Management as a Liberal Art Research Institute

Robert F. Smith Shows Us What Effective Leadership in Action Looks Like

Robert Kirkland Ph.D.

PUBLISHED:

December 31, 2023

Robert F. Smith is celebrated globally for his philanthropy and business prowess, but it’s his approach to leadership that sets him apart. An approach that mirrors many of Peter Drucker’s Management as a Liberal Arts principles. 


Smith’s success is Drucker’s MLA in action. 


A case study not only on the importance of effective leadership but also on our organizations’ responsibility to contribute to building a better society. Philanthropic-focused leaders like Smith are Management as a Liberal Art, personified. 


Philanthropy & Business Beyond Profit

Founder, Chairman, and CEO of Vista Equity Partners, Robert F. Smith doesn’t qualify himself as a businessman. But instead—an inventor, investor, and philanthropist. His focus is on creating opportunity, not only within Vista’s ventures but also in the communities where it functions. 


His philosophy is clear: we all have a responsibility to build a better society. To encourage our organizations to participate in the betterment of the community as a whole. 


The 2% Solution:


Smith knows that a business’ role doesn’t stop within the organization. But instead, must extend far past it. Put in simpler terms, it’s a corporation’s responsibility to contribute to the 2% solution. 


“The Solution builds from the tradition that American families on average allocate 2% of their income for charity, and asks U.S. companies to do the same by investing 2% of their profits over the next 10 years into communities that have been systematically held back by the racial wealth gap.”  – Robert F. Smith


Smith encourages organizations to see this contribution as an investment, not an act of charity. To take up the mantle of responsibility and leave things better than we found them. 


And to do it in a way that promotes success and opportunity for future generations. 


Whether that investment be made in capital, know-how, or responsible management solutions, a corporation’s responsibility is to its community. Not just to its profits.


Smith’s call to action mirrors that of Drucker’s philosophies. Management as a Liberal Art asks organizations to provide meaning beyond financial gain. To acknowledge their place and power in society, and do something about it. 


Drucker suggests through effective leadership that businesses can successfully bridge this gap between conventional profit-first models to champion innovation that benefits the whole. 


Both minds call for workers, managers, and future leaders to challenge traditional business models that leave people behind. 


Embracing Lifelong Learning


Spearheaded by Smith (and supported by his fresh take on leadership), Vista Equity Partners exemplifies Drucker’s MLA in action.


Part of Vista’s mission is to take an “adaptable” approach to growth. One that prioritizes value creation in partnership with effective leaders. 


To keep advancing, Vista has taken a strategic approach to adaptability. Put another way—the organization and its managers are lifelong learners. 


They promote the advancement of technology with the specific intention of creating opportunity. It’s the company’s investment in software, data, and technology that enables technological advancements to better society.


Vista’s portfolio includes leading enterprise companies. This means they’re building better businesses in community with other organizations striving to do the same. 


This community of “better business” not only reflects Drucker’s principles but hinges on the openness to learn and adapt.


Drucker tells us that leaders and organizations must encourage innovation and profit by placing an emphasis on the constant search to improve knowledge and skills. That businesses—and managers—must be able to adapt. Not only to the ever-changing needs of an organization but to the people who work within it and those who live beyond it.


Smith has built an organization that functions within Drucker’s philosophies. The firm’s success positions MLA as the approach to foster better business through the ability to learn and adapt.


Supporting Future Leaders


If MLA urges us to lead with management principles that are community-oriented, Smith encourages us to go one step further and take direct action through personal philanthropy.


We know that a well-managed organization respects the individual dignity of its workers. And that effective leaders prioritize people. But Smith shows us that that includes not only people functioning within your own organization, but outside of it in the community as well. 


Future leaders exist within both. 


Philanthropy & Mentorship:


Smith’s philanthropic efforts extend beyond just MLA in principle. They’re MLA action. 


He urges us all to see the importance of mentorship and internships. For managers to place their focus on the greater mission of contributing to society. 


To him, it’s about waking up each day and making an effort to create change. Some days that looks like direct influence through his leadership roles. Other days that means donating time, funds, and knowledge to his community. 


Smith shows us that it’s up to each individual leader to make society a more just one for people of future generations. And that taking action now, promotes the ability of future leaders to pay forward MLA in action. 


