Strategy. Innovation. Brand.

Leadership

Sending A Memo To Your Future Self

Memo to self...

Memo to self…

We know a lot about the future. We can’t predict it precisely but we can often see the general contours of what’s coming. With a little imagination, we can prepare for it. We just need a structure to hang our imagination on.

As an example, let’s take organizations that are undergoing rapid and/or stressful change. We know a lot about such organizations. We know, for instance, that:

  • Communication suffers – people are distracted and don’t listen well. Bain estimates that only 20% of the information communicated actually gets through. Attention spans get shorter than ever. Tip: don’t give long speeches.
  • Memory becomes less accurate – stress affects memory in odd ways. Even in normal times, different people remember the same event in different ways. It gets worse in stressed out organizations.
  • We hear mixed and contradictory messages – change doesn’t happen smoothly across the organization. Some departments move quickly; others move slowly. When we talk to different people, we’ll hear different messages. It’s hard to tell what’s really going on.
  • We jump to conclusions more urgently — as the Heath brothers point out, we jump to conclusions all the time. Stress makes us even more jumpy. We’re anxious to get a solution and don’t take the time to consider the evidence.
  • Trust withers – it’s hard to trust people when we remember things differently, hear different messages, and jump to different conclusions.

I could go on but you get the picture. We also know that organizational change happens in three phases. At least, that’s what the theorists tell us. Here are four different models of the change process (here, here, here, and here). They use different descriptors but all four describe three distinct phases of change. Note that the middle phase is a trough – that’s where the going gets tough.

The trick to preparing for the future is to start imagining it before we get to the trough. Change managers refer to the trough with words like frustration, depression, resistance, and chaos. It’s not a good time for imagining.

So we start the imagination process in Phase 1. We’re still cool, calm, and collected. We can think more or less clearly – especially if we’ve studied critical thinking. We can think about the future dispassionately and plan how we want to behave.

We sit down in groups and discuss the issues we can anticipate in Phases 2 and 3. We know, for instance, that we’re likely to hear contradictory messages. How do we want to behave when we do? What can we do now to outline “best behaviors” for the stress created by contradictory messages? What can we do to ensure that we actually implement the best behaviors? What else might happen in the trough? How do we want to behave when it happens? We talk, discuss, debate, imagine, and agree.

We then write down what we’ve agreed to. In effect, we’re writing a memo from our current selves to our future selves. From our cool, calm, dispassionate selves to our stressed and anxious future selves. We make clearheaded decisions in Phase 1. When we get to Phase 2, we can refer back to our own wisdom to help govern our actions

I call this process Structured Imagination™. What we know about the future gives us the structure. We use the structure to focus our imaginations. We imagine what will happen and how we’ll behave when it does. This prepares us for the hurly burly of change and also vaccinates us against many of the ill effects of the trough.

Structured Imagination is not a perfect process – the future may still throw us a curve every now and then. However, I’ve used the process with multiple clients and they say that they face the future with greater confidence and clarity. That’s pretty good. If you’d like me to do a Structured Imagination workshop with your organization, just drop me a line.

Persuasion, Teens, and Tattoos

ElliotandTWBerlin2014When our son, Elliot, was 17 he decided that he needed to get a Guinness logo tattooed on his ankle. I wasn’t adamantly opposed but I did think that he might tire of wearing a commercial logo before too long. (If he had wanted a Mom Forever tattoo, I might have felt differently).

So how to convince him? I wanted to change his mind, though not his values. Nor did I want to provoke a stormy response that would simply make the situation worse – and actually make him more likely to follow through on his plans.

Ultimately, we had a conversation that went something like this:

Elliot: So, Dad, I’m thinking I should get a Guinness tattoo. It’s a really cool logo. What do you think?

Me: I don’t know. Do you think you’ll like Guinness for the rest of your life?

Elliot: Sure. It’s great. Why wouldn’t I?

Me: Well, you know, tastes change. I mean I thought about getting a tattoo when I was your age… and, looking back on it… I’m kind of glad I didn’t.

Elliot (shocked look): Really? You were going to get a tattoo?! What were you going to get?

Me: I wanted to get a dotted line tattooed around my neck. Right above the line, I’d get the words, “Cut On Dotted Line” tattooed in.

Elliot: (more shock, disgust): Dad, that’s gross.

Me: Oh, come on. Don’t you think it would be cool if I had that tattoo. I could show it to your friends. I bet they’d like it.

Elliot: They always thought you were weird. Now they’d think your gross. It’s yuck factor 12.

Me: Really? So, you don’t want to go to the tattoo parlor together?

