Saturday, September 1, 2012

Leadership and Hostage Crisis


Why being a boss is like a hostage crisis  (Copied from CNN)

 


I'm no stranger to the kind of dehumanized violence we saw happen in a Colorado movie theater earlier this summer.

As a hostage negotiator, I've been held hostage myself four times in the line of duty. That's never a comfortable place to be, but I kept in mind that the success rate of hostage negotiators is as high as 95% and I knew why. Hostage negotiators are successful because they build trust through dialogue.

That dialogue changes the mindset of the hostage taker so he will surrender his weapons and hostages, even though he is aware he will probably go to prison.

In essence, the hostage negotiator becomes a "secure base" to the hostage taker. A secure base provides a sense of safety and stretch, just as a parent, grandparent, or caretaker provides their child both protection and encouragement to go out and explore and take risks.

Today, I work mostly with corporate leaders instead of hostage takers. In my book "Care to Dare" I define a secure base as "someone or something that gives protection or sense of protection, inspires or brings forth energy within an individual." With this inspiration and energy, individuals step out of their comfort zones and strive to fulfill their untapped potential.

I believe this quality is the single most important criterion for delivering sustainable high-performance leadership.

See also: Want be a leader? Act like one

Many hostage takers have few secure bases in their lives. Hostage taking is always preceded by a loss or a series of losses. The most dangerous hostage taker is the person who has no attachments and refuses to talk. However, when a hostage negotiator offers hopes, options, and positive solutions by gaining the trust of the hostage taker, he or she can become a secure base.

To become a secure base to my hostage takers meant caring about them as people and gaining their trust to explore positive solutions both for them and their hostages. Once I understood the motivation behind the hostage taking, I could begin the search for options.

By tactfully leading the way and while acting as a "secure base," I was able to disarm my four hostage takers without force. Each time, I survived precisely because I cared for the person who had a weapon trained on me.

That process involved creating a relationship -- an emotional bond -- with the hostage taker. Neuroscience explains why this bonding works. The human brain has one goal: to survive. That's why humans are always searching for the negative and instinctively act defensively. However, when a secure base creates a bond, the resulting sense of protection lets the brain shut down its defensive focus. Then the brain can look for positives and opportunities.

James Holmes, the accused shooter in the Aurora mass murder, is a typical example of a "loner" who has no secure bases or recently lost them: his university position as student, his identity, his apartment, his girlfriend, his father, to name just a few. As someone with extensive experience with severely troubled people, I see his lack of secure bases as a key contributing factor to his alleged crimes.

These days, I am a professor of leadership and organizational behavior, yet I still focus on the most basic human needs that drive behavior. If leaders are not secure bases to their employees, employees cannot trust them and they will be defensive and even feel like hostages.

Gallup studies show extremely low rates of employee engagement: 7% in France, 12% in Germany, 17 % in the UK, and 28% in the United States. The major finding was that high engagement was connected to high emotional care from the immediate boss -- a boss who became a secure base.

When caring was present, the employees would "dare" to take risks and stretch themselves to achieve great things. This winning combination of caring and daring not only shuts down defenses, it can also unleash extraordinary potential.

Wednesday, May 23, 2012


How Will You Measure Your Life?

by Clayton M. Christensen

My class at HBS is structured to help my students understand what good management theory is and how it is built. To that backbone I attach different models or theories that help students think about the various dimensions of a general manager's job in stimulating innovation and growth. In each session we look at one company through the lenses of those theories-using them to explain how the company got into its situation and to examine what managerial actions will yield the needed results.

On the last day of class, I ask my students to turn those theoretical lenses on themselves, to find cogent answers to three questions: First, how can I be sure that I'll be happy in my career? Second, how can I be sure that my relationships with my spouse and my family become an enduring source of happiness? Third, how can I be sure I'll stay out of jail? Though the last question sounds lighthearted, it's not. Two of the 32 people in my Rhodes scholar class spent time in jail. Jeff Skilling of Enron fame was a classmate of mine at HBS. These were good guys-but something in their lives sent them off in the wrong direction.

One of the theories that gives great insight on the first question-how to be sure we find happiness in our careers-is from Frederick Herzberg, who asserts that the powerful motivator in our lives isn't money; it's the opportunity to learn, grow in responsibilities, contribute to others, and be recognized for achievements (answer to Q 1). I tell the students about a vision of sorts I had while I was running the company I founded before becoming an academic. In my mind's eye I saw one of my managers leave for work one morning with a relatively strong level of self-esteem. Then I pictured her driving home to her family 10 hours later, feeling unappreciated, frustrated, underutilized, and demeaned. I imagined how profoundly her lowered self-esteem affected the way she interacted with her children. The vision in my mind then fast-forwarded to another day, when she drove home with greater self-esteem-feeling that she had learned a lot, been recognized for achieving valuable things, and played a significant role in the success of some important initiatives. I then imagined how positively that affected her as a spouse and a parent. My conclusion: Management is the most noble of professions if it's practiced well. No other occupation offers as many ways to help others learn and grow, take responsibility and be recognized for achievement, and contribute to the success of a team. More and more MBA students come to school thinking that a career in business means buying, selling, and investing in companies. That's unfortunate. Doing deals doesn't yield the deep rewards that come from building up people.

Doing deals doesn't yield the deep rewards that come from building up people.

I want students to leave my classroom knowing that.

Create a Strategy for Your Life

A theory that is helpful in answering the second question-How can I ensure that my relationship with my family proves to be an enduring source of happiness?-concerns how strategy is defined and implemented. Its primary insight is that a company's strategy is determined by the types of initiatives that management invests in. If a company's resource allocation process is not managed masterfully, what emerges from it can be very different from what management intended. Because companies' decision-making systems are designed to steer investments to initiatives that offer the most tangible and immediate returns, companies shortchange investments in initiatives that are crucial to their long-term strategies.

Over the years I've watched the fates of my HBS classmates from 1979 unfold; I've seen more and more of them come to reunions unhappy, divorced, and alienated from their children. I can guarantee you that not a single one of them graduated with the deliberate strategy of getting divorced and raising children who would become estranged from them. And yet a shocking number of them implemented that strategy. The reason? They didn't keep the purpose of their lives front and center as they decided how to spend their time, talents, and energy.

It's quite startling that a significant fraction of the 900 students that HBS draws each year from the world's best have given little thought to the purpose of their lives. I tell the students that HBS might be one of their last chances to reflect deeply on that question. If they think that they'll have more time and energy to reflect later, they're nuts, because life only gets more demanding: You take on a mortgage; you're working 70 hours a week; you have a spouse and children.

For me, having a clear purpose in my life has been essential. But it was something I had to think long and hard about before I understood it. When I was a Rhodes scholar, I was in a very demanding academic program, trying to cram an extra year's worth of work into my time at Oxford. I decided to spend an hour every night reading, thinking, and praying about why God put me on this earth. That was a very challenging commitment to keep, because every hour I spent doing that, I wasn't studying applied econometrics. I was conflicted about whether I could really afford to take that time away from my studies, but I stuck with it-and ultimately figured out the purpose of my life.

