chairs and lead directors wield an incredible amount of influence. They create agendas, prioritize topics, and make sure all voices on the board are heard, says Alicia Syrett, who heads up Madam Chair, a group of more than 300 women who serve as chairs or lead directors at publicly traded companies. Encouraging more women to pursue these board leadership roles results in new perspectives on leadership, risk management, and team dynamics. Board members continuously share learnings of best practices across organizations, and increasing the numberof women in board leadership roles gives us even more options and knowledge on how we can make companies and boards more successful.” What’s your board ratio? Has your company achieved gender parity on your board of directors? What difference, if any, has it made to the effectiveness of your company or board? Please send your ideas and examples to stephaniemehta@mansueto.com. Your responses may form the basis of a future newsletter. Read more: women in leadership Women who play sports are more likely to be business leaders The surge in women CEOs is no coincidence Women make up 43% of Britains top board rooms Meet Maggie Lena Walker, the first Black woman to charter a bank in the U.S.
Category:
E-Commerce
Gallup recently released new data on employee engagement, and the results are dismal. Just 3 out of every 10 employees are actively engagedwhich is the lowest percentage in a decade. But despite decades of effort and investment in tackling disengagement, this persistent issue endures. If you conduct an Amazon search for books on employee engagement, youll get thousands of results. There are also dozens of apps and platforms that promise to unleash human potential and help people transform, not to mention countless, self-described coaches offering services related to re-engaging the workforce. Weve seen the rise and fall of perks culture, added opportunities for hybrid and flexible work, and wage increases averaging 39% over the last 10 yearsall in an attempt to fix this seemingly systemic issue. And yet, nothings moved the needle on engagement. Why? Despite all these efforts, weve missed something fundamental: Engagement doesnt come from where or when we work or what we get for doing it. It comes from what we experience while working. Work is relationships We construct our work experience through our interpersonal relationships. The psychologist David Blustein captured this reality when he wrote the following in the Journal Of Vocational Behavior, . . . each decision, experience, and interaction with the working world is understood, influenced, and shaped by relationships. Gallups latest data reveals that only 39% of employees think someone cares about them as people at work. Less than half say that their bosses and colleagues treat them with respect, and just 30% say their place of work encourages potential and development. Other studies from the last five years show that 30% of people feel invisible at work, 65% feel underappreciated, and close to 82% of workers say theyve felt lonely, as reported by SHRM. This paints a clear picture: Were not facing a disengagement crisiswere facing a mattering deficit, and more apps, surveys, perks, or pay increases won’t fix this. Only people can. People wont care if they dont feel cared for Mattering is the experience of feeling significant that comes from being seen, heard, and valued. Its also a prerequisite for engagement. And engagement is when employees care about what theyre doing, how theyre doing it, and who theyre doing it with. It is the experience of feeling significant that comes from being seen, heard, and valued. But we cant expect people to care if they dont first feel cared for. According to the Journal of Organizational Psychology, there are three psychological states that predict engagement: psychological meaningfulness (I and what I do matter), psychological safety (I can show my true self without fear of consequences), and psychological availability (I have the physical and psychological resources I need to do my work). You can cultivate relationships to make people feel seen, supported, and valued. This is why organizations need to shift their focus from merely measuring engagement to equipping leaders with the skills to cultivate its leading indicator: mattering. Re-skill leaders so that they care Building on almost a half-decade of research on what creates a sense of mattering, psychologist Isaac Prilleltensky distinguished two ingredients necessary to feel significant. When we feel that others value us and we know how we add value to their lives. Feeling valued and adding value have a reinforcing relationship. The more we feel valued, the more we add value. When leaders value the people they lead, those people can contribute, create, and innovate, because they know someone sees them, hears them, and has their back. Relationships in which we feel cared for reinforce our worth and ability, forging our confidence to add value. When people feel like they matter to someone, they act like they matter, they engage. A mistake many leaders subconsciously make is to assume that people only deserve value once they add value, but the opposite is true: People need to feel valued to add value. Money, perks, programs, awards, and platforms cant value someone. Theyre inanimate objects. They can be symbols of value, but only people can value people. Thats why re-engagement begins with re-skilling leaders to care, truly see and hear others, and help them understand the difference they make every day. The essential skills to create a culture of significance So, where do we start? In research for my new book, The Power of Mattering, my team and I uncovered three critical skill sets of leaders that cultivate a sense of mattering: Noticing: This is the skill of truly seeing and hearing others. Seeing others requires you to acknowledge them and paying attention to the details, ebbs, and flows of their lives and work while offering actions to show them youre paying attention. Hearing someone means demonstrating a real interest in the meaning and feeling behind someones words and inviting out their experiences and perspectives within a climate of psychological safety. Affirming: The skills of knowing, naming, and nurturing peoples gifts, showing how they and their work make a difference, giving meaningful gratitude, and providing affirming critical feedback. Needing: The skills of showing people how they and their work are indispensable and non-disposable. The good news is that mattering happens in small interactions, not grand initiatives. Addressing disengagement requires a commitment to re-learning and scaling these essential human skills. Leaders can start by making sure that they take the time to make the next person they interact with feel noticed, affirmed, and needed.
