Being Honest in Leadership Roles Helps Drive Innovation and Long-Term Success

Being Honest in Leadership Roles Helps Drive Innovation and Long-Term Success

Resources_Swae_Harvard_Business_review_Approaches to Solving Problems in the Workplace

Being honest in Leadership roles helps drive Innovation and long-term Success

Doing Decision-Making Right Without Blinders On

23 May 2022 5 min Read

Resources_Swae_Harvard_Business_review_Approaches to Solving Problems in the Workplace

This is a recap of Harvard Business Review’s @HarvardBizDecisions Without Blinders” study.

Being honest in leadership roles seems as if it’s a no-brainer, but as we well know, that’s hardly the case in many organizations around the globe. It may not always be about “not being honest” but there are still many ways that employees of any company, leader or not, can be more cognizant of information seeking when making decisions.

According to this study’s insight, “Social science research has shown that decision-makers ignore certain critical information without realizing it.” Why? Because of something they’ve coined “bounded awareness,” which means the cognitive blinders that prevent a person from seeing, seeking, using, or sharing highly relevant, easily accessible, and readily perceivable information during the decision-making process. The cause can be anything from hiding information to not asking the harder questions.

“ Most people fail to bring the right information into their conscious awareness at the right time.”

MORE KNOWLEDGE  LESS TIME

The Two Minute Takeaway

KEY TAKEAWAY 1

Failure to see information

People can get hyper-focused on what needs to be done and shut down their senses and awareness of what’s happening around them. The “head down working” concept seems excellent, but this is how critical details are missed. This is a cause for concern, given that people need to be aware of peripheral threats and opportunities while honing in on the job at hand.

According to this research, this has led to massive problems because those who should be aware closed their minds off. This led to the inability to adapt their strategies so that their organizations could thrive. The outcome then becomes a lack of long-term success due to vital mistakes.

KEY TAKEAWAY 2

Failure to seek information

The most worrisome version of this occurs when decision-makers are motivated to favor a particular outcome. A failure to seek information means that critical elements are being methodically “left out,” and there’s a deliberate lack of diligent efforts to uncover the “whole story.” However, some situations are innocent because we don’t know what we don’t know. This is why it’s essential to find what lies beyond our very awareness. Consider the information that addresses the decision required and get all the insight possible.
“Executives must rely on others to streamline the data flow for them, but they must be skeptical of the absence of contradictory evidence: It’s a red flag indicating highly bounded awareness.”
KEY TAKEAWAY 3

Failure to Share Information

Team members frequently fail to share unique information with one another. This is why meetings must have agendas and informational reports from the parties involved in the process of making a decision. Assuming that people will speak up is not, at this time, possible in many workplaces (due to employees not feeling safe to do so, and so much more. We’ve got loads of this kind of research within our resources center here).

KEY TAKEAWAY 4

Failure to Share Information

Although it may be hard to believe, many executives simply disregard accessible and valuable information when they are making an important decision.

Why This Matters

Remote work is here to stay, so the more tips for remote work that leaders can receive, the better, because of lot of these issues are new to many. Again, not everyone has had remote work environments/hybrid models in place before 2020.

There is going to be a split of how people operate in these remote/hybrid models. Some people can adapt easily and find it more rewarding, and then there will be those that have serious issues separating “being at home” and having to actually DO work at home (emphasis on the fact that they aren’t doing work hardly at all).

Asking questions like the ones shown here in these charts could help you get you ahead of the game when it comes to dealing with issues arising now (versus later). And, this is a time to look to your people to get more ideas as to how to ensure your employees don’t overdo it and end up working way too long not getting proper rest or time away from the computer/phone/whatever other device.

This recap references the Harvard Business Review article Decisions Without Blinders
by Max H. Bazerman and Dolly Chugh

Swae is helping organizations across the world to solve today’s problems and create tomorrow’s strategy. From Start-ups to Charities, and Enterprises to DAOs, our clients find that their greatest resource is their people, and Swae is proven to help get the best from the untapped potential within their workforce.

We’d love the chance to show you how Swae can help you find your next winning ideas…

Ready to learn how Swae can help your organization?

More to explore…

Supercharge Your Innovation Process [A Playbook for Transformation Through Innovation]

Supercharge Your Innovation Process [A Playbook for Transformation Through Innovation]

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Supercharge Your Innovation Process [Playbook for Transformation Through Innovation]

20 April 2022 4 min Read

FOFO business leaders not listening

MIT Sloan Management Review Research Recap: A Framework for Innovation in the COVID-19 Era and Beyond. A new playbook can help leaders determine which changes will endure and when to invest more in opportunistic transformation.

