Strategy and your brain

It might seem that when it comes to strategic thinking, the brain is your ally. Not always. Our brains aren’t always rational, and we are unaware of the extent to which the mind takes shortcuts and makes assumptions. Charles Roxburgh writes about the brain in Hidden Flaws in Strategy (McKinsey Quarterly):

“Over the millennia of its evolution, it has developed shortcuts, simplifications, biases, and basic bad habits. Some of them may have helped early humans survive on the savannas of Africa (“if it looks like a wildebeest and everyone else is chasing it, it must be lunch”), but they create problems for us today. Equally, some of the brain’s flaws may result from education and socialization rather than nature. But whatever the root cause, the brain can be a deceptive guide for rational decision making.”

Roxburgh points out eight flaws that every leader should be aware of as they solve problems and make decisions. For example, our brains are overconfident in our own abilities. We think we can estimate far more accurately than we can, and we believe that enterprises that we’re involved in are above average. Related to this overconfidence is being overly optimistic – skewing toward the most positive projections about factors that are uncertain.

You can compensate for your overconfident brain by:

  • Testing strategies over a wider range of scenarios, and giving people a choice between an even (2, 4, 6…) number of options. If given an odd number of choices (e.g., 3), most will choose the safer middle option.
  • Mitigating the risk of getting monetary projections wrong by reducing your most optimistic estimate by 20% to 25%. If you’re estimating revenues of $5 million, reduce that “best case” figure to around $4 million.

Read the full article on McKinsey’s website (registration required), so you can plan around your flawed brain. You’ll be way ahead of your competitors who think their brain is just fine the way it is!

 

Want to be more strategic and execute well? Contact Humanergy for helpful tools that will make your brain even bigger!

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Can you really say no to your boss?

Even when you have a positive relationship, bringing bad news to the boss is something most people would rather avoid. This includes telling the boss, “no,” even when it’s the right thing to do.

Sure, the supervisor should welcome honesty and candor – and most do. However, when delivering a “no” message, it’s also important to know what to tell your boss, when and how.

Katherine Reynolds Lewis of Fortune wrote, “companies that foster a fear-free culture enjoy better decision-making, more ethical behavior and the ability to truly harness the collective brainpower of the workforce.”  Creating and maintaining a positive culture isn’t just the boss’ job. How direct reports share information and team with their bosses for mutual success contributes to a transparent culture as well.

How do you effectively tell your boss “no?”

Communicate when an important result is at stake. If a key project or outcome is at risk, you need to tell your boss. State the situation clearly and provide possible solutions. “The software integration is 2 months behind schedule and 40% over budget. Options include adding a person to the team or finding an alternative vendor.”

Be honest about what you can and cannot do. Speak up if your boss assigns you something that is outside your skillset and more than a stretch goal. However, don’t leave her holding the ball. Suggest what you can do and who might fill the gap. “My skills would be better utilized on the project management end, with Sean on the technical side.”

Prepare the boss and speak in private. Your boss may be less willing to be open to input if it comes out of the blue. Send him an email, letting him know that you have some ideas you’d like to share. Meet one-on-one to explore these ideas without an audience that could have an unanticipated impact.

Say thanks. Even if she doesn’t agree with your perspective, your boss took the time to listen (hopefully). No matter how the meeting goes, genuinely thank her for her time. You’ll build some relationship capital that may be helpful in the future.

When saying no, or delivering any message that might be hard to hear, use as few words as possible. There is no need to use giant words, spin, lecture or defend. Remember the advice of John Kotter. “Good communication does not mean you have to speak in perfectly formed sentences and paragraphs. It isn’t about slickness. Simple and clear go a long way.”

 


Don’t worry, be happy

I used to be a prolific worrier. Until my mid-thirties, my worries ranged from anxiety about my unreliable car to whether the world was going to implode. As with many people, middle-of-the-night worrying interrupted my sleep, when a cornucopia of real or perceived threats kept me tossing and turning.

Worrying is a tough habit to break, and it’s worth the effort. Why?

Chronic worrying is bad for your health. According to WebMD: Chronic worrying affects your daily life so much that it interferes with your appetite, lifestyle habits, relationships, sleep, and job performance.

It is easy to confuse worrying with problem solving. Worrying doesn’t actually solve anything, and the more time you spend worrying, the more problems (real or imagined) you’ll find. No solutions, just a host of problems that will probably never come to pass.