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E-Commerce
In today’s high-stakes business environment, stress isn’t just an individual challengeit’s a force that shapes careers and organizations. The U.S. Department of Labor finds that 83% of workers suffer from work-related stress, and 54% say that work stress affects their home lives. In my coaching work with hundreds of professionals annually, I’ve witnessed firsthand how impossible it is to separate stress from career trajectories; they are intertwined, each influencing and shaping the other. Stress can derail even the most carefully planned career paths, yet we often treat career decisions as purely rational, despite the fact that our psychological state profoundly influences the choices we make. I’ve practically tested these insights with individuals and leadership teams. Here are five key theories that can help us make better decisions at workand how leaders can set up their teams for success: 1. Cognitive Load Theory It’s well known that when stress increases, it causes our mental bandwidth to shrink dramatically, and it’s harder to weigh risks and rewards objectively. According to the American Psychological Association’s 2024 Work in America survey, 77% of U.S. workers experience work-related stress, with 36% reporting cognitive fatigue. I’ve seen that cognitive overload can be a recurrent theme in high-stakes professions like healthcare, finance, and emergency services. Muscle memory can’t necessarily be depended on, as each case demands fresh analysis rather than routine responses. That results in errors with vast consequences, including profound ones like death. It can also be a trend with early-career professionals who must juggle skill acquisition with performance expectations and show higher rates of burnout and worsened mental health. Example: A high-performing individual contributor, overwhelmed by multiple deadlines and an unexpected project, starts working longer hours, missing crucial meetings, and making uncharacteristic errors in financial reports, as their mental resources are depleted. What leaders can do: Think of managing cognitive load like tending a garden by creating space for growth, pruning unnecessary meetings, and protecting blocks of time for deep work. Task prioritization tools can also reduce decision fatigue and encourage breaks, allowing minds to refresh and ideas to flourish. Remember, a well-rested team will outperform an exhausted one every time. 2. Dual-Process Theory Cognitive psychologists Peter Wason and Jonathan St. B. T. Evans suggested the dual-process theory in 1974. The theory identifies two distinct thinking systems: fast, intuitive reactions and slower, analytical reasoning. Under stress, we are more likely to default to the quick-response system, bypassing careful analysis and consideration. Being mindful of stress levels helps prevent impulsive career decisions that may not align with long-term goals. Example: After receiving tough feedback during a performance review, a team leader immediately volunteers for three high-visibility projects and begins working weekends, making reactive decisions that further compound their stress. What leaders can do: If you work in a fast-growing startup with demanding client relationships or a company in volatile markets, your cultural environment may be problematic for dual-process thinking. When characterized by rapid decision cycles and high-stakes outcomes, these environments can push professionals into reactive thinking patterns. In our rush to make decisions, we often forget the power of pause. Take a look at the past quarter’s major decisions to see if you can spot patterns of reactive thinking. It can also be a good idea to help foster mentor relationships that offer fresh perspectives and openly share your journey from reactive to responsive decision-making. If teams see thoughtful choices modeled, it helps them trust their analytical minds over their impulses. 