The financial crisis of 2008-2009 brought many things into sharp relief, not least the question of corporate governance. "Weren't there boards, or auditors, or regulators, or legislators, who were supposed to provide oversight and stop things like this happening?" you might reasonably ask. The fact that this didn't happen is now clearly documented, while the exploration and examination of the reasons why it didn't happen rumble on.

As I have reflected on this state of affairs, my mind always goes back to an actuary whom I interviewed as part of our work in studying the best of the best. In this particular instance, I was researching the strength of Moral Compass, and it was deeply instructive to understand how this actuary did his job and stood up to the pressures all around him.

In a nutshell, the more money the organisation kept in reserve, the less profit they made, but the more secure their customers' investments. In contrast, the less money the organisation kept in reserve, the more profit they made, but the less secure their customers' investments.

My interviewee's job was basically to decide on the balance between these two numbers. On the one side, he was under pressure from the board, the broader organisation, and the company's investors - more profits meant bigger bonuses, higher dividends and better news for all of them.

On the other side, he was guided only by his professional judgement, his integrity, and as I was to discover, his Moral Compass, which he used to guide him in doing his job admirably. Needless to say, his organisation was not one of those that got into trouble when the financial crisis hit.

At Capp, we've seen many more organisations become interested in Moral Compass. They're seeking to learn these lessons and put in place the governance structures that will keep them, their boards, and their organisations as a whole acting with probity in the discharge of their fiduciary duty - that of holding the organisation in trust for future generations. On its own, however, Moral Compass may not be enough...

Many of us may have Moral Compass, but in the absence of other strengths dynamics, we may not always act on it. Instead, we remain outwardly silent while we burn up inside with the inequity of what is being done. When Moral Compass is linked with Action, it ensures that we have a better chance of stepping up, speaking out, and doing something - in contrast with the possibility that we might just hope for the best (when combined with Optimism), or spend too long in contemplation (when paired with Incubator).

In contrast, find Moral Compass with Courage, and we see the combination of somebody who is focused on doing the right thing and is prepared to stand up and defend it against the odds - as the necessity may often be. Moral Compass with Counterpoint is captured in the person who is not afraid to argue their point and make the case as to why things should not automatically be the way that others see them. Combined with Prevention, Moral Compass is focused on making sure that the worst doesn't happen, just as my actuary colleague did so successfully as I described above.

The outcomes that we expect to achieve through our application of Moral Compass can also have a significant impact on how it plays out. Combine Moral Compass with any or all of Equality, Legacy, Mission or Service, and we are more likely to have a powerful underlying reason for doing what we do. This could be to protect the interests of vulnerable others (Equality), to enhance the quality of what we leave behind (Legacy), because of how it fits within our over-arching life goals (Mission), or because of the commitment and responsibility we feel for doing the right thing by other people (Service).

When Moral Compass combines positively in this way, it creates a powerful strengths dynamic that helps people dig deeper to find the resolve and do what they need to do, even when it's likely to be against the odds.

Corporate governance will be ever more on the organisational agenda. Developing your Moral Compass is likely to become a core leadership competency for many more senior leaders. I have found Ethicability by Roger Steare, and Practical Wisdom, by Barry Schwartz and Kenneth Sharpe, to be good places to start.

With best wishes,

Alex Linley