Warning! Watch Out for Dangerous Delays and Risky Inaction
In most situations almost any direct action is better than
no action. If nothing else, you'll learn from what you try
and then refocus in a more productive direction. In support
of this view, Thomas Edison made thousands of unsuccessful
attempts to invent a practical light bulb. Edison saw what
he was doing as "learning" rather than "failing." Clearly,
his approach speeded up the process.
When fear is an element, that fear can create a disastrous
delay. In the 1930s, a sudden wind swept an American
helium-filled airship aloft from its moorings. The rising
ship carried away some of the rope crew as well. Most let
go right away and suffered no worse than sprains. Others
held on until they lost their grip. Each time a man let go,
the dirigible leapt higher. Those who hesitated longest
fell to their deaths.
Fear and Trembling in the Executive Washroom
Fear rules many business leaders and their fear comes in
many guises. One of America's most admired CEOs feared any
negative publicity. As a result, he would only acquire
smaller, privately held companies knowing that public
scrutiny would be minimal.
Another CEO trembled at the thought of being fired. The CEO
frequently fired his key lieutenants for nonperformance,
hoping that the board of directors would be more dependent
on him. As a result, no one wanted to rock the boat, and
procrastination ruled every operation. When the company
sold one of its businesses, profits soon rose under either
the same management or new management burdened with less
fear.
Similarly, when major layoffs occur, many survivors feel
worse than those who lost their jobs. If they cannot find
new jobs, these shell-shocked troops will do anything to
please, including simply maintaining the status quo.
A different type of fear dogs those who aspire to be CEOs.
Companies often pick two to five contenders and stage a
two- or three-year "beauty" contest to see who will be the
next leader. If your unit does well and no one else's does,
you get to be the big boss. As you can imagine, almost no
one in that situation is going to try anything that might
not work perfectly during the beauty contest.
It's far easier to stand back and let others be innovative.
But that's the way to ruin, not to progress. One CEO took
avoidance to an extreme. Presented with a list of all the
issues that the company had known about for five years and
had never been resolved, the CEO grabbed all the
information and destroyed it. "This information is too
important to get out," he said. But the first step in
resolving any problem is to get it out in the open where it
can no longer be ignored.
Like the CEO who got rid of the list of issues, anxious
executives often connect their fear to the wrong things. A
company that had frequently failed with advanced technology
products decided to pursue only low-technology products.
That decision only made matters worse. In the meantime,
many areas blossomed where the company had developed
advanced technology products. The company had simply
developed its products a little too far in advance of
customer demand.
Talk It to Death
Some companies build monuments to delay with never-ending
committees and lengthy studies by consultants. These
actions give the appearance of doing something worthwhile.
Employees relax and stop paying attention.
Organizational consultants frequently lengthen the delays
by setting up a game of musical chairs. They recommend
reworking the organization before addressing the old
issues. It's like telling those hanging onto the airship
ropes to count to 200 before making a decision.
A Diversionary Tactic
Companies faced with seemingly insoluble problems will go
out and buy new and bigger problems to draw attention away
from the existing issues. AT&T is thought by some to have
used this approach in acquiring NCR under the leadership of
Bob Allen. NCR was later sold for a loss of $5 billion
after costing NCR employees thousands of jobs. AT&T's
declining position in long-distance telephone services
remained unresolved.
STALL ERASERS
Practice, Practice, Practice: Success Through Simulation
Wise companies assume that fear will freeze the unprepared
into costly inaction. Is that what you want airline pilots
to do when they hit terrible turbulence? Of course not. The
solution: Simulate extreme conditions and allow employees
to become accustomed to making timely decisions and taking
action. For example, utility employees learn in a simulated
nuclear plant by facing a potential core meltdown if they
don't act appropriately.
Listen, the Answers Are in Front of You!
To make faster progress, track suggestions from the time
they are made to the time of action. Some organizations go
one step further and authorize employees to make
improvements the employees suggest if no one objects within
30 days.
Do It Yourself
CEOs like to bring in consultants, in part, to blame
unpopular or risky decisions on the outsiders. It is better
to be forthright about what needs to be done and take any
heat that develops … it's faster, too!
STALLBUSTERS
Act First
When new CEO, Lou Gerstner, entered IBM, he found a company
frozen in inaction. He set about changing that by personal
example and by sharing a new value of taking timely,
appropriate actions. Those who persisted in the old way
soon found themselves looking for work elsewhere. The
message was soon received and understood.
Answering these questions will help you identify where
action should replace in-depth analysis:
• When should the customer be considered right and receive
immediate recognition and resolution?
• What threats to safety require immediate action?
• What competitive actions require immediate responses by
using your best judgment?
• When two people in different parts of the organization do
not agree, when should one of them automatically
prevail, when should an automatic rule prevail, and when
would a coin flip suffice for the decision?
• What problems should receive immediate action because
they almost always get worse if ignored?
It's Okay to Take a Chance on Action
Many delays occur because employees are afraid. They fear
that mistakes will end their careers. To overcome the bias
to play it safe, everyone must know when they should act.
These questions will help you clarify your optimal
direction:
• What is the minimum time needed to make a significantly
better decision?
• Worst case, what can a delay cost you?
• What deadlines are appropriate for taking action?
• How can people be encouraged to overcome procrastination
in routine situations?
Copyright 2007 Donald W. Mitchell, All Rights Reserved
----------------------------------------------------
Donald Mitchell is chairman of Mitchell and Company, a
strategy and financial consulting firm in Weston, MA. He is
coauthor of six books including The 2,000 Percent Squared
Solution, The 2,000 Percent Solution, and The 2,000 Percent
Solution Workbook. You can find free tips for accomplishing
20 times more by registering at:
=========> http://www.2000percentsolution.com .
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