3. Affect Heuristic This psychological principle demonstrates how emotional states act as mental shortcuts in decision-making. Under stress, our emotional filters become increasingly dominant, often distorting our professional judgment. I frequently observe how bias impacts how we make decisions when fatigued and how it manifests in the daily activities of leaders. For instance, one tech leader admitted to me that they had recently realized they had been hiring people who reminded them of themselves. Tired brains naturally gravitate toward what is familiar and comfortable, yet stress-induced emotional decisions often amplify biases, leading to overlooked talent and missed opportunities. Example: A product manager, experiencing pressure from stakeholders, makes sweeping product changes based on a single negative customer review, disrupting the product roadmap and team morale. What leaders can do: Start each week with a gentle emotional temperature check of your team. Ask each person to share one word that captures their current mindset. When doing so, watch for red flags like short, clipped responses, unusual irritability, or typically vocal team members falling silent. You can also use open-ended simple questions that reveal hidden work-related stress, such as “What’s taking up the most space in your mind right now?” or “Is there anywhere that you feel stuck?” When team members default to “fine” or “okay,” go beyond surface-level responses and gently probe deeper with questions like “What does fine look like for you today?” If you notice patterns of responses hinting at exhaustion or hear words like “overwhelmed” or “drained” from multiple team members, be mindful of making major decisions. This quick emotional weather report allows you to read your team’s emotional state, meaning you get better at spotting when someone is frustrated, overwhelmed, or excitedeven when it’s not explicitly stated, preventing teams from making unsound choices. 4. Self-Determination Theory The self-determination theory includes three fundamental psychological needs: autonomy, competence, and relatedness. When stress compromises these core needs, decision-making becomes reactive and short-sighted. I’ve witnessed this being especially critical in modern hybrid and remote work environments, where traditional support structures take on virtual forms. Example: Feeling isolated and disconnected, a remote worker begins to disengage from team projects, miss key deadlines, and secretly apply to competitors without making an attempt to resolve their frustrations about their current job. What leaders can do: While building a rewarding career requires self-motivation on behalf of the employee, as a leader, picture yourself as an architect of autonomy, designing spaces where people shape their work while staying connected to the larger mission. If you’re not already creating opportunities for meaningful connection in both virtual and physical realms, now is the time t do so. When people feel genuinely supported, they thrive. 5. Career Construction Theory An employees professional identity is the story they tell about themselves at work, whether they’re the Excel wizard or the one who always gets things done. When organizations undergo significant changes, like switching to entirely new software systems, reorganizations, or new management, these identities can suddenly feel shaky or irrelevant to your team members. Stress can also fragment these personal narratives, making maintaining a coherent career vision challenging. When you’re stressed, it’s harder to articulate your thoughts and “sell” yourself, a product, or an idea. Couple that with productivity anxiety, and you can see why there’s an organizational need to support the skill of building a personal brand. Example: During organizational restructuring, an early-career professional becomes fixated on worst-case scenarios, exhibits less diverse thinking, and finds it hard to articulate the impact of their work. What leaders can do: Research from Deloitte indicates that 40% of Gen Z employees report feeling stressed most of the time, which impacts decision-making, confidence in their career narratives, and the time and energy to upskill in their career. Yet, every career tells a story, and helping shape the narratives of those at high risk of burnout is perhaps leadership’s most subtle art. Suppose your team isn’t surpassing its potential, engagement is dipping, and you can’t name two to three of your employees’ “non-work-related” strengths. Bring in support to holistically bolster employee brands (and the companies, too). By understanding these frameworks and taking action, you can help create environments that support rational decision-making and emotional well-being. The future belongs to organizations that recognize stress management isn’t just about individual coping mechanismsit’s about building systems that help people think clearly and choose wisely.
Category:
E-Commerce
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