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Leading With Wisdom Presented to GSD Annual Conference October, 2020 By Mark D. Bennett, Uniting by Design LLC (Formerly Decision Resources, Inc.) © 2020 Uniting by Design LLC. Leading with Wisdom Helping Organizations Adapt to Change & Uncertainty The occasion is piled high with difficulty and we must rise with the occasion. As our case is new, so must we think anew and act anew.Abraham Lincoln Adaptive Capacity What..Why..How Webinar Learning Objectives Practical Wisdom Elements..Resources..Application HOPE! Values as the Key Integrity..Accountability..Credibility

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Page 1: Leading With Wisdom By Mark D. Bennett, Uniting by Design

LeadingWithWisdomPresentedtoGSDAnnualConferenceOctober,2020

ByMarkD.Bennett,UnitingbyDesignLLC(FormerlyDecisionResources,Inc.)

©2020UnitingbyDesignLLC.

LeadingwithWisdom

HelpingOrganizationsAdapttoChange&Uncertainty

“Theoccasionispiledhighwithdifficultyandwemustrisewiththeoccasion.Asourcaseisnew,somustwethinkanewandactanew.”

AbrahamLincoln

AdaptiveCapacityWhat..Why..How

WebinarLearningObjectives

PracticalWisdomElements..Resources..Application

HOPE!

ValuesastheKeyIntegrity..Accountability..Credibility

Page 2: Leading With Wisdom By Mark D. Bennett, Uniting by Design

LeadingWithWisdomPresentedtoGSDAnnualConferenceOctober,2020

ByMarkD.Bennett,UnitingbyDesignLLC(FormerlyDecisionResources,Inc.)

©2020UnitingbyDesignLLC.

Now,MoreThanEver,AdaptiveCapacityIs

•  Cascadingchangeinacomplexoperatingenvironment

•  Limitedhumanandmaterialresourcesrelativetoneed

•  Leveragetoscalefaster

THEMASTERSTRATEGY

StandingintheGap

Whatis

Whatcouldbe

ALeadiatorhasthe

Mindset Heartset

Skillset

HowLeadiatorsStandintheGap

CharttheCourse

RecognizeWhatIs

ImagineWhatCouldBe

SituationalAwareness

CorrosiveCynicism

OutoftheAction

AnalysisParalysis

WishfulThinking

PragmaticIdealism

CreativeCollaboration

Page 3: Leading With Wisdom By Mark D. Bennett, Uniting by Design

LeadingWithWisdomPresentedtoGSDAnnualConferenceOctober,2020

ByMarkD.Bennett,UnitingbyDesignLLC(FormerlyDecisionResources,Inc.)

©2020UnitingbyDesignLLC.

PsychologicalSafety(Fullcontribution)

Tenacity

Innovation

GrowthMindset(Learningvelocity)

AgilityAdaptiveCapacity

Toovercomechallengesamidstchangeanduncertainty

RobustStrategies

Agility

Unity

ForceMultiplication

21stcenturychallengesrequireForceMultiplication

Engagediverseperspectives

Turncreativityintoinnovation

Acceleratelearningvelocity

FollowyourValuesasguidingstarsto:

DemonstrateIntegrity

MaintainAccountability

EarnCredibility(Trust)

Page 4: Leading With Wisdom By Mark D. Bennett, Uniting by Design

LeadingWithWisdomPresentedtoGSDAnnualConferenceOctober,2020

ByMarkD.Bennett,UnitingbyDesignLLC(FormerlyDecisionResources,Inc.)

©2020UnitingbyDesignLLC.

TheQuestionattheHeartofEveryCriticalDecision

Values

Whatismostimportant-  totheorganization,-  tome,and-  tothosewhowillbeaffected?

BigValueWordRESPECT

WisdomPutsValuesintoAction

Actionprinciples

• Encourageandvaluethecontributionsofeachperson• Listenwell,communicateopenlyhonestly,andencourageotherstodothesame• Treatothersaswewouldliketobetreatedourselves

DefinitionPositiveregardforthedignityofallpersons

SupportingBehaviors DetractingBehaviors

DimensionsofWisdom

EnhancePerspective

GeneratePossibilities

AlignwithValues&

Principles

(Un)CommonSense

Courage

MoralImagination

Clarity

Conviction

CreativeAction

MeetChallenges

TapInnerResources ShowQualities AWiseProcess

Prevents‘StinkinThinkin’

TunnelVision

InformationOverload

AnalysisParalysis

UncertaintyOverwhelm(Fear)TimeCompression

Page 5: Leading With Wisdom By Mark D. Bennett, Uniting by Design

LeadingWithWisdomPresentedtoGSDAnnualConferenceOctober,2020

ByMarkD.Bennett,UnitingbyDesignLLC(FormerlyDecisionResources,Inc.)