MORE KNOWLEDGE  LESS TIME

The Two Minute Takeaway

Now is a time of great innovation, even during great disruption. Times like these require creativity and innovation ideation that lies outside the box.

Innovation has always been a turbulent process of venturing into the unknown, and recent research can guide businesses to better understand how changes made in the past year can help them emerge from the pandemic stronger than before.

Johnathan Cromwell and Blade Kotelly

In this study, Cromwell and Kotelly analyzed a broad range of organizational responses to the coronavirus crisis over the past year through the lens of the latest research on innovation.

Here’s a recap of the innovation playbook:

KEY TAKEAWAY 1

Innovation types

A Identify the core problem or customer need to address. Explore different approaches and problem solve, this creates a culture of exploration.

B But there are situations with emerging products or companies where the core problem or need is difficult to address or identify via data. This research shows that there is another way to innovate by anchoring on the solution (such as a new technology or patent) and then searching for the core problem.

Many businesses have adopted one or both types of innovation but it can be difficult to know which one to use and when.

KEY TAKEAWAY 2

Along with this research, they’ve developed a framework (or a playbook) to help business leaders conduct the analysis on which innovation approach is best. Assessing whether your organization’s response to the pandemic represents the traditional innovation process or the emergent innovation process will help you create sustainable change and make progress by continuously innovating.

See below the company innovation profiles to help you assess where your organization is at with a brief description around each profile.

The Adapter

This quadrant is for businesses that saw temporary changes to demand for products and services they already produced before the pandemic. An example would be the restaurants that created outdoor dining and the successful companies have learned to deliver the same products or services but likely with fewer resources.

The Optimizer

Companies in this profile learned how to reconfigure their resources to satisfy existing customer demand, and must shift their focus to increasing the efficiency by which they deliver these products and services.

The Trendsetter

These companies have developed entirely new products or services that will continue to be in high demand post-pandemic.

The Trailblazer (Emergent Innovation)

Those in this quadrant have used existing resources to solve new problems they had never tackled before.

“Emergent innovation can provide new business opportunities and yield tremendous long-term value, it also presents important challenges for organizations to overcome.”

Why This Matters

One of the good things that has transpired is that companies have been forced in almost every industry to innovate in some regard. Innovation is what drives progress and companies are now being asked to understand the best way to innovate to make changes that are sustainable as well as leverage new opportunities for long-term growth and success. 

Summary and Next Steps

Read the full report to decipher which profile most fits your organization to choose the best ways to drive innovation. 

Read the full MIT Sloan Report

This recap references MIT Sloan Research @MITSloan article:

https://sloanreview.mit.edu/article/a-framework-for-innovation-in-the-covid-19-era-and-beyond

by Blade Kotelly @bladek and Johnathan Cromwell @JohnathanCromwell

Swae is helping organizations across the world to solve today’s problems and create tomorrow’s strategy. From Start-ups to Charities, and Enterprises to DAOs, our clients find that their greatest resource is their people, and Swae is proven to help get the best from the untapped potential within their workforce.

We’d love the chance to show you how Swae can help you find your next winning ideas…

Ready to learn how Swae can help your organization?

More to explore…

Does Your Company Suffer from the Fear of Finding Out (FOFO)

Does Your Company Suffer from the Fear of Finding Out (FOFO)

FOFO

Does Your Company Suffer from the Fear of Finding Out (FOFO)?

8 Minute Read
FOFO business leaders not listening

This cultural and psychological barrier could be stopping your company from uncovering the hidden challenges that could derail you on your track to success

What is FOFO, the Fear of Finding Out?

We’ve all seen the meme of the ostrich with its head in the sand. And I’m sure you can recall someone in your life who behaves this way, not opening that piece of mail or asking the questions they know may bring unfavorable information, shielding themselves to temporarily preserve their ‘comfortable status quo’ or carefully crafted worldview.

The “Ostrich Effect” describes peculiar human behavior where individuals avoid information, they believe may be unpleasant. While there is speculation over who coined the term “ostrich effect” first – either behavioural economist George Loewenstein of Carnegie Mellon University or Israeli economists Dan Galai and Orly Sade (in a 2006 paper about investor behavior) – both used the phenomenon to describe the peculiar human behavior seen with investors and how they chose to stick their heads in the sand during lousy markets, ignoring information presented to them, or interpreting that information in a way that ignores potentially troubling implications.