Had I instead spent that hour each day learning the latest techniques for mastering the problems of autocorrelation in regression analysis, I would have badly misspent my life. I apply the tools of econometrics a few times a year, but I apply my knowledge of the purpose of my life every day. It's the single most useful thing I've ever learned. I promise my students that if they take the time to figure out their life purpose, they'll look back on it as the most important thing they discovered at HBS. If they don't figure it out, they will just sail off without a rudder and get buffeted in the very rough seas of life. Clarity about their purpose will trump knowledge of activity-based costing, balanced scorecards, core competence, disruptive innovation, the four Ps, and the five forces.

My purpose grew out of my religious faith, but faith isn't the only thing that gives people direction. For example, one of my former students decided that his purpose was to bring honesty and economic prosperity to his country and to raise children who were as capably committed to this cause, and to each other, as he was. His purpose is focused on family and others-as mine is.

The choice and successful pursuit of a profession is but one tool for achieving your purpose. But without a purpose, life can become hollow.

Allocate Your Resources

Your decisions about allocating your personal time, energy, and talent ultimately shape your life's strategy (Answer to Q 2).

I have a bunch of "businesses" that compete for these resources: I'm trying to have a rewarding relationship with my wife, raise great kids, contribute to my community, succeed in my career, contribute to my church, and so on. And I have exactly the same problem that a corporation does. I have a limited amount of time and energy and talent. How much do I devote to each of these pursuits?

Allocation choices can make your life turn out to be very different from what you intended. Sometimes that's good: Opportunities that you never planned for emerge. But if you misinvest your resources, the outcome can be bad. As I think about my former classmates who inadvertently invested for lives of hollow unhappiness, I can't help believing that their troubles relate right back to a short-term perspective.

When people who have a high need for achievement-and that includes all Harvard Business School graduates-have an extra half hour of time or an extra ounce of energy, they'll unconsciously allocate it to activities that yield the most tangible accomplishments. And our careers provide the most concrete evidence that we're moving forward. You ship a product, finish a design, complete a presentation, close a sale, teach a class, publish a paper, get paid, get promoted. In contrast, investing time and energy in your relationship with your spouse and children typically doesn't offer that same immediate sense of achievement. Kids misbehave every day. It's really not until 20 years down the road that you can put your hands on your hips and say, "I raised a good son or a good daughter." You can neglect your relationship with your spouse, and on a day-to-day basis, it doesn't seem as if things are deteriorating. People who are driven to excel have this unconscious propensity to underinvest in their families and overinvest in their careers-even though intimate and loving relationships with their families are the most powerful and enduring source of happiness.

If you study the root causes of business disasters, over and over you'll find this predisposition toward endeavors that offer immediate gratification. If you look at personal lives through that lens, you'll see the same stunning and sobering pattern: people allocating fewer and fewer resources to the things they would have once said mattered most.

Create a Culture

There's an important model in our class called the Tools of Cooperation, which basically says that being a visionary manager isn't all it's cracked up to be. It's one thing to see into the foggy future with acuity and chart the course corrections that the company must make. But it's quite another to persuade employees who might not see the changes ahead to line up and work cooperatively to take the company in that new direction. Knowing what tools to wield to elicit the needed cooperation is a critical managerial skill.

The theory arrays these tools along two dimensions-the extent to which members of the organization agree on what they want from their participation in the enterprise, and the extent to which they agree on what actions will produce the desired results. When there is little agreement on both axes, you have to use "power tools"-coercion, threats, punishment, and so on-to secure cooperation. Many companies start in this quadrant, which is why the founding executive team must play such an assertive role in defining what must be done and how. If employees' ways of working together to address those tasks succeed over and over, consensus begins to form. MIT's Edgar Schein has described this process as the mechanism by which a culture is built. Ultimately, people don't even think about whether their way of doing things yields success. They embrace priorities and follow procedures by instinct and assumption rather than by explicit decision-which means that they've created a culture. Culture, in compelling but unspoken ways, dictates the proven, acceptable methods by which members of the group address recurrent problems. And culture defines the priority given to different types of problems. It can be a powerful management tool.

In using this model to address the question, How can I be sure that my family becomes an enduring source of happiness?, my students quickly see that the simplest tools that parents can wield to elicit cooperation from children are power tools. But there comes a point during the teen years when power tools no longer work. At that point parents start wishing that they had begun working with their children at a very young age to build a culture at home in which children instinctively behave respectfully toward one another, obey their parents, and choose the right thing to do. Families have cultures, just as companies do. Those cultures can be built consciously or evolve inadvertently.

If you want your kids to have strong self-esteem and confidence that they can solve hard problems, those qualities won't magically materialize in high school. You have to design them into your family's culture-and you have to think about this very early on. Like employees, children build self-esteem by doing things that are hard and learning what works.

Avoid the "Marginal Costs" Mistake

We're taught in finance and economics that in evaluating alternative investments, we should ignore sunk and fixed costs, and instead base decisions on the marginal costs and marginal revenues that each alternative entails. We learn in our course that this doctrine biases companies to leverage what they have put in place to succeed in the past, instead of guiding them to create the capabilities they'll need in the future. If we knew the future would be exactly the same as the past, that approach would be fine. But if the future's different-and it almost always is-then it's the wrong thing to do.

This theory addresses the third question I discuss with my students-how to live a life of integrity (stay out of jail). Unconsciously, we often employ the marginal cost doctrine in our personal lives when we choose between right and wrong. A voice in our head says, "Look, I know that as a general rule, most people shouldn't do this. But in this particular extenuating circumstance, just this once, it's OK." The marginal cost of doing something wrong "just this once" always seems alluringly low. It suckers you in, and you don't ever look at where that path ultimately is headed and at the full costs that the choice entails. Justification for infidelity and dishonesty in all their manifestations lies in the marginal cost economics of "just this once." (Answer to Q III)

I'd like to share a story about how I came to understand the potential damage of "just this once" in my own life. I played on the Oxford University varsity basketball team. We worked our tails off and finished the season undefeated. The guys on the team were the best friends I've ever had in my life. We got to the British equivalent of the NCAA tournament-and made it to the final four. It turned out the championship game was scheduled to be played on a Sunday. I had made a personal commitment to God at age 16 that I would never play ball on Sunday. So I went to the coach and explained my problem. He was incredulous. My teammates were, too, because I was the starting center. Every one of the guys on the team came to me and said, "You've got to play. Can't you break the rule just this one time?"

I'm a deeply religious man, so I went away and prayed about what I should do. I got a very clear feeling that I shouldn't break my commitment-so I didn't play in the championship game.

In many ways that was a small decision-involving one of several thousand Sundays in my life. In theory, surely I could have crossed over the line just that one time and then not done it again. But looking back on it, resisting the temptation whose logic was "In this extenuating circumstance, just this once, it's OK" has proven to be one of the most important decisions of my life. Why? My life has been one unending stream of extenuating circumstances. Had I crossed the line that one time, I would have done it over and over in the years that followed.

The lesson I learned from this is that it's easier to hold to your principles 100% of the time than it is to hold to them 98% of the time. If you give in to "just this once," based on a marginal cost analysis, as some of my former classmates have done, you'll regret where you end up. You've got to define for yourself what you stand for and draw the line in a safe place.

