Tough Decisions.

11 11 2017

When your values are clear to you, making decisions become easier.          Roy E. Disney

Life can be challenging and we all have to make choices. Some choices may be more challenging than others and can put you in really tough situations. Still, you have to make a choice for your decision.

From this interesting article; How to Tackle Your Toughest Decisions, by Joseph L. Badaracco, who is is the John Shad Professor of Business Ethics at Harvard School gives us insights in how to handle tough decisions in organisations as well as in life in general.

Badaracco; “Good judgement relies on two things: One is the best possible understanding and analysis of the situation. The other involves the values, ideals, vulnerabilities, and experiences of whoever will be making the decision.”

When you have chosen your decision and committed to it and act on it, you have to take the consequences of your choice say Badaracco. Author; “After considering outcomes, duties, practicalities and values, you must decide what matters most and what matters less. This has always been the challenge of taking on any serious responsibilities at work and in life.”

In daily life you are faced with challenging situations and adversity. The question is how you take it and analyse the difficulties you are faced with. Managers has to take difficult decisions almost everyday in organizations.

From another article; How to Bounce Back from Adversity, Joshua D. Margolis and Paul Stoltz, is talking about how to handle our instinctive reactions to crisis. Authors; “We believe that managers can build high levels of resilience in themselves and their teams by taking charge of how they think about adversity. Resilient managers move quickly from analysis, to a plan of action (and reaction). After the onset of adversity, they shift from cause-oriented thinking to response-oriented thinking, and their focus is strictly forward.”

Through their work with leaders from different companies and industries, the authors have identified four lenses through which managers can view adverse events on how to make this shift effectively. These four lenses are: Control, impact, breadht and duration. 

Here a short description of the four lenses; Control. Here a crisis occurs. “Do you look for what you can improve now rather than trying to identify all the factors – even those beyond your control – that caused it in the first place ? Impact. Instead of focusing on the origins of the problem in yourself and others, you focus on your positive effects your actions might have ? Breadht. “Do you assume that the underlying cause of the crisis is specific and can be contained, or do you worry that it might cast a long shadow over all aspects of your life ?” Duration. “How long do you believe that the crisis and it’s repercussions will last ?

The two first lenses; control and impact is characterising an individuals personal reaction to adversity.

Breadht and duration captures his or her impressions of adversity’s magnitude.

Authors; “Managers should consider all four to fully understand their instinctive responses to personal and professional challenges, or failures”.

When adversity strikes us, both in organizations and in the private zone of life, we can easily get in to negative emotions. The authors say that people commonly fall into one of two emotional traps. And one of them is deflation. Here is what the authors say; “Someone who has marched steadily through a string of success can easily come to feel like a hero, able to fix any problem single-handedly. A traumatic event can snap that person back to reality. Even for the less heroic among us, adversity can touch off intense bursts of negative emotion-as if a dark cloud had settled behind our eyes, as one manager described it”.

We can feel disappointments in ourselves and others, mistreated and dispirited as well as even besieged.

In the other article; How to tackle your toughest decisions, Badaracco say; “The phrase ‘the world as it is’ points toward Niccolo´Machiavelli’s thinking-a perspective that might seem surprising in an article about making responsible decisions. But his view is important because it acknowledges that we don’t live in a predictable, calm environment populated with virtuous people. The world Machiavelli described is unpredictable, difficult, and shaped by self-interest”.

The author say that we can have sound plans and they can end badly, as well as bad plans can turn out good. What happens is simply beyond our control. Leaders are in a position where they rarely have unlimited freedom and resources, and they often have to make painful and difficult choices. “And a great many individuals and groups will pursue their own agendas, skilfully or clumsily, if not persuaded to do otherwise”.

Badaracco are talking about five practical questions in his writing  which can improve your odds in making sound judgements in challenging situations, even when your data is unclear or incomplete, opinions are divided and the answers are far from obvious.

-1 What are the net, net consequences of all my options ?

-2 What are my core obligations ?

-3 What will work in the world as it is ?

-4 Who are we ?

-5 What can I live with ?

These five questions are guidelines for helping to solve challenging and difficult problems in tough situations. All the questions must be answered according the author, to help come to a sound decision when dealing with a hard problem.

