The DQ
No, not Dairy Queen, or “Digital Quotient.” This DQ stands for “decency quotient.” I love the word decency. Respectable and moral behavior. DQ hit my radar earlier this year when Bill Boulding, dean of Duke’s B-School, penned an HBR piece inspired by Mastercard CEO Ajay Banga. Fast Company gave it a mention recently and connected the concept to the Business Roundtable’s recent Statement of Purpose committing member companies to move beyond shareholder returns, and “lead their companies for the benefit of all stakeholders — customers, employees, suppliers, communities, and shareholders.” This so-called “new capitalism” is encouraging. Let’s hope it takes hold.
IQ to EQ
In 1995, Daniel Goleman reminded us of the importance of “soft” skills and launched a movement with Emotional Intelligence: Why It Can Matter More Than IQ. He originally defined emotional intelligence in five domains, the first three being intrapersonal, and the final two being interpersonal.
While IQ (used as shorthand for technical/functional/thinking skills) is important, research has found that as much as 85%–90% of our success and satisfaction is due to our emotional intelligence. Optimism is the root system of EQ. These skills are trainable, and yes, optimism can be learned if you don’t naturally lean that way. And train we do — the lion’s share of development in the work world is in behavioral competencies.
EQ to DQ
“A decency quotient, or DQ, goes a step further than EQ. DQ implies that a person has not only empathy for employees and colleagues but also the genuine desire to care for them. . . . DQ implies a focus on doing right by others,” according to Bill Boulding. First coined by Mastercard CEO, Ajay Banga, Fast Company reported that Banga was “searching for a concise way to describe his approach to community outreach and other social impact initiatives. Employees, he says, were constantly asking him what criteria he applied to when, say, deciding to send supplies and volunteers in the wake of the hurricanes in Houston and Puerto Rico.” He came up with DQ, and it stuck. Speaking to B-school students at Duke, Banga said, “IQ is really important, EQ is really important. What really matters to me is DQ, if you can bring your decency quotient to work every day, you will make the company a lot of fun for people — and people will enjoy being there and doing the right thing.”
Mastercard has thrived under Banga’s stewardship. I’d like to think this is linked to his DQ leadership. Hopefully Banga is also addressing the negative societal and economic effects of the credit industry.
I don’t rub shoulders with the Fortune 500 crowd. My organizational village includes small mission-driven dreamers: young companies and nonprofits. DQ is in the DNA of these enterprises. Zymeworks, for example, is a biotechnology company driven to deliver therapies that “get patients home to their loved ones, disease-free.” To put words to the natural forces within their organization that drive behavior and decision-making, they undertook a self-exploration and asked employees to share the core values they felt guided their daily work. Innovation, Collaboration, and Integrity were dominant themes — but there was another strong value at work in their culture, not so ubiquitous for biotech companies. It was soft. It was human. It was in the day-to-day of how they work together. They called it Care — guided by a deep care and concern for patients, each other, and their communities.
Credit Drucker — the original DQ
With work spanning six decades beginning in 1939, Peter Drucker’s often credited as the originator of much of what is prostelized today. A quick read of What Would Peter Say? reminded me of his wisdom. The concept of business as a piece of a functioning society, not as a separate sector to produce and make money. Management as a profession with the responsibility for the long-term health of organizations, and societal well-being, not just wealth. The importance of nonprofits in creating a society in which business could thrive. And, the power of a “clear sense of meaningful purpose.”
He viewed the discipline of management as a “truly liberal art.” Although he passed away in 2005, The Drucker Institute lives on with the mission of “strengthening organizations to strengthen society.”
It’s heartening that there are signs of businesses big and small operating with a sense of societal responsibility, and demonstrating care and compassion in their actions and decisions. Drucker is smiling. And, I’m optimistic.