©2020UnitingbyDesignLLC.

WisdomGrowsThroughDialogue&Learning

Expandthe‘GrowZone’

“HoldingBack”(LowHonesty)

“Dominating”(LowInquiry)

Askthemto‘stress-test’yourperspective&learntheirs(Inquiry)

Stateyourpositionwithreasoning

(StraightTalk)

Don’tshrinkthezoneofengagement

“Thenorthofpeace-buildingisbestarticulatedasfindingourwaytowardbecomingandbeinglocalandglobalhumancommunitiescharacterizedbyrespect,dignity,fairness,cooperation,andthenonviolentresolutionofconflict.Tounderstandthisnorth,toreadsuchacompass,requiresthatwerecognizeanddevelopourmoralimaginationfarmoreintentionally.” JohnPaulLederachTheMoralImagination:TheArtandSoulofBuildingPeace

CapacitiesofMoralImagination

Imagineourselvesinawebofrelationshipsincludingstrangersandadversaries

Embracecomplexity,riseabovedivisions,andreachbeyondacceptedmeaningstodiscovernewangles,opportunities,andunexpectedpotentialities

Providespaceforthecreativeacttoemerge

Takeriskstostepintotheunknownwithoutguaranteeofsuccessorsafety

AdaptiveCapacity Mindset

Requiresleadiatorswiththe…

HeartsetSkillset

Page 6: Leading With Wisdom By Mark D. Bennett, Uniting by Design

LeadingWithWisdomPresentedtoGSDAnnualConferenceOctober,2020

ByMarkD.Bennett,UnitingbyDesignLLC(FormerlyDecisionResources,Inc.)

©2020UnitingbyDesignLLC.

“HopeisdefinitelyNOToptimism.Itisnottheconvictionthatsomethingwillturnoutwell,butthecertaintythatsomethingmakessense,regardlessofhowitturnsout.” VaclavHavel1stdemocraticallyelectedPresidentofCzechRepublic

Page 7: Leading With Wisdom By Mark D. Bennett, Uniting by Design

UNITINGBYDESIGN℠

LeadingWithWisdom

HelpingOrganizationsAdapttoChangeandUncertainty

PresentedtoNMGeneralServicesDivisionAnnualADRConference

October6,2020

[email protected]

www.unitingbydesign.com

Page 8: Leading With Wisdom By Mark D. Bennett, Uniting by Design

Forthepast30years,MarkD.Benne5hasworkedwithorganiza;ons(businesses,nonprofits,governmentagencies)asaconsultant,leadershipcoach,trainer,facilitator,andmediator.Hissubjectma5erexper;seincludesvalues-baseddecisionmakingandbuildinghealthyorganiza;onculturesthroughdialogue,collabora;on,wiseplanning,andprinciplednego;a;on.HeisthecoauthorofAFieldGuidetoGoodDecisions:ValuesinAc3on.

AKerhisearlycareerasalawyerwithanemphasisonemploymentlawandcivilrights,Markpursuedgraduatestudiesinpsychologyandfamilytherapy.Thenhehadafull-;meprac;ceasamediatorforovertwodecades.HeisthecoauthorofTheArtofMedia3onwhichisinasecondedi;onandhasbeenusedasatrainingreferenceintheUS,Canada,andEurope.Hehasmediatedhundredsoforganiza;onal,business,family,andcommunitydisputes.Hehasalsotrainedmanyleadersandmanagerstouseprac;calmedia;onskillstoresolveorganiza;onconflicts.

Hislatestbookwillbeoutinlate2020.Uni3ngbyDesign:theArchitectureofCrea3veCollabora3on

MissionStatement:Helpingleadersbuildhealthyorganiza;onswithwisedecisionsandcrea;vecollabora;on.