There is no easy solution for us worry warts, however, there are strategies that can help create a more carefree existence:

Figure out what you worry about. You might need to dig to find the source of “free-floating anxiety.” If you worry most about relationships, for example, you can take steps to improve them. If you worry about everything, you might need some help for generalized anxiety disorder.

Schedule worrying. The Mayo Clinic suggests setting aside a time for worrying. (They suggest this to caregivers of Alzheimer’s patients, but I think it applies to anyone.) Mayo Clinic blogger Angela Lunde suggests, “When worry or other draining emotion begins to consume your thoughts, acknowledge it and then commit that you will give it your full attention during “worry time”. Until then, give yourself permission to put it out of your mind.”

Create a memory jogger. If you really want to break the worrying habit, do something that reminds you that you’re taking a new approach to your troubles. Wear your watch on the other arm, or set your mobile phone alarm to remind yourself periodically to check and reset your thinking.

Replace your worries with new thinking. How did I break the worrying habit? I decided to stop worrying about things outside of my control, and replace those negative internal messages with positive ones. Whenever I found myself worrying about layoffs at work, I would change my thought to, “I will continue to do my best, and ultimately this will all work out.”

Talk and write. Putting your worries into words in and of itself can make you feel better. This can also help you figure out if your problems are real or inflated. Talk with a trusted friend or confidant, and let this person know how they can help (like listen, ask questions or give advice). Writing about your worries allows you to clarify your thoughts and feelings, and gives you a great record of what’s bugging you when and why.

Use worrying to your advantage. A mild amount of disquiet can be motivational. If you’re feeling a little anxious about something at work, use that energy to fuel disciplined action and boost execution.

Sometimes we are dealt a hand that is extremely hard to handle. When this happens, worrying is natural. A brief period of anxiety should be immediately followed by creating a plan and making it happen. “Worrying is like a rocking chair. It gives you something to do, but it doesn’t get you anywhere” (author unknown).

 


Tired of cleaning up after consultants? So are we!

It isn’t unusual to hear that business people don’t like consultants. In fact, many of us here at Humanergy can recount consultant horror stories of our own. From the strategic planning consultant who seemed to want to sway everyone’s opinion, to the overpriced fund-raising consultant whose contribution to the bottom line was distinctly negative, what often resounds are the negative experiences. Perhaps it’s no coincidence that we don’t often refer to ourselves as consultants.

In spite of the well-earned criticism heaped upon consultants, there are times when you need an external expert to infuse new energy, knowledge and understanding. What should you be looking for when you need a consultant?

Honesty. Your first clue that a consultant may be less than truthful is when she exaggerates the abilities of her firm. Be wary of overblown descriptions of capability, capacity and experience. If a consultant does not acknowledge his own limits, how can you expect him to be truthful in all other dealings with you?

You matter most. Your consultant must have an authentic, passionate commitment to your organization and to the greater good. Self-serving consultants might talk a good game, but often they are really in it for themselves first (think sales quotas) and you a close second. This self-centered motivation may not be apparent at first, but over time, it will become a roadblock to your success. One sign of a competing priority is your consultant being afraid to lose your business, so he doesn’t give you a kick in the pants when you need it.

Service integrity. Is the senior consultant who sells you the work the same one who delivers? Often, it’s not, and those junior consultants have limited experience and have to learn as they go. They don’t have fluency in their thinking or use of tools and often are limited to standardized practices that might not fit your needs. The bottom line is that you don’t get what you were promised, such that achieving your goals is more difficult and sometimes impossible.

No template solutions. The best consultants start with gaining a deep understanding of your reality, then develop key principles that apply and work toward applications and solutions that fit for you. Tools are customized and client-centered, and result in sustainable change. Other not-so-great consultants start with their own tools or templates and apply them to create a solution. This one-size-fits-all approach happens most often when you have a junior consultant delivering what a senior person promised. While they may want to be more customer-centric, they don’t have the capabilities.

Strengthen, not supplant, the organizational leadership. A high-powered, forceful consultant might step in to lead and bring short-term results; However, in the mid- and long-range, this may deeply damage the organization’s leadership capability. A good consultant doesn’t replace or undermine the organization’s leaders. She builds upon the strengths that are inherent in the leadership and helps them make step-change in their performance, results and impact.

