Holding Back
February 24, 2015
I wrote last week in this space about the positive place for disagreement in organizations; and I held back on pushing the topic a bit further.
Sometimes an organization leader has to hold back. Sometimes the leader needs to recognize that the organization has more disagreement than it can handle and that taking on another topic for which much disagreement is likely would be like drinking from a fire hose.
In Leadership on the Line (HBS, 2002), authors Ronald Heifetz and Marty Linsky write that “leadership requires disturbing people – but at a rate they can absorb.”
Heifetz and Linsky describe the need to “orchestrate the conflict” in four steps:
- “Create a holding environment” – a safe place to interact.
- “Control the temperature” – turn the heat up to get people’s attention, and turn it down for them to cool off or to catch up.
- “Set the pace” – not too fast that we leave too many people behind; not too slow that we lose the vision and momentum.
- “Show the future” – remind people of the “orienting value” – that is, the positive reason to go through all the negative rancor.
Risk Taking
February 14, 2012
The June 22, 2009 cover story of Business Week which I just reread was titled “The Risk Takers.” It featured businesses which during difficult times, instead of playing it safe, placed bets on some gutsy new strategies.
To make a point, the author used an illustration that we can relate to here in Michigan. I paraphrase:
Imagine a driver on a snowy night. If the car starts to slip, the driver’s natural instinct is to slam on the brakes and jerk the steering wheel in the opposite direction. But the laws of physics advise the opposite: laying off the brakes and steering into the turn.
The author reports that from 1985 to 2000, the average merger in an economic downturn created an 8.5 percent rise in shareholder value after two years; while the average deal in good times resulted in a 6.2 percent drop in the buyer’s share value. In other words, mergers – one of the biggest, boldest moves in business – do better in bad times than good. Much better, in fact.
It wasn’t recklessness this article was celebrating; it was risk taking – daring to be aggressive, rather than just defensive, amid a weak economy. Steering into the turn, so to speak.
Just like the winter driving analogy in the article, we who are involved in school sports in Michigan can relate to the big idea of the article because we too made some of our biggest moves at our bleakest times. The MHSAA retrenched in some ways, but the greater theme as we climbed out of our bad times of 2008 was that we made unprecedented investments in new technology.
Today MHSAA.com is the website of highest traffic and MHSAA.tv is the website with the most productions of any comparable organization in the U.S. And all of these investments in technology during those bad times have allowed us to undertake the ArbiterGame project now that will provide all member high schools the electronic tools necessary to make their tough tasks of school administration more streamlined than ever before.