Remember the Importance of Humility

I got this insight when I was asked to teach a class on humility at Harvard College. I asked all the students to describe the most humble person they knew. One characteristic of these humble people stood out: They had a high level of self-esteem. They knew who they were, and they felt good about who they were. We also decided that humility was defined not by self-deprecating behavior or attitudes but by the esteem with which you regard others. Good behavior flows naturally from that kind of humility. For example, you would never steal from someone, because you respect that person too much. You'd never lie to someone, either.

It's crucial to take a sense of humility into the world. By the time you make it to a top graduate school, almost all your learning has come from people who are smarter and more experienced than you: parents, teachers, bosses. But once you've finished at Harvard Business School or any other top academic institution, the vast majority of people you'll interact with on a day-to-day basis may not be smarter than you. And if your attitude is that only smarter people have something to teach you, your learning opportunities will be very limited. But if you have a humble eagerness to learn something from everybody, your learning opportunities will be unlimited. Generally, you can be humble only if you feel really good about yourself-and you want to help those around you feel really good about themselves, too. When we see people acting in an abusive, arrogant, or demeaning manner toward others, their behavior almost always is a symptom of their lack of self-esteem. They need to put someone else down to feel good about themselves.

Choose the Right Yardstick

This past year I was diagnosed with cancer and faced the possibility that my life would end sooner than I'd planned. Thankfully, it now looks as if I'll be spared. But the experience has given me important insight into my life.

I have a pretty clear idea of how my ideas have generated enormous revenue for companies that have used my research; I know I've had a substantial impact. But as I've confronted this disease, it's been interesting to see how unimportant that impact is to me now. I've concluded that the metric by which God will assess my life isn't dollars but the individual people whose lives I've touched.

I think that's the way it will work for us all. Don't worry about the level of individual prominence you have achieved; worry about the individuals you have helped become better people. This is my final recommendation: Think about the metric by which your life will be judged, and make a resolution to live every day so that in the end, your life will be judged a success.

 

 

Saturday, April 28, 2012

Remarkable Bosses



The Five Qualities of Remarkable Bosses (copied)






Great bosses aren't great on paper. Great bosses are remarkable based on their actions.Results are everything-but not the results you might think.



1. Develop every employee. Sure, you can put your primary focus on reaching targets, achieving results, and accomplishing concrete goals-but do that and you put your leadership cart before your achievement horse.

Without great employees, no amount of focus on goals and targets will ever pay off. Employees can only achieve what they are capable of achieving, so it's your job to help all your employees be more capable so they-and your business-can achieve more.

It's your job to provide the training, mentoring, and opportunities your employees need and deserve. When you do, you transform the relatively boring process of reviewing results and tracking performance into something a lot more meaningful for your employees: Progress, improvement, and personal achievement.
 
So don't worry about reaching performance goals. Spend the bulk of your time developing the skills of your employees and achieving goals will be a natural outcome. Plus it's a lot more fun.



2. Deal with problems immediately. Nothing kills team morale more quickly than problems that don't get addressed. Interpersonal squabbles, performance issues, feuds between departments... all negatively impact employee motivation and enthusiasm. 

And they're distracting, because small problems never go away. Small problems always fester and grow into bigger problems. Plus, when you ignore a problem your employees immediately lose respect for you, and without respect, you can't lead. 

Never hope a problem will magically go away, or that someone else will deal with it. Deal with every issue head-on, no matter how small.



3. Rescue your worst employee. Almost every business has at least one employee who has fallen out of grace: Publicly failed to complete a task, lost his cool in a meeting, or just can't seem to keep up. Over time that employee comes to be seen by his peers-and by you-as a weak link. While that employee may desperately want to "rehabilitate" himself, it's almost impossible. The weight of team disapproval is too heavy for one person to move. But it's not too heavy for you.

 Before you remove your weak link from the chain, put your full effort into trying to rescue that person instead. Say, "John, I know you've been struggling but I also know you're trying. Let's find ways together that can get you where you need to be." Express confidence. Be reassuring. Most of all, tell him you'll be there every step of the way.

Don't relax your standards. Just step up the mentoring and coaching you provide.

If that seems like too much work for too little potential outcome, think of it this way. Your remarkable employees don't need a lot of your time; they're remarkable because they already have these qualities. If you're lucky, you can get a few percentage points of extra performance from them. But a struggling employee has tons of upside; rescue him and you make a tremendous difference. Granted, sometimes it won't work out. When it doesn't, don't worry about it.  The effort is its own reward. And occasionally an employee will succeed-and you will have made a tremendous difference in a person's professional and personal life.
 

4. Serve others, not yourself. You can get away with being selfish or self-serving once or twice... but that's it.

Never say or do anything that in any way puts you in the spotlight, however briefly. Never congratulate employees and digress for a few moments to discuss what you did. If it should go without saying, don't say it. Your glory should always be reflected, never direct. When employees excel, you and your business excel. When your team succeeds, you and your business succeed. When you rescue a struggling employee and they become remarkable, remember they should be congratulated, not you. You were just doing your job the way a remarkable boss should.

When you consistently act as if you are less important than your employees-and when you never ask employees to do something you don't do-everyone knows how important you really are.



5. Always remember where you came from. See an autograph seeker blown off by a famous athlete and you might think, "If I was in a similar position I would never do that."  Oops. Actually, you do. To some of your employees, especially new employees, you are at least slightly famous. You're in charge. You're the boss. That's why an employee who wants to talk about something that seems inconsequential may just want to spend a few moments with you.  When that happens, you have a choice. You can blow the employee off... or you cansee the moment for its true importance: A chance to inspire, reassure, motivate, and even give someone hope for greater things in their life. The higher you rise the greater the impact you can make-and the greater your responsibility to make that impact.



In the eyes of his or her employees, a remarkable boss is a star.




Jeff Haden (@jeff_haden) learned much of what he knows about business and technology as he worked his way up in the manufacturing industry. Everything else he picks up from ghostwriting books for some of the smartest leaders he knows in business







Wednesday, April 25, 2012

8 Core Beliefs of Extraordinary Bosses

COPIED FROM

http://www.inc.com/geoffrey-james/8-core-beliefs-of-extraordinary-bosses.html


1. Business is an ecosystem, not a battlefield.

Average bosses see business as a conflict between companies, departments and groups. They build huge armies of "troops" to order about, demonize competitors as "enemies," and treat customers as "territory" to be conquered.
Extraordinary bosses see business as a symbiosis where the most diverse firm is most likely to survive and thrive. They naturally create teams that adapt easily to new markets and can quickly form partnerships with other companies, customers ... and even competitors.

2. A company is a community, not a machine.

Average bosses consider their company to be a machine with employees as cogs. They create rigid structures with rigid rules and then try to maintain control by "pulling levers" and "steering the ship."
Extraordinary bosses see their company as a collection of individual hopes and dreams, all connected to a higher purpose. They inspire employees to dedicate themselves to the success of their peers and therefore to the community–and company–at large.