Sensitivity to privileged access. Consultants have the ear of senior leaders and frequently have more access to them than many others within the organization. A good consultant is extremely sensitive to this perception and the reality that he can be highly influential. The great consultant always puts the needs of the organization first and manages his communication accordingly; she does not engage in gossip, share information that is confidential or in other ways undermine the greater good.

The mere mention of a “consultant” can often cause leaders to shudder. That should be fair warning to all of us who work in partnership with leaders. Humanergy is extremely thankful for the trust and confidence our clients have in us. Or maybe they just like us for another reason. “Consultants have credibility because they are not dumb enough to work at your company” (Scott Adams, cartoonist). We don’t really agree with Mr. Adams’ perspective. Your company has plenty of smart people who sometimes need the support of a consultant who can not only sell you services but provide an amazing return on your investment.

Want more information on this or other topics? Contact Humanergy to find out more.

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Are you a problem finder?

big-eyeProblem finders have gotten a bad rap. Maybe we assume that someone who points out problems is paranoid, looking to get others in trouble or just a pain in the butt.

When is unearthing difficulties not only a good thing, but necessary?

When the problem is potentially catastrophic (or at least very serious). History is full of tragedies that might have been averted. One is profiled in What You Don’t Know: How Great Leaders Prevent Problems Before They Happen by Michael A. Roberto. The collapse of overhead walkways at a Kansas City Hyatt Regency might have been prevented if numerous warnings had been taken seriously during the construction process. If you’re seeing disaster as a possible outcome, speak up. Don’t stop until resolution is achieved.

When you’re ready and able to help find a solution. Problem finders must be solution finders too. Ideally, find and address the root causes. At the minimum, offer ideas to mitigate the negative effects of the problem.

When the problem is also an opportunity. Some setbacks are clouds with silver linings. For example, the current recession has its upsides – some goods and services are cheaper than ever. Be the one who discovers the potential within a problem.

When is finding problems bad?

When you’re venting. Don’t unearth problems if you have no intention of doing anything about them.

When you really are out to get someone. The problem might be legitimate, but if you’re taking pleasure in bringing down the other guy, that’s not good. Reexamine your motives.

When it’s all you can do. Remember that when the only tool you have is a hammer, everything looks like a nail. So if all you do is find problems, maybe it’s because you are no good at resolving them. Tackling issues requires creativity, intelligence and commitment. Gauge your skills and find ways to boost your capabilities.

Problem finders are important assets in any organization. The best ones combine problem identification with the right actions to produce  long-term fixes. The other ones? They really can be pains in the butt.

Have a question or want some input from Humanergy about this topic? Contact us and we’ll get right back to you!


How and who do you influence?

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There’s been a lot of buzz about influence as an essential component of leadership. It’s true that with the exception of tyrants and dictators, leaders make most of their impact through influencing others. Clearly, the ability to get things done indirectly -  not just telling people what to do – is a fundamental necessity of leadership.

Influence is powerful and can be an instrument for good or evil. What core competencies are required to have a positive influence on those around you – and thus propel your organization toward its goals?

Authenticity required. People who influence others are genuine and don’t try to be something they are not. We can spot a fake a mile away. Influential people aren’t perfect; they just don’t try to hide their flaws or make excuses for their mistakes.

Focus on the greater good. They’re not totally selfless, but influential people  seek positive outcomes for others. They seek solutions that work for all individuals and groups involved, and they do what they can to foster other people’s development.

Act with courage and judgment. Influential people know when to speak up, change direction and push forward. They also know their limits (in skills, experience and influence) and when they can and cannot take risks.

Be humble. Quiet humility trumps ego-driven boastfulness every time. Influential people are confident, and also allow themselves to be vulnerable and less-than-all-knowing. They’re eager to learn from others.

Who influences you? By examining the character and actions of people who have impacted you positively, you’ll gain an understanding of what it takes to influence others. You’ll also realize that some of the most influential people don’t hold positions of formal authority. Even if you aren’t the boss, you may be influencing others.

Core competencies for influential leadership aren’t enough. There are some strategies that you can employ to increase the effectiveness of your influence. Stay tuned for a future post.

Have a question or want some input from Humanergy about this topic? Contact us and we’ll get right back to you!