Stoic Virtue Series (Part 1 of 4): How Does Wisdom Help You Lead in Business?
Effectively using business wisdom as a leader is no small task. It requires not only the ability to make sound decisions but also the ability to motivate and inspire team members as you lead your organization to success. Just like there are many requirements for leadership in business, there are many schools of thought on how to become a successful leader. Some are ineffective and gimmicky, while others have a proven track record. Stoicism is among the latter – and it’s also the only one that stems from ancient Greek philosophy.
From billionaire CEOs to college students, the Four Stoic Virtues of wisdom, courage, temperance, and justice can empower individuals in almost any pursuit. When it comes to wisdom, there are a surprising number of ways in which this virtue can help you lead in business.
What is the Stoic understanding of wisdom?
Everyone has an elementary understanding of what “wisdom” is, but the Stoic definition of wisdom goes beyond this. According to Stoic philosophers, wisdom is “the ability to define that which is good, that which is not good, and that which is indifferent.” The definition itself is simple, but it has far-reaching benefits for anyone who tries to understand and apply it to their daily life.
Good: Facing your fears, choosing moderation instead of indulgence, or being generous instead of selfish.
Bad: Taking advantage of someone for your own benefit, being lazy, or lying to avoid responsibility.
Indifferent: Becoming famous, accumulating valuable or rare possessions, or being wealthy.
None of these should be too surprising – after all, they’re pretty much in line with standard ethical beliefs. However, the Stoic virtue of wisdom isn’t just about the simple ability to differentiate between good, bad, and indifferent. It’s also about how you do it, by using a combination of accumulated knowledge and willingness to learn from others. Forming opinions or making decisions is rarely a clear-cut process; Stoic wisdom can help you find a balance between keeping an open mind and being selective about which voices you listen to.
This has plenty of implications for business wisdom, whether you’re bidding on a contract or resolving a workplace conflict. Rather than depending on yourself to make a decision, you should seek out other opinions – even those that didn’t agree with yours – and incorporate their contributions into the decision-making process.
How Stoicism applies to business wisdom in the modern workplace
Even though the philosophy of Stoicism is over two thousand years old, some of the most successful businessmen in the world currently use its principles in their applications of business wisdom. Just take a look at some of the Stoic principles that business moguls like Warren Buffet, Bill Gates, Elon Musk, and others have mirrored in their own business practices:
Willingness to learn from others
Part of practicing Stoicism as a leader is being humble enough to admit that you don’t know everything. This doesn’t just apply when you’ve made a mistake; it’s also essential if you want to take advantage of the talents of those around you.
Epictetus, a revered Stoic philosopher, noted that even though his students were supposedly attending his classes to be taught, they seemed to act like they already knew everything he had to say. This might seem like an obvious mistake when you’re talking about students and teachers, but what about business leaders and their team members? Even though the head of the company is (hopefully) better versed in business wisdom than their subordinates, they should still seek outside advice and opinions rather than assuming that they already have all the necessary information.
Discernment in choosing friends or peers
Warren Buffet once noted that if you purposely spend time with people who are better than you, they’ll influence you to move in the same direction. People who challenge you to be resourceful, open-minded, and driven will help those characteristics (and more) become the norm, rather than something you have to consciously pursue.
Going back to the idea of discerning between what’s good, bad, or indifferent, it’s easy to see the benefits when choosing friends or peers. When you choose to build relationships with people who push you forward instead of dragging you down, it can help you become more resourceful, motivated, and confident.
Careful time management
Business leaders have countless demands on their time, and many of these matters are probably worthy of their attention. However, this doesn’t mean that leaders should let these demands dictate how they spend their valuable time. Instead, they should say yes only to the matters that take top priority.
We all recognize when our property has been stolen, but we tend to be less careful about the things that steal our time and attention. Don’t ask yourself if a task would benefit from your efforts; think about the broader costs and benefits of taking on that task. Spending time on activities that take you away from more important things is counterintuitive, and makes it more difficult for you to lead effectively.
Never getting stuck in a rut
Why do people do things in a particular way? In most cases, it’s because that’s how they were taught, it’s what they’re used to, etc. Any business that operates this way is just asking to be overtaken by a competitor – it often means they lack the initiative and drive to be constantly seeking improvement.
Stoic wisdom doesn’t just involve choosing the good and then leaving things that way until the end of time. It involves questioning yourself or others to ensure that you’re still making the best choice. Maybe a certain approach made sense a year ago, but if new technologies, data, or resources have become available since then, it would make more sense to revamp the strategy instead of sticking with a predictable solution.
Ability to learn from failure
Nobody gets to choose whether or not they fail, but they can choose how they respond to it. The most common response is to feel fear, embarrassment, or disappointment – but what if you instead chose to examine your failures for the lessons they contained? Once again, this gives you a chance to use Stoic principles as you cultivate business wisdom. By choosing to learn from failure, you’re taking the lead in turning a bad situation into an opportunity for growth.
Practical ways to use Stoic wisdom while leading in business
It’s one thing to foster certain Stoic qualities as you practice business wisdom; it’s another thing to apply them in the real world. These are a few examples of what that could look like.
Encourage a culture of learning
No matter how well-informed or knowledgeable someone is, there’s always someone out there who could push them to be better. This applies just as much to high-level executives as it does to enthusiastic interns, and a business leader is in a prime position to foster an environment in which learning through mentorship is encouraged. This enables a team’s collective wisdom to be shared, not hoarded or ignored.
Don’t waste time on things you can’t control
Fear often stems from the knowledge that you’re facing something you can’t control. By applying the Stoic understanding of wisdom, though, a business leader can more effectively take charge of the things he can control, rather than wasting time on pointless worrying.
Incorporate personal reflection in business wisdom
Personal reflection in business applies to a multitude of situations, from ensuring a robust feedback process to realizing that it’s time to take your company in a completely new direction. It also takes humility and self-awareness, such as realizing that your hands-on involvement in a project may have interfered with the quality of the result. When you bring personal reflection to your business practices, you’re more likely to make impartial decisions that are best for everyone, rather than letting ego or fear get in the way.
Take calculated risks
Stoicism has a lot to say about how we should face our fears. When used to foster leadership in business, this philosophy reframes fear as a catalyst that drives us to bigger and better things. In a business scenario, this may result in taking risks. If they pay off, great; if they don’t, you still have the opportunity to analyze what went wrong, and turn today’s failure into tomorrow’s success.
Value respect, not recognition
Stoic teachings about wisdom identify several things that we should value; one of those things is the respect of others. It’s easy to pursue recognition instead, but a wise business leader will value the respect of his peers and subordinates over recognition for his achievements. Recognition is something that business leaders can spend a lifetime chasing after, but respect is something that lasts for years once it’s been earned.
In conclusion
The Stoic virtue of wisdom is something that anyone could benefit from cultivating, but this is especially true for business leaders. By applying it to their mindsets and practices, they can bring the benefits of this ancient philosophy to not only themselves but also their team and their organization.