Neuroleadership

A journey through the brain for Business Leaders by Argang Ghadiri, Andreas Habermacher, Theo Peters

A statement

The following is a reference summary, by Minerva, of the original work written and researched by Argang Ghadiri, Andreas Habermacher and

Theo Peters

No attempt is made to infringe copyright by claiming any credit for this summary

Title: Neuroleadership. A journey through the brain for Business Leaders Published by: Springer–Verlag Berlin HeidelbergFirst published: 2012

“The emotional tail wags the rational dog”

Driving force of human

interactions and thought

Controlled

CognitiveKnowledgeMemoryintention

AutomaticBelow consciousness

AffectiveEmotionsDrives

Driving Seat not Controlled Cognitive

Jonathan Haidt 2001

Old plus newThe discipline is not changing but the way we go about it is and

the tools we use are changing as science accesses a better understanding of the brain

Neuroleadership

• Neuroscience questions the concepts of consciousness, morality, choice and free will

• The results are surprising, counter intuitive and hard to come to terms with

Creating a working environment that stimulates and harmonises employees’ four basic needs of the brain by:

• Leading one’s and other’s brain• Satisfying the four neuroscience basic needs• Striving for harmony between basic needs, the brain and the

working environment

Historical concepts of man and motives are being reshaped by science

Homo Economicus(Roman to 1920s)•Strict working regimes•Clear instructions•Processes•Intensive control•Division of labour(Taylor 1911)

Homo Sociologicus1930s•Workers seen as social beings•Productivity linked to internal

drives •Interpersonal relationships of importance(Hawthorne Studies 1930)

Self-Actualising Man1940s•Follows own self-development and looks to fulfil higher needs and develop into a better being

(Maslow 1943)

Complex Man1980s•Has changing, different motives•Is capable of learning•Will change behaviour (Schein 1980)

Brain Directed Man2000s•Rationality takes a secondary role in human motives and behaviour(Senge 2004)

Brain directed man explained

Human behaviour stems from the brain Behaviour is not based on rationality but differing motivations

stemming from various brain regions Brain patterns and triggers are deeply programmed; layered

through experiences from birth Emotions are effective drivers of behaviour and lie over most

cognitive processes Rational processes have a secondary impact Fulfilment of neuroscience basic needs is essential for

employee satisfaction; various factors impact these needs Reality and rationality take a secondary role in human

motives and behaviours

Organisational and personnel management Have direct impacts on the way the human brain operates and

reacts to the environment Behaviours create and solidify brain circuits; the environment

forms the brain Human basic needs lie at the heart of personal interaction with

the environment and personal behaviours Environments not in harmony with the basic needs of the

individual will cause deficient behaviour Base human motivational drives will be driven by the

manifestation of the desire to fulfil or protect human basic needs To tap into potential, motivation at a deeper intrinsic level we

need to understand the basic needs and how they are represented and fulfilled by each individual

Brain facts and figures

The average human brain weighs 1.3Kg and is 80% water The brain in only 2% of body weight but uses up to 25% of the

body’s energy resources (water, oxygen and glucose) The brain consists of around 100 billion neurons and 100

trillion connections between each other Up to 1,200 litres of blood flow through the brain each day

delivering up to 70 litres of oxygen The left hemisphere deals with facts and details. The specifics

of language, vocabulary and grammar also sit here The right hemisphere has broader connections to emotions,

empathy but importantly to the holistic and big picture view of the world

Brain - myths

The brain is fixed in size and does not change over life – many changes happen and due to neuroplasticity the brain is ever changing

Alcohol kills brain cells – alcohol disrupts the firing patterns of the brain’s neurons but does not kill brain cells (only in extreme over-indulgence)

Intelligence is genetic – it is partly genetic but is more linked to ability to connect and draw on various resources in the brain

Reason and rationality are separate to emotionality – the emotional centres of the brain operate together with emotionality taking a driving seat

Behaviours are hard-wired – we have many instinctive reactions that are hard-wired but many behaviours are linked to our interactions with the environment

Our brain - simplified

Prefrontal Cortex rational, takes effort, limited resources which deplete quickly.Equates to 1 cubic foot in size to the Milkyway (rest of brain)

Limbic System Skittish, always looking for threats, makes decisions everymoment about every interaction

Brain organises around two principles – danger and reward. Danger (Threat) creates noise, the brain needs quiet. Danger/fear has a profound impact on the prefrontal cortex and severely impacts performance

The impact of fear

Fear has a significant negative impact on the hormonal balance in the brain and in the body

Amygdala, found in the limbic system are known for their role in fear processing and the subsequent impact on mind and body

An overactive amygdala can inhibit functioning in the prefrontal cortex (rational thinking and short term memory)

Fear decreases cognitive ability – fear makes us stupid Any threat or perceived threat has a profound impact on the

brain, severely reducing cognitive ability Fear can be processed unconsciously without our explicit

knowledge – organisations may not know fear has activated and is distorting thinking processes

The impact of fear contd.