And now cue today’s “Ostrich Effect”; “FOFO”, prevalent in so many organizations we see. Simply put, it’s the “Fear of Finding Out”, or the selective avoidance of negative information.

Could this cultural and psychological barrier be stopping your company from uncovering the hidden challenges that could derail your track to success?

Strong managers are listeners. Giving your team avenues to share problems and ideas can translate into change that matters

What is FOFO?

They say “out of sight, out of mind” but is that really true?

Similar to the Ostrich Effect, FOFO is the fear of finding out, or simply, the fear of knowing the truth. It is often used in the finance industry to describe customers afraid of opening their accounts due to the fear of poor financial health. According to a recent Barclays Bank study, 37% of Millennials had FOFO about their finances and did not like to check their bank accounts.” (R3 Consulting, Overcoming FOFO)

FOFO is also used in the medical field for those afraid to seek medical treatment and finding out they have a condition. Apparently, ‘Fear of Finding Out’ in the health industry makes up a 33% of conscious reasons why people don’t visit the doctor.

The research around FOFO from the medical industry shows that the ‘Fear of Finding Out’ mostly affects those who have an unhealthy lifestyle, and those who struggle to cope with the knowledge of a life-threatening illness. It can also impact those who do not want to be “pressured’ into making lifestyle changes.”

Fear is the foundation on which ‘Fear of Finding Out’ is built upon, and research shoes there are 3 main pillars:

  • Fear of the initiating action – 45% of women and 37% of men found the difficulty making an appointment a key barrier
  • Fear of the investigative process – 33% of adults who admitted that they had avoided a doctor visit that they deemed necessary citing ‘discomfort with a body examination’ as the primary reason
  • Fear of outcomes and implications – one of the most widely endorsed barriers to consultation in regards to cancer was found to be the ‘worry about what the doctor might find’, which was true for 34% of men and 40% of women. Furthermore, between 12% and 55% of people who undergo testing for HIV fail to return to learn whether they are infected

(Source: Cision)

Whatever the origins of FOFO, we at Swae have observed this phenomenon to be deeply prevalent in decision-makers, and the parallels in our findings hold true across all industries and organization types. What we have found is an apprehension – or sometimes even inability – to hear the truth about the problems that persist in their organization and the associated negative impacts they might have on their company’s organizational health and performance, in order to avoid conflicts or disrupt their status quo.

Everybody knows they exist, they are known but not discussable

MICHAEL BEER

We, at Swae, know organizations thrive and work better when leaders actively acknowledge potentially unpleasant information rather than run from it. We’ve partnered with numerous organizations to correct the detrimental outcomes that have come from simple “pure avoidance.”

To avoid potential disaster and confront FOFO, it is important to first understand where FOFO originates from, and why it’s allowed to persist. It is then possible to open up to the solutions to combat FOFO directly at a systems level in your workforce.
Why do leaders allow FOFO to persist inside organizations?

According to Michael Beer – Professor Emeritus at Harvard Business School and author of “Fit to Compete: Why Honest Conversations About Your Company’s Capabilities are the Key to a Winning Strategy” – there are six reasons why leaders allow FOFO to persist inside organizations.
These ‘“silent killers”, as he calls them include:

  1. Unclear strategy, values, and conflicting priorities.
  2. An ineffective senior team.
  3. Leadership behavior – top-down or laissez-faire (hands off).
  4. Poor coordination across businesses, functions, or geographic regions.
  5. Inadequate leadership/management skills and development in the organization.
  6. Low capacity for honest, collective, and public conversations about external and internal reality.

Number 6, the low capacity for honest, collective, and public conversations about external and internal realities is closely related to how good a company is at making change happen (and stick).

If problems aren’t recognized and realities aren’t faced, then a company doesn’t have a sturdy foundation, and without a sturdy foundation how can you build a solid structure?

It’s not about whether you believe in collective intelligence or not. It’s about if you can afford not to listen to the early warning signs and delay action. Swae helps you avoid expensive mistakes and issues

From our experience at Swae, number 6 is the most important and telling factor because it closely correlates to, and in some cases has a causal relationship with, how good and fast a company is at making meaningful and structural change happen (and making change stick) to improve their situation.

