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The CEO Myth – Being The Ultimate Decision Maker

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A common misperception about the CEO’s role is that they are the ultimate decision-maker, and that the prize of getting this coveted position is that you now get to make all the decisions. In reality,  the CEO’s role is much more about shaping rather than making decisions.

There’s a fundamental reason for this subtle difference. Organisations face countless decisions daily, and it would be impossible for a CEO to be involved in each one. Attempting to do so would slow down the entire operation and could even bring it to a standstill. As a result, rather than making decisions directly, the proper role of the CEO is to enable others to make decisions the CEO can support. Of course, there are times when the CEO must be the ultimate decision-maker, but the CEO’s approach should be inspired by Occam’s razor: The fewer decisions the CEO can make, the better.

CEOs have several tools at their disposal to shape decisions in their organisations. Some are at the level of the organisation as a whole. CEOs can shape decisions by aligning everyone around a shared purpose, articulating priorities, and setting goals. Decisions are also shaped by developing a clear strategy, adopting an organisation structure that allows for the proper distribution of responsibilities, and fostering a strong culture. A clear performance measurement and reward system can also help.

Even as they build the broader context that shapes decisions across the organisation, CEOs cannot step away from decision-making entirely. Indeed, they must choose where and how they personally engage in decision-making.

The decision-making landscape in any organisation is vast. A useful map is to think of categories of decisions on one axis (e.g., strategy, structure, culture, people, products, investments, etc.) and the organisational level at which decisions need to be made on the other axis (e.g., corporate, business unit, region, function, subsidiary, plant, office, etc.). CEOs must choose how to personally engage to shape decisions across this entire landscape. This involves, at each intersection of category and level, determining the extent to which they are involved in designing the decision-making process, choosing when to participate directly, monitoring the work, and creating clarity around when and by whom a decision will be made. This framework is based on the 25 years I have spent alongside colleagues teaching CEO workshops at Harvard Business School, as well as my own experience leading organisations and advising CEOs as a board member and advisor.

Designing the Process

CEOs can influence any decision by thoughtfully designing the decision-making process. This involves setting parameters such as who is to be involved, what questions to answer, what kinds of information to gather, what guardrails to keep in mind, how many meetings to have, the structure of the discussions, and what gets decided when and by whom. The CEO may play a major role in designing some decision-making processes and a lighter role in others.

For example, a CEO we studied was heavily involved in designing the process for making key portfolio choices, such as keeping, divesting, and acquiring businesses. Working with his direct reports and a small group of high-potential managers, he defined the metrics against which to evaluate each business, chose a set of rivals to benchmark performance against, set a time frame of three months to complete the analysis, and established weekly three-hour meetings during which the team reviewed progress and agreed on next steps.

The same CEO delegated to his CFO and CHRO the task of preparing recommendations for structural changes that would result in cost-reduction goals in shared services such as HR, IT, and finance. Other than specifying that he wanted the two to work together to identify cost savings exceeding 15%, he gave them full leeway to design a process to generate these recommendations.

These two examples illustrate the intentionality CEOs must bring to these design choices. Depending on the specific matter they want to influence, they must choose the various parameters (e.g., who to task, what goals/metrics to set, what time frame to establish, and what expectations to create), and identify which issues they want to personally be involved in, and which others they are happy to delegate and trust others to make.

Participating in the Process

CEOs must then choose how much they want to participate at various stages of the decision-making process. The CEO may be active at every step, check in from time to time, or get engaged at a specific point, such as the beginning, middle, or end.

CEOs’ choices about when and how to personally step into decision-making situations often reflects their desire to make their teams active participants in the decision, as a way to increase buy-in. If you watch CEOs in these settings, what’s striking is how many of their actions are aimed at guiding others toward a decision, instead of overtly influencing the decision in a way that may feel heavy-handed. They provide this guidance by challenging the process, raising the bar, asking tough questions, and demanding better answers. Even though the CEOs are involved, they are careful to leave actual decision-making to their colleagues.

For example, the CEO who designed the strategic portfolio review process attended five of the 12 meetings. He attended the first two to set the right tone and direction. He then allowed the team to do its homework. He did one check-in in the middle of the process to ensure things were on track. Finally, he re-engaged by attending the last two meetings when the group presented its recommendations.

In contrast, on the cost-cutting workstream, he attended no meetings and instead asked the CFO and CHRO to brief him on their progress and to seek his input whenever they felt it would be helpful.

The level of personal participation CEOs choose in situations such as these reflect how tightly they want to manage each process, the importance they attach to the decision, the level of confidence they have in the leaders involved in each case, and how costly they feel it would be to intervene and change course as the process unfolds.

Monitoring the Work

CEOs must also choose how much they want to be personally engaged in monitoring the work. Providing feedback as any decision-making process unfolds is a vital element of the CEO’s role. In the case of periodic reviews, CEOs describe themselves as monitors who must check to ensure things are on track and that the organisation is executing as planned. Sometimes, CEOs describe their role as a coach, educating people, providing constructive feedback, and helping improve performance while doing little to actually influence the final decision under discussion.

By monitoring decision-making processes personally, CEOs set standards, encourage alignment, and enable course correction. In some cases, the CEO may meet regularly with the team to monitor progress. In others, they may only check in occasionally to ensure things are on track.

A key choice while monitoring decision-making processes is the altitude, or level of granularity, at which the CEO wants to engage. CEOs can choose to engage at a high level or dig deeply into the details. Some CEOs set these altitude expectations in advance; others choose them strategically in real time to keep the team alert and prepared to engage with them at any altitude they choose. Although the team may experience this as inconsistency or unpredictability, imagine yourself in this position: Might you prepare more thoroughly for a series of meetings if you know the CEO might ask questions that range from the big picture to the most nitty-gritty details?

Making the Decision

For some matters, such as setting the overall performance targets of the company, the CEO may be the principal decision-maker, choosing to make the final call after a set of recommendations have been presented. In other situations, the CEO may choose to consult with a small group of key executives and board members, as in the case of M&A deals, or while selecting top management team members. In other situations, such as formulating a business unit’s strategy, the CEO may let others, such as the business unit heads, make decisions, and then endorse them. In yet other circumstances, such as deciding which R&D projects the company should pursue, although the CEO may participate at some stage to better understand the choices under consideration, the CEO may delegate the final decision to a senior manager such as the head of R&D, because the CEO may lack the technical expertise to weigh in.

Factors to Consider in Choosing How Much to be Engaged

CEOs often use various criteria to determine the level of personal involvement they have across the decision-making landscape. These include the decision’s strategic importance: Does it matter for the CEO’s key priorities and have long-term implications for the company’s direction, vision, or mission? High-level strategy decisions almost always warrant the CEO’s direct engagement. Other factors that may influence the CEO’s involvement include the decision’s impact on the company’s financial health, either in terms of revenue, costs, or profitability; or the risk associated with the decision, either in terms of potential loss, legal implications, or harm to the company’s reputation. If a decision involves the allocation or reallocation of significant resources — like capital investments or human resources — it may warrant CEO oversight.

CEOs may also factor the extent to which the decision impacts the company’s core values and ethics. Any decision that could challenge or redefine these values require greater CEO involvement. Decisions that set a precedent for future company actions or policies often also require CEO engagement.

If a decision spans across multiple segments of the organisation or has the potential to lead to significant internal disagreement or conflict, the CEO should get more involved and consider making the final call. Decisions that will notably impact key stakeholders — including shareholders, major customers, regulators — might also draw the CEO’s attention. Urgent decisions, especially those that must be made rapidly to address immediate challenges or capitalise on opportunities, may warrant the CEO’s prompt attention.

Although CEOs tend to focus on these more significant decisions, some CEOs wisely note that they find benefit from periodically involving themselves directly in decision-making on smaller issues or at lower levels in the organisation. For example, the CEO may engage with some decisions far removed from the top, such as the strategy for a fledgling business unit or the design of an executive development program, because they want to signal its importance to the company. These symbolic opportunities for engagement can be just as important as the more substantive matters that warrant the CEO’s involvement.

