Making High Stakes Decisions in Tough Times
Friday, October 24th, 2008This is my first post after a long hiatus, so let’s make it high value-added.
In tough economic times, like these, the stakes are high and the pressure is on leaders to make wise and sometimes tough decisions. Failure is both not an option, as well as a genuine possibility lurking in the doorway. The margin of error is diminished. We can’t afford to be wrong.
Ironically, for the big decisions, those with a straight path to the bottom line, the usual tools of management decision-making won’t suffice. Data, analysis, sophisticated models, and decision trees and matrixes will only get us so far. It’s kid’s stuff. These tools are not predictive. They are a cost of entry, never a differentiator or driver of sustainable competitive advantage (not even with the smartest consultants in tow). Moreover, these decisions never take place in a vacuum, and the complexities of real-time business life reduce our confidence in them. A leader trapped in mere excellence will typically over-rely upon these models, and then hope like hell that he or she is right. This undermines their own wellness and productivity, and that of everyone else working under the same conditions, which is to say their people.
There are two popular but unproductive and costly options that many leaders choose when confronting having to live with high stakes decisions:
1. Bluff/Spin/Blame. These managers have all the data and people lined up to take the blame if things go wrong.
2. Escape from Reality. These managers rely on force of will and ego in an attempt to sell themselves and the world on their vision and interpretation of events even when it is clear to any objective observer that they are simply full of it.
When the leader chooses it, the entire company lives with it. Please note: these two strategies are not limited to mediocre and failed managers; that’s too easy. Rather, we see them, almost daily, being practiced by excellent managers. That is to say, managers who have pursued and achieved excellence by practicing the Five Virtues of Excellence; people with a track record, senior leaders. This is what happens in the Excellence Trap.
There is a better way! Leaders in Mastery know that, after they have gathered and analyzed data and considered options, they simly choose a direction. Then they make it real. They bring the Five Pillars of Mastery (energy, expression, perspective, intention and wisdom), and that of every person in the entire organization to bear upon whatever path they choose, whatever context they are in; they engage, they flourish, they improvise and adapt, they inspire and align, they lead. It’s that simple, and that rare.
Try this: for every data point you consider when confronting a tough decision, spend as much time considering the Five Shifts of Mastery. Or let’s make it even easier: pick a direction and run with it. If you’re smart, capable, and have done a modicum of due diligance, you’ll succeed either way. Leadership Masters make their own reality, they don’t impose a fantasy on others. And to use the language of competition, a leader working to escape excellence and achieve mastery is already enjoying a powerful competitive advantage. Consider this: excellent managers try to control the uncontrollable, and waste resources in the process. Masterful leaders create the future, establish the outcome, and gather resources as they go. It’s the leadership equivalent of creating opportunity while others panic (and let’s face it, most people, even excellent people, do panic. They’re panicing on Wall St as I write this).
That’s something you can stake your business on, particularly in tough times.

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