An Integrative Approach to (Societal) Value

A key component of an Integrated Leadership is the sharing of power across sector in order to pursue new solutions to sector failures (Bryson, Crosby, Stone, 2006). An implicit expectation in the private sector expectation is that when power is shared, so is risk, and when risk is shared, so is reward. Risk may mean that no one sector is singled out for 'trying again', and may link to the source of investment funds. But what of shared reward? What are the ethical implications of individuals or sectors benefiting from the correction of sector failures? Is this issue different than or related to the nonprofit sector discomfort with housing ventures who benefit from (profitable) revenues?
As our IL team delves into the NY Parks cases, one of the key sources of conflict (especially as it relates to the restoration of Bryant Park) is that although every sector has benefited from this destination park, the visionary leader of the nonprofit (Dan Biederman, ED of Bryant Park Restoration Corporation) is under attack for drawing salaries from two different parks under management, plus his own consulting business. The Bryant Park salary is report ably $229,000 - not a penance but also not outrageous by New York standards. Biederman earned a A.B. from Princeton University's school of Public and International Affairs and an M.B.A. from Harvard, so clearly there are other sectors which would gladly have compensated him for his education as well as obvious efforts and results.
Here in Minneapolis/St. Paul the leadership of MPR is often criticized for 'empire building' and setting up a for profit entity (since sold) from which he received a non-disclosed salary. Minnesotans and beyond benefit from having a strong public radio - as well as constant affirmation that "our women are strong..our men are good looking...and our children above average" . One could argue there should be no personal benefit received from the creation of public good...but as long as the private sector rewards contributions and results 'above and beyond', how can we motivate and reward true integrative leadership in a way that is compelling?
One possible solution is to find ways to measure and communicate cross sector value created. Factors that could go into that equation could include salaries paid out during restoration or building, increase in property values and property tax assessments, numbers of citizens served, increase in sales taxes from the businesses and venues created, and even the value of start up business and receipts in the area. Pieces of these economic development puzzle are sometime touted when new stadiums are being sought, but if more consistently tracked and reported it might help all three sectors have shared assumptions on what is the overall societal value add of economic development or even the reversal of urban blight. Perhaps a 'windfall' fund could be created so that if the efforts yield a great success, it is predetermined how ear-marked funds can be paid out across the sectors in bonuses, or reinvested in causes of the players choice.
A reservation in this argument is the that there is that individuals do not truly share risk in these ventures. Had Biederman 'failed' in his efforts to restore Bryant Park, his career would have suffered, but it would have been the philanthropies and the public who truly 'lost'. That said, there is still a difference of assumptions of rewarding value created across the various sectors which can be an impediment to true integrative leadership.

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