When my niece was 4 years old, she looked at her mom (my sister) and said, “I can’t wait until I’m an adult so I can be in charge and make all the decisions.” My sister laughed and laughed.
Being in charge looks glamorous from the outside, but it is challenging, painful, and sometimes soul-wrenching. Never is this truer than when you must make a tough decision and don’t have all the data you want or need.
But lately, I’ve noticed more and more executives defer making decisions. They’ll say they want more data, to hear what another executive thinks, or are nervous that we’re rushing to decide.
This deferral is a HUGE problem because making decisions is literally their job! After all, as Norman Schwarzkopf wrote in his autobiography, “When placed in command, take charge.”
When you decide, you lose
A decision is “a choice that you make about something after thinking about several possibilities.” Seems innocent enough, right? Coke or Pepsi. Paper or plastic. Ariana Madix or Raquel Leviss (if you don’t know about this one, consider yourself lucky. If you choose to know about it, click here).
The problem with making decisions is that loss is unavoidable. Heck, the word “decide” comes from the Latin roots “de,” meaning off, and “caedre,” meaning cut. When you choose Coke, paper bags, or Ariana, you are cutting off the opportunity to drink Pepsi with that meal, use a plastic bag to carry your purchases or support Rachel in a pointless pop culture debate.
Decisions get more challenging as the stakes get higher because the fear of loss skyrockets. Loss aversion, a cognitive bias describing why the psychological pain of loss is twice as acute as the pleasure of gain, is common in cognitive psychology, decision theory, and behavioral economics. You see this bias in action when someone refuses to ask questions or challenge the status quo, to take a good deal because it’s below their initial baseline, or to sell an asset (like a house) for less than they paid for it.
No decision is the worst decision
Deciding not to decide is often the worst decision of all. Because it feels like you’re avoiding loss and increasing your odds of making the right decision by gathering more data and input, it’s easy to forget that you’re losing time, employee engagement and morale, and potential revenue and profit.
When you decide not to decide, progress slows or even stops. No decision gives your competition time to catch up or even pass you. Your team gets frustrated, morale drops, and people search for other opportunities to progress and have an impact. The date of the first revenue slips further into the future, slowly becoming just a theoretical number in a spreadsheet.
Decide how to decide
In a VUCA world, a perfect, risk-free decision that offers only upside does not exist. If it did, the business wouldn’t need an executive with your experience, intellect, and courage. Yet here you are.
It’s your job to make decisions.
Make that job easier by deciding how to decide
Tell people what you need to see to say Yes. “I’ll know it when I see it” is one of the biggest management cop-outs ever. If you don’t know what you want, don’t waste money and time requiring your team to become mind readers. But you probably know what you want. You’re just afraid of being wrong. Instead of allowing your fear to fuel inefficiency, tell the team what you need or want to see and that, as they make progress, that request might change. Then set regular check-ins so that if/when it happens, it happens quickly and is communicated clearly.
Break big decisions down into little decisions. I once worked with a team that had an idea for a new product. They planned to pitch to the executive committee and request 3 million dollars to develop and launch the idea. After some coaxing, we decided to avoid that disaster and brainstormed everything that needed to be true to make the idea work. We devised a plan to test the three assumptions that, if we were wrong, would instantly kill the idea. When we pitched to the executive committee, we received an immediate Yes.
Present options and implications. As anyone with a toddler knows, you don’t ask yes or no questions. You give them options – do you want to wear the yellow or pink shirt? If they pick something else, like their Batman costume, you explain the implications of that decision and why the options previously presented are better. Sometimes they pick the yellow shirt. Sometimes they pick the Batman costume. You could force them to make the right decision, but no one wins. (Yes, I just compared managers to toddlers. Prove me wrong).
It’s your decision
Being in charge requires making decisions. When you decide, you lose the option (maybe temporarily, maybe forever) to pursue a different path. But you can’t be afraid to do it.
After all, “Sometimes you win, sometimes you lose, sometimes it rains.”
If you are a leader, you use your personal qualities and behaviors to influence and inspire others to follow you because they choose to (not because the org chart requires them to). Any person, anywhere in the org chart, can be a leader because leadership has nothing to do with your position, responsibilities, or resources.