Looking back at the other article; How to bounce back from adversity, the authors are using the four lenses (control, impact, breadht and duration) in challenging situations for solving problems. However, in addition to these four lenses the authors are using what they call a resilience regimen. This is a reflexive approach to dealing with adversity. Here they explain; “By asking a series of pointed questions, managers can grasp their own and their direct reports’ habits of thought and help reframe negative events in productive ways. With the four lenses as a guide, they can learn to stop feeling paralyzed by crisis, respond with strength and creativity, and help their direct reports do the same.”

The resilience regimen, sketches their questions with a focus on specifying, visualizing and collaborating which clarifies each one of the four aspects of resilient thinking. Authors; ” Use these questions to replace negative responses with creative , resourceful ones, and get things done whatever the real or perceived obstacles”.

From; How to tackle your toughest decisions, Badaracco makes us aware of the heavy responsibility leadership is. When you are in the grey areas, your job as a leader isn’t finding solutions, you have to create them and relying on your judgement. Author; “As an executive I greatly respect once told me, We really want someone or some rule to tell us what to do. But sometimes there isn’t one, and you have to decide what the most relevant rules or principles are in this particular case”.

Let us take responsibilities and search for solutions in challenging situations.

Hope you find this reading interesting and useful.

Author, Inger Lise E Greger, Master of Science in Change Management

 

 

 

 

 

 

 





Human- Biases- In- Organisations.

20 10 2017

I find that when you open the door toward openness and transparency, a lot of people will follow you through.   Kirsten Gillibrand

“The more people can see what is happening – the good, the bad, the ugly – the more effective they are at deciding the appropriate ways of handling things”. (Ray Dalio)

Let’s take a look at one of many definitions of the meaning of bias; “A particular tendency, trend, inclination, feeling, or opinion, especially one that is preconceived or unreasoned: illegal bias against older job applicants; the magazines bias toward art rather than photography; our strong bias in favour of the idea”.

Bridgewater Associates founded by Ray Dalio in 1975, is the largest hedge fund in the world. Dalio’s philosophy consists of radical transparency into the company.

Dalio, got reactions from three of his top confidants that he was hurting the company by being too honest. His action to resolve this problem was to meet employees individually and find a solution through discussions on how to treat one another. His goal was to create a culture of sharing ideas without creating lasting conflict, as well as engaging employees in thoughtful disagreements.  From this article in Harvard Business Review; “Radical Transparency Can Reduce Bias – but Only If It’s Done Right, Francesca Gino is a professor at Harvard Business School, she gives us some examples through Dalio’s ideas and believes in openness and transparency.

Francesca refers to Dalio where he says; “I think the greatest tragedy of mankind is that people have ideas and opinions in their heads but don’t have a process for properly examining these ideas to find out what’s true. That creates a world of distortions. That’s relevant to what we do, and I think it’s relevant to all decision making. So when I say I believe in radical truth and radical transparency, all I mean is we take things that ordinarily people would hide and we put them on the the table, particularly mistakes, problems, and weaknesses. We put those on the table, and we look at them together. We don’t hide them.”

Here another interesting article; Outsmart Your Own Biases (Jack B. Soll, Katherine L. Milkman, and John W. Payne, Harvard Business Review). The authors gives us theirs view on biases and it’s challenges. “We are all susceptible to such biases, especially when we’re fatigued, stressed, or multitasking. Just think of a CEO who’s negotiating a merger while also under pressure from lawyers to decide on a plant closing from colleagues to manage layoffs. In situations like this, we’re mentally, emotionally, and physically spent. We cope by relying even more heavily on intuitive, system 1 judgements and less on careful reasoning. Decision making becomes faster and simpler, but quality often suffers”.

Let us take a closer look at the meaning of system 1 and system 2 thinking:

System 1 thinking; are associated with automatic judgements which stem from associations stored in our memories, you can choose to work logically with the information available. The authors makes us aware of the importance of system 1 thinking in critical situations and for surviving- “It’s what makes you swerve to avoid a car accident”. Authors; “But as psychologist Daniel Kahneman has shown, it’s also a common source of bias that can result in poor decision making, because our intuitions frequently lead us astray”.

System 2 thinking; “essentially, deliberate reasoning gone awry. Here the authors are talking about cognitive limitations, and an example of limitations can be laziness, and people may focus on the wrong things as well as failing to seek out relevant information”.