Decision-making isn’t the only activity in which a CEO must make conscious choices about the right level of personal involvement. CEOs must be strategic about when to personally engage with customers, investors, regulators, the media, and other stakeholders. They must decide which senior roles require an interview with the CEO as part of the hiring process. They must decide when and how often to engage with individual directors in one-on-one conversations between full board meetings. Making the right choices about the level of personal involvement is key to a CEO’s overall effectiveness.

In conclusion, the role of the CEO is not about making every decision, but rather about creating an environment in which decisions are made effectively. By shaping decisions rather than making them, CEOs empower their teams, foster agility, and drive the organisation toward success. The CEO is more of a conductor, orchestrating the many parts to produce harmonious results, than a dictator issuing commands. It’s a shift in perspective that is required when leaders assume this pinnacle position and can be transformative for many leaders and organisations alike.

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  Take the first step towards transforming your remote work culture by requesting a free demo assessment from Great People Inside.        

Our team of experts will guide you through the assessment process, showcasing the effectiveness and value of our tailored solutions for your organization.        

During the demo, you will have the opportunity to explore the comprehensive features and functionalities of our psychometric assessments, experiencing firsthand how they can empower your HR strategies and drive positive outcomes. From personality assessments to cognitive abilities and team dynamics evaluations, our assessments provide valuable insights to enhance talent management and foster inclusive remote work environments.        

Don’t miss out on this opportunity to test the power of unbiased HR solutions. Request your free demo assessment from Great People Inside today and embark on a journey of fair and effective talent management in the remote work era.        

Together, we can unlock the true potential of your remote teams and achieve remarkable success. Request a Free Demo Assessment.        

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Sources:

https://aaronhall.com/insights/debunking-ceo-myths-a-successful-start-sets-the-tone/
https://www.forbes.com/sites/markmurphy/2023/04/18/this-ceo-has-a-better-rule-for-making-faster-decisions/
https://www.bbc.com/worklife/article/20170803-busting-the-myths-of-successful-ceos

When Should You Discuss A Problem With HR?

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Working in a toxic environment can rapidly erode your feelings about your job. Just dragging yourself to the office every day can fill you with dread. And evaluating whether to speak up to HR about the toxicity — How much should you say? — can be incredibly intimidating.

We know this from firsthand experience. A few years ago, we were asked to analyse and assess what seemed like an edgy, dynamic startup. After three weeks we realised we had unwittingly joined a team trying to navigate a destructive workplace culture. The team was led by an impossible-to-please micromanager with an explosive temper. The office environment was fraught and tensions were always running high. The organisation didn’t have an HR leader, or any other senior leaders, so people didn’t know where to turn for help. It took us 18 months to start changing mentalities and toxic work habits.

To this day, we help professionals solve workplace challenges that can feel insurmountable. Toxic norms and cultures are among the hardest issues to deal with, and can make people question their values and competence, and even wonder if quitting is their only option. If you’re feeling similarly, you aren’t alone — study after study shows that these kinds of cultures drive attrition. Other people make or break our experiences at work.

Toxic Versus Irritating

For someone to be considered “toxic,” they can’t just be annoying or unpleasant. We’ve all had colleagues or bosses who we found irritating or didn’t get along with, but that doesn’t necessarily make them toxic. To be toxic, a person or situation must be outside the bounds of normal workplace behaviour. A colleague whose work style and preferences regularly conflict with your own isn’t necessarily toxic. A boss who actively undermines your career progression or a leadership team that encourages cutthroat competition between departments, on the other hand, could qualify as toxic.

This distinction is important because if you go to HR about an issue that is more annoying than toxic, they may be happy to serve as a sounding board or to offer advice — but they’ll approach it far differently than they would something truly toxic. From an HR perspective, disagreements, irritations, or isolated incidents rarely warrant escalation. If there is ongoing friction due to conflicting work styles and personalities, HR will probably advise that you and your coworker find a way to discuss and resolve the challenges. You may receive support from HR on how to have the conversation, with an emphasis on working together to find a solution. For personal support, however, I encourage you to talk to someone you trust outside of your organisation. A mentor, former boss, therapist, or career coach can be a sounding board and an objective partner to help you clarify your next steps.

You may be considering going to HR about a toxic situation at your job. If possible, you should discuss the situation with your manager first to get their input and counsel. HR will most likely ask if you’ve gone to your boss for help, so it’s a good idea to do that first. However, if your manager is contributing to the toxic environment, you should talk to a senior leader you trust to receive an objective perspective and guidance. And if you are experiencing a situation that goes against company policy or could have legal implications, HR should be your first stop.

You may worry that going to HR about a certain person or situation could backfire. Maybe you fear that the toxic person will find out you said something and take action against you. Or maybe you’re nervous that going to HR about a toxic norm in company culture could hurt your career if senior leaders hear about it. These are normal fears, and before you do anything, it’s worth thinking carefully about what you want to do and make sure you understand the possible outcomes.

What to Consider Before Going to HR

As you weigh the pros and cons of speaking to HR, here are three questions to help assess your options.

1. Have I documented what happened?

If you plan to report toxicity to HR, you will need detailed records to clearly outline your claims. Make sure to document the following:

  • What was said or done
  • The date and time of the incidents
  • If there were any witnesses

For example, your record may state: “On Tuesday, July 11, at approximately 12:30 p.m. ET, I heard [insert name] use the following language [insert exact words] within our weekly Webex team meeting. The following people were present: [insert names].”

In addition to documenting any verbal exchanges or physical interactions, it’s important to also have available text messages, emails, photographs, or any other relevant evidence of what happened. Employment lawyers recommend keeping your records at home, not at work or on your company devices. If your employment status changes in the future, you will lose access to your work computer and the emails or records may be deleted.

Documenting the details in advance allows you to provide a full account to HR and specific feedback when needed. A detailed record will also give you the opportunity to cross-reference what you’ve documented against company policies. Finally, since many toxic situations can bring up strong emotions, especially while they’re happening, documenting what occurred will ensure you have a clear, fact-based record to refer to later.

2. What’s my objective?

By the time you decide you need to talk to HR, the toxic situation may feel like it’s becoming untenable. I encourage you to identify your overarching objective in speaking up.

In other words, be clear on what you hope to accomplish. It could be that you need HR to help resolve the issue. For example, the person who is instigating a toxic situation may need professional development training or coaching to address their behaviour. You may also be hoping to bring some accountability to their actions. Or, if there’s an ongoing issue and previous interventions have failed, HR may work with the relevant supervisors to create a performance improvement plan. Clarifying your overarching objective before you act allows you to consider the implications of the potential outcomes, ranging from the best possible response to a dismissive reaction.

Remember, too, that it’s important to acknowledge the remit of the HR team, which is to serve the best interest of the employer. As an employee, any expectations that an HR person will become your primary advocate are unrealistic. This is not personal; it’s just the nature of how organisations operate.

3. Is what I’m experiencing illegal?

Finally, before going to HR, consider whether the toxic behaviour you’re experiencing is illegal.

Dealing with toxic behaviour at work — whether it’s related to harassment, discrimination, ethical concerns, safety infringements, or retaliation — can be deeply distressing. HR departments have a responsibility to ensure that companies adhere to employment laws and regulations. An employer also has a legal obligation to investigate any good-faith complaint of harassment; discrimination based on race, sex, religion, disability, or other protected status; or retaliation for reporting an issue.

If you are unsure if what you are experiencing is illegal, seek out professional counsel. An employment lawyer can answer your questions based on the applicable laws and regulations, assess the evidence, and determine the merits of your claim. If you do have a case against your employer, an attorney can explain the legal process and advise you on how to navigate your interactions with HR.

On the other hand, if what you’re experiencing isn’t illegal but is toxic, I encourage you to explore all the potential options you can pursue that align with the objective you identified. To do this, start by considering whether additional stakeholders might be able to assist. Questions to consider include: Is anyone else impacted by the toxic behaviour? Is my supervisor already aware of it? Are other contingent factors contributing to what I’m experiencing? You may be able to seek counsel from additional stakeholders before instigating a conversation with HR.

