Expectations, Unfulfilled

                    Photo by Andrea Piacquadio from Pexels

Years ago, my friend Mary made a career move from the IT department of a large corporation to the IT department of a county school system.  She quickly realized her new employer was not current on IT best practices and procedures and that IT cost, performance, and quality targets were routinely missed. She raised her concerns and prepared an improvement action plan, but no one within IT was interested. They knew they had problems, but they’d had them for years and since they weren’t being held accountable by the superintendent of schools, or by their stakeholders, they felt no pressure to change anything.

Many of us have been in situations like that.  We recognized a need for change, and argued for change, only to learn that our version of change just wasn’t going to happen.  Too difficult, or disruptive, or expensive, or the time wasn’t right, or the business case was weak, or decision-makers just didn’t believe it was necessary. 

Mary was disappointed, so she considered her options: 

• Complain about her new employer’s blind spot (whiner)
• Keep arguing for change (crusader)
• Accept the situation (sellout)
• Go work somewhere else (quitter)

None of those options were appealing, yet according to Eckhart Tolle, there are only three “sane” choices in such a situation:

“Leave the situation, change the situation or accept it. All else is madness.“

Mary eventually moved on, but when she read a news report years later about a critical independent performance audit done on her former employer at the request of the school board, she was curious enough to get a copy. Many of the conclusions and recommendations for the IT department tracked the action plan she had prepared years prior, right down to details on strategy, organization design, staffing, service level agreements, and operational performance measures. 

Since humans delight in being right (it’s like a drug that feeds our ego and fortifies our sense of self-worth) I wondered how Mary reacted to the audit findings.  Did she feel vindicated?

“A little bit, particularly when I talked about it with some of my former colleagues, but that feeling was fleeting. I didn’t need affirmation—I knew what I had recommended was appropriate. I was still disappointed that I couldn’t get anyone to pay attention and do something. The fact that it took an outside audit to shine a spotlight on operational failures that were known and had been happening for years reminded me of why I had been so frustrated while working in that organization. What I felt most was relief that I had moved on.”

Mary obviously expected the people she worked with to care about performance, listen to her recommendations, and be interested in taking improvement actions. When those expectations went unfulfilled, even the affirmation in the audit finding wasn’t enough to overcome her frustration and disappointment. 

We all have expectations of the people we interact with in the working world. Were hers reasonable? Should she have approached the situation differently? What advice would you offer to help her get over her frustration and disappointment and avoid unfulfilled expectations in the future?

When Solutions Become Distractions

Every once in a while, I have one of those annoying dreams in which either I am lost or I have lost something (coat, phone, keys, wallet, luggage, passport, password, tickets, directions, dog, etc.) and no matter what I do in the dream the situation keeps getting worse. The dreams are unsettling enough, but according to DreamStop they also might signify I have lost out on one or more real opportunities during my waking life. Ouch! Then a few nights ago I dreamt I was in a hotel room trying to pack my bags to come home but I couldn’t fit everything into my luggage because I kept finding things in the room that I had lost in prior dreams. I need to visit that hotel.

Back in 1919, when Walter Chrysler left General Motors, he was involved in a bitter disagreement with GM founder Billy Durant over Durant’s operating priorities, his management style, and what Chrysler viewed as his refusal to recognize untapped opportunities to control costs and improve efficiency. Chrysler was later quoted as saying:

“The reason so many people never get anywhere in life is because when opportunity knocks, they are out in the backyard looking for four-leaf clovers.”

I thought of Chrysler’s four-leaf clovers recently after speaking with an insurance executive friend about his claims operation. He told me he was under pressure to demonstrate improvement in his results, and he had concluded that some sort of clever, disruptive solution might be just what he needed to relieve the pressure and demonstrate his commitment to innovation. He didn’t have anything particular in mind, although he had read about insurtech, and artificial intelligence, and digitalization and they all sounded promising to him. What did I think?

Not all of us perceive opportunities in the same way, of course, and I'm grateful for that since much of my work the past few years has involved helping claims executives recognize problems and identify opportunities. Sometimes it's useful for an executive to kick things around with someone who might bring a different perspective. Not always, though, and I knew after this conversation, that my friend was ready to move into solution-mode without first analyzing the problems he needed to solve. That's not usually a formula for success.

So I suggested that he back up and focus on identifying the operating problems (and root causes) that were dragging down his results before he began to evaluate solutions. What kind of improvement in his results was necessary? Did he have a problem with claim cycle time, closing ratio, customer responsiveness, decision making, productivity, expense control, loss cost management, staff turnover, workloads, quality, or something else? What had to change? What was his timeline? How would he measure success? He became so quiet I thought we had been disconnected, but it turned out he was just disappointed with my advice. He wanted to deploy “cutting-edge” solutions, not slog through an endless, boring analysis of problems, root causes, and the cost/benefit of potential fixes. He wanted the instant gratification that comes from an immediate solution, and why not? Who doesn’t want to be known as a “solution-oriented” leader?

Well, solutions are wonderful, but only when they directly target the problem or opportunity at hand. If they don’t, even though they might seem interesting or promising, they are distractions. Like Chrysler’s four-leaf clovers, they can cause us to miss out on opportunities, and that’s not a good thing in the work world, as writer Adam Hochschild so eloquently reminds us:

“Work is hard. Distractions are plentiful. And time is short.”

I don’t know what my friend ended up doing to improve his results, but I do understand how he got distracted. The siren call of a well-marketed solution can be captivating, and when we are under pressure and something resembling a solution knocks, we tend to open the door wide, even when we can’t afford the distraction. In business, falling in love too early with a solution can be a real problem. In everyday life, not so much.

I’ve been struggling for years to convince myself that I need to buy a vintage Jeep Cherokee, even though I realize the vehicle represents neither an opportunity nor a solution for me. I don’t need another vehicle, I don’t have space for one, and I’d rather spend the money on something else. Yet I persist because the search has become a harmless yet entertaining distraction which, unlike my hard-working friend, I now have the time and freedom to enjoy!

Dean K. Harring is a retired insurance executive who now enjoys his time as an advisor, board member, educator, and watercolor painter. He can be reached at dean.harring@gmail.com or through LinkedIn or Harring Watercolors

Integrity

If you have integrity, nothing else matters. If you don't have integrity, nothing else matters.” --Alan Simpson

I was at the airport in Denver, wrestling with a crossword puzzle (10 down, 9 letters, begins with I and ends with Y, clue: morally upright) while waiting to board a Southwest Airlines flight, when I heard the person sitting directly behind me stage-whisper this advice to his companion:

It doesn’t matter whether you actually have a disability—they can’t ask you for proof—just go up and request a pre-boarding document like I did. They have to give you one. Why should you wait to board with the C-group? We can sit together in better seats if we pre-board.

Intrigued, I turned around to look at the co-conspirators. The speaker was a tall, tanned older guy who looked like he had just come off the golf course. His companion was shorter but could have been a member of the other guy’s foursome. Their objective? Gaming the Southwest boarding process so they could get on board before passengers who had checked in early or paid extra for early boarding privileges. The shorter guy initially demurred, but when his companion gestured toward the ever-swelling group of pre-boarders assembling near the jetway, he acted. He was back in a minute with a pre-boarding document. Grinning and fist-bumping, he and his pal enthusiastically joined the pre-boarding scrum.

A few minutes later, my boarding group was announced and we pushed onto the plane. The co-conspirators were parked side by side in the second row, the middle seat between them piled with their personal items to discourage anyone from claiming it. They looked very pleased with themselves.