3. Management is service, not control.

Average bosses want employees to do exactly what they're told. They're hyper-aware of anything that smacks of insubordination and create environments where individual initiative is squelched by the "wait and see what the boss says" mentality.
Extraordinary bosses set a general direction and then commit themselves to obtaining the resources that their employees need to get the job done. They push decision making downward, allowing teams form their own rules and intervening only in emergencies.

4. My employees are my peers, not my children.

Average bosses see employees as inferior, immature beings who simply can't be trusted if not overseen by a patriarchal management. Employees take their cues from this attitude, expend energy on looking busy and covering their behinds.
Extraordinary bosses treat every employee as if he or she were the most important person in the firm. Excellence is expected everywhere, from the loading dock to the boardroom. As a result, employees at all levels take charge of their own destinies.

5. Motivation comes from vision, not from fear.

Average bosses see fear--of getting fired, of ridicule, of loss of privilege--as a crucial way to motivate people. As a result, employees and managers alike become paralyzed and unable to make risky decisions.
Extraordinary bosses inspire people to see a better future and how they'll be a part of it. As a result, employees work harder because they believe in the organization's goals, truly enjoy what they're doing and (of course) know they'll share in the rewards.

6. Change equals growth, not pain.

Average bosses see change as both complicated and threatening, something to be endured only when a firm is in desperate shape. They subconsciously torpedo change ... until it's too late.
Extraordinary bosses see change as an inevitable part of life. While they don't value change for its own sake, they know that success is only possible if employees and organization embrace new ideas and new ways of doing business.

7. Technology offers empowerment, not automation.

Average bosses adhere to the old IT-centric view that technology is primarily a way to strengthen management control and increase predictability. They install centralized computer systems that dehumanize and antagonize employees.
Extraordinary bosses see technology as a way to free human beings to be creative and to build better relationships. They adapt their back-office systems to the tools, like smartphones and tablets, that people actually want to use.

8. Work should be fun, not mere toil.

Average bosses buy into the notion that work is, at best, a necessary evil. They fully expect employees to resent having to work, and therefore tend to subconsciously define themselves as oppressors and their employees as victims. Everyone then behaves accordingly.
Extraordinary bosses see work as something that should be inherently enjoyable–and believe therefore that the most important job of manager is, as far as possible, to put people in jobs that can and will make them truly happy.

Saturday, February 4, 2012

Decision Fatigue (Copied from NY times)


Do You Suffer From Decision Fatigue? The best decision makers, are the ones who know when not to trust themselves.


·         More choices you make throughout the day, the harder each one becomes for your brain, and eventually it looks for shortcuts, usually in either of two very different ways. One shortcut is to become reckless: to act impulsively instead of expending the energy to first think through the consequences. (Sure, tweet that photo! What could go wrong?) The other shortcut is the ultimate energy saver: do nothing. Instead of agonizing over decisions, avoid any choice. Ducking a decision often creates bigger problems in the long run, but for the moment, it eases the mental strain. You start to resist any change, any potentially risky move — like releasing a prisoner who might commit a crime. So the fatigued judge on a parole board takes the easy way out, and the prisoner keeps doing time.

·         When you shop till you drop, your will power drops too. No wonder, impulse items are placed near the cashier after a shopper has depleted all the brain power during shopping.

·         Once decision fatigue comes in, people tend to settle for recommended options.

·         Financially challenged people, make so many tradeoffs daily, that their will power is low for school, work or other activities.

·         Our brain does not stop working when glucose is low. It stops doing some things and starts doing others. It responds more strongly to immediate rewards and less to long term prospects. No wonder dieting is so difficult.

·         Even the wisest people won’t make good choices when they are not well rested and their glucose Is low.










By JOHN TIERNEY





Three men doing time in Israeli prisons recently appeared before a parole board consisting of a judge, a criminologist and a social worker. The three prisoners had completed at least two-thirds of their sentences, but the parole board granted freedom to only one of them. Guess which one:



Case 1 (heard at 8:50 a.m.): An Arab Israeli serving a 30-month sentence for fraud.



Case 2 (heard at 3:10 p.m.): A Jewish Israeli serving a 16-month sentence for assault.



Case 3 (heard at 4:25 p.m.): An Arab Israeli serving a 30-month sentence for fraud.



There was a pattern to the parole board’s decisions, but it wasn’t related to the men’s ethnic backgrounds, crimes or sentences. It was all about timing, as researchers discovered by analyzing more than 1,100 decisions over the course of a year. Judges, who would hear the prisoners’ appeals and then get advice from the other members of the board, approved parole in about a third of the cases, but the probability of being paroled fluctuated wildly throughout the day. Prisoners who appeared early in the morning received parole about 70 percent of the time, while those who appeared late in the day were paroled less than 10 percent of the time.



The odds favored the prisoner who appeared at 8:50 a.m. — and he did in fact receive parole. But even though the other Arab Israeli prisoner was serving the same sentence for the same crime — fraud — the odds were against him when he appeared (on a different day) at 4:25 in the afternoon. He was denied parole, as was the Jewish Israeli prisoner at 3:10 p.m, whose sentence was shorter than that of the man who was released. They were just asking for parole at the wrong time of day.



There was nothing malicious or even unusual about the judges’ behavior, which was reported earlier this year by Jonathan Levav of Stanford and Shai Danziger of Ben-Gurion University. The judges’ erratic judgment was due to the occupational hazard of being, as George W. Bush once put it, “the decider.” The mental work of ruling on case after case, whatever the individual merits, wore them down. This sort of decision fatigue can make quarterbacks prone to dubious choices late in the game and C.F.O.’s prone to disastrous dalliances late in the evening. It routinely warps the judgment of everyone, executive and nonexecutive, rich and poor — in fact, it can take a special toll on the poor. Yet few people are even aware of it, and researchers are only beginning to understand why it happens and how to counteract it.



Decision fatigue helps explain why ordinarily sensible people get angry at colleagues and families, splurge on clothes, buy junk food at the supermarket and can’t resist the dealer’s offer to rustproof their new car. No matter how rational and high-minded you try to be, you can’t make decision after decision without paying a biological price. It’s different from ordinary physical fatigue — you’re not consciously aware of being tired — but you’re low on mental energy. The more choices you make throughout the day, the harder each one becomes for your brain, and eventually it looks for shortcuts, usually in either of two very different ways. One shortcut is to become reckless: to act impulsively instead of expending the energy to first think through the consequences. (Sure, tweet that photo! What could go wrong?) The other shortcut is the ultimate energy saver: do nothing. Instead of agonizing over decisions, avoid any choice. Ducking a decision often creates bigger problems in the long run, but for the moment, it eases the mental strain. You start to resist any change, any potentially risky move — like releasing a prisoner who might commit a crime. So the fatigued judge on a parole board takes the easy way out, and the prisoner keeps doing time.



Decision fatigue is the newest discovery involving a phenomenon called ego depletion, a term coined by the social psychologist Roy F. Baumeister in homage to a Freudian hypothesis. Freud speculated that the self, or ego, depended on mental activities involving the transfer of energy. He was vague about the details, though, and quite wrong about some of them (like his idea that artists “sublimate” sexual energy into their work, which would imply that adultery should be especially rare at artists’ colonies). Freud’s energy model of the self was generally ignored until the end of the century, when Baumeister began studying mental discipline in a series of experiments, first at Case Western and then at Florida State University.