CURIOUS ABOUT THE IMPACT OF OUR UNBIASED HR SOLUTIONS?

Take the first step towards transforming your remote work culture by requesting a free demo assessment from Great People Inside.

Our team of experts will guide you through the assessment process, showcasing the effectiveness and value of our tailored solutions for your organization.

During the demo, you will have the opportunity to explore the comprehensive features and functionalities of our psychometric assessments, experiencing firsthand how they can empower your HR strategies and drive positive outcomes. From personality assessments to cognitive abilities and team dynamics evaluations, our assessments provide valuable insights to enhance talent management and foster inclusive remote work environments.

Don’t miss out on this opportunity to test the power of unbiased HR solutions. Request your free demo assessment from Great People Inside today and embark on a journey of fair and effective talent management in the remote work era.

Together, we can unlock the true potential of your remote teams and achieve remarkable success.Request a Free Demo Assessment.

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Sources:

https://www.wework.com/ideas/professional-development/creativity-culture/when-to-go-to-hr-for-a-problem
https://www.cbsnews.com/news/when-your-hr-department-is-your-friend/
https://fairygodboss.com/career-topics/when-to-go-to-hr

Burned out Managers Require Help to Recharge

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Chances are managers in your organisation are feeling burned out. Middle managers have felt the squeeze of having to execute strategy from above while coaching and developing their teams below them — often without receiving the same type of development or empowerment from more senior managers. Often under-resourced, they frequently roll up their sleeves to do the work alongside their teams, particularly given higher rates of turnover in the last few years.

Research from McKinsey revealed that some middle managers spend up to two days a week on individual contributor work and a day a week on administrative tasks, in addition to their management responsibilities. Too much work, combined with too little time and resources adds up to scores of exhausted managers, who are almost twice as likely to leave their employer, according to research from Microsoft.

Burned out employees goes well beyond simply being tired or stressed — thus, recovering from it is not a quick fix. It takes time, intention, and organisational support to not only regain a sense of equilibrium, but to also feel energised, engaged, and motivated again.

To be sure, each person’s experience of being burned out will be different, so various approaches to address it will impact them differently. Likewise, there is no silver-bullet antidote. Employing a multi-pronged approach that includes the strategies below will help your managers in their burnout recovery journey.

Recognise

There are two aspects to this strategy. First, recognising and showing concern that an individual is experiencing burnout can help them feel seen, understood, and even cared for. Acknowledging the burnout also puts it on the table so that it can be addressed.

The second aspect is to recognise the manager’s sustained efforts and positive contribution or impact on the business. In a study of more than 12,000 employees, Workhuman and Gallup showed a strong positive correlation between employee recognition and wellbeing, which also led to better business outcomes. Moreover, this recognition can show the individual they are making a difference, especially when their impact might not be as visible to them. This can help them to counter feelings of diminished efficacy, reduce their cynicism or mental distance from the job, and derive more meaning from their work.

“When we take time to recognise people, it not only has a positive impact on them but on ourselves as well,” shares employee appreciation and workplace culture expert Christopher Littlefield. “The act of noticing what is going well, celebrating progress, and sharing the impact of their work helps us generate meaning, hope, and a sense of belonging — all things known to promote wellbeing. This can be as simple as taking five minutes to write a meaningful thank you note, give a quick compliment, or even use reflective recognition.”

Reconnect

Creating opportunities for personal connection (both in-person and virtually) amongst managers as a group can counter feelings of isolation that are common with burnout, particularly for those working remotely. Creating a sense of community, where managers can share their challenges (and successes) with their peers not only facilitates support, but also reduces feelings of isolation that can come with burnout and creates a sense of being “in it together.”

Likewise, connecting one-on-one beyond the work at hand can also be powerful, and may be more meaningful to some. “Picking up the phone to check-in on a colleague can help remind someone that you are there for them,” shared Adam Smiley Poswolsky, a workplace belonging keynote speaker. “Reconnecting with a coworker you haven’t spoken to in a while can provide them with energy and inspiration – especially when they are struggling with stress or burnout.”

Poswolsky added: “A simple act of kindness — like remembering a coworker’s birthday, or buying a colleague their favourite coffee order, makes people feel like they belong. When we provide more time and space for human connection at work, we normalise talking about the full spectrum of human emotions, of which burnout is one of the most common. When we normalize talking about burnout or stress or loneliness, we help people feel less alone, which in turn can help them feel much better.”

Re-assess, Re-prioritise, and Re-distribute Work

When managers are burned out, it’s likely due in large part to an excessive, unrelenting volume of work, and as new priorities emerge, existing projects do not get de-prioritized. Everything has become important and stays on their plate, making the workload unsustainable.

Conduct an audit of what your managers are each working on and what’s consuming most of their time. Identify the top three areas that will make the biggest difference in achieving the organisation’s goals. Focus your managers’ effort on these and de-prioritise the rest. In doing so, determine what can be put on the back burner, what deadlines can be extended, or what can be cancelled altogether. Likewise, re-assess the level of detail or quality needed for certain work products or metrics for success.

As part of this re-evaluation, take time to understand each person’s workload and capacity and re-distribute work, as needed. Moreover, make this a regular practice to help your managers re-assess and manage priorities on an ongoing basis.

While you can’t create more hours in the day, you can make the case to adjust the scope of the work to be commensurate with the resources available (i.e., people, time, and budget) or advocate for more resources, such as budget to hire more people or engage outside contractors to share the workload, even if only temporary to manage a peak period.

Revise Team Agreements

Empower the managers on your team to help solve the problem of burnout by revising agreements about how you all work together. What boundaries can you and the managers on your team agree to respecting? This may include things like not sending evening or weekend emails or avoiding other micro-stresses. Looking for a better way forward together by creating new norms can help create a sense of agency that is often missing in cases of burnout.

As a team, you can decide things like how you will hold each other accountable to your respective commitments, give each other permission to push back or say no, and establish specific non-meeting days to do focused work. Making these types of agreements can reduce wasted time, energy, and frustration, as well as create a sense of empowerment and ownership for their experience going forward.

Regularly Check-In

Touch base one-on-one with your managers on a regular basis, particularly those who have exhibited signs of burnout. Check in to see how they are doing and how you can best support them. Ask them where they are stuck. Make it safe for them to speak up and tell you when they’re feeling overwhelmed so you can discuss how you can make their work less taxing by clearing obstacles or taking things off their plate, as appropriate.

Relax and Reset

While not sufficient alone to recover from burnout, taking a meaningful break from work to decompress is a necessary step to restore your managers’ energy level and help them reset, both mentally and physically. Set the expectation that they use all of their vacation time — it can be easy to put off or skip vacation when there’s so much to do. The reality is, there will always be more to do, so trying to wait until you feel caught up at work is like running a marathon with no finish line.

In addition, by making vacation mandatory, you can help counter any warrior mentality in your organisation’s culture that might be a contributing factor to burnout. This can be done in a staggered way amongst team members to avoid business interruption, or some organisations choose to shut down completely during selected weeks of the year.

Whichever approach you take, give your people permission to completely unplug while they’re away and role model this for your team. Research shows that working during time off (which, sadly, two-thirds of Americans do), reduces intrinsic motivation, which will already be at a low point if the individual is burned out to begin with.

The remedy for feeling burned out is not an instantaneous single solution, nor is it one-size fits all. Using the aforementioned strategies in combination over time will allow you to not only support and recharge your burned-out leaders, but also to keep burnout at bay going forward.

CURIOUS ABOUT THE IMPACT OF OUR UNBIASED HR SOLUTIONS?

Take the first step towards transforming your remote work culture by requesting a free demo assessment from Great People Inside.

Our team of experts will guide you through the assessment process, showcasing the effectiveness and value of our tailored solutions for your organization.

During the demo, you will have the opportunity to explore the comprehensive features and functionalities of our psychometric assessments, experiencing firsthand how they can empower your HR strategies and drive positive outcomes. From personality assessments to cognitive abilities and team dynamics evaluations, our assessments provide valuable insights to enhance talent management and foster inclusive remote work environments.