In Francesca’s article where she say that scientific evidence confirms Dalio’s belief ; “as human beings, we tend to evaluate information in a biased manner. For instance, we often fall prey to what psychologists and decision researchers call-confirmation bias: “the tendency to focus on evidence that confirms our beliefs and assumptions rather than looking for data that contradicts it”.

Francesca, says that such biases weakens our judgements as well as decisions.

When confronted with our biases, we have difficulties to listen to peoples feedback and learning from it, especially when it’s inconsistent with the way we view ourselves at work. Francesca; “We tend to strengthen bonds only with people who see our positive qualities. Why ? When others provide evidence that is inconsistent with how we view ourselves or our ideas, we find that information threatening. Our natural reaction is to remove the threat-which can mean dislocating from the source of the information”.

In the other article the authors talk about risk taking and says; “Because most of us tend to be highly overconfident in our estimates, it’s important to ‘nudge’ ourselves to allow for risk and uncertainty”.

Further on Jack. Soll, Katherine L. Milkman, and John W. Payne suggests three methods that are especially useful; Make three estimates, use premortems and take on outside view:

The three methods in short.

The problem; Cognitive biases muddy our decision making. We rely too heavily on intuitive, automatic judgements, and even when we try to use reason, our logic is often lazy or flawed”.

The causes; “Instead of explaining risks and uncertainties, we seek closure-it’s much easier. This narrows our thinking about what could happen in the future, what our goals are, and how we might achieve them”.

The solution; “By knowing which biases tend to trip us up and using certain tricks and tools to outsmart them, we can broaden our thinking and make better choices”.

These three methods are useful and keeps you going in the right direction if wisely used.

Francesca says; “Through radical transparency, Dalio has encouraged a culture where people know it’s important to challenge one another’s views, regardless of rank, and do so regularly”. Here the author tells us that this approach will work if people discuss their ideas openly, even if you have to tell someone about their mistakes. Francesca; ” When transparency unveils our universal human biases, we are more likely to benefit as individuals. Our organisations will benefit as well”.

Both of these interesting articles illustrates how to handle biases as well as giving great advice on how to handle challenging  situations.

“Even the smartest people exhibit biases in their judgements and choices. It’s foolhardy to think we can overcome them through sheer will. But we can anticipate and outsmart them by nudging ourselves in the right direction when it’s time to make a call”. (Jack B. Soll, Katherine L. Milkman and John P. Payne)

Honest communication is built on truth and integrity and upon respect of the one for the other     Benjamin E. Mays

Source; Harvard Business Review

Author, Inger Lise E Greger/Master of Science in Change Management

 

 





Strategic Challenges.

1 06 2016

Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different.        Michael Porter

In todays organizations change is necessary if you want to succeed in a tough world. However, we don’t like to change things and feel most comfortable when we are staying in the comfort zone. Leaders are aware of this problem and are prepared to cope with these challenges.

“Habits keep us doing what we always do. We resist being pushed in new directions that make no sense to us. We cling tenaciously to what we value and fear might be lost. To behave otherwise is somehow less than human”. (John P. Kotter)

From his book; ‘Accelerate’, John P. Kotter reveals how the best companies focus and align their people’s energy and urgency around what Kotter calls the Big Opportunity.

An organizations strategy is important for the business. A company’s strategy describes what to do to reach their goal and what choices to be made on it’s way.

Kotter; “Strategy is a term used loosely to mean high-level policies designed to help you successfully achieve your most important goals, or, in a competitive context, to help you win”.

Hierarchies is a challenge in organizations and if used wrong, creativity and innovation will be a challenge. Kotter; “Hierarchies with great management processes and good leaders on top are not built for leaping into a creative future. Innovation requires risks, people who are willing to think outside their boxes, perspectives from multiple silos, and more. Management-driven hierarchies are built to minimize risk and keep people in their boxes and silos. To change this more than incrementally is to fight a losing battle”.

Kotter present the dual operating system. The basic structure is self-explanatory with hierarchy on one side and network on the other side. Kotter explain; “The hierarchy part of the dual operating system differs from almost every other hierarchy today in one very important way. Much of the work ordinarily assigned to it that demands innovation, agility, difficult change, and big strategic initiatives executed quickly – challenges dumped on work streams, tiger teams, or strategy departments – has been shifted over to the network part”.