SpeakingandWorkshopTopics:

Uni$ngbyDesigntheArchitectureofCrea;veCollabora;oninOrganiza;ons,Teams,andGroups

StrongDecisionsByDesignHowLeadersUseValuesandEthicstoAlign,Guide,andSucceedWisePlanningthePathofAccountability,Unity,andHighPerformanceThePeacefulOrganiza$onBridgingDifferenceswithPrincipledNego;a;on

Contact:MarkD.Benne5mark@uni;ngbydesign.com+15056608806www.uni9ngbydesign.com

PhotocopyingpermissionandFutureUseAsapar;cipantinthisworkshop,youmayuseandphotocopyanyofthesematerialsforyourpersonalandbusinessusesolongasthereisnochargetoothers.©2020Uni;ngbyDesignLLCAllrightsreserved.

SpeakerInforma;on,Copyright,andUseofMaterials

Page 9: Leading With Wisdom By Mark D. Bennett, Uniting by Design

Leaders,seniormanagers,andchangeagentswhowanttomakeadifferenceintheworkthroughcollabora;onmustbewillingtostandinaplaceofuncertaintyandorienttowardpossibility.Meaningfulchangerequiresthecouragetostandinthisgap,realis;callyaccep;ngWHATISandperseveringtogenerateWHATCOULDBE.Itisessen;altoremainposi;veandfocused,avoidingpredictablepa5ernsofthinkingandfeelingthatwillpullaleaderorchangeagentoutoftheac;on,awayfromtheinten;onal,whole-heartedengagementnecessarytosucceed.

Organiza3onshavetobeabletoredefinethemselvesatafasterandfasterpace.RayKurzweilFuturist

StandingintheGapBetweenRealityandPossibility

CorrosiveCynicism

NomaFerwhatI/wedo,itwon'tmakeanydifference

RecognizingWhatIs

Clear-eyedRealism

ImaginingWhatCouldBe

Pragma;cIdealism

WishfulThinking

I/wealljustneedtogetalongandhopeforthebest

StandingintheGap

OutoftheAc3on

Crea$veCollabora$on

Proac3veengagementthatbringsoutthebestinothersanddiscovers

whatispossible.

AnalysisParalysis

I/wedon'tknowwhattodo

Page1

Page 10: Leading With Wisdom By Mark D. Bennett, Uniting by Design

ElementsofanAdap;veOrganiza;onCulture

Healthy,successfulorganiza;onsareresilient,abletoadaptandrespondtochange,challenges,andsetbacks.Resilientcapacityisbuiltfromtheinsideoutstar;ngwiththeorganiza;on'scoreiden;ty.Mission&VisionconfirmWHYtheorganiza;onexists.Clearlyar;culatedcorebeliefsandvaluesdefineWHOWEARE.Aroundthiscore,clearlyar;culatedbehavioralprinciplesshapeculturalcharacteris;csthroughpa5ernsofpredictable,construc;veahtudesandbehavior(HOWWEWORKTOGETHER).

Natureworkswithfivepolymers.Onlyfivepolymers.Inthenaturalworld,lifebuildsfromtheboFomup,anditbuildsinresilienceandmul3pleuses.JanineBenyusauthorBiomimicry:Innova3onInspiredbyNature

Ac9onPrinciplesalignCoreBeliefs/Values

InspiringMission&Vision

CoreBeliefs&Values

&generatepredictable,construc9vebehavior

GrowthMindsetthatturnschallenges&mistakesintolearning&skill

Tenacityfacingdifficultywithcourage&determina;on

Innova9onturningideasinto

solu;onsthatimproveresults

Agilitytostay

connected&movetogether

ClimateofPsychologicalSafetythatgenerateshonest,opendialogue

Five Characteristics of a unified, healthy

culture

Page2

Page 11: Leading With Wisdom By Mark D. Bennett, Uniting by Design

LeadiatorsStrengthentheCultureofaTeam,Group,orOrganiza;on

Anythinglessthanaconsciouscommitmenttotheimportantisanunconsciouscommitmenttotheunimportant.StephenCoveyLeadershipexpert,authorPrinciple-CenteredLeadership

Thereareleaderswith;tlesandauthorityandthen,therearethosewholeadatalllevels.Leadershiprequiresregularreflec;ononthestructuralelementsthatbuildaunified,resilientculture.Leadership,ateverylevel,mustbea“beacon,”con;nuouslysignalingpurpose,values,andkeybehaviorstohelpothersalign.Then,leadersmustac;velycul;vateaculturethatencouragespredictable,construc;vebehaviorthroughtraining,coaching,andaccountability.

ElementsHowcanyousettheexample,

establishthecondi9ons,&buildtheorg.’scapacity?

