Into the unknown…

Image by Tracy Peltier from Pixabay

“So much depends on the outcome of … [insert your process, enquiry, application, etc here]”

I met with three CEO’s last week who echoed a theme. Much of the short to mid term future in their organisations depends on the outcome of things outside of their control. In each case, the outcome/s will require their organisation to change. The outcome/s will also dictate how palatable those changes will be. Whatever happens, there will be change and it will be reactive in nature.

“People are uncertain,” they told me.

Uncertain environments make detail difficult to map. Forecasting various probable outcomes is important work, but can add even more uncertainty.

Maybe you can relate. I know I can.

It's worth remembering that humans have always faced uncertainty. It is uncomfortable and we are pretty good at it. Like those 3 CEO’s you’ve got this.

Here are few things we can do in uncertain times to inject certainty for ourselves and those around us:

• Big picture - Where detail is lacking focus on the big picture. What direction are we heading in? What’s our Why? Is our purpose clear? Are there non-negotiables and principles to bring into focus? When detail is lacking, big picture guidance adds certainty. It gives clarity about what will guide future decisions. Focus on elements that fundamentally won’t change regardless of outcomes and future changes.

• Best Behaviour - Double down on how you treat each other. Focus on and reinforce the best of how people interact with each other in your organisation. When the going gets murky at our house, my partner and I call each other to kindness and integrity. Regardless of what happens, we at least have some certainty about how we will ‘be’ with each other.

• You know how to weave! One CEO, calling on her Maori heritage, likened the situation to being in a place where you don’t know what plants to gather to find the fibres to weave the mat. I reminded her that even if she didn’t know the plant, she could recognise a weavable fibre, and still knows how to weave. Whatever happens next, you know more than you think you do. Bring your deep knowledge and experience with you. The details of execution may be up for change, but you still know how to weave.

Reduce the Policy Load

Things had been dodgy to say the least. The organisation was losing money, and while it was never proven it was pretty likely that some was being internally skimmed. A new CEO was appointed and she was met with a tangled web involving people at all levels right up to the board. Had the organisation continued “as is” it would have been broke in 18 months and likely facing a number of legal ramifications. People were suspicious and guarded. It was an emotionally charged and manipulative environment. There was very little trust. The organisation was far from unshakeable and on the verge of being shaken to the core.

As the new CEO uncovered the extent of the chaos, the organisation slipped further with people running for cover behind blame. Factions began making threats in an attempt to ensure compliance or silence. Threats ranged from minor to very serious. 

In the aftermath there was very little trust. In rebuilding the organisation there was a strong swing to creating policy and procedure (P&P) for everything. It’s an understandable reaction - an attempt to lock the doors and bar the windows.  

However the higher the quantity of P&P, the lower the effectiveness:

• Higher quantities of P&P increase the likelihood  that some or all of your staff are operating outside the ‘rules’. The more there are, the less it is possible to know, understand and apply them all. In fact, time and effort will be spent finding work-arounds and short cuts.

• High volumes of P&P increase the annual workload of review and update. If the team takes the task seriously, it requires a detailed look at each document and how it is serving the organisation (or not). High volumes tend to result in a ‘tick and flick’ mentality that does nothing to contribute to the security that P&P are trying to create.

• People who will do the wrong thing will find a way, regardless of how thick the P&P file is. 

• P&P is a great killer of innovation and improvement.

• High volume P&P implies staff aren’t to be trusted and need every element of their work guided by the organisation.

• It raises the centre of gravity, by taking decisions and processes up the hierarchy. In turn, this restricts thinking and creativity at the coal face.

• High volume becomes addictive, as every little gap in P&P is hunted down and filled. It’s like  rabbits or those wire coat hangers from the dry cleaner.

Unshakable organisations are lean on Policy and Procedure, but do not leave the organisation without guidelines. Ray Dalio’s book “Principles” is a great example of detailed guidance that leaves heaps of room for flexible approaches to changing conditions.

A great principle for organisations who want to be unshakable is to reduce P&P as much as possible.

When reviewing documents, ask yourself “Is there any reason why this document could not be deleted or shortened?”