Saturday 25 April 2015

Action Hero; Decision Zero!

Some time back I was part of a leadership assessment for 20 young professionals of an organisation in the experience range of 8-12 years. They were all accomplished engineers, consistent best performers and were shortlisted from 200 probable candidates. It was like performing a second assessment test on those who already cracked the IIT or IIM entrance exams and won their admission on merits. Common sense logic would suggest that if these are already the chosen few brilliant professionals a further assessment is of little use. Unfortunately life is testing us repeatedly almost every day against new standards.

Coming back to the context of the leadership assessment, one dimension on which majority of these brilliant professionals scored very low was being ‘decisive’. This puzzled me a bit as some of these people I knew for quite some time and they were highly appreciated within the organization and by the clients. Therefore, I did not want to believe the test scores without further validation. I held personal meetings with these professionals and checked if this finding is in fact true in their real professional context. All those who had low scores on being ‘decisive’ agreed that they indeed make few decisions at work. When I checked whether they make decisions in their personal lives all of them said they do make decisions quite frequently and often quickly. That appeared a paradox.

Why do mid level managers in organisations hesitate to take decisions?

a.      In some organizations decisions are taken at significantly higher levels and hence the mid level managers have fewer opportunities to take decision. The authorization protocol would clearly indicate a few senior positions to say YES or NO. The rest of the organisation can make proposals, recommendations or present data.

b.      It could also be that in some organisations the decision support systems and critical data do not flow to the mid and lower levels. A publicly listed company shares a lot of data with the public, some of them before the event and many of them post facto. However, even in such companies most of the mid level managers get to know much of such information along with the public and seldom ahead of them, notwithstanding the grapevine. Unlisted companies may not be any better.

c.       Many companies promote a ‘first time right’ policy which prohibits anyone to attempt a possible decision with some probability of failure. Mid managers dread failure and they delegate all decisions upward. Risk mitigation and compliance orientation drive organisations to restrict decision levels.

d.      Often decision making in companies involve multiple rounds of consultations and the more the number of people involved the longer the decision cycle. Therefore, mid managers who want a quick decision jump the queue and go straight to the top boss or his trusted lieutenant so that he gets a decision fast and he is not accountable for any negative consequences. Cool and nice!

e.      Performance appraisals often tend to showcase ‘what is done’ or an ‘activity list’ rather than how one’s decisions impacted positive outcomes. Outcomes could be intangible and not always instant. Hence, most employees stay in ‘activity-obsession’. People seen as ‘doing things’ and ‘available’ are appreciated better and rated higher.

The paradox vanishes. Decisions in private life often involve fewer people, fewer rules and the reward or punishment accrues to oneself. In movies we like action heroes. In organizations those who take decisions often travel to the top faster. It would be in the interest of the managers to climb the decision tree regardless of the organisational environment. Taking decisions is taking risks and being accountable. Good decisions demand thinking and choosing from competing or even friendly options. Organisations take time to change; individuals can choose a fast track.

         “Whenever you see a successful business, someone once made a courageous decision.”                                                               - Peter F. Drucker                                                  


Monday 6 April 2015

Beautifully Unequal World

Many customers derive extra satisfaction in discounts and marginal gains from bargains. My friend who worked as a sales person for a clothing company in New Delhi told me this incident happened many years ago. One such customer was looking at a pair of shorts which used to be called ‘half pants’ colloquially. Of course, these were on sale and the price tag was quite attractive with probably about 50% less than the normal sale price. Yet the customer wanted further discounts which my friend politely declined. The customer quickly made a comparison with the price of trousers lying on the adjacent table and found that the price of a trouser made of similar material is hardly 20% higher than the price of the half pants and argued that the price of the shorts should be 50% of the trousers. At this point my friend realized that there was no point arguing with this customer. He told the gentleman, ‘Sir, absolutely no problem, but would you mind picking up the bottom half?’ The customer walked away with a grin.

I am not concerned about the economic behavior behind this true story. Who doesn't want to maximize benefit from an economic transaction? The utopia of equality is a more relevant concept behind human transactions.

‘Two equal halves’ is a pure mathematical concept. In real life there are no equal halves. When we consider two things as equal there is lot of tension, confusion and often conflict. A lot of arguments and conflicts happen over the concept of equality. Many people think that all human beings are equal. Really? Everyone came to the world to be unequal or in other words, unique. Accepting every other person as unique is much better than a lot of slogans for equality. The concept of equality may even arise from selfishness-thinking that there cannot be anyone better than me or there should not be anyone lesser than me! Can there be a more arrogant position than this?

How do you recognize the better half in your choices? Are you ready to pay a premium for the better half? Or do you doggedly fight for equal price for both halves? How does this manifest in the workplace? Will equal opportunity make everyone perform at the same level? Will treating everyone the same way lead to same output from everyone?
   
Respect for every individual is a good principle for nations, societies and organizations. True respect usually doesn't come from treating every one equal. Instead treating every other person as uniquely talented or differently endowed is a more potent reason to respect others. If the other person is exactly equal to me what is the reason for admiration? I admire the other person because he or she is more than equal to me.

Some of us believe in the myth that there was a time in the past when everyone was equal. That is not supported by empirical data. Some others advocate an equal world some time in future. That is a nice and very boring dream. The French Revolution did not make everyone equal; nor will the Aam Aadmi Party make everyone equal. Instead everyone working to achieve one's own potential and everyone supporting everyone else in this pursuit may create a beautifully unequal world for all.  

Aristotle said: ‘The worst form of inequality is to try to make unequal things equal.’