IntegratedCoreValuesAclearstatementofvaluesthatisac;velyusedtomakedecisions,guidebehavior,anddefinetheculture

Ac9on-basedPrinciplesClearguidance(orienta;on,evalua;on,coaching)forhowwemovethevaluesintoac;on

AgilityAbilitytocometogether,collaborate,assess,andadapttofulfillthemissionamidstuncertaintyandchange

Innova9onIndividualandcollec;veabilitytoreimagine,crea;velysolveproblems,andcon;nuouslyimprove

TenacityStrongconnec;ontomissionplusa“cando”ahtudekeepsmoralehighandcollabora;onstronginthefaceofdifficulty

PsychologicalSafetyClimaterichinposi;veconversa;onswhereeachone’scontribu;onsma5erandnoone'sdignityisatrisk

GrowthMindsetSharedbeliefthatweallcancon;nuetodevelopbysharingwhatweknowandlearningtogetherfromallmistakesandchallenges

WhatisOurCurrentLevel?(Foryourteam?Fortheorg.asawhole?(5-highto1-low)

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Page 12: Leading With Wisdom By Mark D. Bennett, Uniting by Design

Howdoyouar;culatethecorevalues/guidingprinciplesthatyouwanttoexemplifyinyourworkasamediator,leadiator,teammember,volunteer?Whenthesestandardsforourconductareliving,breathingprinciples,clearlyandfirmlyfixedinourawareness,theybecomeaconstella;onofguidingstarstokeepusoncourse.Notethattheseexamplesarestatedasacommitmenttotakeac;on.

RESPECTposi9veregardforthedignityofallpersonsInworkingwithpar;cipants,Iwill:

• Encourageandvaluethecontribu;onsofeachperson,andsupporttheirempoweredengagement

• Listenwell,communicateopenlyandhonestly,andencourageotherstodothesame• TreatothersasIwouldliketobetreated,rela;ngsowellwiththemthattheychooseto

ac;velypar;cipateintheprocess

INTEGRITYhonesty,directness,andrespectforcommitmentsmadeInallofmyinterac;ons,Iwill:

• Fostertrustbybeingtruthful,empathe;c,andconsistent• Beauthen;candcourageous,aligningwhatIamthinking,saying,feeling,anddoing• BeresponsibleforandfollowthroughonthecommitmentsImake

FAIRNESSimpar9altreatmenttowardothersfreefrombiasorpredjudiceInmyworkasa________,Iwill:⁃ Monitormyjudgmentsaboutotherstomaintainacalm,even-temperedpresence⁃ Iden;fyassump;onsthatImakeandcheckthemtoavoidnega;vecharacteriza;onof

themo;va;onsorac;onsofothers⁃ RememberthatIamoneveryone'ssidetofindaconstruc;veresolu;on

IMAGINATIONcrea9vityinallIdoInseekingtofulfillmymissionasa_______,Iwill:

• Lookbeyondthechallengesofthepresentandenvisionwhatispossible• Cul;vateinnova;onandrisktaking• Embracecon;nuouslearning

EXCELLENCEstrivingtomeettheneedsofthepar9cipantsIneverysitua;on,Iwill:

• Putforthmypersonalandprofessionalbest,providingthehighestqualityserviceofwhichIamcapable

• Commitmyselftocon;nuousimprovement,seekingtosurpasstheprofessionalperformancestandardswithinthisfield

• Deliverasuperiorexperienceforallpar;cipants,sensingtheirneedsandexceedingtheirposi;veexpecta;ons

AlignPurposeThroughthePoweroftheWord Page4

Page 13: Leading With Wisdom By Mark D. Bennett, Uniting by Design

DefineYourCoreValuesandGuidingPrinciples

NameofValue(Noun)__________________

Basicmeaning(1-2sentences)__________________________________________

CommitmenttoAc9on(3-4affirma9vestatements)…….I/wewill:(Verb)

______________________________________________________________

______________________________________________________________

______________________________________________________________

NameofValue(Noun)__________________

Basicmeaning(1-2sentences)__________________________________________

CommitmenttoAc9on(3-4affirma9vestatements)…….I/wewill:(Verb)

______________________________________________________________

______________________________________________________________

______________________________________________________________

NameofValue(Noun)__________________

Basicmeaning(1-2sentences)__________________________________________

CommitmenttoAc9on(3-4affirma9vestatements)…….I/wewill:(Verb)