We’ve spent the past 3 years deploying our idea management and decision-making platform into various organizations, cultures, and environments, working with leaders across the Globe. Through this, we’ve observed that FOFO is allowed to persist inside organizations because:

  • Leaders don’t want hear the truth because they don’t want to take responsibility over solving it;
  • Leaders already know the truth and can’t do anything about it (lack of scope or authority); or;
  • Leaders afraid of the negative consequences and potential backlash to them from raising the truth or suggesting solutions to known problems

Furthermore, our research with these leaders and decision-makers have clearly shown that organizations that are more risk-averse, who operate under rigid and multi-tiered hierarchies are the most likely to suffer from FOFO at all layers of decision-making, particularly amongst upper and senior leadership. The characteristics and red-flags that come up time and time again include:

 

  • Disregard for employee voice and/or feedback
  • Tolerance towards a persisting unhealthy culture
  • Resistance towards changing of structure or approach in the face of existential threats (new technologies, trends, cultural expectations, etc.)

What is the cost and risk of allowing problems and FOFO to linger?

Unfortunately, ignorance is not bliss.

FOFO can silently destroy a company before it even knows what’s happening. Leaders typically look at the health of the company when it comes to numbers like revenue and profit, but there are many other factors that fly under the radar. This can include measures like operational or infrastructure issues, the decline in the health of a company’s culture, marketing/sales issues that hinder growth, and more.

FOFO and The Ostrich effect can be a serious drawback to tackling costly problems in organizations. Because it’s so overwhelming to contemplate the severity and complexity and interrelationships of the issues, it’s often easier for decision-makers to just ignore them or reject their importance or downplay information that contradicts their more positive narrative.

Unaddressed FOFO is dangerous, as problems left to linger means organizations are actively eroding their foundation

How can you eliminate FOFO?

Now here’s an important question for you…

If you’ve read the above and still feel comfortable selectively avoiding hard realities and prefer not to embrace the ignorance is bliss mentality, then the next section is not for you.

But, if you want to confront the realities head on, then read on:

At the root of FOFO is the fear of having uncomfortable discussions and possibly constructive but tense disagreements about the realities that confront the organization. FOFO is about confronting the elephants in the room, and in some cases, shining a light on the real truth often to those with authority who may not want to hear it. The fears of doing this are real – the act of speaking up may have ripple effects and consequences on your standing, autonomy, and access to resources.

But, not speaking up usually means that you are prolonging the inevitable. More often than not, silence means that you’re risking your own future, your company’s future, and the future of colleagues you now call friends within your organization as a whole.

To tackle FOFO head on, you must value the potential positive outcomes and solutions that you might reveal more than the discomfort of the process of revealing the challenges. The positive consequences and results must outweigh both the discomfort of raising the issue and the pain of carrying around unresolved truths for a never ending period of time. That’s a heavy burden to carry.

In a world of empty promises, manipulation, and deception, a true leader cares for the well-being of others; she shoes commitment to advancing the best interests of those around her…Ultimately, it’s this kind of love that defines the best CEOs on the planet.”

Marcel Schwantes
Founder of Leadership from the Core

How Swae can help?

The potentially devastating consequences of FOFO can be neutralized when leaders learn how to face the truth, even when it hurts.

Swae was designed to help leaders and employees create a “speak up” culture for everyone’s benefit, without making significant structural changes to how they manage the organization.

By implementing a technology platform like Swae, this enables an organization to source insights and ideas from more people more often, leaders can easily tap into the hidden problems that people are facing and open the funnel to discover winning and decision-ready solutions for solving issues — from the bottom-up.

Simply put, when more voices are heard, leaders see and know more, and they become empowered with new insights consistently. It’s becoming quite widely accepted that our best ideas and solutions can come from an organization’s people (regardless of hierarchy), the same few people don’t need to decide the fate of many.

If you feel your company suffers from FOFO, start by implementing any of these solutions above and you can start to correct your course. A path that’s unique for your people and for the purpose of your company.

If you want to overcome your FOFO, Swae is a turnkey solution that can give your employees a safe and streamlined way to express their feelings, raise problems and give you their best ideas. 

We’d love to hear from you!

As we continue to dig deeper and deeper into this subject matter, we find FOFO is something that resonates with so many of our clients, colleagues and friends. If you find the above all too familiar, we would love to chat and learn more about your specific experience and would love 10 minutes of your time to chat.

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