Our conversation seemed to help Elliot change his mind. As far as I know, he hasn’t gotten any tattoos, not even Mom Forever. Why? Here are some thoughts:

It’s about trust, not tattoos – I don’t think that Elliot cared that much about the tattoo itself. He was actually running a Mom/Dad test. He wanted to know if we trusted him to make the decision on his own. We did trust him and didn’t take the decision out of his hands. That’s a big deal when you’re 17. It can also be a big deal for people in your company. They want to know that you trust them. Sometimes they’ll put it to a test. As much as possible, let them make the choice. Just counsel them on how to make it wisely.

It’s about judo — we didn’t try to stop Elliot, we merely tried to change his direction. That’s a useful guideline in most organizations.

It’s about imagining the future – like most teens, Elliot was focused on the present and near future. He couldn’t imagine 30 years into the future – except by looking at me. If he thought I would look gross with a tattoo, he could imagine that he would, too. The same is true of many companies. We make decisions based on near-term projections. It’s hard to imagine the farther future. But there are ways to do it. Ask your team to imagine what the world will look like in 30 years. You could start by reminding them how much it’s changed since 1985.

It’s about sharing – did I really think about getting a Cut On Dotted Line tattoo? Of course, I did. But my father sat me down and talked a little wisdom into my head. I just passed it on.

What are you going to pass on?

When Uncertainty Is Certain

It's just not clear!

It’s just not clear!

In yesterday’s post, I discussed the difference between uncertainty and risk and how the distinction can give us better analytic tools. Today, let’s focus on what to do when uncertainty is certain and you just don’t know how “the world will behave tomorrow.” Here are some tips:

Revisit your assumptions – you assume things because you want to simplify the world and convert uncertainty into risk. If you assume that there are three possible outcomes, for instance, you can start assigning probabilities to each and treat them as risks. But what if there’s a fourth outcome that you assumed just couldn’t happen? That’s where the problem lies. It helps to list your assumptions and share them with others. Do they agree that your assumptions cover all the bases?

Study history – A few days ago I read an article about the coal industry in the United States. In 2008 and 2009, many American coal companies assumed that China’s appetite for coal was insatiable. These companies invested heavily in coal production and went bankrupt when their assumption proved wrong. Studying examples like this can help us understand our own assumptions and where our blind spots are.

Slow down – speed is the enemy of good decision-making. Step back, look around, consult with diverse analysts, and maybe even do a little yoga to relax. You won’t make good decisions when you’re hurried and stressed.

Recognize randomness – we love to make up stories to explain why things happened the way they did. Michael Mauboussin calls our desire to explain things an itch that must be scratched. Resist the temptation to scratch it. Recognizing randomness will help you expand your assumptions and deal more effectively with a wide range of possibilities.

Sharpen your observational skills – we jump to conclusions far too often because we don’t pay close attention to indicators and signals in the environment. Observation is a skill like any other – we can practice it and improve it. Here are some tips on how to do just that.

Include observers with fluid intelligence – those of us with some years of experience on our resumé have a lot of crystallized intelligence. We think we know what’s going to happen because we’ve seen it all before. We grow overconfident in our ability to predict the future. It’s a good idea to include on your team people who have more fluid intelligence. They haven’t seen it all before and, therefore, they make fewer assumptions. They don’t know that they don’t know which makes them more acute observers.

Invest in information – Nathan Bennett and James Lemoine summarize the situation in their article on VUCA: “Invest in information – collect, interpret, and share it. This works best in conjunction with structural changes, such as adding information analysis networks, that can reduce ongoing uncertainty.”

Self-Esteem or Self-Control?

Building willpower.

Building willpower.

Here’s a simple cause-and-effect question. Does an increase in self-esteem lead to greater success in life? Or is it the other way round: an increase in success leads to greater self-esteem? It’s one of those tricky questions that can guide – or misguide – our public policy.

Nathaniel Branden did more than anyone else to popularize the idea that improving one’s self-esteem can lead to greater success. Pump up the self-esteem and everything else works better. Branden launched the idea when he published his book, The Psychology of Self-Esteem in 1969. (Branden had been Ayn Rand’s acolyte and lover; he broke with Rand in 1968 and published his new thinking a year later).

Branden’s work seemed to explain a lot and the self-esteem movement grew quickly. Educators – especially at the primary and secondary levels – adopted it enthusiastically. Unfortunately, it didn’t work.

In 2005, Roy Baumeister and his co-authors published a paper titled, “Exploding the Self-Esteem Myth”. The authors studied over 200 research papers and concluded “… self-esteem belongs on the same shelf as miracle diet pills.”

In 2009, Po Bronson and Ashley Merryman published Nurture Shock – New Thinking About Children, which – among many other things – assessed 15,000 studies on self-esteem. They concluded that, “… high self-esteem doesn’t improve grades, reduce ­anti-social behavior, deter alcohol drinking or do much of anything good for kids. In fact, telling kids how smart they are can be counterproductive.”

Self-esteem seems to be yet another thing that we’ve gotten backwards. We’ve confused cause with effect.

