Slow Down Your Strategic Planning So You Can Go Fast

Bias is defined as "prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair." In the business world, this definition also applies to concepts and ideas.

As business leaders we like to think we're impartial, open-minded and objective in regards to new ideas, but the human brain doesn't work that way. Our brain has a strong bias for information that supports our existing view of the world. It actively seeks out data that supports our viewpoint, and often ignores evidence that contradicts it.

In addition, we're trained from a very early age to think in rigid ways and seek THE right answer. Remember in 5th grade how good it felt to raise your hand in class and get praised by the teacher for getting THE right answer? And remember how bad it felt if you got it wrong? Your ‘wrong' answer may have been very creative and right in a different way. But if it wasn't the answer the teacher wanted, you didn't receive the public pat on the back, and you were less likely to raise your hand the next time.

Unfortunately, this training does not serve us well as leaders.  In the business world almost all problems or challenges have multiple solutions. Some are better, easier, cheaper, more feasible, etc. than others. But very rarely do we encounter situations where one option is the only right one. And when we constantly seek THE right answer, it becomes much easier for our biases to get in the way.

Not surprisingly, bias is a leading contributor to poor business decisions, especially during the strategic planning process. Which is why I constantly urge business leaders to make it a habit to identify their assumptions, biases, and beliefs, and test them against current reality before making any major decisions. Now there's further evidence supporting the value of this approach.

A survey by McKinsey Consulting asked executives to rate the outcome of a recent strategic decision at their companies as either satisfactory or unsatisfactory, while focusing on the role that various biases may have played. The survey found that satisfactory outcomes are associated with less bias, thanks to "robust debate, an objective assessment of facts, and a realistic assessment of corporate capabilities."

According to the survey, companies that produced positive outcomes did a better job of forecasting consumer demand and assessing their own abilities to implement the decision. The best decisions included both strategic and financial targets, and ensured that individual incentives were aligned with the strategic objectives. In addition, possible competitor responses were analyzed and factored into the decision.

Companies that reported favorable outcomes were also more likely to engage in certain activities that minimize bad decision-making. These include:

• Actively seeking out contrary data to ensure that key decision makers had all the information they need to make the best decision
• Allowing people with conflicting points of view to openly express their opinions
• Thoroughly reviewing the business case for the decision, even when senior executives strongly supported the decision
• Establishing processes and lines of communication to ensure that truly innovative ideas reach the senior management level

These kinds of behaviors seem counterintuitive. Partly because they contradict the unspoken biases and assumptions that tell us we already know what we need to know. And partly because they lengthen the planning process.

It takes time to gather and analyze information, especially data that we don't want to see or hear. It takes time to listen to everyone's point of view, especially those that would seem to be nay-sayers. And when senior managers are chomping at the bit to make the decision and move on, it takes time (and courage) to stand up and say, "I think we need to look at this some more or in a new way."

The power of pause

In today's world, we're all running so fast that pausing to engage in these kinds of processes feels like we're falling behind. But if we don't take the time to evaluate how we gather information and how we reach conclusions based on that information, we end up making decisions that can have disastrous consequences. And this is the process I call "slowing down in order to go fast."

Slowing down to go fast starts with actively seeking out information from a variety of sources. Pay attention to trends and events outside your industry. Then look for ways to apply that information to improve internal systems and processes or to add value to customers in new and better ways.

In meetings, don't just tolerate opposing points of view, actively encourage them! Tell people, "This is the way I see it. Now I want to hear from those who see it differently." Make it safe for people to express their opinions, even when they contradict the prevailing point of view.

The stronger you feel about an issue, the more likely it is that unspoken assumptions are driving your position. Expose your thinking on the issue and have people push back.

How did you reach that conclusion? What about the data leads you to believe that? Have you looked at it from this angle? Even when everyone seems to be in agreement, pause and ask, "Are we missing something here? Is there another answer to this problem? Is there a better answer or set of answers we should consider?"

The next time you undertake the strategic planning process, slow down in order to go fast. And remember to check your biases at the door, or at least expose them to everyone!

 

 

About the Author

Holly G. Green is author of "More Than A Minute," and the CEO and Managing Director of The Human Factor, Inc. She has more than 20 years of executive level and operations experience in FORTUNE 100, entrepreneurial, and management consulting organizations. She was previously President of The Ken Blanchard Companies, a global consulting and training organization as well as LumMed, Inc. a biotech start up. For more information, visit her at http://www.thehumanfactor.biz and http://www.morethanaminute.com

How to Stop the Dreaded "Decision Drift"

Have you ever had a meeting that didn't work out quite as a planned? Where everyone agreed to a specific course of action and two weeks later you discover that what they've been working on doesn't come close to your vision of what should happen?