These experiments demonstrated that there is a finite store of mental energy for exerting self-control. When people fended off the temptation to scarf down M&M’s or freshly baked chocolate-chip cookies, they were then less able to resist other temptations. When they forced themselves to remain stoic during a tearjerker movie, afterward they gave up more quickly on lab tasks requiring self-discipline, like working on a geometry puzzle or squeezing a hand-grip exerciser. Willpower turned out to be more than a folk concept or a metaphor. It really was a form of mental energy that could be exhausted. The experiments confirmed the 19th-century notion of willpower being like a muscle that was fatigued with use, a force that could be conserved by avoiding temptation. To study the process of ego depletion, researchers concentrated initially on acts involving self-control ­— the kind of self-discipline popularly associated with willpower, like resisting a bowl of ice cream. They weren’t concerned with routine decision-making, like choosing between chocolate and vanilla, a mental process that they assumed was quite distinct and much less strenuous. Intuitively, the chocolate-vanilla choice didn’t appear to require willpower.



But then a postdoctoral fellow, Jean Twenge, started working at Baumeister’s laboratory right after planning her wedding. As Twenge studied the results of the lab’s ego-depletion experiments, she remembered how exhausted she felt the evening she and her fiancé went through the ritual of registering for gifts. Did they want plain white china or something with a pattern? Which brand of knives? How many towels? What kind of sheets? Precisely how many threads per square inch?



“By the end, you could have talked me into anything,” Twenge told her new colleagues. The symptoms sounded familiar to them too, and gave them an idea. A nearby department store was holding a going-out-of-business sale, so researchers from the lab went off to fill their car trunks with simple products — not exactly wedding-quality gifts, but sufficiently appealing to interest college students. When they came to the lab, the students were told they would get to keep one item at the end of the experiment, but first they had to make a series of choices. Would they prefer a pen or a candle? A vanilla-scented candle or an almond-scented one? A candle or a T-shirt? A black T-shirt or a red T-shirt? A control group, meanwhile — let’s call them the nondeciders — spent an equally long period contemplating all these same products without having to make any choices. They were asked just to give their opinion of each product and report how often they had used such a product in the last six months.



Afterward, all the participants were given one of the classic tests of self-control: holding your hand in ice water for as long as you can. The impulse is to pull your hand out, so self-discipline is needed to keep the hand underwater. The deciders gave up much faster; they lasted 28 seconds, less than half the 67-second average of the nondeciders. Making all those choices had apparently sapped their willpower, and it wasn’t an isolated effect. It was confirmed in other experiments testing students after they went through exercises like choosing courses from the college catalog.



For a real-world test of their theory, the lab’s researchers went into that great modern arena of decision making: the suburban mall. They interviewed shoppers about their experiences in the stores that day and then asked them to solve some simple arithmetic problems. The researchers politely asked them to do as many as possible but said they could quit at any time. Sure enough, the shoppers who had already made the most decisions in the stores gave up the quickest on the math problems. When you shop till you drop, your willpower drops, too.



Any decision, whether it’s what pants to buy or whether to start a war, can be broken down into what psychologists call the Rubicon model of action phases, in honor of the river that separated Italy from the Roman province of Gaul. When Caesar reached it in 49 B.C., on his way home after conquering the Gauls, he knew that a general returning to Rome was forbidden to take his legions across the river with him, lest it be considered an invasion of Rome. Waiting on the Gaul side of the river, he was in the “predecisional phase” as he contemplated the risks and benefits of starting a civil war. Then he stopped calculating and crossed the Rubicon, reaching the “postdecisional phase,” which Caesar defined much more felicitously: “The die is cast.”



The whole process could deplete anyone’s willpower, but which phase of the decision-making process was most fatiguing? To find out, Kathleen Vohs, a former colleague of Baumeister’s now at the University of Minnesota, performed an experiment using the self-service Web site of Dell Computers. One group in the experiment carefully studied the advantages and disadvantages of various features available for a computer — the type of screen, the size of the hard drive, etc. — without actually making a final decision on which ones to choose. A second group was given a list of predetermined specifications and told to configure a computer by going through the laborious, step-by-step process of locating the specified features among the arrays of options and then clicking on the right ones. The purpose of this was to duplicate everything that happens in the postdecisional phase, when the choice is implemented. The third group had to figure out for themselves which features they wanted on their computers and go through the process of choosing them; they didn’t simply ponder options (like the first group) or implement others’ choices (like the second group). They had to cast the die, and that turned out to be the most fatiguing task of all. When self-control was measured, they were the one who were most depleted, by far.



The experiment showed that crossing the Rubicon is more tiring than anything that happens on either bank — more mentally fatiguing than sitting on the Gaul side contemplating your options or marching on Rome once you’ve crossed. As a result, someone without Caesar’s willpower is liable to stay put. To a fatigued judge, denying parole seems like the easier call not only because it preserves the status quo and eliminates the risk of a parolee going on a crime spree but also because it leaves more options open: the judge retains the option of paroling the prisoner at a future date without sacrificing the option of keeping him securely in prison right now. Part of the resistance against making decisions comes from our fear of giving up options. The word “decide” shares an etymological root with “homicide,” the Latin word “caedere,” meaning “to cut down” or “to kill,” and that loss looms especially large when decision fatigue sets in.



Once you’re mentally depleted, you become reluctant to make trade-offs, which involve a particularly advanced and taxing form of decision making. In the rest of the animal kingdom, there aren’t a lot of protracted negotiations between predators and prey. To compromise is a complex human ability and therefore one of the first to decline when willpower is depleted. You become what researchers call a cognitive miser, hoarding your energy. If you’re shopping, you’re liable to look at only one dimension, like price: just give me the cheapest. Or you indulge yourself by looking at quality: I want the very best (an especially easy strategy if someone else is paying). Decision fatigue leaves you vulnerable to marketers who know how to time their sales, as Jonathan Levav, the Stanford professor, demonstrated in experiments involving tailored suits and new cars.



The idea for these experiments also happened to come in the preparations for a wedding, a ritual that seems to be the decision-fatigue equivalent of Hell Week. At his fiancée’s suggestion, Levav visited a tailor to have a bespoke suit made and began going through the choices of fabric, type of lining and style of buttons, lapels, cuffs and so forth.



“By the time I got through the third pile of fabric swatches, I wanted to kill myself,” Levav recalls. “I couldn’t tell the choices apart anymore. After a while my only response to the tailor became ‘What do you recommend?’ I just couldn’t take it.”



Levav ended up not buying any kind of bespoke suit (the $2,000 price made that decision easy enough), but he put the experience to use in a pair of experiments conducted with Mark Heitmann, then at Christian-Albrechts University in Germany; Andreas Herrmann, at the University of St. Gallen in Switzerland; and Sheena Iyengar, of Columbia. One involved asking M.B.A. students in Switzerland to choose a bespoke suit; the other was conducted at German car dealerships, where customers ordered options for their new sedans. The car buyers — and these were real customers spending their own money — had to choose, for instance, among 4 styles of gearshift knobs, 13 kinds of wheel rims, 25 configurations of the engine and gearbox and a palette of 56 colors for the interior.