The dominance of the limbic system in our thought processes and decision making ability is of key importance for organisations

Fear and threats are overwhelming – they impact our behaviour and emotions much more than has been considered previously

Key protagonists and their approaches

Ned Herrmann 1996Herrmann Brain Dominance Instrument•Defined 4 thinking types: Rational, Experimental, Safety Based, Feeling Based•Based on certain dominance as to how and which parts of the brain we use•Targeted at helping teams work together, productivity/creativity

Gerald Huther 2009Supportive LeadershipTo design brain friendly working spaces:•Create new challenges•Network Corporate Knowledge•Develop a positive market culture•Create space for positive experiencesWith leaders who:•Encourage taking on new tasks•Encourage the tackling of tasks/problems and trusts solution will be found•Inspire and develop motivation for tasks

Christian E Elgar 2009Based on scientific study •Defined 4 basic systems in the brain - The Reward System; The Emotional System; The Memory System; The Decision SystemDeveloped 7 base rules for Leaders:•The reward system; Fairness and feedback: Influence through information: Each brain is unique; Facts are tied to emotions; Experience defines behaviour: Situational dynamics

David Rock 2008Neuroleadership Institute•Developed SCARP Model•Based on principles of Reward and ThreatSplit into 5 categories:•Status•Certainty•Autonomy•Relatedness•Fairness

Srinivasan Pillay 2011Targeted Regional Approach – focus on specific interventionsExplores brain in more detail:•Positive/negative thinking•Social Intelligence•Innovation and Intuition•Ideas in action•Action to change•Coaching brain regions•Coaching brain processesBackground in neuroscience and psychiatry

Informing Neuroleadership

Science and Understanding

Human needs at the heart of neuroscience

The brain is an emotionally driven organ It is forever plastic with neurons organically connecting,

reconnecting and growing at any given time By examining neural substrates (Gazzaniga et al 2008) we can

now see that the processing that drives certain reactions and behaviours is similar. The reaction to stimulus, however, remains different

If psychological processes lie on neural processes the understanding of this offers a variety of ways to influence the environment in corporations in which employees operate

If we understand the neural substrates of the human mind and moreover the basis of human interactions then we can understand where we can apply the point of leverage

Graves’ model of basic needs

Graves’ model of basic needs and subsequent consistency theory model is solidly founded in Neuroscientific research and gives a clear model at the very core of human behaviour

Learning to tap into these basic needs is the core of neuroleadership

To fulfil the basic needs, each individual will develop their own approach – to search for positive experiences and avoid negative experiences. These are known as motivational schemata

The four basic needs

Attachment Takes effect from birth onwards. Oxytocin the bonding hormone is also

stimulated by trust Orientation and Control

Ability to design and develop own environment. Lack of clarity and ambiguity stimulates negative reactions in the amygdala (fear)

Self-Esteem A specific human needs. Constantly looking to increase self worth and

protect it. Difficult to research at a neuroscientific level Pleasure Maximisation

Aim to increase pleasure and avoid pain. Subjective area of the brain with experiences over time giving rise to a whole network of mainly unconscious triggers. Linked to positive/negative experiences

“Basic needs that are present among all humans and their violation or enduring non fulfilment leads to impairment in mental health and well-being”

Graves 2006

Incongruence and/or consistency

The inability to satisfy one or more basic needs is known as incongruence. This means that the individual will be unable to achieve their goals in their context

Consistency is, on the other hand, the harmony between the environment and context and the fulfilment of an individual’s basic needs

Motivational schemata are the individual interpretation of motives and drives to achieve their goals in the current context. We can differentiate between approach schemata and avoidance schemata Approach is the state of an individual actively pursuing the fulfilment of

their basic needs Avoidance is the state of an individual protecting their basic needs in

place of striving to fulfil and increase them

Neuroleader competencies

Leaders need to behave and act in a brain friendly way: PERFECTPotential: develop and support the potential of each employeeEncourage: encourage employees to take on new challenges and develop themselvesResponse: give regular and consistent feedbackFreedom: allows as much freedom as possibleEmotions: emotional leadershipCommunication: regular communication at the same levelTransparency: be transparent in behaviour and communication

Attachment

Orientation and control

Self-esteem

PleasureT

C

F

R

E

P

E

Competency components

Potential Consistent and regular development Development based on individual needs Leader acting as a coach Leads to high activation of self-esteem and significantly impacts

attachment and pleasure Encourage

Create clarity and encourage employees to take on the challenge To build flexibility into the system to keep finding new solutions Impacts orientation and control and if done badly activates fear

Response Consistent, regular feedback is critical Facilitates alignment and positive working relationships Impacts orientation and control, potentially feeding attachment and self-

esteem

Competency components

Freedom Give clear guidelines with enough autonomy to complete task Will release energy and impact orientation and control

Emotions Drive motivation and influences our hormonal and cognitive balance Need to be aware of own and employee emotions Influences pleasure and self-esteem

Communication Creates clarity and understanding, the tone indicates respect Impacts self-esteem and helps drive orientation and control

Transparency Necessity to be clear, open and honest Clarity in communication, personal and business goals Builds trust and directly influences orientation and control