If you are a manager, executive, or senior executive, you have positional power, usually earned. These terms put you in a particular place in the org chart, define your scope of responsibility, and set guardrails around the human and financial resources you control.
There is nothing wrong with being a manager (or executive or senior executive). Those positions are earned through hard work and steady results. They are titles to aspire to, be proud of, and use in a professional setting.
But if you run around telling people you’re a leader, well, to misquote Margaret Thatcher, “Being a leader is like being a lady. If you have to tell people you are, you aren’t.”
Are you a leader?
There are thousands of books on leadership, millions of articles, and hundreds of experts. I am not a leadership expert, but I know a leader when I meet one. The same is true for the people around you.
What do we see that helps us know whether or not you are a leader?
If the dozen articles I skimmed for this post are any indication, everyone has their own list, but there are some common items. To find the most frequently mentioned, I asked ChatGPT to list the qualities and behavior distinguishing leaders from managers and executives.
Here’s what I got:
Here are my reactions:
Uh, ok. This leadership list feels like what an executive should do, but I guess the difference between the two (executives focus on strategy, and leaders inspire and connect) proves my point (which is a bit discouraging)
It feels like some leadership qualities are missing (e.g., empathy, fostering psychological safety, inspiring trust)
Kinda surprised to see other leadership qualities (do you need to “foster creativity and innovation” to be a leader?)
That 3rd thought led to a fourth – if “fostering creativity and innovation” is a quality shared amongst all leaders, then is there a difference between business, operational, and innovation leaders?
Are you an innovation leader?
I’ve worked for and with leaders, and I can say with absolute confidence that while each of them was a great leader, few were great leaders of innovation.
Why? What made them great leaders in business and operations but not in innovation?
Do you even need to be good at leading innovation if you’re good at managing it?
What does it even mean to be an “innovation leader?”
What do you think?
Off the top of my head, qualities specific to innovation leaders are:
Patient for revenue, impatient for learning and insights
Oriented to action, not evaluation (judging)
Curious and questioning, not arrogant and answering
What am I missing (because I know I’m missing a lot)?
What characteristics have you experienced with innovation leaders that make them unique from other types of leaders?
As the world around you becomes more volatile, uncertain, complex, and ambiguous (VUCA), you know that you need to build skills to navigate it and inspire others to follow your path.
But what if you are the source of ambiguity?
Because you are. Every time you speak.
The words we use always have clear meaning and intent to us but may not (and often don’t) have the same meaning and intent to others.
That’s why one of the first and most essential things a company can do when starting its innovation journey is to decide what “innovation” means. It may seem like an academic exercise, but it becomes very practical when you discover that one person thinks it means something new to the world, another thinks it’s a new product, and a third thinks it means anything commercialized.
Ambiguity = Efficiency?
“Innovation” isn’t the only word that is distractingly ambiguous. Language, in general, evolved to be ambiguous because ambiguity makes it more efficient. In 2012, cognitive scientists at MIT found the ambiguity–efficiency link, noting “words with fewer syllables and easier pronunciation can be ‘reused,’ avoiding the need for a vast and increasingly complex vocabulary.”
You read that right. In language, ambiguity leads to efficiency.
Every time you speak, you’re ambiguous. You’re also efficient.
The RIGHT level of Ambiguity = Efficiency!
In 2014, researchers at Pompeu Fabra University in Barcelona found that language’s ambiguity is critical to communicating complex ideas,
“the researchers argue that the level of ambiguity we have in language is at just the right level to make it easy to speak and be understood. If every single object and concept had its own unique word, then language is completely unambiguous – but the vocabulary is huge. The listener doesn’t have to do any guessing about what the speaker is saying, but the speaker has to say a lot. For example, “Come here” might have to be something like “I want you to come to where I am standing.” At the other extreme, if the same word is used for everything, that makes it easy for the speaker, but the listener can’t tell if she is being told about the weather or a rampaging bear.”
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Either way, communication is hard. But Sole and Seoane argue that with just the right amount of ambiguity, the two can find a good trade-off.”