Don’t miss out on this opportunity to test the power of unbiased HR solutions. Request your free demo assessment from Great People Inside today and embark on a journey of fair and effective talent management in the remote work era.

Together, we can unlock the true potential of your remote teams and achieve remarkable success.Request a Free Demo Assessment.

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Sources:

https://www.limeade.com/resources/blog/how-to-reduce-burnout-in-the-workplace/
https://gradekmba.medium.com/managers-are-burning-out-how-to-help-them-recharge-b969eeaa1786
https://www.bizjournals.com/bizjournals/news/2023/04/10/managers-burned-out-workers-supports-experts.html

Practice Sharing Emotions as a Team

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Today’s tumultuous environment — the pandemic, the economy, war, divisive politics, the changing nature of work, and continued uncertainty — generates emotions in just about everyone. And those emotions undoubtedly have an impact on people’s engagement at work. According to Gallup, employee engagement has dropped over the last several years to 32%, and 17% of employees are actively disengaged.

To address this issue, some organisations are prioritising caring for employees. But despite innumerable well-intended efforts, a Deloitte survey of 1,000 professionals found that companies are missing the mark. The top driver of burnout is a lack of support or recognition from leadership in terms of emotions.

A simple but powerful way to connect with and care for employees is to recognise their emotions — especially negative ones. Research shows that identifying or recognising others’ emotions builds trust. Here’s why recognition is so impactful.

Why Recognition Matters

Positive feedback or recognition makes community members feel valued, reduces power and status differences between them, and may increase everybody’s sense of belonging. Although recognition costs virtually nothing, it’s a tool leaders and organisations underutilise. In a survey of over 20,000 people conducted by Tony Schwartz for Christine’s book, “Mastering Community”, some important data had been found – a mere 42% believed that their manager recognised and appreciated their work, thus impacting employees’ emotions.

When we’re recognised by members of our community, we feel a tighter tie to them. This is also what Schwartz, Founder and CEO of the Energy Project, which focuses on corporate wellness, found (pre-pandemic) when his organisation interviewed heart surgeons and their intensive care nurses at a large, well-known hospital where understaffing, long hours, and burnout were widespread. Schwartz’s team asked dozens of nurses what was the biggest challenge they faced at work. Given the intense demands these nurses face, the team assumed the answer would have something to do with exhaustion or how little time they had to recover and catch their breath. Surprisingly, the nurses said it was insufficient appreciation from the surgeons whose patients they served with such devotion.

Schwartz and his team then went to the surgeons, who were far better compensated than the nurses, but worked under difficult, high-stress conditions. What was their biggest challenge? Again, the team was surprised. The most common answer was a lack of appreciation from the hospital administrators. “I save lives every day, but I sometimes feel like I’m working in a factory,” one surgeon told them, echoing several of his colleagues.

It makes sense that caring cultures matter. Receiving praise releases dopamine, which is associated with well-being and joy, while gratitude gives the giver and receiver a mood boost. With an increase in people feeling disconnected and lonely, recognition is both harder to come by and more necessary because it helps build relationships and improve emotions.

Researchers Sigale Barsade and Olivia O’Neill studied “companionate love” — what they described as “feelings of affection, compassion, caring, and tenderness for others” — at a large, long-term healthcare facility and hospital over the course of 16 months. Compassionate love is manifested by workers “expressing caring and affection towards one another, safeguarding each other’s feelings, and showing tenderness and compassion when things don’t go well.”

Employees who felt caring from colleagues had less emotional exhaustion, less absenteeism, better teamwork, and higher satisfaction. The benefits flowed to patients, who reported more-positive moods, improved quality of life, better health outcomes, and fewer trips to the accident and emergency department. Families reported greater satisfaction and willingness to recommend.

To test whether this was unique to healthcare, the researchers then surveyed 3,201 employees in seven different industries, from financial services to to real estate, and found similar results: Employees who felt free to express care, affection, and compassion for one another were more satisfied with and committed to the organisation.

10 Empathy Exercises

While calls to reduce burnout, implement systemic fixes, and increase retention mount, managers in any industry can implement these 10 strategies immediately to listen deeply for emotions, reflect that understanding, and provide appreciation, connection, and community. These tactics can be used in both in-person and virtual environments, on a regular basis or as needed, in whichever order works for your team.

1.Appreciation round

One person completes the following sentence about a colleague and then tags the next person, or the next person volunteers:

“What I appreciate about you, John, is…”

The more specific and detailed you can be about the behaviour or attribute, the better.

2.Complete-me exercise

Have people complete one of these sentences, either verbally or written:

“Compassion is hardest when…”

“I made a difference yesterday when I…”

“I show up every day because…”

3.Step-in circles

Get everyone together in a circle and ask them to step in when they agree with a statement. After each statement, ask people to step back to the original circle.

Step in if you prefer the beach to the mountains.

Step in if you have not had a chance to exercise in a week … a month … a year.

Step in if you feel like you are not enough some days … most days.

Step in if you worry you are a failure.

Like a funnel, you start superficial, then increase vulnerability. When doing this exercise in a remote environment, ask people to use the hand-raise feature instead of stepping into the circle.

4.Raising your hand

Isolation amplifies shame and guilt — both destructive emotional forces. Knowing that other people can relate to your emotions (by raising your hand in this case) removes that isolation.

Consider the following hypothetical example: A hospital employee notified the wrong family about a patient’s death. The family was devastated. When it was later recognised that the wrong family had been informed, a new family had to be called, a disclosure to the original family had to be made, and a root cause analysis (RCA) was launched.

At the RCA, pain hung heavy in the air as the caregiver described how they felt like a failure, and shame followed, growing heavier with every passing second of silence. Someone asked if anyone in the room could imagine the heartbreak of making a mistake that caused harm to a patient and their loved ones when you’ve dedicated your life to healing others. They were asked to raise their hand if they could. Every hand went up, and the room erupted in tears.

5.The pause

Created by Jonathan Bartels to foster meaning, “The Pause” is a brief spoken recognition followed by 15 to 30 seconds of silence at the bedside to honour the passing of a patient.

However, the practice can be used in any industry. If there’s a workplace accident or shooting, if a colleague or one of their family members pass, or on the anniversary of a loss, make a brief statement about who the person was and their impact, express appreciation for those who cared for the person, and then hold a short, collective silence. These consistent rituals around what matters bind us together.

6.Personal notes

Provide note cards for employees and leaders to use to recognise someone, express gratitude, or acknowledge an emotional event. There is magic in the feel of a card in your hands and the thoughtfulness of a penned note. Remote employees can post their cards or use e-cards.

7.Creative storytelling and gratitude

Many employers read customer, employee, and patient comments or letters about employees at huddles, meetings, and town halls. Even better, ask employees to read the letters aloud. Fill the senses by playing joy-filled recorded customer calls. Ask customers or focus groups to make homemade appreciation videos for staff. Have the executives make some pop-up calls for recognition.

8.Rant exercises

When we’re put in situations that compromise our values, we experience moral distress, which contributes to burnout. Checking in on and identifying what people value helps us expand our capacity for empathy when someone is upset.

Pair people up and ask everyone to think of a frustrating situation at work or in life. Give each pair two minutes to discuss, with the speaker giving a friendly rant about the situation. The rules are that:

No rant should be personal (i.e. about a shared colleague) or inappropriate.

The details will not be shared outside of the room.

The ranting stops when the facilitator’s hand raises.

The second person should listen for what values are at stake for the speaker. For example, if someone feels angry, hurt, and afraid after being shouted at by a customer, they value respect. A person who feels betrayed or hopeless when their organisation says safety is really important, but staffing and training are inadequate — they value integrity. Someone who describes feeling excluded because they weren’t a part of a key executive meeting about their project — they value inclusion.

After two minutes, have the pairs switch roles and then ask everyone what values they heard. The rant allows us to find our collective common ground in the face of strong emotion.