As they started picking features, customers would carefully weigh the choices, but as decision fatigue set in, they would start settling for whatever the default option was. And the more tough choices they encountered early in the process — like going through those 56 colors to choose the precise shade of gray or brown — the quicker people became fatigued and settled for the path of least resistance by taking the default option. By manipulating the order of the car buyers’ choices, the researchers found that the customers would end up settling for different kinds of options, and the average difference totaled more than 1,500 euros per car (about $2,000 at the time). Whether the customers paid a little extra for fancy wheel rims or a lot extra for a more powerful engine depended on when the choice was offered and how much willpower was left in the customer.



Similar results were found in the experiment with custom-made suits: once decision fatigue set in, people tended to settle for the recommended option. When they were confronted early on with the toughest decisions — the ones with the most options, like the 100 fabrics for the suit — they became fatigued more quickly and also reported enjoying the shopping experience less.



Shopping can be especially tiring for the poor, who have to struggle continually with trade-offs. Most of us in America won’t spend a lot of time agonizing over whether we can afford to buy soap, but it can be a depleting choice in rural India. Dean Spears, an economist at Princeton, offered people in 20 villages in Rajasthan in northwestern India the chance to buy a couple of bars of brand-name soap for the equivalent of less than 20 cents. It was a steep discount off the regular price, yet even that sum was a strain for the people in the 10 poorest villages. Whether or not they bought the soap, the act of making the decision left them with less willpower, as measured afterward in a test of how long they could squeeze a hand grip. In the slightly more affluent villages, people’s willpower wasn’t affected significantly. Because they had more money, they didn’t have to spend as much effort weighing the merits of the soap versus, say, food or medicine.



Spears and other researchers argue that this sort of decision fatigue is a major — and hitherto ignored — factor in trapping people in poverty. Because their financial situation forces them to make so many trade-offs, they have less willpower to devote to school, work and other activities that might get them into the middle class. It’s hard to know exactly how important this factor is, but there’s no doubt that willpower is a special problem for poor people. Study after study has shown that low self-control correlates with low income as well as with a host of other problems, including poor achievement in school, divorce, crime, alcoholism and poor health. Lapses in self-control have led to the notion of the “undeserving poor” — epitomized by the image of the welfare mom using food stamps to buy junk food — but Spears urges sympathy for someone who makes decisions all day on a tight budget. In one study, he found that when the poor and the rich go shopping, the poor are much more likely to eat during the shopping trip. This might seem like confirmation of their weak character — after all, they could presumably save money and improve their nutrition by eating meals at home instead of buying ready-to-eat snacks like Cinnabons, which contribute to the higher rate of obesity among the poor. But if a trip to the supermarket induces more decision fatigue in the poor than in the rich — because each purchase requires more mental trade-offs — by the time they reach the cash register, they’ll have less willpower left to resist the Mars bars and Skittles. Not for nothing are these items called impulse purchases.



And this isn’t the only reason that sweet snacks are featured prominently at the cash register, just when shoppers are depleted after all their decisions in the aisles. With their willpower reduced, they’re more likely to yield to any kind of temptation, but they’re especially vulnerable to candy and soda and anything else offering a quick hit of sugar. While supermarkets figured this out a long time ago, only recently did researchers discover why.



The discovery was an accident resulting from a failed experiment at Baumeister’s lab. The researchers set out to test something called the Mardi Gras theory — the notion that you could build up willpower by first indulging yourself in pleasure, the way Mardi Gras feasters do just before the rigors of Lent. In place of a Fat Tuesday breakfast, the chefs in the lab at Florida State whipped up lusciously thick milkshakes for a group of subjects who were resting in between two laboratory tasks requiring willpower. Sure enough, the delicious shakes seemed to strengthen willpower by helping people perform better than expected on the next task. So far, so good. But the experiment also included a control group of people who were fed a tasteless concoction of low-fat dairy glop. It provided them with no pleasure, yet it produced similar improvements in self-control. The Mardi Gras theory looked wrong. Besides tragically removing an excuse for romping down the streets of New Orleans, the result was embarrassing for the researchers. Matthew Gailliot, the graduate student who ran the study, stood looking down at his shoes as he told Baumeister about the fiasco.



Baumeister tried to be optimistic. Maybe the study wasn’t a failure. Something had happened, after all. Even the tasteless glop had done the job, but how? If it wasn’t the pleasure, could it be the calories? At first the idea seemed a bit daft. For decades, psychologists had been studying performance on mental tasks without worrying much about the results being affected by dairy-product consumption. They liked to envision the human mind as a computer, focusing on the way it processed information. In their eagerness to chart the human equivalent of the computer’s chips and circuits, most psychologists neglected one mundane but essential part of the machine: the power supply. The brain, like the rest of the body, derived energy from glucose, the simple sugar manufactured from all kinds of foods. To establish cause and effect, researchers at Baumeister’s lab tried refueling the brain in a series of experiments involving lemonade mixed either with sugar or with a diet sweetener. The sugary lemonade provided a burst of glucose, the effects of which could be observed right away in the lab; the sugarless variety tasted quite similar without providing the same burst of glucose. Again and again, the sugar restored willpower, but the artificial sweetener had no effect. The glucose would at least mitigate the ego depletion and sometimes completely reverse it. The restored willpower improved people’s self-control as well as the quality of their decisions: they resisted irrational bias when making choices, and when asked to make financial decisions, they were more likely to choose the better long-term strategy instead of going for a quick payoff. The ego-depletion effect was even demonstrated with dogs in two studies by Holly Miller and Nathan DeWall at the University of Kentucky. After obeying sit and stay commands for 10 minutes, the dogs performed worse on self-control tests and were also more likely to make the dangerous decision to challenge another dog’s turf. But a dose of glucose restored their willpower.



Despite this series of findings, brain researchers still had some reservations about the glucose connection. Skeptics pointed out that the brain’s overall use of energy remains about the same regardless of what a person is doing, which doesn’t square easily with the notion of depleted energy affecting willpower. Among the skeptics was Todd Heatherton, who worked with Baumeister early in his career and eventually wound up at Dartmouth, where he became a pioneer of what is called social neuroscience: the study of links between brain processes and social behavior. He believed in ego depletion, but he didn’t see how this neural process could be caused simply by variations in glucose levels. To observe the process — and to see if it could be reversed by glucose — he and his colleagues recruited 45 female dieters and recorded images of their brains as they reacted to pictures of food. Next the dieters watched a comedy video while forcing themselves to suppress their laughter — a standard if cruel way to drain mental energy and induce ego depletion. Then they were again shown pictures of food, and the new round of brain scans revealed the effects of ego depletion: more activity in the nucleus accumbens, the brain’s reward center, and a corresponding decrease in the amygdala, which ordinarily helps control impulses. The food’s appeal registered more strongly while impulse control weakened — not a good combination for anyone on a diet. But suppose people in this ego-depleted state got a quick dose of glucose? What would a scan of their brains reveal?



