Richard Hall
Did you ever see King Lear? There he was at the beginning of this play by Shakespeare, the old fool Lear, making leadership decisions about how to split up his kingdom amongst his three daughters. Showing little leadership and making bad decisions.
However, you, of course, are different (or can be) because you are taking the subject more seriously than he ever did, just by reading this far.
When you are a leader, whether a leader of a team or the whole organisation, people expect the same things from you:
What could be simpler? This book shows how to learn – in just half an hour – the basic art of solving one of business people’s biggest challenges. It shows you how to solve problems and make decisions. It helps disperse the fog of perplexity that descends on so many of us when facing a tricky problem.
It is a roadmap for the journey of getting better at making effective decisions about issues and solving those challenges that fill so many of our working lives.
And do not be embarrassed about asking how because these are not easy things to do without a bit of help.
The human brain is a contrary genius that thinks unpredictably, often responding to hidden biases. We improve our chances of thinking more clearly by being in a good mood, seeing things from other points of view and taking a long, broad view of things.
Before suggesting ways of improving our decision making and problem solving, we should try to understand a bit more about how the human brain processes data. A lot has been written on this, ranging from Thaler and Sunstein’s book Nudge to Kahneman’s Thinking, Fast and Slow. I even crept in myself as a minor contributor to this topic last year with my own How to Solve Problems and Make Brilliant Decisions. It was rather nicely described as ‘a primer in the subject’ by one reviewer.
Understand how the brain works. Learn to make allowances for the genius and irrationality of our brains. Understand the power of intuition and the difficulty this poses in managing creative people.
Until quite recently, we had assumed there were, quite simply, left and right brains, a rational and an intuitive side. Well, it is a bit more complex than that.
We have a huge intuitive brain that, just below our level of consciousness, is creating all kinds of biases and emotional jumps (‘I don’t like the sound of that’, ‘I feel undervalued’, ‘Watch out for that person; they might try and take something from you’, ‘This is boring; I’m turning off’, ‘I hate books on leadership decisions’) and we have a calculating brain that is effective when focussed, but it is rather lazy, too. If a problem gets too hard, it gives up, mutters ‘whatever’ and sulks. This allows the intuitive brain to take over and just guess the answer using the bundle of biases it has stored up.
All this begins to explain why human beings so often make erratic judgements or seem to cut off their nose to spite their face (as that very old expression goes.) The human brain is genius-like with all the disadvantages of a Mozart, Keats or Rembrandt. But the brain that could write Hamlet could also start the Second World War.
And this is why there is no easy way to pin down the decision-making process because a very hyped-up intuition always has its hand on the steering wheel. So, beware. But the three key factors for both decision making and problem solving are these:
1. See the big picture. Scan all the information broadly so you can understand swiftly what the key issues are and what the overall shape of the issue is.
Are you good at switching from seeing the big picture and then switching to delving deeply into detail? Assess whether you are getting the general sense of what is required quickly so you do not waste time.
You have got it! You have cracked the problem, but no one else gets it like you. Now see things from other people’s viewpoint. Do not bully them. Listen. Maybe you are missing something. The big trap is in being dogmatic.
2. How do all the key people really see it? Look at the issues on your table from as many perspectives as possible – remember there is unlikely to be just one solution – the smart problem solver, just like the smart designer, will come up with more than the one and only perfect solution (Bob Rotella, a well-known American golf coach wrote a book called Golf is Not a Game of Perfect. It is about fashioning a great score whilst accepting you must deal with the realities of mistakes you make.)
Here is a plan for avoiding being a dogmatist who cannot be flexible.
3. Be happy to be doing this. Relax and feel good that it is you making this decision and trying to solve the problem.
Be very conscious of how you feel. Are you fit and ready to solve a complex problem or manage a team of problem solvers so that their problem-solving muscles are in great shape? Are they coordinated to produce creative solutions or is it one of those moments when it is best to pause and wait?
Never make a life-changing decision (if you can avoid it) when you are angry, highly stressed or ill.
And never be rushed, feel rushed or look rushed when making a decision. Slow, thorough and thoughtful is good.
This section discusses ways to deal with the lonely reality of the leader: how to behave, how to recognise that situation and also outlines a simple process you can use time and again.
You are in charge. You will be feeling a little lonely. You will be all on your own. The buck stops here. And, unfortunately, here means you. Hello, decision. Hello, buck.
But your skill is to listen, confer, plan, analyse, study, think (most of all that) and discuss, as widely as possible, all the aspects of the issue under debate and requiring resolution.