A certain level of ambiguity is efficient. Too much or too little is inefficient.
How to find the RIGHT level of Ambiguity for “Innovation”
In everyday life, it’s ok for everyone to have a slightly different definition of innovation because we all generally agree it means “something new.” Sure, there will be differences of opinion on some things (is a new car an “innovation” if it just improved on the previous model?). Still, overall, we can exist in this world and interact with each other despite, or maybe because of, the ambiguity.
Work is a different story. If you are responsible for, working on, or even associated with innovation, you better be very clear on what “innovation” means because its definition determines expectations and success for what you do. If it means one thing to you and a different thing to your boss, and a third thing to her boss, you’re in for a world of disappointment and pain.
Let’s avoid that. Instead:
Define the word
Get everyone to agree on the definition
Use the word and immediately follow it with, “And by that, I mean (definition)”
Gently correct people when they use the word to mean something other than the agreed-upon definition. Once everyone uses the word correctly, you can stop defining it every time because its meaning has taken root.
So, the next time someone rolls their eyes and comments on the “theoretical” or “academic” (i.e., not at all practical, useful, or actionable) exercise of defining innovation, smile and explain that this is an exercise in efficiency.
That means you know the answer to every question, make the right decision when faced with every choice, and act confidently when others are uncertain. Right?
(Insert uproarious laughter here).
Of course not. But you act like you do because you’re the leader, the boss, the person in charge.
You are not alone. We’re all doing it.
We act like we have the answers because we’ve been told that’s what leaders do. We act like we made the right decision because that’s what leaders do in a volatile, uncertain, complex, and ambiguous (VUCA) world where we must work quickly and flexibly while doing more with less.
But what if we didn’t?
What if we stopped pretending to have the answer or know the right choice? What if we acknowledged the ambiguity of a situation, explored its options and interpretations for just a short while, and then decided?
We’d make more informed choices. We’d be more creative and innovative. We’d inspire others.
So why do we keep pretending?
Ambiguity: Yea! Meh. Have you lost your mind?!?
Stanford’s d.School calls the ability to navigate ambiguity “the super ability” because it’s necessary for problem-finding and problem-solving. Ambiguity “involves recognizing and stewing in the discomfort of not knowing, leveraging and embracing parallel possibilities, and resolving or emerging from ambiguity as needed.”
Navigating ambiguity is essential in a VUCA world, but not all want to. They found that people tend to do one of three things when faced with ambiguity:
Endure ambiguity as “a moment of time that comes before a solution and is antagonistic to the objective – it must be conquered to reach the goal.”
Engage ambiguity as “an off-road adventure; an alternate path to a goal. It might be rewarding and helpful or dangerous and detrimental. Its value is a chosen gamble. Exhilaration and exhaustion are equally expected.”
Embrace ambiguity as “oceanic and ever-present. Exploration is a challenge and an opportunity. The longer you spend in it, the more likely you are to discover something new. Every direction is a possibility. Navigation isn’t simple. It requires practice and patience.
Students tend to enter the program with a resignation that ambiguity must be endured. They leave embracing it because they learn how to navigate it.
You can too.
In fact, as a leader in a VUCA world, you and your team need to.
How to Embrace (or at least Engage) Ambiguity
When you want to learn something new, the library is one of the best places to start. In this case, the Library of Ambiguity – an incredible collection of the resources, tools, and activities that professors at Stanford’s d.School use to help their students build this super ability.
It’s easy to get overwhelmed by the number of resources, so here are three that I recommend:
What it is: A tool to help individuals better understand the tolerance of ambiguity, especially their comfort, learning, and panic zones
When to use it: Stanford used this as a reflection tool at the end of an introductory course, BUT I would use it at the start of the project as a leadership alignment and team-building tool:
Leadership alignment – Ask individual decision-makers to identify their comfort, learning, and panic zones for each element of the Project Scoping Guide (problem to be solved, target customer, context, goals, and priorities), then synthesize the results. As a group, highlight areas of agreement and resolve areas of difference.
Team-building – At the start of the project, ask individual team members to complete the worksheet as it applies to both the project scope and the process. Individuals share their worksheets and, as a group, identify areas of shared comfort and develop ways to help each other through areas of learning or panic.
