One of the much heard questions these days is: Will everything turn back to the pre-crisis situation or what will have changed?

Trying to create certainty by extrapolating a known past into a bright future has definitely proofed to create an illusion of predictability. Spreadsheet management as a way to do business planning has been a common practice for too long in too many companies.  Optimal functioning and productivity of people has long been linked to the wrong assumption that people need certainty. The difficulty to break the ’status quo’ within companies, and definitely the political world, has supported this way of thinking. People prefer the known discomfort over the unknown future.

Seneca once wrote: “The greatest loss of time is delay and expectation, which depend upon the future. We let go the present, which we have in our power, and look forward to that which depends upon chance, and so relinquish a certainty for an uncertainty.” Yet uncertainty is the only certainty.

It is my conviction and experience that people are not afraid of change but are afraid of the unknown personal impact of the change. Too many leaders and managers are trying to sell certainty to overcome this. Yet many studies have proven over and over again that people need a certain level of discomfort to to stimulate creativity, productivity and focus.

The reason for all of this is the fact that their is no such thing as rational decision making. Dan Ariely (author of Predictably irrational) wrote the following in a recent Harvard business review: ‘Your company has been operating on the premise that people (customers, employees, managers) make logical decisions. It’s time to abandon this assumption”

Creating an environment of  ‘balanced uncertainty’ is therefore the biggest challenge moving forward.

The following is key to success:

  • Transparent communication whereas the truth can be said, problems and mistakes surfaced and discussed as soon as possible. Jim Collins already referred to this as facing the brutal facts;
  • Building trust, thus building an environment where openness gets rewarded
  • Avoid or get rid of a diluted corporate DNA
  • Offering a realistic challenge in order to stimulate motivation, creativity and innovation
  • and above all walk the talk 

Are you ready to maximize the potential of your people?

January is traditionally a kick-off meeting month.
I’ve been attending and participating at quite a few of them over the last years.

Driving back from one of those, I  kept on asking myself why are some executives playing down on the brutal facts expressed by a direct report?  The one I just witnessed was a VP sales stating: “We will have to solve some serious internal challenges in order to make our numbers this year. The current economic situation will only be an excuse in our case because…” and he continued by briefly explaining why the company should hardly be affected by the situation and some internal issues which they have been unable to solve in the last couple of years.

His speech was followed by the CEO introducing the next speaker and at the same time down played the challenges by stating:  “During my decennia long tenure these problems have always been there so there is no need to be worried”.

What could be the reason and how to find the right balance?

Could this behaviour come from convictions such as:

  • My people can’t handle the hard reality. That’s why I’m a CxO.
  • They will be so worried that their performance will decrease.
  • Boosting motivation is best achieved by good news and pep talk.
  • They will think I’m a bad CxO.

I’d love to see some comments on this topic and maybe some idea’s on how to tackle such problems.