Have a simple plan of attack. Listen, confer, create a plan, study all the data, think hard, listen, confer… the way to crack difficult problems is always the same. Your brain and your ears should crack it between them.
Think of each of these elements… and more:
This process is designed to avoid mistakes, to avoid you and your colleagues doing what you like as opposed to what’s needed and most of all to frame the decision that you’ll make so it is clear.
Reflect on your capacity for being fast on your feet and a flexible thinker. Assess your ability to play each situation on its merits. Ask if you are totally focussed on winning, not just on looking good or being right.
Depending on the size of your business, you will want to get lots of people’s views, but recognise, at the same time, you are treading that fine line between being a consultative sponge who appears indecisive and a remote, but ruthlessly decisive, dictator.
Your biggest challenges relate to timetables and trying to do things too fast, being too dogmatic (U-turns can be good and a sign of pragmatic nimble thinking) and the struggle in getting everyone engaged with you in reaching a solution.
Challenge: It is up to you to be on your mettle and to make sure that you have thought through the process of decision making, just as you would think your way through preparing a recipe. Fast decisions, like fast food, sometimes come at a price. It is called indigestion.
Approach your thinking and planning process just as a chef does their meal. They have a recipe (a plan). They do lots of preparation (listen, confer, analyse). They get everything to hand – mis en place (decision meeting). And then they cook. This is the real decision time when split-second choices my need to be made if something goes wrong.
Challenge: You must undertake the rigorous process of thinking your way through all the key aspects of a problem so, when you decide to do x or y, you know it has the best chance of achieving the right result. Your job is always to improve the odds of success.
Challenge: Most of all, make sure you get the support from the people who day-by-day will live with and implement the decision to ensure it results in positive action.
Challenge: The decision that seems so important is only a means to an end.
Beware fixating on getting it perfectly right, as opposed to making it work.
Be pragmatic. You are there to fix things, not just be an idealist or perfectionist.
The right decision is not always the one that you, personally, would choose but the one that achieves the result the company wants and that satisfies the most important stakeholders.
There are some big questions to ask: Are you doing everything possible to get a good result that most people will get behind? Are you being smart (smart not just clever) and, above all, are you being pragmatic?
Challenge: Long experience shows you always need to have more than one option.
Do not ever assume there is just one right decision and only one.
You always need to have a Plan B.
Challenge: It is not easy. Do not be told by anyone that decision making or problem solving is easy. Anyone who says that usually is very foolish.
Challenge: Finally, get things done on time. On numerous occasions I have counselled people not to rush making a decision or try to shortcut solving a problem. Better to be right than early. But the realities of our lives are that we need to hit deadlines. Think of exams at school or university. In writing an exam paper, the word ‘whenever’ was not used. If you have to make a decision or solve a problem in a specified time, do your best in that time.
Key question: ‘How long have we got?’
An example of this was Quaker trying to repeat the success story they had with Gatorade by acquiring Snapple. It was a disaster. Or the thinking by RBS in 2007 that led them to imagine that the magic success that they had had in taking over NatWest (The Harvard Business Review called them ‘Masters of Integration’) could be repeated with ABN Amro. But it was a catastrophe… the world had changed.
Your biggest threat is in believing that the solution you used successfully last time will, inevitably, work again. Each challenge is different.
Here are a series of tips and observations that will make you a better problem solver and decision maker. People are taught a lot of things, but the process of decision making is seldom taught in the context of today’s realities. Here is a mini guidebook on how to do it.
We used to have command and control models in business whereby the leader commanded, the employees obediently followed instructions and the leader controlled their progress.
If you were a totalitarian, it was completely wonderful.
Today, it is very different. People are empowered. They are encouraged to show their initiative. Stakeholders are involved in everything. Back in the 1960s, there was no such term as stakeholder. There were just steak-holders and they worked at Aberdeen Angus Restaurants.
Because everything moves so fast and there is so much information, we have to be selective. Be ruthless in selecting what matters most. Spend more time with people and less time with things.
Our attention spans are reducing as the amount of information we get increases.
More. More. More. Faster. Faster. Faster.
And, you know what? It is getting more exciting and more challenging.
And it requires new skills they did not tell you about a few years ago.
You need to stay calm. As a leader, people will look to you to see how you respond to change and complexity. Martin Sorrell, founder of the advertising and marketing services conglomerate WPP, said we have to get used to mess to survive in the 21st century.
Crisis is normal. Customer expectations have never been higher. Change is usual. Normal state of affairs is very unusual.
Be prepared to improvise. Often, we are straying into unknown territory.
Beware excitement. Change makes everyone twitchy: your people, your customers and you. You need to avoid panic, stress and raised voices. Change is normal. Go on; you tell them. Change is the new normal.