Here the author makes us aware that this system losen up and is better able to perform what it is meant to be and designed for. Because of the losing up effect you will be doing your job great as well as making incremental changes to then improve further efficiency, and because of this you are handling the strategic initiatives which also helps the company dealing with predictable adjustments like routine IT uppgrades.

The principles of a dual operating system:

-Many people driving important change, and from everywhere, not just the usual  few appointees. Kotter makes us aware that it all starts here. For more speed and agility to occure, a fundamentally different way of gathering information and decision making is needed as well as implementing decisions which have some strategic significance. Kotter; “You need more eyes to see, more brains to think, and more legs to act in order to accelerate. You need additional people with open mind and new eyes and additional good working relationships with others in order to be creative and innovate, from the insiders”.

-A “get-to” mindset, not a “have-to” one. Force is not an option if you want to achieve change. Inspiration is a better solution, and by giving people a choice where they feel they truly have permission to step forward and act is a better way. Kotter; “The desire to work with others for an important and exciting shared purpose, and the realistic possibility of doing so, are the key”.

-Action that is head and heart driven, not just head driven. People have feelings. Kotter; “You must also appeal to how people feel. As have all the great leaders throughout history, you must speak to the genuine and fundamental human desire to contribute to some bigger cause, to take a community or an organization into a better future”.

-Much more leadership, not just more management. In this system, the author talks about competent management. Leadership is needed as well as the guts of the engine are managerial processes. Kotter; “Yet in order to capitalize on unpredictable windows of opportunity which might open and close quickly, and to somehow spot and avoid unpredictable threats, the name of the game is leadership, and not from one larger-than -life executive”. The game is about vision, creativity, passion, inspiration, innovation, agility, opportunity, celebration, relationships, compensation and accountability to a plan.

-An inseparable partnership between the hierarchy and the network, not just an enhanced hierarchy. Kotter; “The two systems, network and hierarchy, work as one, with constant flow of information and activity between them-an approach that succeeds in part because the people essentially volunteering to work in the network already have jobs within the hierarchy”. Kotter, shows us that based on these principles, a dual system is different from that on the hierarchy side when it comes to the action. Kotter; “Because action within networks accelerates activity, especially strategically relevant activity, I call it’s basic processes the Accelerators“.

Kotter’s eight accelerators: 1) Create a sense of urgency around a big opportunity, 2) Build and evolve a guiding coallition, 3) Form a change vision and strategic initiatives, 4) Enlist a volunteer army, 5) Enable action by removing barriers, 6) Generate (and celebrate) short-term wins, 7) Sustain acceleration and number, 8) Institute change.

Let us take a closer look at Kotter’s accelerators:

1- Create a sense of urgency around a big opportunity. This accelerator is focused on creating as well as maintaining a strong sense of urgency among as many people as possible around a Big Opportunity an organization is facing. Kotter; “This is, in many ways, the secret sauce which allows behaviour to happen that many who have grown up in mature organizations would think impossible”.

2- Build and evolve a guiding coalition. In this accelerator, the urgency is to build the core of the network structure, which will evolve to take form into a stronger network later. People are eager and motivated from across the organization and they feel the urgency. Kotter; “These are individuals from all silos and levels who want to help you take on strategic challenges, deal with hyper-competitiveness, and win the Big Opportunity”. In this situation we can see people who want to lead as well as to be change agents. People are eager to work together in team and learn how to work effectively. People from different levels of silos gives effort to work well together. Kotter; “But under the right conditions – with urgency around a Big Opportunity as a crucial component – they will learn how to work together in a totally new way”.

3- Form a change vision and strategic initiatives. Here the guiding coalition clarifies the vision which fits a big strategic opportunity together with selecting strategic initiatives which moves you in the right direction toward the companies vision. Kotter; “When you first form a dual system, much of this, especially the initiatives, may already exist, created by the hierarchy’s leadership team. But the initiatives the nascent network side attacks first will be those that individuals in the guiding coalition have great passion to work on”.

4- Enlist a volunteer army. In the fourth accelerator, the author makes us aware that the guiding coalition together with others who wish to help and communicate information about the change vision and the strategic initiatives to the company, may lead to large numbers of people who are interested in buying into the whole flow of action.

