strategic planning

Unintended Consequences

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As companies after company fail in the same industry, I wonder why some organizations continue to follow the same deadly path. In most cases, it starts with managers who do not think about the consequences of short term decisions over the long haul. Sadly, hasty decisions can impact not only the individual but others around them. Several famous individuals have been impacted by this reality.

For example, Vanessa Williams was one of these fallen Hollywood icons. In 1983, Williams became the first African-American woman to be crowned Miss America. However, her immediate success was short-lived due to a scandal.

Consequently, Williams was forced to relinquish her title; she probably didn’t think her youthful deed would come back and wreck her dreams. Yet, the consequences not only damaged Williams but her family, friends, and millions of her fans. In this session, we will examine the impacts of unintended consequences.

Have you ever wondered why some people never consider the aftermath of their bad choices? Many people fail to understand the consequences of their decisions. Nobel Prize author Albert Camus once noted, “Life is the sum of all your choices.” Some people rationalize that an apology or a pitiful stare will erase all of the damages. 

I hear it all the time: “I’m sorry. I didn’t mean for that to happen.” Instead of just chalking it up to immaturity or youthful ignorance, I just cannot make that case because we are often talking about adults, not children. These adults should know better, but they act without realizing the effect of their actions. In spite of all wise counsel, some people live to make poor decisions.

Fortunately, these circumstances can be traced back to a root cause. The Law of Unintended Consequences relate to any purposeful action that will generate unintended consequences. This law can be categorized into several areas: (a) a positive unexpected benefit called serendipity, (b) a negative effect which is contrary to the original intention, and (c) a potential source of problems which is commonly referred to as Murphy’s Law. Additionally, the outcomes are not limited to the results that were originally intended.

Here are some examples of how this law works. A new bridge is built to give a secluded community access to a nearby shopping mall. However, this action results in increased crime in the secluded neighborhood and decreased sales for the mall stores. No one anticipated these unforeseen problems.

Another example is a caring parent who smokes cigarettes around his family. One child gets asthma and eventually becomes a chain smoker as an adult. Another child obtains a phobia related to smokers. In retrospect, the caring parent would have done something different if he had anticipated the long-term consequences.

Likewise, many managers may make alternative decisions if they understand the Law of Unintended Consequences. Furthermore, today’s leaders can be proactive in their decision making by considering the long term ramifications of most decisions.

Like Murphy’s Law, some decisions may appear to afflict some people as if their lives are cursed. Unfortunately, making the right decision is a difficult process. No one will applaud your many good decisions; however, you will probably catch heat over the bad ones. As a matter of fact, some individuals continue to ride a merry ride of worsening consequences.

Yet, it is often their own lack of foresight that haunts them. Eleanor Roosevelt said, “Somehow we learn who we really are and then live with that decision.” Every person, regardless of their background or social standing, can benefit from good decision-making techniques. In this life, most people make decisions to the best of their abilities. When various things happen, especially bad ones, individuals must be ready to deal with them. Therefore, understanding unintended consequences can assist in helping make better decisions for the future.   

 How do organizations anticipate the consequences of their decisions?  Can managers learn to make better decisions?

 © 2010 by Daryl D. Green

Market Turbulence

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For many people, the bad economic picture will not change soon enough. According to a USA Today/Gallup Poll, almost three-fourths of those surveyed don’t like what’s going on in the country. David Walker, the former chief of the Government Accountable Office, predicts a poorer America if the economic ship doesn’t change direction: “We’ve kicked the can down the road as far as we can. We are at the abyss.”

Market turbulence has overtaken our ability to realize the American Dream. This turbulence relates to the chaos that now plaques our financial institutions, wrecking havoc on our normalcy. With a weak job growth, many U.S. jobs will continue to be outsourced globally or automated through technology.

In fact, the government estimates that an additional 1.2 manufacturing jobs will disappear by 2018. In this economic downturn, many people are just happy to have a job. Yet, the hectic work environment creates severe consequences to today’s workers as well.  In our discussion, we will focus on market turbulence and how to leverage against it.

Market turbulence is transforming businesses across the globe.  International markets have been shaken.  It’s like riding first class on a cruise ship during a terrible hurricane. You have plenty of the creature comforts.