Effective Leaders Prioritize People:


Both Smith and Drucker know that effective leaders have the power to alleviate some of the burdens society has placed on minorities, disadvantaged communities, and younger generations. They see leadership as an opportunity to make endless contributions to building better. 


Smith shows us that a leader must strive for economic justice. And that the power of your impact comes from visibility. To make change as a leader, you must get out there and be visible to your community. 


You must be a mentor in action and in principle. 


When leaders like Robert F. Smith show up—both within their organizations and within their communities—they’re effectively ushering in a new era of management. 


An era sprung from Peter Drucker’s Management as a Liberal Art philosophies. 


The answer rings clear. 


Effective leaders must strive to put people first. To position people and community above profits. A model that not only promotes a better society. But better business, and more innovative solutions.

Rethinking Motivation: The Key to Sustainable Performance

By Byron Ramirez Ph.D. • March 7, 2025
Motivation and performance in the workplace have been the subject of extensive research, yet a comprehensive understanding of their complexities remains elusive. While many organizations recognize the importance of motivation in driving employee performance, a significant number still approach motivation through simplistic, linear models that fail to capture its depth. Traditional methods, such as annual performance reviews with occasional praise or monetary bonuses, may have some impact, but they are often insufficient in fostering long-term employee engagement and sustained productivity. The relationship between motivation and performance is intricate, requiring a more nuanced and strategic approach from organizations. Motivation plays a crucial role in organizational sustainability. When employees are motivated, they exhibit higher levels of productivity, creativity, and commitment, all of which contribute to an organization’s long-term success (Ryan & Deci, 2000) and sustainability. However, many organizations continue to rely on outdated methods that focus primarily on the provision of extrinsic rewards. While financial incentives, such as salary increases and bonuses, can have a positive impact, research indicates that their effect on motivation is often temporary (Deci, Koestner, & Ryan, 1999). Once the external reward is removed, motivation levels tend to return to their previous state, highlighting the limitations of this approach. In contrast, organizations, and more specifically managers who have invested in fostering an environment that develops genuine engagement and trust, thus increasing motivation within their teams, have recognized the importance of intrinsic rewards. Intrinsic motivation, which arises from within the individual, is driven by factors such as personal growth, job satisfaction, and a sense of purpose (Pink, 2009). Employees who find meaning in their work and feel a sense of autonomy are often more engaged and perform better than those who are solely motivated by external incentives. This aligns with Self-Determination Theory, which emphasizes the role of autonomy, competence, and relatedness in fostering motivation (Deci & Ryan, 1985). Moreover, this also is consistent with the philosophy of Management as a Liberal Art which highlights the importance of independent decision-making. Despite the emphasis on extrinsic rewards, research suggests that human beings are only driven by them to a certain extent. Herzberg’s Two-Factor Theory (1959) highlights this by distinguishing between hygiene factors (such as salary and job security) and motivators (such as achievement and recognition). While hygiene factors can prevent dissatisfaction, they do not necessarily lead to increased motivation. Instead, true motivation stems from intrinsic factors that align with an individual's values, aspirations, and personal goals. Not every employee seeks to climb the corporate ladder; some may find fulfillment in mastering a specific skill, contributing to a meaningful project, or maintaining a healthy work-life balance. As a result, managers must move beyond a one-size-fits-all approach and develop a deeper understanding of the psychology behind motivation. Recognizing individual differences and tailoring motivation strategies to align with employees’ unique needs can lead to greater job satisfaction and improved performance (Gagné & Deci, 2005). This means fostering a work environment that promotes autonomy, provides opportunities for growth, and acknowledges employees’ contributions in meaningful ways. Organizations should also consider the long-term implications of their motivation strategies. Rather than merely offering short-term incentives, they should invest in creating a workplace culture that values intrinsic motivation. This can be achieved through leadership development programs, mentorship opportunities, and fostering a sense of community within the organization. When employees feel valued and supported (and listened to), their motivation is more likely to be sustained, ultimately benefiting both the individual and the organization as a whole. One effective strategy is providing employees with opportunities for continuous learning and professional development. Organizations can offer training programs, workshops, and tuition reimbursement to help employees acquire new skills and expand their expertise. When employees see that their company is invested in their growth, they are more likely to remain engaged and committed to their work. Furthermore, providing employees with challenging yet attainable goals can foster a sense of accomplishment and reinforce their intrinsic motivation. Additionally, fostering a culture of recognition and meaningful feedback is essential. While monetary rewards can provide temporary satisfaction, genuine appreciation and acknowledgment of employees' contributions create a lasting impact. Managers can implement regular check-ins, peer recognition programs, and public acknowledgments of achievements to make employees feel valued. When employees receive positive reinforcement for their efforts, they are more likely to stay motivated and take pride in their work.  While financial incentives and extrinsic rewards have their place in workplace motivation, they are not a panacea for enhancing performance. Motivation is a complex and deeply personal phenomenon that requires organizations to adopt a more holistic approach. By understanding the interplay between intrinsic and extrinsic motivation and recognizing the unique aspirations of employees, organizations can create an environment that fosters sustained motivation and long-term success. Investing in the psychological and professional well-being of employees is not just a moral imperative but a strategic necessity for organizational sustainability. References Deci, E. L., Koestner, R., & Ryan, R. M. (1999). A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation. Psychological Bulletin, 125(6), 627-668. Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. Springer Science & Business Media. Gagné, M., & Deci, E. L. (2005). Self-determination theory and work motivation. Journal of Organizational Behavior, 26(4), 331-362. Herzberg, F. (1959). The Motivation to Work. John Wiley & Sons. Pink, D. H. (2009). Drive: The surprising truth about what motivates us. Riverhead Books. Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68-78.