5- Enable action by removing barriers. Kotter; “Much of the action here has to do with identifying and removing barriers which slow or stop strategically important activity”.

6- Generate (and celebrate) short-term wins. Kotter; “The sixth accelerator is about everyone on the network side helping to create an ongoing flow of strategically relevant wins, both big and very small”. The author say that the wins are possible for all the people in the entire organization and the importance of celebrating even if it is in small ways. Kotter; “These wins, and their celebration, can carry great psychological power and play a crucial role in building and sustaining a dual system”.

7- Sustain acceleration. In this stage, accelerator 7 keeps the entire system moving. All the energy is focused on new opportunities and challenges and the people find a motor to help all the other. Kotter; “Accelerators keep going, as needed, like spark plugs and cylinders in a car’s engine. It is the opposite of a one-and-done approach and mindset”.

8- Institute change. Accelerator 8 helps institutionalize the wins as well as integrating the wins into the hierarchy’s processes, procedures, systems, and behavior- in effect, here you are also helping to infuse the changes into the culture of the organization. Kotter; “When this happens with more and more changes, there is a cumulative effect. After a few years, such action drives the whole dual system approach into an organization’s very DNA”.

From this article; The Greatest Barriers to Growth, According to Executives (Harvard Business Review, by Chris Zook) the author tells us that the greatest barriers in organizations lies inside their own four walls. Zook; “It’s a common story in business today. Eighty-five percent of executives say that the greatest barriers to achieving their growth objectives lie inside their own four walls, according to research by Bain & Company. In the largest companies, this rises to 94 percent of executives who believe that their most difficult challenges are internal, not external”.

Zook describes five ways that bureaucracy distorts behavior in your organization; The first one is, distortion of speed:  Zook; “Young, founder-led companies often set the speed in their competitive arenas-speed to recognize the need to change, interpret how, decide on what, and react. Young insurgents whose speed allows them to get ‘inside’ of the decision cycle of a large, slow incumbent competitor can reap an enormous advantage”.

Distortion of motive: Tells us that young organizations has no place to hide and in this situation the founder knows everything. Zook makes us aware that the meritocracy may flourish when things are transparent. Zook; “Yet, as companies grow, promotions fall in line with corporate processes, complex ‘balanced’ scorecards of performance, and regression to the mean”.

Distortion of time: The author is in this case talking about the executives self-awareness. Here the management teams need to look into the use of their time as well as the use of their money which they have to be very careful about. In this case you can start with three questions: How much time do they spend with top customers?  How much time do they spend with high potential employees?  How much time do they spend on solving the firm’s top five challenges? Zook say that if they honestly ask these questions themselves, you will soon see the first step to take.

Distortion of decisions: The author suggests to start your assault on the decision distortions of bureaucracy with your five or ten most important types of decisions. Zook; “Map out how they are really made and how many people are involved. Then attack what will emerge clearly as obvious root causes of distortion: decisions that should be pushed to the front line with a few vital guiding principles, decisions that should have many fewer people involved, and decisions where it’s unclear who actually decides”.

Distortion of information: Zook illustrates that the information is better remembered in small companies as well as the intimacy and ground knowledge are second nature. “Yet, as companies grow this becomes increasingly difficult”. More thoughts from Zook; “But there are other, simpler ways to renew this aspect of a founder’s mentality and its connection to the front line. We have seen management teams benefit greatly from setting up ways for them to ‘drop in’ on customer calls, or call-centre service discussions.

Difficulties mastered are opportunities won       Winston Churchill

Strategic challenges are important for companies to succeed.

Author, Inger Lise E Greger, MSc in Change Management

https://inger-lise.net/page/2/

 

 

 





Humility in Leadership Matters.

17 04 2015

Humility is the solid foundation of all virtues.         Confucius

“If you lead, or aspire to lead, people in an organization, then you must make many assessments every day. Think of the job you have right now. Before deciding to join your organization, you had to assess the company or organisation – the location , pay package, and opportunity for advancement. However, it is unlikely that any of the assessments that you made – or continue to make – are more important than the assessments you make of people. That is the Pope Francis imperative; people first, and then everything else follows”.

Jeffrey A Krames is a bestselling author and has written; Lead with Humility. This is a book about Pope Francis leadership style. The author translates the popes key issues as well as his ideas and practices into practical tactics which anyone can copy.