Strategyisama5eroftheheartaswellasthehead.Valuesandbasicbeliefsexercisearealgravita;onalpullontheorganiza;on’sdirec;on.BenjaminTregoeStrategicplanningpioneer

Page5

Page 14: Leading With Wisdom By Mark D. Bennett, Uniting by Design

SeeLederach,TheMoralImagina;on:theArtandSoulofBuildingPeace©2005OxfordUniversityPressh5ps://en.wikipedia.org/wiki/John_Paul_Lederach

FundamentalCapaci9es IdeasforApplica9onandAc9on

Imagineourselvesinawebofrela;onshipsincludingstrangersandadversaries

Embracecomplexity,riseabovedivisions,andreachbeyondacceptedmeaningstodiscovernewangles,opportuni;es,andunexpectedpoten;ali;es

Providespaceforthecrea;veacttoemerge

Takeriskstostepintotheunknownwithoutguaranteeofsuccessorsafety

TheMoralImagina;on

Themoralimagina;onisthecapacitytorecognizeturningpointsandpossibili;esinordertoventuredownunknownpathsandcreatewhatdoesnotyetexist.Regardingpeace,itisthecapacitytoimagineandgenerateconstruc;veprocessesrootedintheday-to-daychallengesofviolenceandyettranscendthesedestruc;vepa5erns.JohnPaulLederach

Page6

Page 15: Leading With Wisdom By Mark D. Bennett, Uniting by Design

Tortoise....HowcanIslowdownandpaymorea5en;ontowhatishappening,wheretheobstaclesare,andwheretheopportuni;esmightbe?

Beginner'sMind....HowcanIlookatthiswithfresh'eyes'freeofassump;onsandlimi;ngbeliefsthatcouldbepreven;ngmefromclearlyseeing,thinking,andskillfulac;on?

ThirdStory....AKeryourstoryandmystoryaboutwhathashappenedandwhatitmeans,isthereathirdstorylargeenoughtoenableustoproceedtogether?

AAA....HowcanIACCEPTthemastheyareare,ACKNOWLEDGEtheirlegi;mateneedsandconcerns,andADAPTmyapproachtotheneedsofthesitua;on?

Ar9choke....HowcanIpeelthelayersdowntotheheartofthema5er(needsandvalues)?

AngelofReality....HowcanIfirmlyandrespecsullyspeakandactsotheylearnaboutthesitua;on,itslimita;ons,andtheprac;calpossibili;es?

RuleofChange....Ifthestatusquoisnotacceptable,whatcanIdodifferentlytomoveforward?

PuhngWisdomPrinciplesIntoAc;on

Howdoyou/couldyouapplythisprinciple?

BarrierstoApplica9on

Page7

Page 16: Leading With Wisdom By Mark D. Bennett, Uniting by Design

Reflec;onsontheJourneyofWisdomandMastery

Todothecommonthingsoflifeinanuncommonway.GeorgeWashingtonCarverAfricanAmericanscien;standpioneer

Inasense,knowledgeshrinksaswisdomgrows:fordetailsareswallowedupinprinciples….Thehabitoftheac3veu3liza3onofwell-understoodprinciplesisthefinalpossessionofwisdom.AlfredNorthWhiteheadBri;shmathema;cian,philosopher

Ifonetakescareofthemeans,theendwilltakecareofitself.MahatmaGandhiIndianpoli;cian,spiritualleader

Ifyoutalktoamaninalanguageheunderstandsthatgoestohishead.Ifyoutalktohiminhislanguagethatgoestohisheart.NelsonMandelaSouthAfricanleader

Thelongestdistanceonearthisthe14inchesfromtheheadtotheheart.AgnesBakerPilgrimCouncilofIndigenousGrandmothersKnowledgecomesbytakingthingsapart.But

wisdomcomesbypuWngthingstogether.JohnA.MorrisonAmericanphysician

Wefailtorealizethatmasteryisnotaboutperfec3on.It’saboutaprocess,ajourney.ThemasteristheonewhostaysonthepathdayaZerday,yearaZeryear.Themasteristheonewhoiswillingtotry,andfail,andtryagain,foraslongasheorshelives.GeorgeLeonardMastery

Letthosewhowouldmovetheworldfirstmovethemselves.SocratesGreekphilosopher

It'swhatyoulearnaZeryouknowitallthatcounts.EthelBarrymoreActress

Theonlythingworsethanbeingblindishavingsightbutnovision.HelenKellerAmericanac;vist