The Animated Movie, Inside Out 2, Can Help Leaders Better Comprehend and Internalize Emotional Intelligence

By Michael Cortrite Ph.D. • February 26, 2025
In 1995 Daniel Goleman published a groundbreaking book which introduced the leadership/management discipline to emotional intelligence.The book is Emotional Intelligence: Why it can matter more that IQ (Bantam 1995). Over the last 30 years more than 20 book and hundreds of papers have been published on emotional intelligence (abbreviated as EQ) extolling its effectiveness as a leadership concept. Many of the books were authored by Goleman with his co-writers Richard Boyatzis and Annie McKee. Given the current political climate in the United States and the world, the concept of EQ may be even more relevant today than it was 30 years ago. EQ shows an incontrovertible link between a leader’s emotional maturity and their performance as a leader. In the words of Daniel Goleman, “The research on EQ shows that the ‘good guys’—emotionally intelligent men and women—finish first” (Goleman, et al. p.169. 2001). Just as Peter Drucker’s insistence on self-knowledge and the knowing of one’s strengths and weaknesses is the starting point in his essay, Managing Oneself (1999), EQ starts with knowing yourself, including your weaknesses and strengths, and especially your emotions. Drucker also talked about values and manners. Manners is all about people working in close contact with each other and therefore naturally causing friction. He said that workers must be able to cooperate and treat each other with courtesy and respect. In order to do this, they must look inward to make sure they use words like thank-you and please and they know their co-workers’ names and even the names of their family members. He didn’t specifically use the word emotions but was writing about a basic form of emotional intelligence. Goleman, et al. (2001) lists the four components of emotional intelligence in action: 1. Self-awareness: The ability to read your own emotions. Knowing how your moods are affecting others. 2. Self-management: The ability to control your emotions. Don’t let bad moods seize the day; leave them outside the office. 3. Social awareness: The ability to sense other people’s emotions and show that they care. Understand how your words and actions affect other people and be able to change them when their impact is negative. 4. Relationship-management: The ability to build strong personal bonds and use these skills to spread their enthusiasm and solve disagreements, often with humor and kindness. It should be noted that Diamantidou et al. (2024) found a strong link between emotional intelligence and transformational leadership that translates to a positive organizational culture and thus increased organizational effectiveness. In late 2024, Pixar released an animated movie, Inside Out 2. It is a sequel to the movie Inside Out. It is already the highest grossing animated movie in history. The movie is based on emotional intelligence. Daniel Goleman praised the movie and said, it is clever and moves the field of social-emotional learning forward. The leadership literature cites many examples of the value of using films to teach leadership. Wiliams (2006) posits that because films are memorable and a catalyst for thought and discussion, there is always rich dialogue generated, and a better understanding of the concept being taught after watching the movie. The characters in the movie are Riley (the human) and Joy, Sadness, Anger, Fear, Disgust, and Anxiety (the emotions). Chatbot (2024) explains that watching the movie can help leaders by dramatically showing how emotions influence both personal and social interactions. The movie also depicts such emotional intelligence concepts as self-awareness, self-management, building empathy, the power of vulnerability, leading by example, and the benefits of transparency. REFERENCES: Chatbot, H. How Inside Out 2 Can Improve Your Leadership Skills. Entrepreneurial Leadership. July 30, 2024. Diamantidou, V., Kaitelidou, D., Kalakairinou-Anagnostopoulou, A., and Galanis, P. Organizational Culture, Transformational Leadership and Emotional Intelligence. Journal of International Caring Services Vol. 17 (2). May/August 2024. 1190-1196. Drucker, P. Managing Oneself. (1999) In HBR book, On Managing Yourself. pp. 13-32. Goleman, D., Boyatzis, R., and McKee, A. (2001). Primal Leadership: The Hidden Driver of Great Performance. In HBR book, On Managing Yourself. pp. 169-188. Wiliams, J. Pirates and Power: What Captain Jack Sparrow, His Friends, and His Foes Can Teach Us About Power Bases. Journal of Leadership Education Vol. 5 (2). Fall 2006. 