9.Check-ins

Put pictures of different things on a table. For example, we’ve included pictures of a family, the beach, fairy lights, a trail in nature, a labyrinth, a smiling child, a bench in a garden, a sunset with clouds, a storm, and a large dumbbell. Ask everyone to pick one and, in 30 seconds, explain why. People might speak to what they lack, what they enjoy, how they’re feeling (hopeful, heavy, or joyful), or even share a dream. To set an example, you go first.

One-word heart check: “Give me one word that describes how you’re showing up today emotionally.”

Then simply acknowledge the range of emotions people are experiencing.

10.Wow moments

Create fond memories through unexpected “wow” gestures of recognition. For example, after hiring someone, send their family members a thank-you note for being a part of your community and supporting their loved one. Walk long-term employees to their car on their last day. The idea is to make the person feel special in a meaningful way, which will remain in their memory, and might even become the story they tell about your brand for years to come.

Ready to Experience Unbiased HR Solutions?

Great People Inside understands the unique challenges faced by remote workers and teams and has developed a range of customizable psychometric assessments to address these needs.

We believe that by leveraging the power of data-driven insights and objective assessments, companies can eliminate bias and make more informed decisions when it comes to talent acquisition, development, and team optimization. Our remote-ready assessments are specifically designed to cater to the nuances of remote work environments, ensuring accuracy and relevance in evaluating individuals and teams.

Curious about the impact of our unbiased HR solutions?

Take the first step towards transforming your remote work culture by requesting a free demo assessment from Great People Inside.

Our team of experts will guide you through the assessment process, showcasing the effectiveness and value of our tailored solutions for your organization.

During the demo, you will have the opportunity to explore the comprehensive features and functionalities of our psychometric assessments, experiencing firsthand how they can empower your HR strategies and drive positive outcomes. From personality assessments to cognitive abilities and team dynamics evaluations, our assessments provide valuable insights to enhance talent management and foster inclusive remote work environments.

Don’t miss out on this opportunity to test the power of unbiased HR solutions. Request your free demo assessment from Great People Inside today and embark on a journey of fair and effective talent management in the remote work era.

Together, we can unlock the true potential of your remote teams and achieve remarkable success.Request a Free Demo Assessment.

Unmasking Proximity Bias in Remote Work: Shattering the Illusion of Objectivity

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Your Job Is Not Your Whole Identity

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Reducing yourself to any single characteristic, whether it be your title or your job performance, is a deeply damaging act. Thanks to major shifts in the labor market, workers are switching organisations, functions, and even industries much more frequently than past generations. But as our careers take these dramatic leaps, we ourselves are not wholly reinvented. We often bring pieces of our past work experiences with us, making our work selves more like a manuscript than a whiteboard that can be wiped clean with each new role. 

Are you a self-objectifier in your job or career? Ask yourself a few questions, and answer them honestly.

  • Is your job the biggest part of your identity? Is it the way you introduce yourself, or even understand yourself?
  • Do you find yourself sacrificing love relationships for work? Have you forgone romance, friendship, or starting a family because of your career?
  • Do you have trouble imagining being happy if you were to lose your job or career? Does the idea of losing it feel a little like death to you?

If you answered affirmatively to any or all of these, recognise that you will never be satisfied as long as you objectify yourself. Your career or job should be an extension of you, not vice versa. Two practices can help as you reassess your priorities.

1. Get some space

Maybe you have been in an unhealthy relationship or two in your life but only recognised this when you had a break from it, whether voluntary or involuntary. Indeed, this human tendency probably contributes to the fact that most trial separations lead to divorce, especially when they last more than a year. Space provides perspective.

Use this principle in your professional life. To begin with, it should be the main goal of your vacation—to get a break from work and spend time with people you love. As obvious as this may sound, that means taking your vacation, and not working during it at all. Your employer should thank you for doing so.

In religious traditions, rest isn’t just nice to have; it is central to understanding God and ourselves. “For in six days the Lord made heaven and earth, the sea, and all that is in them, and rested on the seventh day,” the Book of Exodus reads. “Therefore the Lord blessed the Sabbath day and made it holy.” If God rests from work, maybe you should too.

Such a practice doesn’t have to be religious, and can be done in a lot of ways besides simply avoiding all work on Saturday or Sunday. For example, you can take a small Sabbath each evening by proscribing work and dedicating all your activity to relationships and leisure.

2. Make friends who don’t see you as a professional object

Many professional self-objectifiers seek out others who admire them solely for their work accomplishments. This is quite natural—it makes you feel good when a person you meet for the first time recognises you for your work. This type of relationship can easily become a barrier to the formation of healthy friendships, which we all need. By self-objectifying in your friendships, you can make it easier for your friends to objectify you.

This is why having friends outside your professional circles is so important. Striking up friendships with people who don’t have any connection to your professional life encourages you to develop out of work interests and virtues, and thus be a fuller person. The way to do this goes hand in hand with recommendation No. 1: Don’t just spend time away from work; spend it with people who have no connection to your work.

Perhaps challenging your own self-objectification makes you feel uneasy. It can freak you out. The reason is simple: We all want to stand out in some way, and working harder than others and being better at our jobs seems a straightforward way to do so. This is a normal human drive, but it can nonetheless lead to destructive ends. There are people that would rather be special than happy.

The great irony is that by trying to be special, we end up reducing ourselves to a single quality, and turning ourselves into cogs in a machine of our own making. Our work is our medium, and it becomes our message. We learn to love the image of our successful selves, not ourselves as we truly are in life. Don’t make this mistake. You are not your job. Take your eyes off the distorted reflection, and have the courage to experience your full life and true self.

Losing a Job That is Your Identity

If your job is your whole identity, losing it can be catastrophic. “But when your personal identity is heavily tied to your job, losing that job-even through no fault of your own, such as in an economic downturn or a restructuring- can seem catastrophic, causing an existential crisis or what the authors of the book Difficult Conversations call an ‘identity quake,’” says Rebecca Zucker of Harvard Business Review.

The Cell Phone in Our Pocket Prevents Work Separation

Like many of us, you may not be able to resist checking emails, chats, or texts, even on vacation. The 24-7 access is so tempting that most can never truly disconnect. Working from home further blurs the line. When our jobs are our identities, we think that we should be doing more of what we love.

But is it possible to be creative and connected to others with a constant work distraction in our pockets? When do we hit burnout? “When you’re overworked, you’re actually less productive,” says author Jeffrey Davis of Psychology Today.  “When you get more sleep, develop a healthier work/life balance, and actually learn how to separate yourself from your work, you will find that you’re capable of not just enjoying more meaningful (and productive) work, but also of creating a more meaningful and well-rounded life.”

The ever-more-volatile state of our world means that plenty of leaps await us in the years ahead. Increasingly, our psychological health and career fulfillment will hinge on our ability to assess and execute transitions without betraying our authentic selves. The VME framework can help you predict how difficult it will be to dislodge incompatible aspects of your lingering identities, or what facets might be worth fighting to keep.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

Request a free demo:

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Sources:

https://hbr.org/2022/11/when-changing-jobs-changes-your-identity
https://www.artemisconsultants.net/what-happens-when-your-job-becomes-your-identity/
https://www.monster.com/career-advice/article/how-to-handle-jobidentity-loss-hot-jobs

Distrust In HR Department And What Can Be Done To Solve It

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Some crisis situations burst on the scene and are in plain view for the world to see. Others can simmer for months or years out of sight, out of mind and under the radar of corporate executives.

The distrust that employees have in their company’s HR staff is an example of a simmering internal crisis that can boil over and scald the image, reputation and credibility of organisations and their leaders.

But before business leaders can address the problem, they need to understand what’s causing it.

‘A Natural Distrust’

Rachel Fiset is the managing partner of law firm Zweiback, Fiset & Coleman. She said, ‘’Employees have traditionally had a natural distrust for human resources because the department generally prioritises the company over the employee.

‘’Human resources will often field complaints by employees — but the actual response to the complaints may look like the company is only working to ensure its own legal compliance in a given situation and not to improve the employee’s working conditions,’’ she noted.

Serving The Bottom Line

HR consultant Claire Brummell observed that, “Many HR departments can be seen to approach employees as little more than a resource to serve the needs of the corporate bottom line, where the needs of the leaders, departments and business are considered and prioritized over that of, and often to the detriment [of], the needs of the employees.