While gaming the boarding process at the airport probably doesn’t register very high on the moral lapse scale, it is another example of how societal norms about acceptable human behavior are shifting. Remember being taught that behaving with integrity was critical to success in life? Our parents, our teachers, our clergy, our extended family, even our friends encouraged us to be honest, to make ethical choices, and to do the right thing. Maybe that’s what society expected of us, but it’s a new world out there, a world that rewards and celebrates achievement, but no longer obsesses about the behavior that enabled the achievement. It’s all about the outcome, not the process that produced the outcome. Imagine yourself back in school, taking a math test, writing down answers and not having to show your work calculations—it’s like that! Society admires people who win, and if those winners are clever or devious enough to win by taking advantage of shortcuts, cheats or hacks to beat the system, we often admire them even more.

While the “morally indifferent” behavior exhibited by the pre-boarders was disappointing, low-integrity people who operate without any moral compass at all tend to act out much more egregiously, and in the work world that can be very challenging. I am thinking of folks I worked with over the years who, by many measures, enjoyed tremendous success even though they routinely played it fast and loose when it came to honesty, integrity, and doing the right thing. They had no rules, no limits, no honor, no shame, yet they were often celebrated as winners. They lied, and cheated, and misrepresented, and intentionally undermined their colleagues. Yet they were showered with praise, promotions, and rewards-- behavior reinforcement which helped to make them even bolder and more committed to their strategy. Sure, a couple got called out or got careless and eventually crashed and burned, but I still remember the other ones—the ones who got away, who behaved callously, immorally, and unethically yet still ended up “winning.”

It’s difficult not to wonder how that happens. Why do employers tolerate low-integrity employees who behave badly? It might be a lack of attentiveness, or a leadership/management failure, or even a deliberate decision—intentionally excusing bad behavior because of “good” results. But experts such as Dr. Cameron Sepah and Jack Welch argue that companies should not tolerate “high-performing” employees who behave badly. Imagine a two-by-two with Performance as the Y-axis and Behavior as the X-axis. Sepah recommends companies deal with employees in each quadrant as follows:

His message is clear and it tracks with Welch’s—employees who behave badly must be rehabilitated or removed, not tolerated. But what, exactly, is bad behavior, and how capable and willing are executives to identify it and intervene? It’s often easier and more convenient to take a consequentialist view of behavior, where the consequences of a person’s conduct are the basis for any judgment about the conduct, which means behavior is only bad if the result is bad (i.e., the end justifies the means). Yet Peter Drucker tells us that if bad behavior results from the absence of character and integrity, that’s a weakness that cannot be cured:

By themselves, character and integrity do not accomplish anything. But their absence faults everything else. Here, therefore, is the one area where weakness is a disqualification by itself rather than a limitation on performance capacity and strength. 

For more on this topic, you might enjoy reading Amy Rees Anderson’s Forbes article Success Will Come and Go, But Integrity is Forever, but let’s close with Warren Buffet’s tongue-in-cheek description of the importance of integrity in the workplace:

Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy . And if you don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without [integrity], you really want them to be dumb and lazy.

So don’t hire low integrity employees, but if you must, make sure they are also dumb and lazy!

Dean K. Harring is a retired executive who now enjoys his time as an advisor, board member, educator, and watercolor painter.  He can be reached at dean.harring@gmail.com or through LinkedIn or Harring Watercolors

Don't Make Me Hollah...

He was a droopy-eyed old timer, heavy around the middle, and when he strained in his folding chair to make change or rearrange his buckets you could see he had something wrong with one of his legs. But that didn’t prevent him from making serious eye contact with potential customers while bellowing like a beer vendor at Fenway Park.

“Don’t make me hollah, they’re only a dollah!” he would boom as I and hundreds of other commuters trudged past him to board our trains home. He was selling flower bouquets for a buck, and they were just the right size to carry on the train. Since he set up his cart at the main walkway to the platforms every weekday afternoon, anyone boarding a train had to walk right past him.

In the 1980s I walked by that guy most weekdays for almost five years, and I bought plenty of flowers from him, but I was young and preoccupied with my own issues so I never gave much thought to him or his business—and then I moved away. But recently, while planning a lesson on competition and competitive strategy, I started thinking about him and his business once again.

If you have studied economics at all, you probably know about Michael Porter and the work he has done on industry competition, particularly his “five forces” of competition model. You can watch him talk about that model here, but basically, Porter's five forces include competition from established and known rivals, new or emerging rivals, the threat of substitute products or services, as well as threats tied to the bargaining power of suppliers and customers. The weaker the forces, the more attractive the industry in terms of profitability.

As I remember it, the flower seller at North Station had no rivals on-site other than a more traditional flower shop inside the B&M terminal which offered a larger assortment of flower arrangements at much higher prices. I have no idea how he secured what seemed to be the exclusive right to sell flowers near the walkway to the train platforms, or why other competitors didn’t try to enter that space. Maybe he had competitors originally but drove them out of the market with low prices and superior location. Or maybe he had a special flower vendor’s license that was no longer available to potential competitors. I don’t know where he got his flowers, but I remember the wholesale flower exchange was not far away from the train station.

His sales transactions were quick, his product inexpensive. Impulse purchases were accommodated effortlessly--a commuter running for a train who decided to buy flowers from him could do so almost without breaking stride since he had just one price and he only accepted cash. Factor in the convenience and social usefulness of being able to purchase flowers at the last minute, particularly on birthdays, anniversaries and holidays, and it’s not hard to understand why buyers didn’t try to negotiate purchase prices with him.

I don’t have all the details, of course, but at least in my memory that flower vendor seemed to be operating in an ideal market featuring weak forces of competition, steady product supply, reliable and predictable product demand, low price sensitivity and the opportunity to make a profit. In other words, he was one lucky flower vendor! He had no real competition, so he didn’t need to worry about sources of competitive advantage, but I am sure he had a value proposition in his head built around what benefit he provided, to whom, and how he provided it better than anyone else. Using Geoffrey Moore’s template (from Crossing the Chasm) to outline his value proposition, I imagine it might have been something like this:

		Value Proposition
For	Target Customer	B&M Railroad commuters at North Station, Boston
Who	Need or Opportunity	who want to bring flowers home as a surprise, or gift, or symbol of love and affection
Our	Service/Category	we are the only flower stand directly on the walkway to the trains
That	Statement of Benefit	and we offer a wide selection of fresh flower arrangements—quick, one low cost, no waiting.

The good news is that after reminiscing for a while I was able to include the flower vendor scenario as a case study in the lesson I was developing. The bad news is that my efforts to get additional details about him came up empty. I’d still like to know which of Porter’s five forces of competition eventually impacted his business, when, and how, and what he did to manage them.

I plan to keep digging, but if you (or someone you know) commuted by train from Boston’s North Station in the late 1980s, please send me an email (dean.harring@gmail.com) describing whatever you remember about that flower seller, his competitors, and the North Station marketplace in which he operated. It would be great to know the rest of his story.


Dean K. Harring is a retired executive who now enjoys his time as an advisor, board member, educator, and watercolor painter.  He can be reached at dean.harring@gmail.com or through LinkedIn or Harring Watercolors

Why Work Doesn't Work

“The price of anything is the amount of life you pay for it.” –Henry David Thoreau

I spent most of my working life inside insurance companies, and as my job responsibilities increased, my workspaces improved dramatically. I started my career at a desk in a noisy bullpen with about fifty other people, and I ended it forty years later in a hushed and private executive office suite, but one thing was constant: I always had difficulty getting my work done while at work.

Noisy people, piped in music, ringing phones, scheduled meetings, ad hoc meetings, offsite meetings, committee meetings, meeting invitations, scheduled and unscheduled visitors, emails, text messages, and seemingly endless requests from colleagues for input, collaboration or assistance interfered with my ability to focus and concentrate. So I came in early, and stayed late, I worked at home at night, or on the weekends, and on flights, in the quiet car on the train, and in hotel rooms, just so I could function without those interruptions and distractions. Many of my colleagues did the same thing. We were convinced that there weren’t enough hours in the work day to get our important work done, so we willingly exchanged “life” time for more “work” time.

Once I retired I realized that most of the work accomplished in those extra hours might have been urgent, but it wasn’t really that important. In retrospect, we probably would have been better off tackling the underlying problem, i.e., redesigning our workplace and reframing our work styles to make it possible for folks to actually get their work done while at work.

This all came back to me again recently when I listened to an HBR IdeaCast in which Basecamp CEO Jason Fried was interviewed by HBR’s Sarah Green-Carmichael. The topic: Restoring Sanity to the Office. You can read the full interview transcript and/or listen to the interview here. Some highlights of Fried’s observations:

• You know, people go to work. And when you actually ask them when they get the work done it’s not typically during the day. It’s early in the morning, late at night, on the weekends, on a plane, on a train, somewhere else. And that’s always bugged me. It just doesn’t seem right.
• It seems like something that, for whatever reason, people put up with. But they really shouldn’t.
• It’s very hard to do really good work when you’re constantly being interrupted every 15 minutes, every 5 minutes, every 20 minutes, every 30 minutes.
• Certainly there are some meetings that need to happen. But my point is that I want to push back on the fact that the meeting is the first resort. I think it should be the last resort.
• The idea that we should just layer in more time because we’re inefficient with it and we waste it– I think, basically, if you really break down your day there is more opportunity to waste time than to use time in many companies.

Fried delivered a TED talk in 2010 (Why Work Doesn’t Happen at Work) in which he identified the cause of the “work not happening at work” problem as M&Ms (Managers and Meetings.) Both interrupt work, and work interrupted can be every bit as damaging as sleep interrupted!

I work from home now and I control my own time and project schedule, so almost all my interruptions are voluntary and any distractions and time-wasting are of my own making. I work in a comfortable, quiet room, at my own pace, and I take breaks whenever I want to walk, or play with the neighborhood dogs, or fill the birdfeeders, or work on a watercolor portrait. I don’t have a manager interrupting me, and I only go to meetings I find interesting. I still keep a calendar, of course, but I have a different tool installed on my desktop that helps me think about how I am spending my time. It is called the countdown clock, and I installed it right after I heard Kevin Kelly (founding executive editor of Wired magazine) describe it during a Tim Ferriss podcast a while back. Based upon my birthdate, actuarial tables and a few other factors, the clock estimates how much time I likely have left on this earth.

You don’t have to be retired to use the countdown clock—it is nothing but a gentle, sobering reminder that time flies, no matter how you spend it. Kelly said it helps him think about what’s important each day. It helps me do the same thing, but it also helps me remember that exchanging “life” time for “work” time during my career probably wasn’t quite as important and necessary as I believed it was at the time.

Intrigued? You can read more about the countdown clock at Kevin Kelly’s blog and hear him talking about it in a short 2007 NPR interview here.

Dean K. Harring, CPCU, is a retired executive who now enjoys his time as an advisor, board member, educator, and watercolor painter.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

Authenticity

 “I was a rock star in the 80s,” my seatmate told me on a short flight to Baltimore years ago.  He looked the part--tall, English accent, 80’s shag haircut.

He wasn’t bragging--I had asked him how things were going and he told me he played lead guitar for The Outfield. “We were big for a while in the 80s.”

During the 80s I had three little kids and I wasn’t actively tracking emerging rock music, so I confessed that I didn’t know The Outfield, which surprised him.  I asked about their biggest hit, and he said it was a song he wrote called “Your Love” which nearly reached the top of the charts in 1986.  You probably know the song as it has been covered hundreds of times since then and it still gets radio play on classic rock stations, but I didn’t know it by name. So he immediately did what any self-respecting rock star would do—he started singing the song for me. I recognized it (as did most of the people sitting around us) and to this day everytime I hear that song I remember my brief encounter with authentic 80s rock star John Spinks.

The Outfield (John Spinks, Alan Jackman, Tony Lewis)

I was thinking of that incident again recently while watching election coverage and ruminating about personal authenticity, which experts define as: 

…being true and honest with oneself and others, having a credibility in one’s words and behavior, and an absence of pretense.

On one level, Spinks’ serenade on the plane was intended to help me recognize his hit song.  On another level, it was offered to provide support for his rock star story. He was “walking the walk”, i.e., establishing credibility by demonstrating his ability to do something he claimed he could do or had done.  Walking the walk used to be an essential part of developing character and reputation, of becoming authentic.

When I was growing up, if someone in my social circles claimed they could do something, it was a given that they would have to prove they could actually do it, not just talk about it. It really didn’t matter what it was--dribbling left-handed, juggling, doing a cartwheel, throwing a curve ball, naming the presidents—nobody got the benefit of the doubt.  So the accountability model was very clear: if you said you could, and it turned out you couldn’t, you were going to experience social and reputational penalties.

When I entered the corporate workplace, however, I learned that in my industry being willing and able to walk the walk wasn’t quite as culturally significant as it had been in my earlier life. Folks who couldn’t walk very well, but who were accomplished at talking about the mechanics of walking, or at recounting the history of walking, or at criticizing how other people were walking, were recognized and rewarded as if they were the best walkers ever.  That puzzled me, but I figured either the non-walkers had never experienced the accountability model I had grown up with, or they had forgotten about it as they aged. So many folks who were comfortable just talking the walk and being inauthentic--misrepresenting their skill levels and exaggerating their accomplishments—yet they weren’t being called on it.

How does a workplace thrive without authenticity, without accountability, and without an operating culture that values folks who walk the walk more than those who talk the walk? Why do people remain in such a workplace? Well, it’s socially awkward and politically incorrect in most corporate work situations simply to call out exaggerators and demand they demonstrate the proficiency they are claiming, particularly if the exaggerator happens to be a powerful senior leader.   And leadership failure contributes significantly to the problem since tone is set at the top and leaders set the standard for what is tolerated in the work environment. Steve Gruenert and Todd Whitaker of Indiana State University describe it this way:

The culture of any organization is shaped by the worst behavior the leader is willing to tolerate.

Which means if a leader is unwilling or unable to demand authenticity, to insist that the accountability model be an integral part of the workplace culture, it probably won’t be. How do you deal with a culture like that? Depending on how pervasive, inequitable and offensive the behavior is, and how important it is to you, you generally have three choices: tolerate it, change it, or leave it behind.

Whether it was Aesop or Lou Holtz who told us “After all is said and done, more is said than done,” embellishment is human nature and we all know it is often much easier to talk about doing something than it is to do it.  Call me sentimental, but I remember life being simpler and fairer when authenticity and character were important and accountability meant doing what you said you would (or could) do. But let’s leave the final word on authenticity to Muhammad Ali, who while he didn’t hesitate to talk about what he could do (“I’m not the greatest, I’m the double greatest”) or how he felt about it (“It's hard to be humble when you're as great as I am") certainly did see a big difference between talking and doing:

Braggin' is when a person says something and can’t do it. I do what I say.

Dean K. Harring, CPCU, is a retired executive who now enjoys his time as an advisor, board member, educator, and watercolor painter.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

Speaking Up--Redux

A few months ago, in an article called Speaking Up, I wondered why some people decide to speak up when they encounter another person they feel is behaving inappropriately or offensively, while others don’t. The article prompted some interesting reactions from readers whose comments, not surprisingly, fit roughly into the broad human behavioral response categories I had described in the article: passive, passive-aggressive, aggressive and assertive.

Respondents in the passive category suggested the best course of action when confronted with offensive or inappropriate behavior is to let it slide--ignore it, walk away, don’t waste time dealing with it. They expressed concerns about assuming responsibility for policing the behavior of other people, for creating situations that could turn unpleasant or dangerous, and whether they had any legitimate right to judge whether another person’s behavior was offensive.

The passive-aggressive respondents were troubled by inappropriate or offensive behavior but believed it could be uncomfortable or dangerous to directly confront or challenge an offender. They were more comfortable complaining about the offensive behavior to others (or to a public authority) and hoping someone would do something about it. One expressed concern that confronting an offender might be interpreted as offensive behavior by others.

The folks in the aggressive category said they would not hesitate to confront a person, accuse them of behaving poorly, and demand an end to their offensive behavior, even if that behavior had been directed at someone else. These folks didn’t seem concerned that the confrontation might become unpleasant, or escalate into violence—some seemed eager to welcome that possibility. One invoked the film American Sniper, described the three types of people in the world (sheep, sheepdogs, and wolves) and said he was proud to be a sheepdog.

The most comprehensive comments came from folks who said that while they believed it was important to be assertive when confronted by offensive or inappropriate behavior, they thought it was equally important to pick their shots and respect the rights of others while standing up for their own rights. Several of these folks said that focusing intensely and objectively on exactly what was happening, and why, helped them moderate their emotions, determine whether to make an issue of something and appropriately manage their behavioral response. One woman reported on a recent experience in which she used the formula for assertive communication to ask a line cutter to go to the back of the line and much to her surprise he did.

While most of us use all of these response styles at one time or another, is there a best approach? The answer depends entirely on the situation and the person. When we encounter something we don’t like, we have a limited choice of responses (accept it, change it, get away from it) and we choose one based upon our interpretation of the situation. Two people caught in the same unpleasant situation may interpret it differently since they each filter the experience through their own mesh of moral values, ethical beliefs, behavioral tolerances, and social/cultural expectations. They then create a story about what happened and why, and that story triggers their emotional reaction (joy, trust, fear, surprise, sadness, anticipation, anger, or disgust) which in turn triggers their behavioral response.

Same stimulus, different interpretations, emotional reactions, and behavioral responses. Yet the flow from interpretation to emotion to behavior is neither automatic nor inexorable since humans have the ability to choose how to respond to a stimulus. Psychiatrist Viktor Frankl described it this way:

Between stimulus and response there is a space. In that space is our power to choose our response.

So if there’s a best practice for determining how to respond to offensive or inappropriate behavior, it probably involves making the best use of that “space” between stimulus and response. That’s where we have the power to make a simple, personal choice to ignore behavior, or to fume about it, or to get in someone’s face about it, or to calmly and respectfully assert our rights—all based upon our interpretation of the situation, the degree to which it bothers us, and what makes us feel good about ourselves. It’s a uniquely personal, mindful process.

For a colorful, entertaining and salty point of view on how one man makes use of that space, check out Niall Doherty’s first-party rant about his quest to become more stoic and immune to insults. Also, you might enjoy Three Little Tricks to Deal with People Who Offend You by Leo Babauta and How to Deal with Annoying People by Marcia Reynolds.

Dean K. Harring, CPCU, is a retired executive who now enjoys his time as an advisor, board member, educator and watercolor artist.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

You Need to See It Before You Can Paint It

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” –Alvin Toffler, futurist and philosopher

Years ago, when I first started painting with watercolors, I attended a series of workshops run by award-winning Annapolis impressionist painter Lee Boynton. Lee preferred to paint outside, from nature rather than from photographs, and before we started painting he would always ask the group to study the scene we were going to paint and tell him the color of the sky, or the trees, or the water. These were trick questions, designed to expose the cognitive bias known as the curse of knowledge, which Chip and Dan Heath, in Made to Stick, described this way:

Once we know something, we find it hard to imagine what it was like not to know it.

Students who hadn’t been exposed to Lee’s questions “knew” that the trees were green, and that the sky was blue, so that’s how they would answer, much to Lee’s delight. He would theatrically pull a few leaves off a nearby tree, poke a hole in the center of each, and ask us to take another look at the trees and the sky through the hole in the leaf and tell him what colors we could see. Invariably, this simple viewing device suspended the curse of knowledge by force-shifting our perception of the trees and sky and dramatically altering the colors we were able to see. Through the leaf, trees weren’t just green—they were blue, and yellow, and violet and green—and the sky now had elements of pink, gray, yellow, violet, orange and blue.

“Now you are seeing the light. Don’t ever start painting until you can see the light,” Lee would say, pleased that he had helped at least a few people to question what they knew and experience what it feels like to “unlearn” and “relearn” something through objective observation.

Good advice for visual artists, perhaps, but what does it have to do with anything else? The curse of knowledge bias isn’t selective—it also interferes with teaching, and communicating, and problem-solving, and learning, and planning, and selling, and negotiating, and personal relationships. If you have ever had trouble teaching someone something because they just can’t seem to grasp it, or struggled to learn something because it conflicted with something you already knew, or misread someone’s intentions, blame it on the curse of knowledge. Ditto if you had a communication fizzle because it didn’t convincingly connect all the dots for the reader, or if you failed to anticipate or solve a problem because you let what you “knew” get in the way of what you saw (or should have seen.)

Not only do we tend to favor the familiar and known (blue sky) over the unfamiliar and unknown (pink, gray, yellow, violet, orange and blue sky), the familiarity principle means we also feel more secure when we stay with what we know. As we get older and more experienced, we deliberately try to stay within our comfort zone by sticking with what we know and avoiding situations in which we might have to learn or do something new. That can be dangerous in any environment in which things are changing rapidly. Margie Warrell describes it this way in her Forbes article Learn, Unlearn and Relearn: How to Stay Current and Get Ahead:

To succeed today you must be in a constant state of adaptation – continually unlearning old ‘rules’ and relearning new ones. That requires continually questioning assumptions about how things work, challenging old paradigms, and ‘relearning’ what is now relevant in your job, your industry, your career and your life.

If, as Warrell suggests, learning agility is not only the name of the game but also the key to unlocking your change proficiency, what can you do to enhance your learning agility?

Start by reading Adam Mitchinson’s and Robert Morris’ Center for Creative Leadership white paper which describes learning agility as the willingness and ability to learn by continually discarding skills, perspectives, and ideas that are no longer relevant, while learning new ones that are relevant. Next, climb out of your comfort zone and take an objective look at your situation. You are seeking objectivity, so you’ll need to shift your perspective (as Lee had us do with the leaves) in order to neutralize the curse of knowledge. You won’t be looking for light, of course, you’ll be looking for an unfiltered view of reality--what is actually happening, what’s important, where the opportunities are. Only then will you be able to determine exactly what you need to learn, unlearn and relearn in order to adapt and flourish.

Sadly, Lee Boynton passed away in April of this year, but I’ll always remember his appreciation of color and light, his painting skills, his leaf trick, and one piece of thoughtful advice which, much like “look before you leap”, is probably of value in almost any situation: "Dean, you need to see it before you can paint it."

Indeed.

Coco

Dean K. Harring, CPCU, is a retired insurance executive who now enjoys his time as an advisor, board member, educator, and watercolor artist.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

Speaking Up

“Don't expect to make a difference unless you speak up for yourself.” -- Laurie Halse Anderson

You know that prickly feeling you get when something happens and you feel you should protest, object, demand satisfaction or whatever--but you don’t?

Maybe some dolt cuts in front of you in line at the coffee shop, or the loudmouth sitting in front of you in the theater won’t stop talking during the show. Your colleague takes credit for work you’ve done, or your boss, distracted by her phone, is only pretending to listen to you. Trivial slights, you have bigger things to worry about, right? Sure, but sometimes when we let things like this slide, regret comes calling. We end up fuming privately, complaining to others, replaying the event in our head and imagining how differently things might have gone if we had just spoken up.

So why is it that some people speak up when they feel someone else’s behavior is offensive while others don’t? Certainly personality type has some influence (test yours here), but we all have the ability to choose to respond to any situation by behaving in one of four ways:

• Passively (letting it slide)
• Passive-aggressively (muttering to ourselves or others)
• Aggressively (criticizing, blaming or attacking)
• Assertively (standing up for our rights appropriately and respectfully.)

What’s more, most of us use all of these styles at one time or another.

How do we decide which style to use? It all begins with a stimulus, of course, something happens that bothers us. We analyze the stimulus, interpreting it to come up with our own version of what happened and why. Unfortunately, many of us aren’t very good at perceiving an event objectively because of attribution bias, which means we tend to attribute the behavior of other people to something personal about them rather than to something about their situation. In Crucial Conversations, Kerry Patterson described it this way:

Just after we observe what others do and just before we feel some emotion about it, we tell ourselves a story. We add meaning to the action we observed. We make a guess at the motive driving the behavior. Why were they doing that? We also add judgment—is that good or bad? And then, based on these thoughts or stories, our body responds with an emotion.

The emotion we feel generates our behavioral response. Let’s say you are cut off by another driver. You slam on your brakes and avoid a collision, but your coffee spills all over the passenger seat. If your interpretation of the event is that the other driver behaved recklessly and inconsiderately, you might feel angry and go into attack mode—blowing your horn, yelling, or gesturing at the other driver. If, however, your interpretation is that the other driver was driving fast because of an emergency situation, you might be annoyed or concerned, but not react at all. If that sounds wildly unrealistic, realize that attribution bias is more common in individualistic cultures, so if you are reading this in the US there’s a good chance your default behavior involves blaming the person, not the situation.

Psychologist Robert Plutchik identified eight basic emotions: joy, trust, fear, surprise, sadness, anticipation, anger, and disgust. He also identified an escalating range of emotions within each, so anger includes annoyance, hostility, rage and fury. Different people experiencing the same situation may come up with a totally different interpretation because their value and belief systems and attribution biases are different, which shapes their interpretation of the situation, their emotional reaction, and their behavioral response. That’s why many of us might simply be annoyed by being cut off in traffic, while others may feel rage and fury, prompting them to respond with threats and violence. (See road rage data for US and UK)

In primitive times, our basic stress response (fight or flight) helped us deal with life-threatening situations, and it still does, but “fight or flight” isn’t really appropriate for most of the personal offenses we need to manage today. Psychologist Randy Paterson, author of The Assertiveness Workbook, says that while people may shy away from conflict and criticism, assertiveness is a proven way to deal with offensive behavior. Assertiveness, according to the Concise Oxford Dictionary means:

Forthright, positive, insistence on the recognition of one's rights.

Assertive people believe they are in charge of their own behavior, and that they alone will decide what they will do or not do in response to a situation that bothers them. They examine the offending situation carefully, testing their interpretation because they understand what they “think” is going on might not be what’s really going on. They assess the significance of the situation (is it worth pursuing?), they consider their goals in asserting their rights (what do they want to happen?), and they choose their battles realistically before moving forward.

According to the Mayo Clinic, behaving assertively can help you:

• Gain self-confidence and self-esteem
• Understand and recognize your feelings
• Earn respect from others
• Improve communication

It takes courage to assert yourself, but there’s a very simple but effective formula for assertive communication that frames up around these talking points:

• When you (describe the other person’s action or the event of concern in a purely factual way)
• I feel/I felt (describe your own feelings in response to the above action or event – for example, sad, angry, hurt, frustrated)
• Because (describe your interpretation of the event and the reason why you feel the way you do)
• What I would like in the future is or what I would prefer is (offer a future alternative that better meets your needs whilst not infringing on the needs/rights of the other person).

So to a line cutter you might say something like:

Excuse me, I noticed you just cut in front of me in line. That troubles me because it’s not fair to me or any of the people behind me for you to try to cut in front of us. The line forms at the rear, so please go to the back of the line.

How will the line cutter respond? Research tells us most line cutters who are challenged will back off, some will deny cutting the line, a few will ignore you, and the rest will respond aggressively and tell you to mind your own business (or worse). The line cutter’s response and your emotional reaction to the story you tell yourself about the response will influence what you do next. Whatever you do, remain calm, confident, and in control—no screaming or yelling—ever mindful of Mark Twain’s advice:

Never argue with a fool, onlookers may not be able to tell the difference.

Finally, since you can’t control the behavior of other people, focus on controlling your own behavior. Whether or not you achieve your goal by being assertive, the very act of standing up for yourself will boost your confidence and self-respect and help you become a more effective communicator.

By the way, if you are ever confronted with a “chat and cut” situation, this Larry David clip could be helpful, but try not to behave like this guy. And since queue jumping is a global phenomenon, you might enjoy reading about the queue reality in the UK, queuing in Europe, and effective line cutting defenses in China.


Dean K. Harring, CPCU, is a retired insurance executive who now enjoys his time as an advisor, board member, educator and watercolor artist.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

Leaders and Servants

“The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant.” ― Max De Pree

I bumped into an unhappy former colleague at an industry meeting a while back. He told me that the insurance world had changed, and that now claims executives were expected to practice something called “servant leadership.” He rolled his eyes as he emphasized “servant.” He seemed genuinely concerned but I suspected he, like most people, probably wasn’t entirely clear on what the term “servant leadership” meant. So I asked him to tell me more.

His CEO, fretting over lackluster results, decided it was time to transform the company’s operating culture and improve results by reducing the employee turnover rate and increasing customer satisfaction and persistency. He had hired a consulting firm to engineer a leadership team makeover, to move the group away from a “transactional” leadership mindset and into a “servant” leadership mindset. The firm was scheduled to be on site the following month.

“What exactly are you concerned about?” I asked.

“I don’t want to be a servant. I am a senior executive, a leader. My job involves establishing strategy, securing resources, attracting and developing good people, setting performance objectives, measuring performance, and delivering results.”

Of course, he had done some research and discovered Robert K. Greenleaf, who launched the modern servant leadership movement in 1970 when he published The Servant as Leader. He showed me Greenleaf’s paper on his phone, but at 27 pages long it was too onerous to be immediately useful. He read somewhere else that servant leaders believe in the concept of an inverted pyramid organization in which top management “reports” upward to lower levels of management and ultimately to front line employees.

“Imagine that—30 years in this business and now I am supposed to report to my employees? That’s ridiculous.”

He had another commitment, so we agreed to get together later that day to talk further. Curious, I pulled up the Greenleaf Center for Servant Leadership site:

A servant-leader focuses primarily on the growth and well-being of people and the communities to which they belong. While traditional leadership generally involves the accumulation and exercise of power by one at the “top of the pyramid,” servant leadership is different. The servant-leader shares power, puts the needs of others first and helps people develop and perform as highly as possible.