Innovation and its Impacts

By Mehak Suri • February 25, 2025
Drucker’s claim that “reliance on the expert to predict the outcomes of technology is born out of hubris” (Drucker, 1969, p. 524) still holds and will likely continue to be the same. Each development is caused by and leads to several factors, “each independent in its origins,” with the “outgrowth of a separate discipline with its own experts” (Drucker, 1969, p. 524). Aristotle’s syllogisms (a kind of logical argument) are the reason ChatGPT exists today. The statement above sounds bizarre, but Boolean logic was invented in the 1800s to mathematically represent syllogisms. Claude Shannon, in 1937, demonstrated the use of Boolean algebra in designing electrical circuits, which paved the way for GPUs, programming, digital computers, and AI systems like ChatGPT. Claude Shannon could not have predicted that his design of electrical circuits would someday contribute to the fragmentation of human interaction (social media), digital overload and decision fatigue (social media), erosion of creativity through AI-assisted writing, and increased energy consumption and pollution (large AI models lead to high electricity usage and carbon emissions from data centers). This indicates that “the impacts of technology are often quite indirect and by-products rather than main products” (Drucker, 1969, p. 524). Sometimes, even the most direct use cases of modern technology have unintended adverse consequences, leading to “the cost being more than the worth” (Drucker, 1969, p. 523). The Computerized Provider Order Entry (CPOE) systems in healthcare were designed to reduce medical errors and improve the quality of patient care. However, studies have shown unintended net adverse effects due to clinicians’ overreliance on this technology and diminished critical thinking. CPOE systems with inbuilt clinical decision support (CDS) help clinicians by providing “notifications of drug-drug interactions, warnings about allergies, recommendations for clinical guideline compliance, and more” (Campbell et al., 2007, p. 96). For example, anticoagulants and aspirin are usually not prescribed together. However, this combination is often used for heart protection benefits in coronary care. In this context, using these two drugs together would be helpful, but the CPOE system would trigger an alert warning the clinician. If the clinician relies exclusively on CPOE, they may remove one of the two drugs from the therapy, increasing the potential risk to the patient (Campbell et al., 2007). Going back to the previous example, even if Claude Shannon could foresee all the negative impacts of technological advancements stemming from his invention, he would not have stopped his development, as there were foreseeable immediate and long-term net-positive outcomes, too. As Drucker puts it, in this new age of technology, we need new decision-makers and decision-making processes built on understanding the history and dynamics of technology instead of focusing on predicting the outcomes of technology or determining what is right or wrong (Drucker, 1969).  References Drucker, P. F. (1969). Comment: Is Technology Predictable? Technology and Culture, 10(4), 522-527. https://doi.org/10.2307/3101571 Campbell, E. M., Sittig, D. F., Guappone, K. P., Dykstra, R. H., & Ash, J. S. (2007). Overdependence on technology: an unintended adverse consequence of computerized provider order entry. AMIA Annual Symposium Proceedings, 2007, 94-98.
Show More
Share by: