Articles: Insight to today's job scene

By David J. Snowden and Mary E. Boone, November 2007

(a summary for Leaders by Sharon Griggs, Griggs & Associates)

“Wise executives tailor their approach to fit the complexity of the circumstances they face.”

POINTS TO PONDER

*All too frequently, leaders believe that decision-making approaches that have served them well in specific situations in the past will continue to serve them well for all situations in the future. This false belief is based on a longing for order and predictability that unfortunately isn’t realistic, especially as leaders assume greater and greater responsibility.
*The authors have developed a framework for decision making based on four distinct contexts of increasing complexity.
*Simple Contexts: The Domain of Best Practice - “Simple contexts are characterized by stability and clear cause-and-effect relationships that are easily discernible by everyone. Often, the right answer is self-evident and undisputed.” Leaders “assess the facts of the situation, categorize them, and then base their response on established practice.”
*Complicated Contexts: The Domain of Experts - “Complicated contexts, unlike simple ones, may contain multiple right answers, and though there is a clear relationship between cause and effect, not everyone can see it….While leaders in a simple context must sense, categorize, and respond to a situation, those in a complicated context must sense, analyze, and respond. This approach is not easy and often requires expertise. Because the complicated context calls for investigating several options — many of which may be excellent — good practice, as opposed to best practice, is more appropriate.”
*Complex Contexts: The Domain of Emergence - - “In a complicated context, at least one right answer exists. In a complex context, however, right answers can’t be ferreted out.” It is the complicated context that is “the domain to which much of contemporary business has shifted. Most situations and decisions in organizations are complex because some major change — a bad quarter, a shift in management, a merger or acquisition — introduces unpredictability and flux.” Here “leaders must patiently allow the path forward to reveal itself. They need to probe first, then sense, and then respond.”
*Chaotic Contexts: The Domain of Rapid Response - “In a chaotic context, searching for right answers would be pointless. The relationships between cause and effect are impossible to determine because they shift constantly and no manageable patterns exist — only turbulence… The events of September 11, 2001 fall into this category. In a chaotic domain, a leader’s immediate job is to stanch the bleeding.”
*”Truly adept leaders will know not only how to identify the context they’re operating in at any given time but also how to change their behavior and their decisions to match that context.”

SOLUTIONS TO CONSIDER

Because the complex context is the predominant context in today’s business environment, the authors have proposed four tools for managing in the complex context:

*Open up the discussion - Because “complex contexts require more interactive communications than any of the other domains,” large group discussions may be useful to “generate innovative ideas that help leaders with development and execution of complex decisions and strategies.”
*Set barriers - “Once barriers are set, the system can self-regulate within those boundaries.” For example, eBay has established barriers including “pay(ing) on time, deliver(ing) merchandise quickly and provid(ing) full disclosure on the condition of the merchandise.”
*Encourage dissent and diversity - When large group discussions are employed, create breakout groups with designated spokespersons, and require takings turns listening in silence as each spokesperson presents, but then have each spokesperson turn his/her back and listen silently while other breakout groups dissect the spokesperson’s comments.
*Manage starting conditions and monitor for emergence - “Leaders need to focus on creating an environment from which good ideas can emerge, rather than trying to bring about predetermined results and possibly missing opportunities that arise unexpectedly.” This is the kind of environment created by 3M that fostered the birth of the Post-it Note.

In the complex environment of the current business world, leaders often will be called upon to act against their instincts. They will need to know when to share power and when to wield it alone, when to look to the wisdom of the group and when to take their own counsel. A deep understanding of context, the ability to embrace complexity and paradox, and a willingness to flexibly change leadership style will be required for leaders who want to make things happen in a time of increasing uncertainty.”

QUESTIONS TO ASK YOURSELF

~ “Do you adjust your decision-making style to the complexity of the situation?”
~ If not, “What steps would you need to take to begin to do so?”
~ “Are you aware that today’s business decisions are usually made within the complex context?”
~ If so, “How well does your decision making style align with that necessary in the complex context?”