The results of the experiment were announced in January, during Heatherton’s speech accepting the leadership of the Society for Personality and Social Psychology, the world’s largest group of social psychologists. In his presidential address at the annual meeting in San Antonio, Heatherton reported that administering glucose completely reversed the brain changes wrought by depletion — a finding, he said, that thoroughly surprised him. Heatherton’s results did much more than provide additional confirmation that glucose is a vital part of willpower; they helped solve the puzzle over how glucose could work without global changes in the brain’s total energy use. Apparently ego depletion causes activity to rise in some parts of the brain and to decline in others. Your brain does not stop working when glucose is low. It stops doing some things and starts doing others. It responds more strongly to immediate rewards and pays less attention to long-term prospects.



The discoveries about glucose help explain why dieting is a uniquely difficult test of self-control — and why even people with phenomenally strong willpower in the rest of their lives can have such a hard time losing weight. They start out the day with virtuous intentions, resisting croissants at breakfast and dessert at lunch, but each act of resistance further lowers their willpower. As their willpower weakens late in the day, they need to replenish it. But to resupply that energy, they need to give the body glucose. They’re trapped in a nutritional catch-22:



1. In order not to eat, a dieter needs willpower.



2. In order to have willpower, a dieter needs to eat.



As the body uses up glucose, it looks for a quick way to replenish the fuel, leading to a craving for sugar. After performing a lab task requiring self-control, people tend to eat more candy but not other kinds of snacks, like salty, fatty potato chips. The mere expectation of having to exert self-control makes people hunger for sweets. A similar effect helps explain why many women yearn for chocolate and other sugary treats just before menstruation: their bodies are seeking a quick replacement as glucose levels fluctuate. A sugar-filled snack or drink will provide a quick improvement in self-control (that’s why it’s convenient to use in experiments), but it’s just a temporary solution. The problem is that what we identify as sugar doesn’t help as much over the course of the day as the steadier supply of glucose we would get from eating proteins and other more nutritious foods.



The benefits of glucose were unmistakable in the study of the Israeli parole board. In midmorning, usually a little before 10:30, the parole board would take a break, and the judges would be served a sandwich and a piece of fruit. The prisoners who appeared just before the break had only about a 20 percent chance of getting parole, but the ones appearing right after had around a 65 percent chance. The odds dropped again as the morning wore on, and prisoners really didn’t want to appear just before lunch: the chance of getting parole at that time was only 10 percent. After lunch it soared up to 60 percent, but only briefly. Remember that Jewish Israeli prisoner who appeared at 3:10 p.m. and was denied parole from his sentence for assault? He had the misfortune of being the sixth case heard after lunch. But another Jewish Israeli prisoner serving the same sentence for the same crime was lucky enough to appear at 1:27 p.m., the first case after lunch, and he was rewarded with parole. It must have seemed to him like a fine example of the justice system at work, but it probably had more to do with the judge’s glucose levels.



It’s simple enough to imagine reforms for the parole board in Israel — like, say, restricting each judge’s shift to half a day, preferably in the morning, interspersed with frequent breaks for food and rest. But it’s not so obvious what to do with the decision fatigue affecting the rest of society. Even if we could all afford to work half-days, we would still end up depleting our willpower all day long, as Baumeister and his colleagues found when they went into the field in Würzburg in central Germany. The psychologists gave preprogrammed BlackBerrys to more than 200 people going about their daily routines for a week. The phones went off at random intervals, prompting the people to report whether they were currently experiencing some sort of desire or had recently felt a desire. The painstaking study, led by Wilhelm Hofmann, then at the University of Würzburg, collected more than 10,000 momentary reports from morning until midnight.



Desire turned out to be the norm, not the exception. Half the people were feeling some desire when their phones went off — to snack, to goof off, to express their true feelings to their bosses — and another quarter said they had felt a desire in the past half-hour. Many of these desires were ones that the men and women were trying to resist, and the more willpower people expended, the more likely they became to yield to the next temptation that came along. When faced with a new desire that produced some I-want-to-but-I-really-shouldn’t sort of inner conflict, they gave in more readily if they had already fended off earlier temptations, particularly if the new temptation came soon after a previously reported one.



The results suggested that people spend between three and four hours a day resisting desire. Put another way, if you tapped four or five people at any random moment of the day, one of them would be using willpower to resist a desire. The most commonly resisted desires in the phone study were the urges to eat and sleep, followed by the urge for leisure, like taking a break from work by doing a puzzle or playing a game instead of writing a memo. Sexual urges were next on the list of most-resisted desires, a little ahead of urges for other kinds of interactions, like checking Facebook. To ward off temptation, people reported using various strategies. The most popular was to look for a distraction or to undertake a new activity, although sometimes they tried suppressing it directly or simply toughing their way through it. Their success was decidedly mixed. They were pretty good at avoiding sleep, sex and the urge to spend money, but not so good at resisting the lure of television or the Web or the general temptation to relax instead of work.



We have no way of knowing how much our ancestors exercised self-control in the days before BlackBerrys and social psychologists, but it seems likely that many of them were under less ego-depleting strain. When there were fewer decisions, there was less decision fatigue. Today we feel overwhelmed because there are so many choices. Your body may have dutifully reported to work on time, but your mind can escape at any instant. A typical computer user looks at more than three dozen Web sites a day and gets fatigued by the continual decision making — whether to keep working on a project, check out TMZ, follow a link to YouTube or buy something on Amazon. You can do enough damage in a 10-minute online shopping spree to wreck your budget for the rest of the year.



The cumulative effect of these temptations and decisions isn’t intuitively obvious. Virtually no one has a gut-level sense of just how tiring it is to decide. Big decisions, small decisions, they all add up. Choosing what to have for breakfast, where to go on vacation, whom to hire, how much to spend — these all deplete willpower, and there’s no telltale symptom of when that willpower is low. It’s not like getting winded or hitting the wall during a marathon. Ego depletion manifests itself not as one feeling but rather as a propensity to experience everything more intensely. When the brain’s regulatory powers weaken, frustrations seem more irritating than usual. Impulses to eat, drink, spend and say stupid things feel more powerful (and alcohol causes self-control to decline further). Like those dogs in the experiment, ego-depleted humans become more likely to get into needless fights over turf. In making decisions, they take illogical shortcuts and tend to favor short-term gains and delayed costs. Like the depleted parole judges, they become inclined to take the safer, easier option even when that option hurts someone else.



“Good decision making is not a trait of the person, in the sense that it’s always there,” Baumeister says. “It’s a state that fluctuates.” His studies show that people with the best self-control are the ones who structure their lives so as to conserve willpower. They don’t schedule endless back-to-back meetings. They avoid temptations like all-you-can-eat buffets, and they establish habits that eliminate the mental effort of making choices. Instead of deciding every morning whether or not to force themselves to exercise, they set up regular appointments to work out with a friend. Instead of counting on willpower to remain robust all day, they conserve it so that it’s available for emergencies and important decisions.



“Even the wisest people won’t make good choices when they’re not rested and their glucose is low,” Baumeister points out. That’s why the truly wise don’t restructure the company at 4 p.m. They don’t make major commitments during the cocktail hour. And if a decision must be made late in the day, they know not to do it on an empty stomach. “The best decision makers,” Baumeister says, “are the ones who know when not to trust themselves.”





