What the world’s biggest organisations can learn from one of its smallest nations
Lee Smith
Minutes
16th October 2024
Wellbeing
Happiness
Employee Engagement
Employee Experience
Happiness
Employee Engagement
Employee Experience
Recently, I’ve been reading about the tiny Himalayan Kingdom of Bhutan, a small mountainous nation that, for nearly 50 years now, has taken a radically different approach to measuring success.
It’s been thought-provoking to reflect on what large, complex organisations can learn from this small country’s focus on happiness, especially when thinking about how we approach organisational life, employee experience, wellbeing, and leadership.
For senior HR leaders and EX specialists, Bhutan’s lessons are more than just aspirational—they offer a practical framework for creating genuinely human-centric organisations. Let’s explore how the principles of GNH can guide companies to redefine success, cultivate wellbeing, and build thriving workplace cultures which put people at the heart.
Understanding GNH
Introduced in the 1970s by Bhutan's fourth king, Jigme Singye Wangchuck, GNH is a holistic measure of national progress that, unlike the more commonplace GDP, goes way beyond economic growth to encompass the wellbeing of citizens and the overall health of society.
It rests on four key pillars:
1. Sustainable and equitable socio-economic development
2. Conservation of the environment
3. Preservation and promotion of culture
4. Good governance
These pillars are operationalised through nine domains of wellbeing, which include psychological wellbeing, health, education, time use, cultural diversity, and ecological resilience. The core idea behind GNH is that true development must be inclusive and sustainable, promoting happiness and wellbeing for all, rather than just economic prosperity.
At its heart, GNH is all about balance — balancing material needs with non-material aspects of life, balancing short-term gains with long-term sustainability, and balancing the well-being of individuals with the well-being of the collective. Bhutan recognises that economic growth is necessary, but it should not come at the cost of community cohesion, environmental sustainability, or individual fulfilment.
Moreover, GNH emphasises intentionality. Every policy and decision is carefully scrutinised for its impact on the overall happiness of the population, making happiness a deliberate pursuit, rather than a byproduct of economic success.
All this got me thinking, what if large organisations shifted to a similar focus?
How would this change the world of work and how does it fit with our focus here at The EX Space on creating a great employee experience by being more genuinely human-centric?
Could these same pillars – or their workplace equivalents – be used to drive a stronger focus on people?
Introduced in the 1970s by Bhutan's fourth king, Jigme Singye Wangchuck, GNH is a holistic measure of national progress that, unlike the more commonplace GDP, goes way beyond economic growth to encompass the wellbeing of citizens and the overall health of society.
It rests on four key pillars:
1. Sustainable and equitable socio-economic development
2. Conservation of the environment
3. Preservation and promotion of culture
4. Good governance
These pillars are operationalised through nine domains of wellbeing, which include psychological wellbeing, health, education, time use, cultural diversity, and ecological resilience. The core idea behind GNH is that true development must be inclusive and sustainable, promoting happiness and wellbeing for all, rather than just economic prosperity.
At its heart, GNH is all about balance — balancing material needs with non-material aspects of life, balancing short-term gains with long-term sustainability, and balancing the well-being of individuals with the well-being of the collective. Bhutan recognises that economic growth is necessary, but it should not come at the cost of community cohesion, environmental sustainability, or individual fulfilment.
Moreover, GNH emphasises intentionality. Every policy and decision is carefully scrutinised for its impact on the overall happiness of the population, making happiness a deliberate pursuit, rather than a byproduct of economic success.
All this got me thinking, what if large organisations shifted to a similar focus?
How would this change the world of work and how does it fit with our focus here at The EX Space on creating a great employee experience by being more genuinely human-centric?
Could these same pillars – or their workplace equivalents – be used to drive a stronger focus on people?
Lessons for Large, Complex Organizations
While the context of a small country clearly differs significantly from a large corporation, the principles behind GNH offer valuable insights for business leaders. Here are some of my takeaways:
1. Redefining Success: Moving Beyond Financial Metrics
Many organisations focus primarily on financial performance and productivity as indicators of success. However, much like Bhutan’s GNH, organisations should take a more holistic approach to performance by also considering factors like employee wellbeing, job satisfaction, and work-life balance. This requires looking at the "intangibles"—such as psychological safety, sense of purpose, and belonging—that drive engagement and productivity in the long term.
2. Employee Wellbeing as a Strategic Priority
Just as GNH places the happiness and well-being of its citizens at the core of national policy, HR leaders must make employee wellbeing a strategic priority. Investing in mental health programs, flexible working arrangements, and creating a positive, inclusive culture can lead to higher retention rates, increased engagement, and a more motivated workforce, as well as reducing workplace stress and sickness.
3. Sustainability and Corporate Responsibility
One of GNH's central pillars is environmental sustainability. For corporations, this can translate into sustainable business practices that are not only good for the planet but also for the company’s reputation and long-term success. Being a purpose-driven organisation that aligns with broader social and environmental goals can attract talent and customers who value corporate responsibility.
