Think Again – why good Leaders Make Bad Decisions and How to Keep It From Happening to You

This book fundamentally changed my understanding of the decision making. The authors explained that even highly knowledgeable and very experienced decision makers can make obviously bad decisions. Though in some cases the decisions may not look ethical, there is a possibility that the decision maker could be unaware that he or she is not objective.

Based on the research described in the book, human evolution assured that we are equipped with the decision-making system that works well – most of the time. However, there are times, when our nature is working against our own interests. We can learn to identify these “red flag” situations and use “safeguards” to minimize “red flags” influence.

Red Flags

Misleading experiences (our subconscious search for pattern in the past – pattern could be found incorrectly, but the mistake won’t be clear to the conscious mind).
Example: a proposed acquisition looks similar to several successful acquisitions made in the past; however the situation is different, what is not recognized.

Misleading pre-judgments (previous decisions that mislead current decisions).
Example: a decision made several years earlier leads the decision maker to execute the long-planned strategy when he acquires needed power; the situation has changed and the strategy is no longer reasonable.

Inappropriate self-interest (self-interest that may not be recognized consciously by the designs maker as affecting his or her judgment).
Example: an incompetent employee remains in the organization because firing the employee could create short-term difficulties for the manager

Inappropriate attachments (decision makers can be attached to people, places, or things without realizing that this attachment can cloud their judgment).
Example: a business unit leader resists a new logo consistent with the corporate image because he was personally involved into creating the previous logo

Safeguards

Experience, data, analysis
Example: encourage the decision maker to do additional research on the area involved into the decision

Debate and challenge
Example: introduce a person with necessary experience to the decision team who can challenge the decision maker (if the decision maker can be challenged)

Governance
Example: create a process of decision making that would involve other people without a particular bias (however, too much process can stall any decisions – the process needs to be appropriate)

Monitoring
Example: if the wrong decision is made the error should be identified quickly; in some cases people tend not to communicate “bad news” if they know that the leader is partial to the decision – this should be avoided.

Wonderful example of applying a safeguard to counterbalance possible pre-judgments:

In one company, the CEO was concerned that his managers appeared to be anchored to the status quo. So he started the planning process by asking each manager to compose an imaginary article to appear in the Financial Times in ten years’ time describing the adherents of the current management team over the “past” ten years. The goal was to get each individual to generate creative ideas of how the business might be developed, and so provide a good platform for a debate over a wide range of options. After the exercise, one member of the management team commented that the new plan was “the first time we have had a real strategy.”

More resources are available on the book’s web site.

Wonderful book - highly recommend.

Being Strategic

Being Strategic   is a very practical and wonderfully organized book. I followed Chris Brogan’s recommendation   and read it. He noted that the book was “like going through a lesson plan instead of an enjoyable read.”  “Perfect!” I thought, and I was not disappointed   

The author, Erika Andersen,  noted that understanding of the word “strategy” is not always correct and hardly consistent. I could not agree more – on two different jobs I was considered “too strategic” and “not strategic” for asking exactly the same question “what are we trying to achieve?” I still love strategy books   

Being Strategic  – interesting points:

Being strategic means consistently making those core directional choices that will best move you toward your hoped-for future. 

Strategy: core directional choices that will best move you toward your hoped-for future.

Tactics: specific actions that will best implement your strategies.

          Being Strategic
Define the Challenge, then
          Clarify What Is
(An exploration of the current situation and how it came to be.)
          Envision What’s the Hope (How can we…?)
(The hoped-for future: clearly defined, realistic, inspirational.)
          Face What’s in the Way
(An objective understanding of what’s blocking movement from “what is” to the hoped-for future.)
          Determine What’s the Path
(The Plan to overcome obstacles and achieve the hoped-for future.)

          Excellent Tactics
          Arise from strategy
          Are FIT (feasibility, impact, timeliness)
          Define what, who, and when

The book pays specific attention to “being strategic” in a group and facilitation. An absolutely remarkable recommendation on what to do when everybody is arguing solutions without understanding what is the goal:

As soon as I realize that we’re arguing solutions without having defined the challenge, I ask the group’s permission to share an idea. Then, when they say yes (they are generally so surprised that I did not just start lobbying for my own solution that they almost always say yes), I say something like, “I’m not sure we are all trying to solve the same problem. What do we think the problem is?”

Most often, somebody will state his or her version of what the problem is in a kind of isn’t-this-obvious tone of voice and at least a couple of other people in the room will look surprised and disagree. Before they can start a new argument – about what the problem is – I break in and say, “How about if we all just say what we think is the problem and look for overlaps?” … if you can get the group focused on the task of creating a shared picture of what is not working or what needs to be addressed or accomplished (the challenge), you will have gone most of the way toward shifting their attention.

The best explanation of SWOT I ever found (as part of “clarifying of What Is”):

Example for “How can we ensure our after-school program stays fun, safe, and cost-effective?”

Strengths: Strengths of the group relative to the challenge.
Example: Kids like the program, the person in charge has great financial skills, etc.

Weaknesses: Weaknesses or deficits of the group relative to the challenge
Example: we are not clear about what we want to program to provide, we are lax about emergency procedures, etc.

Opportunities: Traditional SWOT can focus on “possible things we could do going forward.” Could be better define as “circumstances around us that support our success.”  Opportunities are considered as strengths – external to the group that are relevant to the challenge.
Example: other schools have figured out how to do this well and their learning is available to us, community is supportive of our success.

Threats: Weaknesses external to the group.
Example: School is not in a very safe neighborhood, expected budget cuts, etc.

SWOT is similar to helpful and unhelpful staff within the group and helpful and unhelpful staff outside the group, relative to the challenge.

Particularly interesting section on facilitation – one person can be a facilitator and if needed offer an opinion.

          Facilitator Skills
          Clarify
          Protect
          Keep on Track

Excellent book!  The book includes a few real examples of clients of Proteus International, Inc. and detailed descriptions of hypothetical examples to clarify the ideas.