Larry Spears, CEO of the Greenleaf Center for Servant Leadership, identified ten servant leader characteristics:

• Listening
• Empathy
• Healing
• Awareness
• Persuasion
• Conceptualization
• Foresight
• Stewardship
• Commitment to personal growth
• Building Community

Dr. Kent Keith, the former CEO of the Greenleaf Center, offered a definition of servant leadership that includes this explanation:

Greenleaf said that "the servant-leader is servant first." By that he meant that that the desire to serve, the "servant's heart," is a fundamental characteristic of a servant-leader. It is not about being servile, it is about wanting to help others. It is about identifying and meeting the needs of colleagues, customers, and communities.

Nothing particularly nettlesome so far, but what about the inverted pyramid?

Ken Blanchard, in Servant Leadership Revisited, argued the pyramid should be right side up for matters such as vision, mission, values and goals, but inverted when it comes to implementation or execution. His inverted pyramid has customers at the top and customer contact people right below them. The customer contact people are responsible for meeting customer needs, and the managers and executives below them on the inverted pyramid are responsible for helping the customer contact people succeed in doing that.

When I got back together with my former colleague later that day, I asked him to think about the ways in which he was responsible to his employees. In other words, what did he provide that they expected and needed from him? His list included strategic clarity, adequate tools and resources, fair and measurable performance objectives, timely and accurate communication, feedback opportunities, inspiration, trust, integrity, honesty, accountability, coaching and career development. We talked about the pyramid, and how responsibilities and expectations flow both ways, so he made a similar list of the things he expected and needed from his employees.

Finally, we looked at the Oxford Dictionary definitions of servant:

• A person who performs duties for others, especially a person employed in a house on domestic duties or as a personal attendant.
• A person employed in the service of a government. 
• A devoted and helpful follower or supporter

The first definition bothered him, the second didn’t apply, but he liked the third and agreed he definitely had a responsibility to be a devoted and helpful supporter of his employees.

I told him I thought he would probably have an easy time of it with the consultants because it appeared he was already thinking like a servant leader—even though he had never thought of himself in those terms.

“We’ll see,” he said. “Unfortunate choice of terms, though. Why couldn’t they have called it something less provocative?”

“Ask the consultants,” I suggested.



Dean K. Harring, CPCU, is a retired insurance executive who now enjoys his time as an advisor, board member, educator and watercolor artist.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

Slackers and Social Loafers: "Playing" the Team Players

America loves teams and team players, even outside of sports. What’s not to love? Team players are selfless—they set aside their personal goals and focus their talents on coordinating efforts with their fellow team members to achieve a common goal. Teams personify cooperation and collaboration and synergistic effort. And, of course, we’ve all been taught that teams inevitably generate better outcomes than individuals do.
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So it’s good to be on a team, and teams do good work, which means teams and teamwork are iconic realities of life in America--socially, educationally, and professionally. It really doesn’t matter whether you are a toddler, a college student, a retail clerk, or a corporate executive—today you regularly find yourself slotted onto teams (or onto committees or into small groups) where you are expected to behave like a good team player.

How does a good team player behave? According to leadership coach Joel Garfinkle: “You just need to be an active participant and do more than your job title states. Put the team’s objectives above yours and take the initiative to get things done without waiting to be asked.” He identifies five characteristics that make a team player great:

1. Always reliable
2. Communicates with confidence
3. Does more than asked
4. Adapts quickly and easily
5. Displays genuine commitment

Seems obvious, but think of your most recent team experiences—were your team members behaving that way? Were you? Not likely, and J. Richard Hackman, a former Professor of Social and Organizational Psychology at Harvard University and a leading expert on teams, knows why. When interviewed by Diane Coutou for a 2009 Harvard Business Review article (Why Teams Don’t Work) he said:

Research consistently shows that teams underperform, despite all the extra resources they have. That’s because problems with coordination and motivation typically chip away at the benefits of collaboration. 

Problems with coordination and motivation interfering with team collaboration and performance—doesn’t that sound like a rather modest challenge that could be resolved with more effective team management? Sure, to a certain extent. Teams are often too large, they are thoughtlessly staffed (proximity and position rather than proven talents and ability to produce results) and they are routinely launched with murky objectives, vague group member accountabilities, and no formal support network for team process management. In other words most teams don’t meet the five basic conditions that Hackman, in his book Leading Teams, said that teams require to perform effectively:

1. Teams must be real. People have to know who is on the team and who is not. It’s the leader’s job to make that clear.
2. Teams need a compelling direction. Members need to know, and agree on, what they’re supposed to be doing together. Unless a leader articulates a clear direction, there is a real risk that different members will pursue different agendas.
3. Teams need enabling structures. Teams that have poorly designed tasks, the wrong number or mix of members, or fuzzy and unenforced norms of conduct invariably get into trouble.
4. Teams need a supportive organization. The organizational context—including the reward system, the human resource system, and the information system—must facilitate teamwork.
5. Teams need expert coaching. Most executive coaches focus on individual performance, which does not significantly improve teamwork. Teams need coaching as a group in team processes—especially at the beginning, midpoint, and end of a team project.

But there’s another challenge, and it is presented by the people who don’t want to be team players. People who, when added to a team, immediately focus their attention and effort not on being a good team player but instead on dodging work, avoiding exposure and manipulating the conscientious team players into doing more than their share of the work. This is known as social loafing (or slacking) and it describes the tendency of some members of a work group to exert less effort than they would when working alone. Kent Faught, Associate Professor of Management at the Frank D. Hickingbotham School of Business, argues in his paper about student work groups in the Journal of Business Administration Online that social loafers can’t be successful, however, unless the other team members permit the loafing and complete the project successfully:

…the social loafer must find at least one group member that CAN and WILL achieve the group's goals and ALLOW themselves to be social loafed on. "Social Loafer Bait" is the term used here to describe the profile of the ideal target for social loafers.

This problem isn’t new. Max Ringelmann, a French agricultural engineer, conducted one of the earliest social loafing experiments in 1913, asking participants to pull on a “tug of war” rope both individually and in groups. When people were part of a group, they exerted much less effort pulling the rope than they did when pulling alone. According to Joshua Kennon, Ringelmann’s social loafing results were replicated over the years in many other experiments (involving typing, shouting, clapping, pumping water, etc.) leading psychologists to believe that humans tend toward social loafing in virtually all group activities. Kennon shared two other conclusions:

• The more people you put into a group, the less individual effort each person will contribute
• When confronted with proof that they are contributing less, the individuals in the group deny it because they believe they are contributing just as much as they would have if they were working alone

I recently asked a group of friends and colleagues who have been involved in group work at school or in their jobs to respond to a brief, unscientific survey on how they deal with social loafing. Their response pattern is shown in parentheses, and although respondents varied in age from 20 to 50+, answer patterns didn’t seem to vary by age group:

You are working on an important, time-sensitive project with a group of people. One of the group members is slacking off, not contributing to project work. What do you do about it? (choose one)

• Ask/Tell the slacker to commit to the project and start contributing (40%)
• Report the slacker to the project sponsor (3%)
• Complain about the slacker to other team members (10%)
• Work harder to pick up the slack and ensure the project is successful (30%)
• Follow the slacker’s lead and reduce your commitment and effort (0%)
• Other (17%--most respondents who chose this reported they would employ more than one of the listed strategies)

How effective is the response you identified above?