4. Nurturing Organizational Culture
Bhutan emphasises the preservation and promotion of its cultural heritage as part of GNH. In a corporate context, this translates to nurturing and promoting a strong, positive organizational culture. Large organisations often struggle with maintaining a cohesive culture, especially when spread across different regions and functions. HR leaders need to be intentional in fostering a sense of shared values, community, and belonging across the organisation.
5. Long-Term Thinking Over Short-Term Gains
GNH encourages a long-term vision for national wellbeing, prioritising future generations over short-term profits. Similarly, organisations must resist the temptation to focus solely on immediate financial returns. Strategic HR leadership should look at sustainable growth, talent development, and employee engagement from a long-term perspective, ensuring the company is equipped to thrive in the future.
6. Inclusive Decision-Making and Governance
Good governance is a key pillar of GNH, with the Bhutanese government taking a collaborative, inclusive approach to decision-making. HR leaders can apply this principle by involving employees in decision-making processes, especially when it comes to policies that affect their work lives. A more democratic, transparent approach to leadership fosters trust and encourages employees to take ownership of their roles, driving better outcomes across the organization.
While the context of a small country clearly differs significantly from a large corporation, the principles behind GNH offer valuable insights for business leaders. Here are some of my takeaways:
1. Redefining Success: Moving Beyond Financial Metrics
Many organisations focus primarily on financial performance and productivity as indicators of success. However, much like Bhutan’s GNH, organisations should take a more holistic approach to performance by also considering factors like employee wellbeing, job satisfaction, and work-life balance. This requires looking at the "intangibles"—such as psychological safety, sense of purpose, and belonging—that drive engagement and productivity in the long term.
2. Employee Wellbeing as a Strategic Priority
Just as GNH places the happiness and well-being of its citizens at the core of national policy, HR leaders must make employee wellbeing a strategic priority. Investing in mental health programs, flexible working arrangements, and creating a positive, inclusive culture can lead to higher retention rates, increased engagement, and a more motivated workforce, as well as reducing workplace stress and sickness.
3. Sustainability and Corporate Responsibility
One of GNH's central pillars is environmental sustainability. For corporations, this can translate into sustainable business practices that are not only good for the planet but also for the company’s reputation and long-term success. Being a purpose-driven organisation that aligns with broader social and environmental goals can attract talent and customers who value corporate responsibility.
4. Nurturing Organizational Culture
Bhutan emphasises the preservation and promotion of its cultural heritage as part of GNH. In a corporate context, this translates to nurturing and promoting a strong, positive organizational culture. Large organisations often struggle with maintaining a cohesive culture, especially when spread across different regions and functions. HR leaders need to be intentional in fostering a sense of shared values, community, and belonging across the organisation.
5. Long-Term Thinking Over Short-Term Gains
GNH encourages a long-term vision for national wellbeing, prioritising future generations over short-term profits. Similarly, organisations must resist the temptation to focus solely on immediate financial returns. Strategic HR leadership should look at sustainable growth, talent development, and employee engagement from a long-term perspective, ensuring the company is equipped to thrive in the future.
6. Inclusive Decision-Making and Governance
Good governance is a key pillar of GNH, with the Bhutanese government taking a collaborative, inclusive approach to decision-making. HR leaders can apply this principle by involving employees in decision-making processes, especially when it comes to policies that affect their work lives. A more democratic, transparent approach to leadership fosters trust and encourages employees to take ownership of their roles, driving better outcomes across the organization.
Where next? How to implement GNH-Inspired Practices in your
organisation
Adopting a GNH-inspired approach in large, complex organisations requires a shift in mindset. HR leaders can start by:
Adopting a GNH-inspired approach in large, complex organisations requires a shift in mindset. HR leaders can start by:
- Measuring what matters: Go beyond traditional metrics and measure factors like employee satisfaction, mental health, and engagement through regular surveys and feedback loops.
- Designing programs for holistic wellbeing: Consider the broader needs of employees, including psychological safety, personal development, and work-life integration.
- Embedding purpose and values: Articulate a clear organisational purpose that resonates with employees, customers, and society at large. Align business goals with this purpose.
- Encouraging mindful leadership: Train leaders to be more mindful and empathetic, ensuring they are focused not just on performance but also on creating an environment where people can thrive.
Put people first and profits will follow
Bhutan’s focus on Gross National Happiness offers a powerful reminder: true success lies in the wellbeing of people, not just profits. For senior HR leaders in large organisations, adopting this mindset can unlock not only happier employees but also more sustainable business outcomes. By intentionally designing cultures and policies that prioritise happiness, organizations can create a thriving, resilient workforce ready to meet the challenges of today and tomorrow.
In the end, as Bhutan teaches us, when we take care of people, profits tend to follow.
Bhutan’s focus on Gross National Happiness offers a powerful reminder: true success lies in the wellbeing of people, not just profits. For senior HR leaders in large organisations, adopting this mindset can unlock not only happier employees but also more sustainable business outcomes. By intentionally designing cultures and policies that prioritise happiness, organizations can create a thriving, resilient workforce ready to meet the challenges of today and tomorrow.
In the end, as Bhutan teaches us, when we take care of people, profits tend to follow.