“HR Departments that function from this place of utilising humans as little more than another expendable business resource have already failed their employees and will garner their distrust.”

Insights From Surveys

Two surveys provide these important insights into the trust problem.

Human relations platform Cezanne HR recently surveyed over 1,000 workers at organisations with more than 250 employees in the UK. They found that:

  • Almost half (47%) of employees don’t trust HR to help with conflict resolution.
  • 48% don’t trust HR to make them aware of internal promotion opportunities.
  • More than two in five (45%) of respondents don’t believe HR will act impartially, while 43% believe senior staff members are favoured.

Last year, U.S.-based Zeneefits, an HR, payroll and benefits company, released a report called “Human Resources: Helpful or Horrible?” According to their research:

  • 38% of employee respondents feel HR does not equally enforce company policies for all employees, with 18% of that group believing managers get special treatment.
  • 71% of HR employees in the survey stated that less than 30% of complaints they received in the last 2 years resulted in any disciplinary action. Having less than a third of cases result in disciplinary action led employees to wonder — if they bring complaints forward, will anything even result?

Historical Bias

Lesa Hammond is a 30-year veteran of HR and was the chief human resources officer at three universities. She is now an instructor in the HR certificate program at San Francisco State University and CEO of workplace platform Attaché for Business.

She pointed out that, “Much of the distrust in HR come from an historical bias employees and management hold or a lack of transparency by the HR department. If the leadership of the company, of which HR should be a part, does not have respect for the department, it is not given much power and becomes a bureaucratic bottleneck, rather than a strategic problem solver.

“Employees also lose faith in HR when they come with a problem and it appears it is being held against them or nothing seems to be happening regarding the problem,’’ she commented.

Unequal Treatment Of Co-Workers

Employment attorney Jonathan LaCour, of Employees First Labor Law said many of the cases he handles lead straight back to problems in a company’s human resources department.

“One common reason employees distrust HR is that they see unequal treatment of co-workers due to friendships or connections within the company, or because of someone’s status as a manager. Company handbooks almost always state that human resources policies will be implemented fairly, consistently and impartially. Everyone can see when it’s not,” he observed.

Lack Of Qualifications

LaCour noted that, “Another area where companies create problems for employees and themselves is when they put people in charge of human resources who have no business being there. In one recent case, a man with no experience in human resources was hired to help run the department. He turned out to be an aggressive sexual harasser and cost the company a lot of money.

“In another case, a company with 160 employees made a payroll accountant their human resources manager — for half a day every week. This person had no prior experience in anything HR related and was impossible for employees to get hold of. And when they handed out advice, it was entirely ignorant of applicable law,” he recalled.

Visibility

Sue Lingard, marketing director of Cezanne HR said, “HR teams have to get out and get in front of employees—and do it on a regular basis. The research found that the better-known they are, the higher the level of trust, and that’s good for the way the whole business works together.

“Start with the onboarding processes, but then ensure there are other opportunities where HR can be seen by more people. Perhaps by championing diversity, equity and inclusion or climate change initiatives, hosting drop-in days or sitting in on wider team meetings,” she advised.

Transparency

Sebastien Anderson is the founding partner of Labour Rights Law Office in Canada. He recommended that HR staff be transparent about their role and refrain from misleading employees that the HR department is on their side or is their friend. “In my experience, too many naive employees believe that HR advisors are like neutral ombudspersons troubleshooting potential conflict between an employee and their manager(s),” he observed.

“HR advisors who mislead employees about their role give all HR professionals a bad name and seed distrust between employees and management,” Anderson concluded.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

Request a free demo:

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Sources:

https://www.breathehr.com/en-au/blog/topic/business-leadership/what-can-you-do-when-you-lose-the-trust-of-an-employee
https://techcrunch.com/2018/02/10/hr-has-lost-the-trust-of-employees-here-is-who-has-it-now
https://www.recruiter.com/recruiting/employees-losing-trust-in-employees-after-pandemic/

Goal Setting And Why You Should Forget About It

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Goal setting is one of those things that seems like it would be fundamental to success. If you’ve read any books or articles about getting ahead in your career or life, you’ve probably come across tips on setting goals (like SMART goal setting) so that you can successfully meet them.  Setting goals isn’t the be-all and end-all when it comes to managing your career.

But setting goals may not be as relevant anymore, and there may be better alternatives to managing your career–and your life. 

Part of the reason goal setting may be becoming irrelevant is because of the speed of change and the volatility of the world. When everything is moving so fast and changing, the goals you set for yourself can become redundant. 

That said, it’s very powerful to imagine yourself succeeding in the future and focus on your preferred version of tomorrow. The key is to seek to be directionally accurate, knowing that things are constantly changing in a way you can’t always predict.  

Here are five effective ways to take charge of your career when you’re operating in an unpredictable landscape. 

1. VISUALIsE THE FUTURE 

You’ve probably heard of elite athletes who picture themselves succeeding and having tremendous success. This is a process that can be effective outside of sports. For example, a study by St. Michael’s Hospital found when emergency room doctors or trauma healthcare workers imagined how they would deal with a challenging situation, they were more successful.

The practice of mental mapping–imagining the future with a lot of detail and clarity–allows you to picture what that preferred future will look like. You visualize what it’ll sound like and feel like, as well as how you might work through obstacles. Experts believe this works because you’re preparing your mind, and when you get to a similar situation in real life, you’ll be primed to respond and take the right action. This general vision is more effective than goal setting. Instead of plotting steps that unexpected events might derail, you’re imagining a fully realized picture of the future rather than your calendar or task list.

Detailed mental maps can also help you articulate the process and bring others in. Suppose you’re solving a tricky problem at work and you visualize the potential solutions and outcome in detail. You’ll be able to express what might happen and share the necessary steps with others in a more specific way, increasing your likelihood of success. 

2. ADJUST YOUR TARGET 

A twist on mental mapping has to do with how you visualize your target. This was demonstrated by researchers at Purdue University. When golfers visualized a hole as bigger, they made their shot more often. Previous research found a similar effect with football players. When they imagined wider goal posts, they were more likely to make a successful kick. 

Researchers believe that when you adjust your perception of a target, you increase your confidence, and that helps you perform better. Say your vision is to be a compelling speaker. When you imagine the audience nodding, smiling, and applauding wildly, you may enhance your likelihood of success. 

3. INTRODUCE SOME DISTANCE FROM YOUR GOALS 

Another way to think about what you want in the future is to imagine yourself in the third person. Research at York University and Wilfrid Laurier University explored the conditions for people’s success in multiple situations like school, work, and performing arts. When people imagined themselves in the third person–as if an audience were watching them succeed–their motivation levels increased. 

When people see themselves in the future, they tend to be better at solving problems, because they feel more objective and disconnected from what might be an emotional or nervous situation. Anxiety can get in the way if you’re interviewing for a new role or negotiating a high-stakes deal with a customer. But if you’re able to visualize the situation as if you’re watching it like a spectator, you’ll probably increase your odds of success. 

4. ALLOW THINGS TO EMERGE NATURALLY 

Another alternative to traditional goal setting is to set a direction and then let the specific steps emerge naturally. You may want a particular role in your organization, and a conventional approach would have you set a course for classes to take, people to meet, and a progression of jobs to get you there. But having tunnel vision can be limiting. If one of the steps doesn’t happen according to your plan, everything else can fall like dominoes. 

A better alternative is to set your course and respond as opportunities happen. Start by watching for unanticipated opportunities: There may be a job you hadn’t imagined on your path, but you consider it because it will develop your skills. Or, you might take on a project outside your normal responsibilities and create a new set of contacts who can influence your career later on. 