Sit down and think.
You know – that process of using your mind to create new connections, test new ideas, unravel that tangled ball of competitive string that is the market you used to dominate and work out how to get the best and the most out of the key talented people reporting to you.
Thinking is hard. You use a lot of calories doing it. The world stands still and you are exhausted. Well, you will be, if you think hard enough.
As a leader, you will know more than most, but not everything. No one knows everything.
So, if you do not know something, just say: ‘I do not know’, but then find out. Do not busk it and pretend you do know when you do not. ‘I do not know’ are powerful words.
Think out loud – with your colleagues – that often helps. Getting a thought from your mind into and then out of your mouth helps shape it and, then, as it gets batted around by colleagues, it turns, hopefully, into something useful.
Are you being honest with yourself? Are you giving yourself space and time to think? Are you being candid about saying you do not know when you do not? Are you sharing your thoughts with your colleagues?
Think about what you risk losing and what you stand to gain. Risk and reward is at the heart of all business affairs. And any form of decision involves some level of risk.
Be neither a pessimist nor an optimist – weigh up the odds and stakes. Do not bet the house on a reckless gamble.
Your style of leadership will be seen acutely in the way you behave when asking about the size of the prize and the cost of the loss.
The leader who spends too long on trivia and rushes the big decisions will soon be found out as a chancer (and, potentially, a loser).
Strange how many of us fail to have a clear ‘this is how we work’ process. If we do, our lives becomes a lot easier.
You need to work out a timeline, a team accountable for working on a decision or problem-solving focussed project, a budget, the resources needed and the way of working – this is the process. Good decision making now usually is a collaborative process with good clear chairing of meetings.
Before you go very far, you need a proper plan that everyone understands.
A word on clarity – the most underused word in business. So much of business falters around two things – poor communication and an unclear journey plan. Try to keep your plan clear and simple:
Treat every challenge as a new one.
There is an old rubric that says ‘Do not constantly reinvent the wheel’. But not all wheels are the same. A wheel on a Corgi toy car is not the same as a wheel on a JCB heavy load transporter or a steering wheel on a Formula 1 racing car. Yet, we are psychologically prone to look at an issue and see what issue it is like that we have dealt with before. A case of ‘all wheels are the same’.
One of the most common causes of disappointing results in examinations is the candidate answering the question they wanted to have been asked and not the one they were actually asked.
Read the brief. Understand the issue. Deal with that. Do not look for similarities to other challenges – treat this one on its particular merits.
Do not multitask. With a few exceptions (Napoleon was allegedly one of them), the human brain is not set up to be a successful juggling machine. Whenever you can (sometimes you have to juggle a bit), do just one thing at a time. Spend 100 per cent of as little time as it takes to complete a task.
Good leadership is best characterised by a person’s ability to prioritise; by their ability to avoid being distracted by trivia.
The ability to focus and concentrate on a key issue is a rare talent. Develop it.
Sit, think and focus.
And, if you find you are getting stuck, try and stand back and get a broad view of what is going on. Take a wide-angled view of things; do not get bogged down in, and distracted by, detail.
I recall working with a CEO who proudly told me he had 100 new initiatives. When I asked whether this was not, perhaps, too many and which were the three most important ones, he got rather cross. ‘They are all critical,’ he said. He was wrong. They could not be. It is a cast-iron rule to limit to a handful the key priorities on which you are focussing and on which decisions need to be made.
Decision making is not easy – concentrate on just a few big issues rather than lots of little ones.
First of all, we have to accept that our emotions will always be involved in thinking, problem solving and decision making (like it or not). Even as we are congratulating ourselves on being supremely rational and thinking like a Rolex, our intuitive thinking is at work just below the level of consciousness ferreting around and taking a series of prejudiced and emotional judgements. We all have those I-didn’t-like-the-look-of them moments when we meet someone for the first time.
What we need to do is consciously balance our intuitive and rational mind:
The goal is to succeed. Decisions and solutions to problems are good only if they work.
Being a winner matters.
Being a decisive person matters much less.
And being a dictatorial Usain Bolt of a decision maker, does not matter at all.
So, take your time… most people rush decisions unnecessarily.
There is an illusion that the modern-day fact of life that speed gives you a competitive advantage extends to decision making and problem solving.
It does not.
Do not rush your decisions. Rushed impulsive decision making usually ends up being a process of guessing and hoping for the best.
Have choices – do not pursue just one idea, one cast-iron strategy or one decision.
Be ready to change.
Albert Einstein said: ‘The true definition of insanity is doing the same thing over and over again and expecting a different result.’
