If you’ve been online or watched television in the last 48 hours, then you have heard about Dan Price, the CEO and Founder of Gravity, a payment processing firm in Seattle. Price took a 90% pay cut, lowering his salary to $70,000 per year so that all of his employees will make $70, 000 annually in the next three years.
This story has made headlines on CNN and ABC News and in CNNMoney, Huffington Post, NY Times, Fortune, and even in the Daily Mail in United Kingdom.
But why? Why is this story news worthy?
Honestly, Price himself is surprised by the amount of coverage this story has received.
Maybe it is the incredulity of his act, a morbid curiosity. After all, what would make someone give up $930,000 dollars a year?
Price said he was moved to take this action after reading a study about happiness and how people’s emotional well being is improved with additional income. Price said he felt a “moral imperative” to ensure that his employees do not struggle financially and are able to have a better quality of life.
Price believes that this investment will not only improve their emotional well being, but will also help the company increase their profits.
And he is right!
He is right because it is this type of leadership that truly makes a difference in the lives of people and the organizations where they work.
This story is news worthy because it is rare. It is rare in corporate America for CEO’s to act like leaders. And this is exactly what Price did, he has chosen to lead people, rather than just run a business.
This was an incredible act of leadership.
A newsworthy act of leadership!
I’m always talking about my 5 Step Approach to Leadership, and now Dan Price has brilliantly exemplified this approach by taking this salary cut.
Let me explain. Leadership is challenging and complex, but I believe there are 5 Steps you can take to be a more effective leader, make your mark, and make a difference.
Here is the 5 Step Approach to Leadership:
1. Identify Your Own Approach to Leadership
2. Imagine your Ideal Team and Organization
3. Inspire Others To Follow You
4. Innovate within Your Organization
5. Impact the present and future of your organization. Build your legacy. Every day.
So how exactly did Price demonstrate this approach? I’ll show you exactly how Price demonstrates this approach:
Price identified his beliefs and values. He believes his employees should be happy and secure and values that more than his own wealth. He identified, on a very personal level, the type of leader he wants to be and his leadership identity.
Because he is clear on his beliefs and values, Price imagined a better future and created a vision for his organization, a vision of an organization whose employees are happy and financially secure.
He shared his vision with his team and the public, and now we all know Gravity is an organization whose leaders are willing to put the needs of others before their own needs.
He created and shared the vision in an epic way.
This simple, yet radical act of leadership, will result in a team that is not only financially secure, but also secure in the fact that they work for a person and organization that cares about them.
The pay off for Price and Gravity will be enormous.
This level of empathy and care will result in higher levels of engagement and productivity throughout the organization. Price now has all the buy-in he needs from his team to move the company forward on his plans and goals to increase the company’s profit.
To achieve the goals he has set, the organization is going to have to innovate, that is make more changes and take new risks. Price has now set the standard for what can be achieved when you think outside the box, take risks, and test new strategies.
He has set the stage for his team to do the same; his employees now know that Gravity is a safe place for them to think differently, be creative, try new things, and challenge themselves to do the impossible.
This is about building your legacy, every day, and planning for the present and the future. Price has made a major impact on the present situation of his employees, with a goal for future impact on the company’s bottom line.
Great leaders consider both the present and the future. What we do today, informs what we do tomorrow. It is a constant process of planning and evaluating what we are doing to plan where we are going.
So thank you Dan Price for being an outstanding Millennial leader and showing other CEO’s and organizational leaders how to be true to yourself, lead differently, and build your legacy. Every day.
No matter where you are in your leadership, this 5 Step Approach is accessible and proven to produce the results you are looking for as a leader.
You are going to get:
1. Clarity on your values and approach to leadership
2. A clear and shared vision for the future
3. Buy-in from your team and a willingness to follow you (any where)
4. A team that is creative, willing to take risks, and adaptable to change
5. Plans for the present and future to make an impact
To learn more about this 5 Step Approach to Leadership, join the wait list for our upcoming eCourse: Real Leadership: Empathize, Empower, and Make an Impact right here!
Can’t wait for the course? Watch “How to Be the Leader You Want to Be” a FREE 4 part video series to kick start your leadership now.