So, what’s replacing self-esteem? The emerging consensus focuses on self-control. And one of the authors leading the way is Roy Baumeister. In a recent article in Scientific American, Baumeister writes that, “People with good control over their thought processes, emotions and behaviors not only flourish in school and in their jobs but are also healthier, wealthier and more popular.”

Similarly, David Brooks recently wrote about “The Moral Bucket List” in the New York Times. He notes that there are resumé virtues and eulogy virtues. We all know that eulogy virtues are more important than resumé virtues, but we spend our time developing the latter rather than the former.

Baumeister refers to self-control and willpower. Brooks uses a more traditional moral language and focuses on character. But the concepts overlap extensively. So, how does one build self-control, willpower, and character?

To begin with, Baumeister argues, we need to recognize that willpower is analogous, in many ways, to muscle power. Just as a muscle tires after exertion, so willpower can tire after we exercise it. Baumeister calls it ego depletion – if you use your willpower to resist Temptation X, you’ll have less left over to resist Temptation Y.

We’ve all experienced muscle fatigue from time to time and we can probably grasp the concept of willpower fatigue. But we also know that we can build our muscle strength through exercise. Does the same hold true for willpower? Apparently so.

Baumeister reports on a study that asked students to clean up their language (no cursing) and/or straighten up their posture for a period of two weeks. At the end of the period, researchers tested the students’ self-control ability. They “performed significantly better than a control group.”

Moving into Brooks’ territory, Baumeister goes on to say, “It has occurred to us from these studies that the Victorian notion of “building character” seems to have some scientific validity.”

So how does one build character and improve willpower? More on that in upcoming articles.

Just Add Women

You doubt my effectiveness?

You doubt my effectiveness?

Germany is poised to join the 30 Percent Club. Beginning in 2016, women must hold at least 30 percent of board seats at large, public companies. Germany will join other countries like Norway, France, Spain and the Netherlands in mandating female representation on boards of directors.

Will it work? It depends on what the goal is. Norway began the trend in 2006, mandating 40% representation. As The Economist puts it, “…[the] law has not been the disaster some predicted.” Not exactly a ringing endorsement but the magazine suggests that the real benefit may be a change in attitude.

The Financial Times appears a bit more optimistic: “Early analysis appears to show that quotas work and have been highly successful across Europe.” Fortune appears less sanguine, “a close look at the results of these quotas – and of Norway’s in particular, which have been in effect the longest – shows that the results might not be all that their backers intend.” Fast Company is more positive.

The articles I’ve cited here seem to have different views of what success means. If success is defined as:

  • More female representation on boards, then the quotas work.
  • Better financial and stock performance, then the results are decidedly mixed.
  • Fewer layoffs, then the quotas seem to work.

Unfortunately, none of the articles discuss why boards with women might perform better. I’ve found two different reasons in the literature that suggest that women can bring important qualitative differences to board discussions and decisions.

First, women appear to make better decisions about risk, especially under stress. The research comes from Mara Mather and Nicole Lighthall who study the effects of stress on decision-making. They found that stress changes the way we select alternatives and accentuates differences between men and women. Bottom line: “…stress amplifies gender differences in strategies during risky decisions, with males taking more risk and females less risk under stress.”

Why would that be? Writing in the New York Times, Therese Huston argues that it may be empathy. We generally view women as more empathetic than men. Under stress, Huston writes, women “… actually found it easier than usual to empathize and take the other person’s perspective. Just the opposite happened for the stressed men — they became more egocentric.”

The second major reason stems from the impact of women on group behavior and effectiveness. MIT reports that the “tendency to cooperate effectively is linked to the number of women in a group.” In The Atlantic, Derek Thompson writes that group intelligence is similar to general intelligence in an individual. General intelligence suggests that an individual who is good at one thing is likely to be good at other things as well. Similarly, a group that’s good at one thing is likely to be good at other things, too. This is dubbed collective intelligence, which varies from group to group.

What factors contribute to collective intelligence? It’s not the average intelligence of the people in the group. Nor is it the intelligence of the smartest person. Thompson notes that we can rule out many other things as well, including motivation, cohesion, and employee satisfaction.

So what makes a group collectively intelligent? Average social sensitivity. It’s the ability to read between the lines and understand what someone is really saying. Thompson writes, “social sensitivity is a kind of literacy, and it turns out that women are naturally more fluent in the language of tone and faces than the other half of their species.”

So women make better decisions in stressful situations. Boards have to deal with high levels of stress. Women also make groups more effective. Boards, of course, are groups of people trying to reach effective decisions. The debate on women on boards was generally framed by the question: Why would we put women on boards? With our new understanding, the proper question is: why wouldn’t we?

(The New York Times also has an interesting on group effectiveness and female participation. Click here.)

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