John Tierney (tierneylab@nytimes.com) is a science columnist for The Times. His essay is adapted from a book he wrote with Roy F. Baumeister, “Willpower: Rediscovering the Greatest Human Strength,” which comes out next month.



Editor: Aaron Retica (a.retica-MagGroup@nytimes.com)

Saturday, January 28, 2012

Culture Eats Strategy For Lunch (Copied)


Culture Eats Strategy For Lunch

http://www.fastcompany.com/1810674/culture-eats-strategy-for-lunch 
BY FC Expert Blogger Shawn ParrTue Jan 24, 2012

This blog is written by a member of our expert blogging community and expresses that expert's views alone.



Get on a Southwest flight to anywhere, buy shoes from Zappos.com, pants from Nordstrom, groceries from Whole Foods, anything from Costco, a Starbucks espresso, or a Double-Double from In N' Out, and you'll get a taste of these brands’ vibrant cultures.

Culture is a balanced blend of human psychology, attitudes, actions, and beliefs that combined create either pleasure or pain, serious momentum or miserable stagnation. A strong culture flourishes with a clear set of values and norms that actively guide the way a company operates. Employees are actively and passionately engaged in the business, operating from a sense of confidence and empowerment rather than navigating their days through miserably extensive procedures and mind-numbing bureaucracy. Performance-oriented cultures possess statistically better financial growth, with high employee involvement, strong internal communication, and an acceptance of a healthy level of risk-taking in order to achieve new levels of innovation.

Misunderstood and mismanaged

Culture, like brand, is misunderstood and often discounted as a touchy-feely component of business that belongs to HR. It's not intangible or fluffy, it's not a vibe or the office décor. It's one of the most important drivers that has to be set or adjusted to push long-term, sustainable success. It's not good enough just to have an amazing product and a healthy bank balance. Long-term success is dependent on a culture that is nurtured and alive. Culture is the environment in which your strategy and your brand thrives or dies a slow death.

Think about it like a nurturing habitat for success. Culture cannot be manufactured. It has to be genuinely nurtured by everyone from the CEO down. Ignoring the health of your culture is like letting aquarium water get dirty.

If there's any doubt about the value of investing time in culture, there are significant benefits that come from a vibrant and alive culture:

  • Focus: Aligns the entire company towards achieving its vision, mission, and goals.
  • Motivation: Builds higher employee motivation and loyalty.
  • Connection: Builds team cohesiveness among the company’s various departments and divisions.
  • Cohesion: Builds consistency and encourages coordination and control within the company.
  • Spirit: Shapes employee behavior at work, enabling the organization to be more efficient and alive.

Mission accomplished

Think about the Marines: the few, the proud. They have a connected community that is second to none, and it comes from the early indoctrination of every member of the Corps and the clear communication of their purpose and value system. It is completely clear that they are privileged to be joining an elite community that is committed to improvising, adapting, and overcoming in the face of any adversity. The culture is so strong that it glues the community together and engenders a sense of pride that makes them unparalleled. The culture is what each Marine relies on in battle and in preparation. It is an amazing example of a living culture that drives pride and performance. It is important to step back and ask whether the purpose of your organization is clear and whether you have a compelling value system that is easy to understand. Mobilizing and energizing a culture is predicated on the organization clearly understanding the vision, mission, values, and goals. It's leadership’s responsibility to involve the entire organization, informing and inspiring them to live out the purpose the organization in the construct of the values.

Vibrant and healthy

Do you run into your culture every day? Does it inspire you, or smack you in the face and get in your way, slowing and wearing you down? Is it overpowering or does it inspire you to overcome challenges? It's important to understand what is driving your culture. Is it power and ego that people react to, and try to gain power, or a culture of encouragement and empowerment? Is it driven from top-down directives, or cross-department collaboration? To get a taste of your culture, all you have to do is sit in an executive meeting, the cafe or the lunch room, listen to the conversations, look at the way decisions are made and the way departments cooperate. Take time out and get a good read on the health of your culture.

Culture fuels brand

A vibrant culture provides a cooperative and collaborative environment for a brand to thrive in. Your brand is the single most important asset to differentiate you consistently over time, and it needs to be nurtured, evolved, and invigorated by the people entrusted to keep it true and alive. Without a functional and relevant culture, the money invested in research and development, product differentiation, marketing, and human resources is never maximized and often wasted because it's not fueled by a sustaining and functional culture.

Look at Zappos, one of the fastest companies to reach $1 billion in recent years, fueled by an electric and eclectic culture, one that's inclusionary, encouraging, and empowering. It's well-documented, celebrated, and shared willingly with anyone who wants to learn from it. Compare that to American Apparel, the controversial and prolific fashion retailer with a well-documented and highly dysfunctional culture. Zappos is thriving and on its way to $2 billion, while American Apparel is mired in bankruptcy and controversy. Both companies are living out their missions--one is to create happiness, and the other is based on self-centered perversity. Authenticity and values always win.

Uncommon sense for a courageous and vibrant culture

It's easy to look at companies like Stonyfield Farms, Zappos, Google, Virgin, Whole Foods, or Southwest Airlines and admire them for their passionate, engaged, and active cultures that are on display for the world to see. Building a strong culture takes hard work and true commitment and, while not something you can tick off in boxes, here are some very basic building blocks to consider:

  1. Dynamic and engaged leadership
    A vibrant culture is organic and evolving. It is fueled and inspired by leadership that is actively involved and informed about the realities of the business. They genuinely care about the company's role in the world and are passionately engaged. They are great communicators and motivators who set out a clearly communicated vision, mission, values, and goals and create an environment for them to come alive.
  2. Living values
    It's one thing to have beliefs and values spelled out in a frame in the conference room. It's another thing to have genuine and memorable beliefs that are directional, alive and modeled throughout the organization daily. It's important that departments and individuals are motivated and measured against the way they model the values. And, if you want a values-driven culture, hire people using the values as a filter. If you want your company to embody the culture, empower people and ensure every department understands what's expected. Don't just list your company’s values in PowerPoints; bring them to life in people, products, spaces, at events, and in communication.
  3. Responsibility and accountability
    Strong cultures empower their people, they recognize their talents, and give them a very clear role with responsibilities they're accountable for. It's amazing how basic this is, but how absent the principle is in many businesses.
  4. Celebrate success and failure
    Most companies that run at speed often forget to celebrate their victories both big and small, and they rarely have time or the humility to acknowledge and learn from their failures. Celebrate both your victories and failures in your own unique way, but share them and share them often.

Shawn Parr is the The Guvner & CEO of Bulldog Drummond, an innovation and design consultancy headquartered in San Diego whose clients and partners have included Starbucks, Diageo, Jack in the Box, Adidas, MTV, Nestle, Pinkberry, American Eagle Outfitters, IDEO, Virgin, Disney, Nike, Mattel, Heineken, Annie's Homegrown, The Michael J Fox Foundation for Parkinson's Research, CleanWell, The Honest Kitchen and World Vision. Follow the conversation at @BULLDOGDRUMMOND.