We are congenitally averse to changing our minds once we have decided what we are going to do. I guess lemmings feel the same way when their leader heads towards the cliff shouting, ‘Follow me’.
It is never too late to change your mind if there are good enough reasons to question the validity of your original decision.
Be firm about not vacillating when it comes to a decision. Never think, ‘The decision has been made. It is final.’ That is bad thinking. Never be so dogmatic as to be frightened of changing what, in the clear light of a new day, seems wrong.
I was talking to John Scott who used to be HR director at investment bank Lazard and then PWC Middle East. He now runs a mediation company called Abune. We share a dislike of the time wasting that pervades all big companies – unwieldy processes, interminable meetings and all that stuff.
His prescription for saving time is mercifully simple:
This is all very sensible and it struck me that mediation was the quintessential form of decision simplification. It is about how to find your way to a resolution quickly, fairly and cost effectively. And it is about how to reduce some of the subjective quirks from the argument.
(But I disagree with him about flying, only because I love the energy and buzz of airports and the ability to sit and think in isolation in that 35,000-feet-high tube.)
You will be more effective if you feel good.
So, stop and relax every now and again – you are a human being not a machine. (That is what makes you so special.) Let your unconscious do some work for you. Even when you are asleep, the magical microprocessor in your head is hard at work sorting out files, deleting stuff and making connections.
Look gently into the middle distance and let your mind wander around the topic. Do not look for answers; let questions form instead. Encourage yourself to dream and just let your magic computer do its stuff. Finally, try to be in a good mood and always be an optimist (research shows optimists live longer).
It is simple – good vibes mean more fluent thinking.
In this world of technology it is still a team of people that makes the difference. Learning how to work with, manage and communicate with other people is what helps any leader make better decisions.
The three keys to this are:
Failure to listen and the tendency to interrupt people is irritating for them and disastrous for you, as it cuts off the supply of honest opinion. Besides which, being like that will not paint you as a people-person. Be patient. Listen.
You will be praised for the decision being successfully fulfilled, not just for your being decisive.
And results happen when a decision is executed properly.
I have said the ability to see things in the round and to be able to stand back is vital. So, too, is the ability to get down into the detail, but not get bogged down by it. Quite simply, the small stuff matters. Talk to any successful person and be impressed (always) by their command of detail.
Do not (finally) let clever people pull the wool over your eyes. They often get things wrong (remember those very clever economists and bankers).
When someone who works with you sounds clever to the point you cannot really understand them, pause and say ‘Explain that again. I don’t get it.’ Repeat until you do get it or they simplify their message and, in the process, maybe they realise they were slightly misleading you in the first instance.
Are you handling those clever, but convoluted, people around you well? Sometimes their cleverness is not quite so clever when you really get down to it. Are you smart enough not to be intimidated by show-off brains?
Half a century ago there were a mass of maxims in circulation that grandparents would state as irrefutable truths. One of these was ‘more haste less speed’, which means rather less than it sounds but I think, I think it means reconnoitre with great energy, then operate with speed, but do not rush towards your destination. Anyway, that is what I want it to mean. Energy in any business situation is critical because it engenders ambition, action and ideas.
But the best leaders create a vibrant aura around their organisation, not one of stress and frenzy.
They want a decisive (but not a rash culture) with fast thinking and measured execution.
You need a plan to make successful decision making and problem solving endemic in your team. Launch a project so you all focus on simplifying and improving your skills. Lead the process of improvement. Do not try to do it all yourself.
There has been plenty written about leadership where decisiveness always gets a good press. We all make a lot of decisions every day, from ‘What shall I have for breakfast?’ through ‘Shall we launch that price promotion?’ to ‘Shall we overhaul our organisation to right-size it?’ (‘to right-size’, by the way, means making a lot of people redundant – don’t you just love euphemisms like these?).
So, how will you judge your success in becoming a better decision maker and cleverer problem solver?
First of all, you succeed by deciding to improve at both decision making and problem solving and by launching a project to that end that involves you and your immediate team.
You might call it Project Cut Through. Run it for, say, six months and set some simple objectives such as:
Then, every month, do an informal check on progress, based on thoughts and feelings – if it does not feel different and better, it probably is not.
Then do a check based on the problems solved and decisions made on an objective basis to show how effective, thorough, easy and fast your problem solving and decision making has actually been.
Changing the way you think and behave needs constant checking to ensure you are applying all the key lessons.
Here is a simple checklist of what you must have done:
And here are eight fundamental checklist questions for you, personally:
Do you really understand the process of decision making and the stages that people go through when solving problems? Click here to review.
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