Pope Francis is a great man with a big heart and is a leader among leaders, and has also proven that he is a man of the people. Francis makes us aware that we need to understand that leaders lead people and not institutions. Francis; “Unfortunately, too few people understand this in an increasingly impersonal, high-tech working environment”

Krames, makes us aware that fewer leaders roam the halls of our largest corporations as well as setting positive examples of effective leadership. Pope Francis is a great example with his unique leadership style in action and his genuineness which people can see from the Pope.

Kramer; “However, leadership is not about perfection; it is about espousing a new vision and getting others to live that vision. In that respect, Pope Francis has been incredibly successful. Peter Drucker would call him a ‘natural’, a ‘born’ leader”.

Pope Francis would be the last person to call himself a natural leader or a born leader, such self-praise would be completely out of character for him.

Krames refers to a Harvard Business Review blog post that makes us aware of the amount of scores of books, articles, and studies that warn us of the perils of hubris – and yet the attribute of humility seems to be neglected. The blog post inform us that the attribute of humility seems to be neglected; in leadership development programs; Perhaps this owes to some feeling that humility would hold a leader back, these mavericks and sui generic leaders who dislike being restrained” Others may feel they are humble enough, and many might feel that humility can’t be taught or learned. “You have it or you don’t, so reading a book on it would not add to their ‘humility quotient’.

Krames refers to what Bergoglio wrote before becoming pope; “If we can develop a truly humble attitude, we can change the world”. Krames; “And he misses no opportunity to show that a person can never be too humble and that people can learn to be more humble.

Leadership is all about people stuff. A key element of  a leader is to set goals and create performance indicators. The employees should be empowered to solve problems as well as achieving results. This will enable innovation and create trust. A prerequisite of a leader, is an open dialogue with their employees to clarify what goals are, and equally important, what they are not. Open communication will help visualize the expectancy the leader has of the employees and avoid misunderstanding.  ( My blog)

Francis; “We have to be humble, but with real humility, from head-to-toe”.

Here are some of Francis important leadership lessons;

– The first one if you are fortunate to be a leader, do not to use your position for selfish reasons.

– Do not signalize to workers or colleagues that you are above them

– Move out of your corner office to an inside office or even a cubicle

Krames; “Engaging people in an in-depth conversation is near the top of Pope Francis’s leadership to-do list. Bergoglio; “Dialogue is born from a respectful attitude toward the other person, from a conviction that the other person has something good to say. It supposes that we can make room in our heart for their point of view, their opinion, and their proposals. Dialogue entails a warm reception and not a preemptive condemnation. To dialogue, one must know how to lower the defences, to open the door’s of one’s home and to offer warmth”.

Kramer makes us aware of Bergoglio’s pragmatism which makes him capable of understanding the roadblocks to successful communication. “There are many barriers in everyday life that impede dialogue; misinformation, gossip, prejudices, defamation, and slander.”

Warren Bennis; “Leaders come in every size, shape, and disposition-short, tall, neat, sloppy, young, old, male, and female. Nevertheless, they all seem to share some, if not all, of the following ingredients; The first basic ingredient of leadership is a guiding vision, passion, integrity, trust, curiosity and daring.

Integrity in Bennis mind, consists of three essential parts; self-knowledge, candor, and maturity.

Bennis; “Know thyself, was the inscription over the Oracle at Delphi. And it is still the most difficult task any of us faces. But until you truly know yourself, strenghts and weaknesses, know what you want to do and why you want to do it, you cannot succeed in any but the most superficial sense of the word”.

Inclusion means leaving no one behind. In todays world, people works together with people from different cultures, and you have to adapt to each other. Many organizations has a challenge in getting better to open up for inclusion. “Leaving no one behind” is the essence of Francis.

Krames;” That is the difference between Pope Francis and so many other leaders in our society. Leaders in government and business often say something because they know that it is what various constituencies want to hear. But when Francis says something, he speaks from the truth of personal experience, and he operates not by appealing to influential minorities but by empowering the people he serves”.

Humility in leadership is all about their people.

Human self-understanding changes with time, and so also human consciousness deepens.            Pope Francis

Author, Inger Lise E Greger, MSc Change Management

https://inger-lise.net/page/2/








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