5. Be Aware of What’s Going on Around You

Another aspect of achieving your aims in the future is to be constantly tuning into the what’s going on around you. If you’re overly focused on your goals, you may only look for what you’ve anticipated rather than tuning into how the world is changing. Focus on the circumstances around you, and you’ll be more ready to react and respond. For example, when you notice your organization’s shifts in strategy, you can anticipate a project you might volunteer for.  The world is changing, so it’s only logical that your response should as well. In a volatile landscape of work and opportunity, it can be counter-productive to seek too much certainty. Instead, put your energy into detailed visualizations of where you’ll go, and you’ll be more likely to get there. Remember, today’s options won’t be the same as tomorrow’s alternatives.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

Request a free demo:

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Sources:

https://jamesclear.com/goals-systems
https://medium.com/the-mission/forget-about-setting-goals-focus-on-this-instead-c63b9ddeab1f
https://www.getabstract.com/en/summary/forget-about-setting-goals-focus-on-this-instead/31375

Building Everlasting Resilience

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Over the last decade, a complex web of economic, social, political, and environmental crises has challenged the conventional laws of organisational physics, calling into question our resilience and relentless pursuit of operational efficiency. As a result, many leaders who spent their careers operating and investing in relative stability were caught off-guard, and many enterprises may not have survived the Great Recession or the Covid-19 pandemic without massive government support.

However, in our research, we have discovered a category of family businesses that are naturally more resilient — those who understand the existential need for sustained investment in organisational agility, even at the expense of efficiency and profitability. Their unique approach to managing risk provides an innovative playbook for leaders everywhere as we enter what everybody is calling a new Age of Uncertainty.

Many of these families have operated for decades and even centuries in emerging and frontier markets, where uncertainty is the rule rather than the exception. In these more volatile environments, threats to property and security are more pervasive, access to capital more limited, corruption more rampant, supply chains more fragile, planning horizons much shorter, and talent harder to find. This is in addition to the familiar organizational challenges that all businesses must manage in terms of operations, finances, marketing, and leadership.

Over the last eight years, thorough research has been documented on how enterprising families survive and even thrive in the face of these chronically-elevated risks. What follows are three simple lessons that we’ve seen families deploy successfully that can help all leaders cope with the sustained uncertainty that lies ahead.

Resilience requires intention

Family businesses that operate in more volatile conditions understand and anticipate that tomorrow could be materially different than today. In these environments, public markets and institutions are often weaker, less efficient, and more opaque. There is a natural scarcity of capital, resources, and talent, since all three prefer the predictability that comes with the rule of law, freedom of information, and reliable infrastructure. Family leaders can wake up one morning to discover that their companies have been nationalized, or their profits regulated, or that their work force is facing sniper-fire on their daily commute.

Having the foresight to anticipate and plan for such volatility requires a fundamental shift in organizational design — treating operational inefficiency as a feature, not a bug. I’ve observed that family enterprises who thrive under these conditions follow the wise advice of the Stoic philosopher Epictetus that “Neither should a ship rely on one small anchor, nor should life rest on a single hope.” Their managerial mantra is “just-in-case” rather than “just-in-time.” Consequently, they actively invest in organizational redundancy — frequently observed in resilient biological systems — to ensure that they can bounce back quickly from adverse shocks and sustain operations whenever they lose access to critical capital and infrastructure.

Consider the example of a Middle Eastern family that built back-up manufacturing facilities and an entire residential neighbourhood in a nearby country in anticipation of a devastating civil war. Or the Haitian hotel operator who invested in backup generators for their backup generators and multiple internet connections to cope with persistent blackouts and network failures. Or the Japanese soya sauce manufacturer who rescued the local community from famine countless times over the centuries by sharing the company’s strategic grain reserves — earning cherished access to the Imperial Court. Or the Hong Kong family that built an expensive offshore nest egg in Canada as a hedge against rising regulatory risks to their Chinese operating business.

Though each of these investments in redundancy required substantial time and resources — precious commodities for any organization — being intentional about foregoing profits to build resilience helped these families prepare for, withstand, and recover from serious disruptions and chronic stress. Like keeping a spare tire and a jack in the trunk of the car, these adaptations become a form of continuity insurance and are particularly valuable in uncertain environments, despite their additional cost. As the old military saying goes: “Two is one, and one is none.” In other words, always have a back-up plan.

In contrast, many leaders who have spent their careers operating in relatively stable markets often view these investments as wasteful or inefficient — until they are blindsided by Black Swan events like the recent conflict in Ukraine and are forced to reimagine their global supply chains, foreign currency exposure, and interest rate risk. After all, when conditions are relatively predictable — as they have been for most of the last half-century in the world’s most advanced industrialized economies — optimizing for efficiency can be one of the most reliable drivers of profitability and prosperity, so it’s no surprise that this strategy has become ubiquitous even if it is short-sighted.

Consequently, effective leaders in the Age of Uncertainty need to be more intentional about investing in resilience — paying the “tax” of organizational inefficiency to help prepare for the broad array of risks that lie ahead. 

Resilience is a systems-level challenge

For many leaders operating in more stable developed markets, the last few years have been a painful reminder that our external context can’t be fully controlled, and many outcomes can’t be reliably predicted, despite our best efforts. These investments must extend beyond internal structures and processes and project outwardly beyond the enterprise — aligning with broader efforts to support social and environmental resilience.

In the Age of Uncertainty, enterprising families need to understand that their long-term health and continuity is even more dependent on the ecosystems within which they are embedded — a form of symbiosis often observed in resilient biological systems. As in nature, neglecting or failing to adequately support the health and development of all their key stakeholders only undermines their own resilience. In other words, retreating behind the castle walls and hoping for the world to set itself straight is not a durable strategy for surviving a political revolution or an environmental catastrophe.

Once again, all family leaders should take inspiration from their peers in developing markets who have seen this all before. These resilient family enterprises are more inclined than their peers to invest in and care for their communities, in many cases funding critical infrastructure when public institutions fail to do so. Some of our client families have built roads, bridges, hospitals, schools, community centers, housing, news agencies, and even telecommunications grids, in the absence of government investment in these critical public goods. This not only fosters a loyal and trustworthy source of local labor, but also increases the likelihood of long-term success as norms of reciprocity emerge to sustain and expand the healthy ecosystem. In contrast, when companies and citizens don’t have reliable access to these resources, or they are willfully undermined by populism and campaigns of misinformation, trust in third parties is diminished, transactional costs increase, and the economic machine inevitably slows down.

Additionally, any efforts to invest in systemic resilience must also extend inwardly — by nurturing the familial and personal resilience of internal stakeholders. Chronic uncertainty generates a particular type of psychological distress that can significantly affect the wellbeing and performance of individuals and teams. Family business leaders who are dealing with this issue for the first time should draw wisdom from the vast literature on managing prolonged stress both personally, within families, and organisationally. They must also acknowledge that not all family members and business leaders will have the same exposure to risk, or cope with stress the same way. Finally, they should take comfort in the natural resilience of their peers in emerging and frontier markets, where strong family ties are often a powerful source of both individual and collective wellbeing.

Family matters

Extended kinship networks have been the dominant socioeconomic unit since the earliest human civilizations first emerged. Our primate DNA enabled and even encouraged us to form deep relationships with genetic strangers beyond our own kin to better manage resource scarcity and existential threat — sustaining the first durable micro-climates of trust. Bad actors in this context were quickly expelled from the extended family and left to navigate a sea of uncertainty on their own, while the increased chances of survival and growth for those who remained help to reinforce norms around trust and reciprocity.

Many echoes of this ancient tribal orientation persist in emerging markets today — from guanxi in China and blat in Russia, to wasta in the Middle East and compadrazgo in Latin America. In these countries, webs of familial connection help lower the frictional costs of doing business and provide an essential lubricant for the economy — conditions we have historically taken for granted in the developed world, where institutions like the judicial system and free press are (mostly) reliable and ensure that others will (mostly) follow the rules. As public institutions around the world continue to be undermined by populism, campaigns of misinformation, and budgetary constraint, family leaders will need to increase their strategic use of familial networks to ensure continued access to capital and opportunity. In short, the Age of Uncertainty will demand a fresh approach to continuity planning — one that extends beyond the conventional strategy, operations, and leadership frameworks taught in every business school and deployed in every boardroom. To succeed, families will also need to make deliberate investments to better prepare for, withstand, and recover from frequent shocks and chronic stress, develop a systems-level view of risk that considers both outward and inward resilience, and nurture deep familial ties to local communities to help sustain an oasis of stability amidst the chaos. Despite the inherent inefficiency and material cost of these investments, in uncertain environments like the ones that lie ahead, it will be much wiser to have them and not need them, then to need them and not have them.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

Request a free demo:

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Sources:

https://hbr.org/2021/01/the-secret-to-building-resilience
https://hbr.org/2016/06/resilience-is-about-how-you-recharge-not-how-you-endure
https://hbr.org/2022/09/building-resilience-into-your-family-business

Decision-Making Myths – Debunked

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Decision-making is not fortune-telling, and good decisions do not always result in predictable outcomes.