Yet, it doesn’t change your situation. You are in for a rough ride. Today, American businesses, like other nations, are on this rough ride. The hurricane is market turbulence. Stanley Gryskiewicz, author of Positive Turbulence, stresses the dangers of this rocky ride: “Turbulence is energic, forceful, catalytic, and unpredictable.” 

Many organizations do not understand what to do or how to survive it.  Stan Davis, author of Future Perfect, declares, “The external environment-technology, economy, society and so on—is changing so fast that businesses scurry to keep up. Organizations, however, simply cannot run that fast. So our organizations don’t change as fast as do the businesses that they are managing.”

Charles Handy, author of The Age of Unreason, argues “Discontinuous changes require discontinuous thinking. If the new way of doing things is going to be different from the old, not just an improvement on it, then we shall need to look at everything in a new way.”  Many managers brag about their extensive experience. 

Many managers brag about their extensive experience. However, in a market plagued by uncertainty, this experience works against traditionalists. Today change is rapid and unpredicted.  Loaded with their vast experience, managers can lead organizations into business despair. Given the large degree of uncertainty and unknowns, some organizations continue on the same path…to nowhere!

Innovative managers can leverage market turbulence to their advantage. Everywhere we look we see this disruptive change breaking down traditional thinking.  What worked yesterday, will fail today. The best companies know how to adapt to turbulence. While others downsize and contract their market efforts, great companies infuse their organizations with creativity and expand their operations, competing on their strengths. 

Management strategist Stanley Gryskiewicz argues that turbulence associated with change can be a positive force for innovation.  He recommendations four elements in taking advantage of turbulence, which are (a) difference (breaking out from the status quo, (b) multiple perspectives (inviting divergent viewpoints and nontraditional interpretations, (c) intensity (keeping the speed, volume, and force at an optimal level for change, and (d) receptivity (providing mechanisms for individuals to be able to thrive in turbulence.

Gary Hamel, author of Leading the Revolution, suggests “In the new industrial order, the battle lines don’t run between regions and countries…In a nonlinear world, only nonlinear ideas will create wealth.” Creative expert Michael Michalko argues that creativity:  is the answer for surviving market turbulence: “It is not a result of some easily learned magic trick or secret but a consequence of your intention to be creative and your determination to learn and use creativity.”  Yet, succeeding during market turbulence is no accident. In fact, organizations must be deliberate in creating sustainable performance during market turbulence.

How do organizations effectively implement nonlinear thinking to be successful during market turbulence?

 © 2010 by Daryl D. Green

Human Factor Buy-in

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Steve Proud gets his biggest promotion as the latest senior executive to run this troubled business. With lots of talent and experience, the organization struggles to meet performance goals. Being on the fast-track, Steve quickly makes significant changes to impress the corporate board. He fires the old managers and surrounds himself with the better talent. His team rolls out a comprehensive strategic plan.

The corporate board starts seeing positive results.  However, things change within two years. Many employees view Steve as a ‘paper manager.’ Despite his ‘talk about empowering workers,’ his actions demonstrate he cares little about any worker’s opinions. Steve cannot understand why his strategy failed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

Most organizations move swiftly ahead reacting to market forces without truly empowering workers to make organizational decisions. Managers preach that employees are a critical asset to an organization’s bottom-line. However, few managers ever show it. Given that percept, we will discuss the final component of effective socio-technical systems. It is the human factor buy-in. Organizations must shift their paradigm to viewing workers as more than mechanical parts for their organizational objectives.

According to a USA Today poll, nearly half of those interviewed said that corporations can be trusted only a little, or not at all, when it involves looking out for the best interest of employees. Michael Hackman and Craig Johnson, authors of Leadership: A Communication Perspective, argue that a leader’s credibility is directly related to the quality of his relationship with followers.

Marios Katsioloudes, a researcher specializing in socio-technical analysis, explains that as profitability of mechanization increases, the importance of technology is implied while there is a devaluation of the workers. Clearly, U.S. businesses cannot point to the lack of employee performance for mismanagement errors.

Japan, a long-time benchmark for American companies, is being defeated by American employees. Today, the average U.S. worker puts in 36 more hours than Japanese workers (1,825 vs. 1,789). Over the last two decades, balancing work and home life have been difficult since Americans have added 200 hours to their annual work schedule.