 

When these situations arise, we usually blame poor communication. We didn't communicate clearly. People weren't really listening. We thought we had consensus when we really didn't.

 

Faulty communications can certainly play a role, but there's a lot more at work underneath the surface. This situation clearly illustrates how the way our brain works can undermine even our best intentions.

 

When we gain consensus on a decision or course of action, everyone agrees on the surface. But as soon as people leave the meeting and start making in-the-moment decisions, their underlying attitudes and assumptions get in the way. They typically don't have the same attitudes and beliefs as you, so they make decisions that differ from the ones you would make.

 

As each new decision is made, this process builds until everyone ends up miles apart on the project. So you gather for the follow-up meeting and everyone wonders, "What happened?"

 

Fortunately, succession visioning comes riding to the rescue (cue "Lone Ranger" music).

 

Success visioning is based on the brain's inability (on many levels) to distinguish between what is real and what it is told. Used by premier athletes around the globe, it relies on the brain's ability to drive the body to action when it sees a clear endpoint or goal. There are many ways to use success visioning. In business, I recommend the following:

 

Start by using future, active, past tense questions to define winning or excellence. For example, "When we have achieved success in working well together, how often did we touch base? What decisions did you want us to make together versus having me inform you about? Who else is working with us and how did we keep everyone informed? What are the most important things we will have focused on first, and how will we make sure we all stayed on track?"

 

Note that these questions use a past tense voice, as if they have already occurred. Here's why.

 

When we begin with the present tense, our brain typically fills in with all the reasons we can't make something happen. But when we convince our brain we have already achieved success, it doesn't know we have not. So it fills in the blanks between today and the target date with innovative solutions for achieving success. It focuses on winning rather than what is in the way.

 

Future, active, past tense questioning helps to paint the picture of success between the individuals involved, often uncovering expectations that would otherwise not see the light of day. Once a conversation uncovers what success looks like for a given timeframe, it becomes much easier to meet each other's expectations and work together as a team.

 

Success visioning can also help to determine more effective ways of working during meetings. For example, start your meetings by asking:

 

• When we have had a successful meeting, what decisions will we have made?
• How will we have most effectively made those decisions?
• How will we have gotten all the input we needed?
• Whose input will have been most critical/important?
• How will we have exposed any assumptions underlying what we decided?

 

For ongoing conversations, particularly around sensitive issues or areas where people have a lot of passion, make your thinking process visible. Explain your assumptions and the data that led to them. Give examples of what you propose, and explain who will be affected, how, and why. Encourage others to explore and question your assumptions and data. Reveal where you are least clear in your thinking, and stay open to different points of view.

 

To ensure alignment, ask others to make their thinking process visible. Explain your reasons for inquiring and ask questions like, "What leads you to conclude that? Help me understand how you got to that point. Tell me more about why you're thinking that way."

 

This process starts to uncover the underlying beliefs, assumptions and meanings others have about the topic under discussion. Only when we understand the why of someone's belief or behavior can we make decisions that both parties understand and can adhere to. 

 

At the strategic level, success visioning can be used in a process called ‘destination modeling' to help organizations get clear on what winning looks like. Most companies have clearly defined financial objectives. Destination modeling involves going beyond the financial metrics and painting very clear pictures of what it will look like when you win in other areas of the business.

 

For example, when we have achieved our marketing goals:

 

• What new products will we have brought to the market?
• What new markets will we be serving?
• How will we be known in those markets?
• What new competitors will we be competing against?
• What new team members will we have brought on board?
• What new systems, processes and technologies will we be using to serve those markets?

 

Again, use future-active, past tense questions that position the goal as if you have already achieved it. Your brain, in many ways, can't distinguish the difference between mental imagery and reality. So when you paint a picture of winning, it actively seeks out ways to make that picture happen.

 

Of course companies need to track financial metrics such as revenues, cash flow and margins. But these only don't typically motivate, inspire or engage employees. Use destination modeling to paint detailed pictures of what it looks like to win in other areas of your business and you will be amazed at the alignment that occurs. 

 

Use the power of the brain to get clear on excellence. Expose your thinking to each other. And use destination modeling to define winning in every area of your business. You'll find that everyone in the organization is running the same race, and you'll never again have to start a follow-up meeting by wondering, "What happened?"

 

About the Author

Holly G. Green is author of "More Than A Minute," and the CEO and Managing Director of The Human Factor, Inc. She has more than 20 years of executive level and operations experience in FORTUNE 100, entrepreneurial, and management consulting organizations. She was previously President of The Ken Blanchard Companies, a global consulting and training organization as well as LumMed, Inc. a biotech start up. For more information, visit her at http://www.thehumanfactor.biz and http://www.morethanaminute.com