Findtheheartofit.Makethecomplexsimpleandyoucanachievemastery.DanMillmanWayofthePeacefulWarrior

IntheSermonontheMount,Jesussaid"BlessedarethepeacemakersfortheyshallbecalledchildrenofGod."Manywhoworkforpeacearenotatpeace.Tomakepeace,ourheartsmustbeatpeacewiththeworld."ThichNhatHanhVietnamBuddhistpeaceac;vist

Andnowhereismysecret,averysimplesecret;itisonlywiththeheartthatonecanseerightly,whatisessen;alisinvisibletotheeye.AntoinedeSaint-ExuperyFrenchwriter,TheLiFlePrince

Peoplewithahighlevelofpersonalmasteryapproachtheirlifeasanar3stwouldapproachaworkofart.TheydothatbybecomingcommiFedtotheirownlifelonglearning.PeterSengeTheFirstDiscipline

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Page 17: Leading With Wisdom By Mark D. Bennett, Uniting by Design

Resources

TheMoralImagina9on:TheArtandSoulofBuildingPeaceJohnPaulLederach,OxfordUniversityPress2005.Thisbookgetsus“outofthebox”ofmethod,technique,andprocess.Wri5enbyaworldci;zenandmediatorwhohasprac;cedandexperienceddeeplysomeofthemostpolarizedanddangerousconflictsintheworld.

SolvingToughProblems:AnOpenWayofTalking,Listening,andCrea9ngNewReali9esAdamKahane,Barre5-Koehler2004,2007.Aninspiringguidebysomeonewhohasworkedonsomeofthetoughestproblemsintheworld.Itallcomesdowntothewaystobringpeopletogethertotrulytalkandlistentooneanother.Simpletostate,notsoeasytoprac;cesuccessfully.

Invictus:NelsonMandelaandtheGamethatmadeaNa9onFarmoreinspiringthanthemovie(whichisinspiring!),thisbooklaysouttheplaybookofaleaderwhoseexampleledmillionsawayfromviolenceandtowardpeace.Readittoigniteyourmoralimagina;onaboutwhatispossible.

TheDanceofChange:theChallengestoSustainingMomentuminLearningOrganiza9onsPeterSengeetal.CurrencyDoubleday1999.Atheoryandtoolboxfortheprac;ceofpossibility.Youdon'tneedtoreadthebook.Justopenit,lookaround,andfindsomethingtoinspireyouorhelpyou.

TheWorldCafe:ShapingOurFuturesThroughConversa9onsThatMajerJuanitaBrownandDavidIssacs,Berre5Koehler,2005.Describesavaluable,flexible,easy-to-useprocessforfosteringcollabora;vedialogue,sharingmutualknowledge,anddiscoveringnewopportuni;esforac;on.Allthetoolsandguidelinesareavailableonline.Thisisaninvaluabletoolforcommunitybuilding.Ithasbeenfield-testedallovertheworldfortwodecadesbringingtogethergroupsof12-1200inci;esandinremoteruralareas,withlargecorpora;onsandgrassrootsorganiza;ons,withscien;stsandwithschoolchildren.

Mindset:TheNewPsychologyofSuccessCarolDweck,Ph.D.2006,2016Ballan;ne.AgiKedresearcherwhodevelopedasetoflearningstrategiestoreach“unreachable”childrenandturnthemintosuperiorlearnerssharesherprac;calstrategiesforhowtoreframemistakesanddifficultyintolearning.Hereworkhasmovedoutofthefieldofeduca;onintoorganiza;onswhereitisbeingusedtomeetthechallengeofadap;ngtochangethroughlearningvelocity.

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Page 18: Leading With Wisdom By Mark D. Bennett, Uniting by Design