• Solves the problem (27%)
• Partially solves the problem (53%)
• Fails to solve the problem (17%)
• Causes other problems (3%)

Respondents who took some action (talking to the slacker, or reporting the slacker to the project sponsor) were much more likely to report that their actions solved all or part of the problem. Complaining to other team members failed to solve the problem—no surprise there. And even though 30% of respondents elected to address the slacking problem by working harder to pick up the slack (earning themselves a “social loafer bait” ID badge) the effect of doing so was mixed, spread fairly evenly among solving, partially solving, failing to solve and causing other problems.
What’s not clear is why we are so willing to tolerate social loafing on group projects and why we are so reluctant to call slackers out and hold them accountable. According to Kerry Patterson, co-author of the book Crucial Conversations: Tools for Talking When Stakes Are High:

93% of employees report they have co-workers who don't pull their weight, but only one in 10 confronts lackluster colleagues.

I suppose the reality is that unless work groups are tightly managed, they offer excellent cover for slackers--relative anonymity, little or no pressure from team members, great individual performance camouflage--with only a slight threat of exposure or penalty for not being a good team player. So the solution to the social loafer problem probably involves not only changes in how groups are formed, resourced and supported, but also changes in the group work dynamic to eliminate the cover and camouflage and to illuminate how each individual contributes to the group work effort (this is sometimes accomplished in university student work groups by using a formal peer review process to help group members hold each other accountable.)

As you might expect, Google is serious about team work (all Google employees work on at least one team) and they want their teams to be successful. Their recent study of team effectiveness at Google determined that five team dynamics (Psychological Safety, Dependability, Structure and Clarity, Meaning of Work, and Impact of Work) are more important to successful teams than the talents of the individuals on the teams. To help their teams manage these dynamics, Google developed a tool called the gTeams exercise, described by Julia Rozovsky of Google People Operations as:

…a 10-minute pulse-check on the five dynamics, a report that summarizes how the team is doing, a live in-person conversation to discuss the results, and tailored developmental resources to help teams improve.

According to Rozovsky, Google teams reported that having a framework around team effectiveness and a forcing function (the gTeams exercise) to talk about these dynamics was the most impactful part of the experience. That’s not surprising, since any “forcing function” that puts a public spotlight on ineffective or unacceptable behavior makes it easier to identify and eliminate that behavior.

Given the concentration of talent at Google, I imagine the social loafers there probably boast a more refined slacker “craftiness” pedigree than most of us normally encounter. Still, I am betting the Google slackers aren’t very pleased with the light and heat generated by the gTeams exercise spotlight.


Dean K. Harring, CPCU,  is a retired insurance executive who now enjoys his time as an advisor, board member, educator and watercolor artist.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

Two Heads Are Better Than One...Right?

Everybody knows that two heads are better than one. We’ve known it since kindergarten, where we were taught that cooperation, collaboration, and teamwork are not just socially desirable behaviors—they also help produce better decisions. And while we all know that two or more people working together are more likely to solve a problem or identify an opportunity better than one person doing it alone, it turns out that’s only true sometimes.

Ideally, a group’s collective intelligence, its ability to aggregate and interpret information, has the potential to be greater than the sum of the intelligence of the individual group members.  In the 4th Century B.C. Aristotle, in Book III of his political philosophy treatise Politics, described it this way:

…when there are many who contribute to the process of deliberation, each can bring his share of goodness and moral prudence…some appreciate one part, some another, and all together appreciate all.

But that’s not necessarily how it works in all groups, as anyone who has ever served on a committee and witnessed groupthink in action can probably testify.

Groups are as prone to irrational biases as individuals are, and the idea that a group can somehow correct for or cure the individual biases is false, according to Cass Sunstein, Harvard Law School professor and author (with Reid Hastie) of Wiser: Getting Beyond Groupthink to Make Groups Smarter. Interviewed by Sarah Green on the HBR Ideacast in December 2014, Sunstein said individual biases can lead to mistakes, but that “…groups are often just as bad as individuals and sometimes they are even worse.” Biases can get amplified in groups. According to Sunstein, as group members talk with each other “they make themselves more confident and clear-headed in the biases with which they started.” The result? Groups can quickly get to a place where they have more confidence and conviction about a position than the individuals within the group do. They often lock in on that position and resist contrary information or viewpoints.

Researcher Julie A. Minson, co-author (with Jennifer S. Mueller) of The Cost of Collaboration: Why Joint Decision Making Exacerbates Rejection of Outside Information agrees, suggesting that people who make decisions by working with others are more confident in those decisions, and that the process of making a judgment collaboratively rather than individually contributes to “myopic underweighting of external viewpoints.” And even though collaboration can be an expensive, time-consuming process, it is routinely over-utilized in business decision making simply because many managers believe that if two heads are better than one, ten heads must be even better. Minson disagrees:

Mathematically, you get the biggest bang from the buck going from one decision-maker to two. For each additional person, that benefit drops off in a downward sloping curve.

Of course group decision making isn’t simply a business challenge--our political and judicial systems rely and depend upon groups of people such as elected officials and jurors to deliberate and collaborate and make important decisions. Jack Soll and Richard Larrick, in their Scientific American article You Know More than You Think observed that while crowds are not always wise, they are more likely to be wise when two principles are followed:

The first principle is that groups should be composed of people with knowledge relevant to a topic. The second principle is that the group needs to hold diverse perspectives and bring different knowledge to bear on a topic. 

Cass Sunstein takes it further, saying for a group to operate effectively as a decision-making body (a jury, for instance) it must consist of:

• A diverse pool of people
• Who have different life experiences
• Who are willing to listen to the evidence
• Who are willing to listen to each other
• Who act independently
• Who refuse to be silenced

Does that sound like a typical decision-making group to you? When I heard that description, I immediately thought of Juror 8 (Henry Fonda) in 12 Angry Men--a principled and courageous character who singlehandedly guided his fractious jury to a just verdict. It is much harder for me to imagine our elected officials, or jury pool members, or even the unfortunate folks dragooned into serving on a committee or task force at work, as sharing those same characteristics.

The good news is that two heads are definitely better than one when those heads are equally capable and they communicate freely, at least according to Dr. Bahador Bahrami of the Institute of Cognitive Neuroscience at University College London, author of Optically Interacting Minds. He observed:

To come to an optimal joint decision, individuals must share information with each other and, importantly, weigh that information by its reliability 

Think of your last group decision-making experience. Did the group consist of capable, knowledgeable, eager listeners with diverse viewpoints and life experiences, and a shared commitment to evidence-based decision making and open communication? Probably not, but sub-optimal group behavior and decisions can occur even in the best of groups. In their Harvard Business Review article Making Dumb Groups Smarter, Sunstein and Hastie suggest that botched informational signals and reputational pressures are to blame:

Groups err for two main reasons. The first involves informational signals. Naturally enough, people learn from one another; the problem is that groups often go wrong when some members receive incorrect signals from other members. The second involves reputational pressures, which lead people to silence themselves or change their views in order to avoid some penalty—often, merely the disapproval of others. But if those others have special authority or wield power, their disapproval can produce serious personal consequences.

On the topic of “special authority” interfering with optimal decision making, I recently heard a clever term used to describe a form of influence that is often at work in a decision-making group. The HiPPO (“Highest Paid Person’s Opinion”) effect refers to the unfortunate tendency for lower-paid employees to defer to higher-paid employees in group decision-making situations. Not too surprising, then, that the first item on Sunstein and Hastie’s list of things to do to make groups wiser is “Silence the Leader.”

So exactly how do botched informational signals and reputational pressures lead groups into making poor decisions? Sunstein and Hastie again:

• Groups do not merely fail to correct the errors of their members; they amplify them.
• They fall victim to cascade effects, as group members follow the statements and actions of those who spoke or acted first.
• They become polarized, taking up positions more extreme than those they held before deliberations.
• They focus on what everybody knows already—and thus don’t take into account critical information that only one or a few people have.