Employees want to be valued. Felix Harris, a financial director with over 8 years in the banking industry, acknowledges the importance of people in a socio-technical system. He states, “When employees are appreciated, they work harder.  A machine is only as good as its operator.”  Jeffrey Pfeffer, author of The Human Equation, acknowledges that organizational success is directly related to implementation, and this capacity comes from the workers, how they are treated, their skills, and their efforts as it relates to the organization.

Managers should see followers as more than mechanical parts for their organizational objectives. Managers assume that giving employees new technology is enough to keep them happy. Likewise, leaders should view followers as vital components of the socio-technical system.

Today’s managers in technical organizations must understand the delicacy of balancing a socio-technical system. The recent mirage of culture changes such as outsourcing, scandals, and unethical dealings by both governmental and business senior managers have made American employees skeptical about the seriousness of organizations implementing corporate values into their workplace.

Furthermore, today’s executives are falling short in promoting the desired values to support socio-technical systems due to understanding the value of employee buy-in.

In fact, this insight would be valuable to any manager, trying to integrate the man – human interface mechanism. Understanding the uniqueness of the socio-technical system may increase leadership effectiveness and better management strategies for your organization.

How can organizations best gain employee buy-in when they possess less than a stellar track record of worker empowerment?  

 © 2010 by Daryl D. Green

Doing Me Right, Boomer

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In Spike Lee’s 1989 acclaimed movie “Do the Right Thing,” he places the characters at the center of making difficult decisions. It’s a classic drama—and a perfect way to continue our generational discussions!

During the hottest day of the summer, life forever changes at Sal’s pizzeria in Brooklyn. Two customers demand that Sal change his “Wall of Fame.” The confrontation heats up to racial slurs and physical threats. Violence erupts! Da Mayor, a street bum, encourages the mob to make good decisions.

However, Mookie (Spike Lee) opts to follow his emotions; it changed the dynamics of the situation. The 1980’s movie classic highlights the racial tension between two ethic groups. In the movie, Da Mayor provides Mookie with some advice: “Doctor, always do the right things.”  Given another chance, Mookie might have changed his actions. Unfortunately, too many managers won’t.

Are today’s managers willing to make the best decision so that future managers are primed for success, not defeat? It’s an interesting thought when you consider the possible generational volcano that may erupt at any time.

Several years ago, I read Daniel Kadlec’s column about the Baby Boomer transformation from being a “Me Generation” to a “We Generation.” Although I applauded Kadlec’s insight, I was hesitant to make this great leap of faith in the Baby Boomers yet. Let me say that this belief should not be conceived as ‘hating.’ I am Gen X as you might not know. I have used environmental scanning to witness the significant demographic shifts in our nation. Are Baby Boomers now ready to relinquish their stronghold of leadership?

We can’t be certain due to that fact that the storyline is incomplete. Let’s wait until the economy settles. With the rocky rollercoaster ride of the stock market, Baby Boomers don’t enjoy life as much because of the decrease in their disposable income. Some individuals have the extra burden of caring for parents and children. These realities of life keep Baby Boomers working well beyond their desires for retirement.

In the past, Baby Boomers have been early trend setters. A study from the Center for Retirement Research at Boston College explains that the average retirement age in the U.S. is 63. Unfortunately, this retirement study reveals that many individuals will need to work longer so that they will have adequate retirement reserves.

Andy Hines, the director of Customer Projects at Social Technologies, predicts that Baby Boomers will refine the meaning of retirement and notes, “U.S. Baby Boomers are choosing post-work lifestyles that don’t resemble the stereotype of the quaint, restful senior citizen.” As you know, Baby Boomers are the top leaders of most organizations and will find it difficult to separate themselves from their positions of power and influence. Will they be willing to make the right decisions for their successors or themselves? 

Other observers believe that Baby Boomers will leave graciously and pass the baton to the next generation of leaders. I have my own doubts about the outcome.

If Baby Boomers extend their stay in organizations and maintain their leadership positions, what do you predict the response of leaders in waiting? How can organizations address this issue without inflaming Baby Boomer leadership and not losing future leaders who refuse to wait?

© 2010 by Daryl D. Green