Why I like it: Very similar to the Project Playground concept I use with project teams to define the scope and set constraints, it can be used individually to build empathy and support amongst team members.
What it is: A tool to build trust and confidence amongst a team working through an ambiguous effort
When to use it: At regular pre-defined intervals during a project (e.g., every team check-in, at the end of each Sprint, once a month)
What I like about it:
Individuals complete it BEFORE the meeting, so the session focuses on discussing the dashboard, not completing it
The dashboard focuses on the usual business things (progress against responsibilities, the biggest challenge, next steps) and the “softer” elements that tend to have the most significant impact on team experience and productivity (mood, biggest accomplishment, team balance between talking and doing)
Learn It. Do It.
The world isn’t going to get simpler, clearer, or slower. It’s on you as a leader to learn how to deal with it. When to slow it down and explore and when to speed it up and act. No one is born knowing. We all learn along the way. The Library will help. No ambiguity about that!
A few weeks ago, a Google researcher leaked an internal document asserting that Google (and open AI) will lose the AI “arms race” to Open Source AI.
I’ll be honest: I didn’t understand much of the tech speak – LLM, LLaMA, RLHF, and LoRA are just letters to me. But I understood why the memo’s writer believed that Google was about to lose out on a promising new technology to a non-traditional competitor.
They’re the same reasons EVERY large established company loses to startups.
Congratulations, big, established industry incumbents, you’re finally innovating like Google!
(Please note the heavy dose of sarcasm intended).
Innovation at Google Today
The document’s author lists several reasons why “the gap is closing astonishingly quickly” in terms of Google’s edge in AI, including:
“Retraining models from scratch is the hard path” – the tendency to want to re-use (re-train) old models because of all the time and effort spent building them, rather than start from scratch using newer and more flexible tools
“Large models aren’t more capable in the long run if we can iterate faster on small models” – the tendency to want to test on a grand scale, believing the results are more reliable than small tests and drive rapid improvements.
“Directly competing with open source is a losing proposition” – most people aren’t willing to pay for perfect when “good enough” is free.
“We need them more than they need us” – When talent leaves, they take knowledge and experience with them. Sometimes the competitors you don’t see coming.
“Individuals are not constrained by licenses to the same degree as corporations” – Different customers operate by different rules, and you need to adjust and reflect that.
“Being your own customer means you understand the use case” – There’s a huge difference between designing a solution because it’s your job and designing it because you are in pain and need a solution.
What it sounds like at other companies
Even the statements above are a bit tech industry-centric, so let me translate them into industry-agnostic phrases, all of which have been said in actual client engagements.
Just use what we have. We already paid to make it.
Lots of little experiments will take too long, and the dataset is too small to be trusted. Just test everything all at once in a test market, like Canada or Belgium.
We make the best [product]. If customers aren’t willing to pay for it because they don’t understand how good it is, they’re idiots.
It’s a three-person startup. Why are we wasting time talking about them?
Aren’t we supposed to move fast and test cheaply? Just throw it in Google Translate, and we’ll be done.
Urban Millennials are entitled and want a reward. They’ll love this! (60-year-old Midwesterner)
How You (and Google) can get back to the Innovative Old Days
The remedy isn’t rocket (or computer) science. You’ve probably heard (and even advocated for) some of the practices that help you avoid the above mistakes:
Call out the “sunk cost fallacy,” clarify priorities, and be transparent about trade-offs. Even if minimizing costs is the highest priority, is it worth it at the expense of good or even accurate data?
Define what you need to learn before you decide how to learn it. Apply the scientific method to the business by stating your hypothesis and determining multiple ways to prove or disprove it. Once that’s done, ask decision-makers what they need to see to agree with the test’s result (the burden of proof you need to meet).
Talk. To. Your. Customers. Don’t run a survey. Don’t hire a research firm. Stand up from your desk, walk out of your office, go to your customers, and ask them open-ended questions (Why, how, when, what).
Constantly scan the horizon and seek out the small players. Sure, most of them won’t be anything to worry about, but some will be on to something. Pay attention to them.