Next time you are on the verge of convening a roomful of people to make a decision, stop and think about what it takes to position any group to make effective decisions. You might be better off taking Julie Minson’s advice, electing to choose just one other person to partner with you to make the decision instead. Seldom Seen Smith, the river guide character in The Monkey Wrench Game by Edward Abbey, was obviously a skeptic when it came to group decision making, but he may have been on to something when he declared:

One man alone can be pretty dumb sometimes, but for real bona fide stupidity, there ain't nothin' can beat teamwork. 

Dean K. Harring, CPCU, CIC is a retired insurance executive who now enjoys his time as an advisor, board member, educator and watercolor artist.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors

What Got You Here Won't Get You There

 
That’s the catchy title of a 2007 book by Dr. Marshall Goldsmith, an award winning author, business thought leader, professor and executive coach who heads the Marshall Goldsmith Group of consultants (mission: to help successful leaders get even better) and maintains the free Marshall Goldsmith Library. He has written and/or edited 35 books, mostly about leadership, learning, change and personal improvement. I found a copy of this book at a library sale recently, and I recommend it, but that’s just background.

Some weeks earlier, I had agreed to help kick off a senior management meeting at a company run by some former colleagues of mine who had escaped from an insurance company claims environment nearly 20 years earlier to start up their own specialty claims business. Over the years their business flourished, expanding in scope and size to the point where the founders knew it was time to pull together their management team and discuss what needed to be done to move the company to the next level. They wanted me to help set the proper tone for their meeting by talking about change challenges and reviewing some of the things successful companies do, and don’t do.

Since I was heading off on vacation, I thought I would spend some of my leisure time preparing by re-reading my favorite articles about successful companies, and by reviewing some of the many notebooks I had filled over the years with on-topic material. I also brought along Goldsmith’s book, and read it through one rainy day. If you haven’t read it, I think I can give a quick overview without spoiling it for you. The theme is that most of us have bad habits, and even if those bad habits somehow helped to get us to a certain level, they might just prevent us from moving to or being successful at the next level. When I read through the habits (like delusional thinking, denial, overconfidence, failing to listen, dismissing feedback, failing to plan, blaming failures on external, uncontrollable factors, and allowing distractions to interfere with achieving objectives) I started feeling a bit uneasy, even embarrassed, because at one time or another in my career I knew I was probably guilty of all of them.

But then it hit me—Goldsmith was writing about personal, individual habits, but companies are collections of people so they have their own habits and ways of doing things (their culture.) Entrepreneurs imprint their own habits on their company, so they directly influence their company’s success through their imagination and insights, their willingness to take chances, their resiliency, their commitment, and the unique set of skills, behaviors and attitudes they bring to the effort. Through scrambling, innovating, scraping by, doing without, overextending and even overpromising, the successful ones keep their businesses going, and growing. Of course it’s not a linear path to success--they lurch, they make mistakes, then they recover and learn from them. But one fine day they realize they are actually making it, competing successfully in whatever business niche they selected. At that point one of two things can happen:

• They celebrate, relax, and begin to suffer from the “complacent lethargy” that Jim Collins and Jerry I. Porras (Built to Last) called the “We’ve Arrived Syndrome”
• They start to dream about expanding their business, diversifying into other products and services, entering new markets, making acquisitions...you know, taking their business to the next level.

Maybe both things happen. But if they get past the dreaming and start in on the planning, they often realize that the skills and behaviors they used to get their business going and help it survive may not be the ones they need to make it thrive at the next level. So what’s a company to do at that point? Of course that’s what my former colleagues wanted to get into at their meeting.

So at the management meeting I ended up sharing with the group some of the most impactful (to me) things I have learned about successful companies, such as their tendency to operate with three perspectives simultaneously: strategic, governance and control, and execution. Sounds reasonable, but juggling those three can be complicated and counterintuitive at a smaller company, where managers often prefer to stay within their comfort zone and focus on execution. But even with flawless execution, a company still needs both a winning strategy and a capable governance/risk management protocol in place to ensure long term success.

Successful companies tend to share certain characteristics:

• They have strategic clarity
• They have objectives and performance metrics that encourage behavior that supports their strategy
• Their rewards are aligned with achievement of those objectives and performance metrics
• They provide regular, constructive feedback to individuals regarding performance against objectives and metrics

Successful companies share certain capabilities:

• Talent (knowledge, skill and will)
• Speed (capacity for rapid, meaningful change)
• Learning (across silos and boundaries)
• Shared mindset (on the same page)
• Accountability (willingness to accept responsibility for behaviors and results)
• Collaboration (leveraging relationships, sharing work and responsibility)

I had the management team do a quick capability self-assessment from two perspectives, rating themselves as a management team, and then rating their company as a whole on a scale of 1 to 10 in each of those six capability areas (1 means no capability and 10 means industry leading capability) and flip-charted the results. That’s an easy and quick exercise that often produces interesting insights into potential conflicts and barriers to success.

We also unpacked the three performance categories often associated with talent in a knowledge-intensive business: KNOWLEDGE, SKILL and WILL.

• In the claims service business, KNOWLEDGE involves understanding the law, regulations, contracts and policy forms, as well as understanding what customers want and knowing how to deliver it within necessary margins of compliance, speed, service and accuracy.

• SKILL usually refers to doing, not knowing. Employing best practices, interpreting complicated coverage situations, correctly calculating a business income loss or reinsurance penalty, investigating, evaluating, negotiating, resolution, recovery, communicating with stakeholders, etc.

• WILL refers to the commitment, desire, discipline, or motivation to do something and do it well.

Finally, I urged them to accomplish four things in their meeting:

• Create strategic clarity. Agree on what business they are in, and what business they want to be in, and articulate what they need to know and be able to do in order to be successful.
• Complete a stakeholder needs analysis and develop a shared view of who their stakeholders are (potentially anyone with a vested interest in how well they operate their business) and what those stakeholders need in order to be successful and content.
• Take another look at the capability self-assessment summary (the flipchart) and do an honest and critical assessment of their capabilities, particularly their talent. Do they really have the talent and the ability to meet stakeholder needs better, faster and cheaper than their competitors? If not, where are the capability gaps and how will they close them?
• Carefully consider the WILL component of talent within the framework of change and business evolution. Determine what steps to take to influence attitudes and motivation and move their management team, and their company, from compliance to commitment.

I enjoyed seeing my colleagues again, and meeting their management team, and I heard later that their meeting went well. A few days after that meeting I came across this quote I used in an earlier article, attributed to German writer and politician Johann Wolfgang von Goethe (and also, variously, to Leonardo Da Vinci and Bruce Lee):

Knowing is not enough; we must apply. Being willing is not enough; we must do.

In the talent context, it sounds like whoever said this believed in execution. Knowledge and will alone were not enough—he considered skill, the ability to do the necessary things well, to be the critical component of talent. I see it a bit differently, believing that success in almost any human undertaking requires all three elements of talent (knowledge, skill and will.) To me, skill is derivative, developed through the combination of knowledge (understanding what needs to be done, when and how) and will (practicing and perfecting) but I suppose that’s one of the reasons why people find the talent topic so fascinating.

For a thoughtful look at talent management in the 21^st century, check out this Harvard Business Review article from professor Peter Capelli. And for an interesting overview of how taking a strategic approach to talent management can help power innovation, growth and market advantage, take a look at this Talent To Win whitepaper from PwC.


Dean K. Harring, CPCU, CIC is a retired insurance executive who now enjoys his time as an advisor, board member, educator and watercolor artist.  He can be reached at dean.harring@gmail.com or through LinkedIn or Twitter or Harring Watercolors