Can you imagine life without your smartphone? So many of us can’t. We depend upon them for everything from directions to telling us the temperature outside to tracking our daily steps and heart rate. Our “Hey, Siri” culture has conditioned us to equate speed with efficiency and efficacy — and it’s changing how we process information. Our brains have become conditioned to respond with pleasure to the bings, pings, and dings our phones and computers provide.

While Siri and Alexa and Google are great when we’re jonesing for Italian food and want help finding a restaurant, they’re not great, or even desirable, when it comes to complex decision-making. In fact, they help enable a series of counterproductive ideas and reactive behaviors that actually impair your ability to make informed decisions. For example, let’s say you want to buy a car. Maybe you’re weighing a Prius versus a Crosstrek. Siri and Google can give you all sorts of information, such as fuel efficiency or the current interest rate on your loan. But a search engine won’t know why you’re buying the car, how you intend to use it, or what impact the purchase will have on your budget. Ultimately your decision needs to come from a clear understanding of your needs, values, and goals — information that’s outside the reach of their algorithms.

The most important things you need to learn often aren’t formally taught when you’re young. For example, many lament that teenagers aren’t educated on how to manage money. It’s a fair criticism. Evidence suggests a severe lack of knowledge around basic personal finance; a 2018 survey found that less than 50 percent of respondents could correctly define what interest is, the concept of bankruptcy, or how inflation works. In the absence of knowledge, myths creep in. One example that gets attention this time of year is the “benefit” of receiving a tax refund. This is a myth. In almost all cases, receiving a substantial refund isn’t a good thing. After all, you lent the government money—interest-free— throughout the year. 

Another myth: All college degrees are a sound financial decision. Data suggests that some people spend way too much money on a degree that won’t land them a job with a salary sufficient enough to make the investment worthwhile. It’s part of the reason why there’s a student debt crisis. Like personal finance, management isn’t something most people study formally—although HBS Online offers a Management Essentials course. Most people learn management “on the job,” and in fits and starts. As with personal finance, myths often develop for those who’ve never received management training.

On January 15th 2009 the world witnessed an unusual incident. The press called it ‘Miracle on the Hudson’. On that unforgetable day, an Airbus A320 aircraft with 150 passengers and crew members on board, encountered multiple bird strikes. They damaged the turbofan engines to the extent that both the engines of the aircraft became immobile.

In that situation, Captain Chesley B. Sullenberger took a bold decision to land the unpowered aircraft on the Hudson River. Fortunately, it was a safe landing and the lives of all 150 passengers and crew members were saved. This was truly unprecedented. Such events allow us to appreciate the criticality of making the right choices in times of crisis. It proves that a decision can be a life changing one and that too not just for an individual, but for an entire nation. Though decision making is a critical survival skill, research shows that it is prone to biases. Hence, it is worthy of deep study.

Myths About Decision-Making

1. I like to be efficient

So many of us think efficiency means jumping right in and making a decision. But to be truly effective, we need to be clear on what we are solving for. Rushing can lead you to make a decision based on the wrong factors, which ultimately will lead to regret. For example, walking into a car dealership and buying the first car you see may feel efficient, but may mean you end up with the car the salesperson wants to get rid of, not the car that best fits your needs and budget.

2. I just need to solve this problem at this moment

This is the classic example of “losing the forest for the trees.” Our problems sit in a context. A narrow focus may solve the wrong problem, or only partially solve the problem. If your car breaks down unexpectedly and you rush out to buy a new one, are you considering your needs beyond the present?

3. This is my decision alone; I don’t need to involve others 

Our important decisions do involve other stakeholders. Avoiding this bigger picture of who else is affected by a decision can, at best, only partially solve the problem, and may exacerbate it. For example, if your spouse or child can’t drive a stick-shift, do you really want to buy a manual transmission car that no one else in the family can get out of the driveway in an emergency?

4. I know I’m right; I just want data or an opinion to confirm my own thinking

Also known as “confirmation bias,” this decision-making flaw has been behind notorious failures from the Bay of Pigs to the subprime loan market implosion to the NASA Challenger explosion to the Deepwater Horizon environmental catastrophe. In each case, disconfirming data was available and should have raised concerns, but groupthink set in, and no one wanted to raise the red flag. To better understand and define the limitations of what you think you know, look for contrary examples and evaluate rival explanations. These techniques can prevent “frame blindness” to keep you from seeing what you want to see rather than what may be present. For example, maybe you’ve settled on the Crosstrek in your car search, but you decide to look around anyway. Could your preference for the Crosstrek influence how you evaluate the other cars? Could you be looking to confirm your inclination rather than buy the best car for your needs? To pry open cognitive space, first consider your needs and then look for cars that fit those parameters.

5. Decision-making is linear

In fact, good decision-making is circular; it needs a feedback loop as we gather information and analyze it and our thinking. At times we need to go back to find information we’ve glossed over, or to gather new information or conduct a different kind of analysis. When buying a car, for example, you might think that doing your research first and then going to a dealer and negotiating a price is enough. But there are many dealers, and they each have leeway to negotiate a price, so circling around and comparing offers may get you a better price.

6. There’s just one way to do this

Whether it’s how the bed should be made, which diet to follow, or how to divide up your retirement account, there’s always more than one way to get to “yes.” We’ve been conditioned out of listening to other voices, siloed in our information, environment, and social (media) circles. But getting outside your routines and patterns leads you to seeing things differently. You may always have gone into the dealership to buy cars, but more and more, people are negotiating car purchases online and through texting and email.

7. I have all the information I need

 While we may want to forge ahead, we can improve our decisions — and our satisfaction — by investing in a little bit of research and confronting assumptions with evidence. Your best friend might love her car, but that doesn’t mean it’s the car for you, particularly if it won’t fit your daughter’s hockey equipment. Looking to the experts, such as Consumer Reports, which does substantive research, can help you make an educated decision that’s also right for you.

8. I can make a rational decision

Psychologists far and wide, such as Amos Tversky and Daniel Kahneman, have demonstrated that as much as we’d like to believe it, none of us are rational. We all operate through a dirty windshield of bias based on past experiences and feelings. You might think you won’t get taken in by a car dealer, but they are professional salespeople who know how to evoke an emotional response.

For all our talk about the importance of management, it seems to be one of the most mysterious business disciplines. As with any realm shrouded in mystery, myths develop to help individuals understand what they know little about. But beware of believing them. While some myths point to the truth, many don’t. The best anecdote for knowing which myths are helpful shorthand and which are falsehoods? Education.

Given our current situation knowing that your colleagues or employees are best suited for this new scenario we find ourselves in. Finding the right talent, the best fit for the job and your organisation can be a very challenging task. It is now important to find out whether your managers or your team is well-equipped of working together from various locations. It requires deep knowledge of their personalities, strengths, weaknesses, interests, work style and other characteristics. Our technology and solutions will do the work for you, helping you discover if your people are resilient during times of hardship, if they are autonomous, if they are team players, without actual human contact. Given that our platform is cloud-based, everyone can use it from home as well. Humanity finds itself at a crossroad for various reasons now, why not help people discover and develop themselves from the comfort of their own homes?

Request a free demo:

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Sources:

https://www.johnolivant.com/2020/07/16/the-myths-surrounding-decision-making/
https://www.greenbook.org/mr/market-research-news/4-common-myths-about-human-decision-making/
https://eugenie.ai/3-myths-about-decision-making-busted/