See #3
See #3
Big companies don’t struggle with innovation because the leaders aren’t innovative (Google’s founders are still at the helm), the employees aren’t smart (Google’s engineers are amongst the smartest in the world), or the industry is stagnating (the Tech industry has been accused of a lot, but never that).
Big companies struggle to innovate because operating requires incredible time, money, and energy. Adding innovation, something utterly different, to the mix feels impossible. But employees and execs know it’s essential. So they try to make innovation easier by using the tools, processes, and practices they already have.
“We have successfully retained the opportunity for improvement.”
When the CEO said this to kick off a meeting, I knew we were in for an adventure. He smirked at the corporate double-speak, paused for the laughter, then outlined all the headwinds facing the business. But the only thing I remember from that meeting was his opening line.
I think about it all the time. Because it seems to apply all the time.
And despite the turmoil brought on by a pandemic, a war, and an economic slowdown, we have successfully retained the opportunity to improve how we deal with uncertainty.
That isn’t to say we haven’t improved over the past three years. In fact, at an event sponsored by NextUp, four executives from P&G, CVS, Hannaford, and Intel shared what they learned and how they changed while navigating uncertainty.
Listen more
Dave DeJohn, Director of Operations for Hannaford, talked about the importance of listening deeply and constantly to employees, especially those on the front lines. Consistent with its core values of family, community, quality, and value, store associates are trained that the customer is always right. However, as incidents of verbal abuse increased during the lockdowns, employee satisfaction and mental health declined. By closely listening and observing what was happening in stores, Hannaford’s leadership modified their customer service approach to “the customer is always right, within reason” and empowered employees to stand up for themselves and each other when faced with hostile shoppers.
Stronger relationships lead to stronger results
Every executive shared stories from the early days of working from home – technical glitches, kids invading calls, and even cats positioning themselves awkwardly in front of cameras when the human stepped away. Far from being signals of a lack of commitment or professionalism, these moments transformed roles and titles into human beings, juggling all the things humans must juggle. Once people started seeing others as fellow humans versus bosses, peers, or subordinates, they connected on a human level and formed genuine and trusting relationships. Those relationships led to better collaboration, more effective troubleshooting, and better business results.
Concise concrete communication is critical
In periods of uncertainty, information is power. But it’s also constantly changing. For that reason, constant communication is a must. But in a large organization, communication often comes from multiple departments – employee relations, HR, health and safety, operations, and marketing, to name a few – and that can be overwhelming. For this reason, DeJohn learned that keeping every message concise (ideally the length of a tweet but no more than a short paragraph) and concrete (specific, tangible, tactical rather than high-level platitudes) proved critical to keeping people aligned and moving forward.
Just because you can, doesn’t mean you need to
Keris Clark, VP of Sales at P&G, spoke about the drastic shift in her work/life balance when she could no longer travel to see customers or attend meetings. Instead of taking the first flight from Boston to Seattle for a meeting and then a red-eye back home, she suddenly had time to work out, cook, and spend time with family. As travel became safer and invitations to far-away meetings came in, she thought more critically about whether or not to book the tickets. Like most of us, she still travels for some things, but it’s no longer the default option now that more people are used to video calls and other ways of working.
We can do things differently and still deliver
COVID’s effect on the supply chain is well documented, and Tiffiny Fisher, Chief of Staff and Technical Assistant for Intel’s America region, gave us a view into Intel’s situation in the earliest days of the pandemic. With fabrication, assembly, and testing sites throughout Asia, Intel had to work quickly to figure out how to continue operating while staying with government lockdown guidelines. Ultimately, hundreds of employees volunteered to leave their families and live in hotels near Intel facilities so that they could continue operating. It was a huge sacrifice by employees and probably not one that anyone would want to make again. Still, it proved that Intel, with the support of its employees, could quickly make massive changes to its operations while continuing to deliver results.
Uncertainty can be deeply uncomfortable, even frightening, even though we face it every day. Building the skills to navigate it and learning lessons about what works and doesn’t can make it easier. But if you still struggle, don’t worry. It just means you’ve successfully retained the opportunity for improvement.