A “Dirty Dozen”: Traps and Biases that Cloud Thinking and Decision Making

By Mark D. Bennett

Framing Bias How we pose a question, problem or decision affects the way we respond, and ultimately, the credibility of the decision itself. Frames include and exclude experience, values, training, people, options, and information. Antidote: Find an expansive frame that reveals the issues embedded in the decision. Remember: what we see depends on where we stand. Loss Aversion We tend to attach greater weight to possible losses than to possible gains. Ironically, we fear loss and are risk averse and yet, we don’t evaluate either one thoroughly. We often minimize the upside and over-focus on the downside of a choice, missing the chance to put both into proper perspective. Antidote: Use a process that mindfully surfaces and weighs potential losses and gains for all stakeholders to balance. Plan for loss mitigation. Endowment Effect We tend to overvalue a benefit or object we already own. We attach greater weight to what we possess, have earned, or feel entitled to have. This can accentuate the value and the potential loss. Therefore, we want compensating benefits to be clear and substantial. Antidote: Understand that people resist giving up what they already have, then engage them to clarify the kind of real benefits that might mitigate the loss. Mental Accounting Each of us keeps different psychological accounts for valuing and comparing things. The person spending hours driving to different stores to save $5 on an item will seem to make an impulsive decision to go on a cruise costing thousands because he accounts for it in different ways. When another’s accounting is different than ours, it’s easy to dismiss their point of view as irrational or foolish. Antidote: Be willing to ask stakeholders about their process of valuing and listen to find their unique 'logic' and way of accounting for value. Accept the challenge of acknowledging and addressing values you do not share. Order/Recency Effect The order that facts come to us affects the way we consider and weigh them. In organizations, people sometimes perceive that the last loudest voice wins – the person weighing in last has disproportionate influence on the outcome. Initial statements, positions, and comments can easily set the tone and direction for all that follows. A fact, a framework to consider, an impression or an opinion that comes to us first or last can have greater influence than worthy alternatives in between. Antidote: Offset the tendency to anchor ourselves in a first perspective (or be unduly influenced by the last) by greater awareness. Experiment with heavier consideration of 'mid-term' perspectives. Judgmental Overconfidence We tend to overestimate the accuracy of our assumptions and our predictions about future events. We can’t properly weigh the importance of unknowns and seldom acknowledge that an individual has only part of the relevant information. Antidote: Courageously commit time to a process that provides safety for all participants. Encourage them to be 'angels of reality' and ask pointed questions that test your assumptions, surface missing information, and fill in blind spots.

Page 19: Leading With Wisdom By Mark D. Bennett, Uniting by Design

Reactive Devaluation Our evaluation of a viewpoint, an idea, or proposal will differ depending on the source. We tend to devalue what we hear from someone with whom we have disagreement or an adversarial relationship more than we do when it comes from someone who is neutral, a friend, or an ally. Antidote: Use a process that includes people in decision making who can remind us to separate the message from the messenger and weigh all views, observations and ideas carefully. Sunk Cost Fallacy We’re more likely to continue to invest resources when we focus (naturally) on what we have already 'sunk' into the enterprise, rather than on the best use of time, money, and energy from this point forward. We may spend even more trying to save or avoid 'losing' what has already been spent, to avoid psychological pain or the loss of face. Antidote: Be open to the answer to the questions, “What is the best use of my or the organization's time, money, and effort now?” and “What am I most afraid of losing?” Status Quo Bias Natural and powerful inertia keeps us doing the same thing, on the same course. This avoids the discomfort and uncertainty required to change. Antidote: Consider 'doing nothing' as a formal option, analyzed on the merits with stakeholders, data, values, and potential benefits/downside. This clarity can allow the case for change to receive fair consideration, particularly when change could be costly or painful. Overload Factors Overwhelmed by data, clear thinking becomes difficult. This can result in 'analysis paralysis.' We can drown in data without knowing more__have too many choices and be no closer to a satisfactory decision. Physical and mental fatigue, as well as anxiety about processes and our inability to master them, can create a fog. This state can lead to impulsive action or freezing up. Antidote: Consider the significance of time (schedule) in the decision process and support for the decision maker's capacity. Be rigorous and use priorities to develop and present data. Denial This common state is a refusal to accept things as they are and step back from a personal perspective to see more accurately what IS. In this bias, we avoid the discomfort that comes from admitting the painful costs or consequences of a decision on others by suggesting that the effects are minimal. Decision communication is likely to be geared toward overlooking imperfections and disagreements within the organization to preserve an idealized picture. Antidote: Listen to feedback from those who will be affected in a system. Set up a path for reality checks about the likely effects of the decision. Rationalization We create explanations that make the decision appear reasonable or inevitable. The more educated and intelligent we become, the more sophisticated is the ability to concoct a plausible, rational cover story for the actual motivation. The justification becomes intellectual packaging that is counterfeit compared to the real currency__our guiding values. Antidote: Give respect and adequate attention to those who are affected by the decision or will be hearing and weighing the decider’s credibility. Commit to disciplined practice of VIA even if you only have 15 minutes, with a firm focus on stakeholders, their values, the guiding values, and the downside.