Transparency motivates. Transparency shapes. Transparency drives. Decisions made in full view of those who would provide critical judgment – shareholders, regulators, employees, and the public – provides a powerfully strong guiding force that demands decision-makers fully vet the business and ethical implications of each option and soundly support their ultimate selection. Not every decision can or should be made in the public view. However, every decision-maker can challenge their team and themselves with the question, How would this decision read as a New York Times front page headline?
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Managerial decisions often deal with fluid conditions and high risk situations. What might be prudent at the time a decision is made may not be appropriate soon after and could even adversely impact the organization. Therefore, execution of these decisions and the circumstances they seek to address should be actively monitored.
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History is replete with crisis so much so that their occurrence can be counted upon with some certainty. Crisis themselves create uncertainty but it is the response or lack of response to a crisis that creates the unnecessary uncertainty that often ripples through the marketplace, government agencies, and society.
”A crisis is a terrible thing to waste.”
Rahm Emanuel
Chief of Staff to President Barack Obama
As suggested by Rahm Emanuel, those individuals and organizations responding well to a crisis garner acclaim. Likewise, those who do not respond decisively are scorned.
Poor crisis management by British Petroleum (BP) and the U.S. government in response to the Deepwater Horizon oil spill in the Gulf of Mexico is evident by the ongoing nature of this catastrophe and the devastation it has caused the people and property of the Gulf States. Examining this crisis reveals several inadequacies in the disaster response:
Delay in executing the initial event response – 9 days (time until Obama Administration acknowledges the “spill [is] of national significance”)1
Failure to apply all appropriate resources to the event response – ongoing refusal of the Obama Administration to lift the Jones Act restrictions and allow international skimming ships to aid in the oil spill clean-up2, 3
Delay in defining and executing on obvious goals – 12 days to begin drilling a relief well to stop the oil spill4
Faulted decision-making process – inaccurate assessment of the spill conditions, namely the late recognition of the significance/volume of oil leaking5, 6
Lack of leadership and coordination – initial and ongoing confusion between BP and U.S. government authorities as to which organization was in charge of the event response efforts7
Some would argue that not every event can be anticipated and that the Deepwater Horizon accident was one such incident. We would not argue that point. It is unreasonable to expect that every situation and circumstance be fully anticipated and planned for not to mention that such an effort would be cost prohibited. However, when unanticipated circumstances arise leaders must be prepared to act decisively based on their and their organization’s values and beliefs and a set of core emergency response principles. Some of these include:
Values and Beliefs
protecting of human life
protecting the environment
protecting property
acting ethically and with integrity
minimizing the impact of the event on all parties involved and effected
Core Emergency Response Principles
recognizing that an emergency condition exists
identifying the leader and the roles and responsibilities for all participants or groups of participants
accurately defining the problem in both quantitative and qualitative terms including potential future challenges based on other probable and impactful events
identifying all resources (personnel, materials, and equipment) available to support the event response effort
defining the desired outcomes consistent with the organization’s core values and goals
identifying the several options that will enable achievement of the desired outcomes; including risks (short and long term), costs, and benefits
prioritizing options and selecting the optimal solution
communicating and executing the chosen solution including contingency measures should the primary approach be ineffective
continuously monitoring and adjusting the chosen approach as necessary
The response to the terrorist attack on the World Trade Center on September 11, 2001 and the Tylenol Crisis in 1982 serve as positive examples of values-based emergency responses following core response principles in the absence of pre-defined procedures. The decisive actions by Rudy Giuliani, the then mayor of New York City and the Johnson & Johnson executive team instilled confidence, minimized follow-on consequences, and expedited restoration from their respective event.
StrategyDriven Recommended Practices
For the past several weeks, we have discussed methods for identifying and preparing responses to probable events. The following recommended actions will help ensure leaders are prepared to response to unanticipated events in a manner that minimizes adverse consequences.
Unanticipated Event Response
Clearly define organizational values understood and embodied by all organization members – An organization’s values serve as beacon against which all actions should be aligned and evaluated. Having a clearly defined set of documented organizational values provides responding executives and managers with a quantifiable basis against which to identify and evaluate response actions.
Establish a commitment to adhering to the organization’s values over cost – Defined values are of little value unless organizational executives, managers, supervisors, and employees are willing to act on them even if doing so incurs additional cost. Gaining such commitment requires ongoing reinforcement to the principle of values over cost by all executives and managers during normal operations and event response periods.
Define and train on a decision making and unanticipated event response processes – Individuals understanding and committed to the organization’s values may still not be capable of translating these into the needed timely response actions without decision-making and event response training. Such training should be periodically provided to all individuals at all levels of the organization.
Final Thought…
Decisive leaders are not impulsive. Quite the contrary, impulsive acts often diminish emergency response effectiveness. Decisive actions are timely, well thought out and consistent with the individual and organization’s values and beliefs. These actions follow the core emergency response principles. Their logic and structure are easily recognized, understood, and accepted by those implementing them, the public, and other interested stakeholders.
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Every problem possesses unique nuanced qualities and it is often these minor details that renders a decision a striking success, a monumental failure, or, most frequently, simply average. Those who recognize these details can exploit them to their organization’s advantage.
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“An ad hominem argument, also known as argumentum ad hominem (Latin: “argument to the man”, “argument against the man”) consists of replying to an argument or factual claim by attacking or appealing to a characteristic or belief of the person making the argument or claim, rather than by addressing the substance of the argument or producing evidence against the claim. The process of proving or disproving the claim is thereby subverted, and the argumentum ad hominem works to change the subject.
It is most commonly used to refer specifically to the ad hominem abusive, or argumentum ad personam, which consists of criticizing or attacking the person who proposed the argument (personal attack) in an attempt to discredit the argument. It is also used when an opponent is unable to find fault with an argument, yet for various reasons, the opponent disagrees with it.”
Ad Hominem Wikipedia
The ‘Old Boys Club’
Product defects plague a company’s profitability; warranty repairs, returns, and lost sales robbing the organization of its already slim profit margins. Executives assembled an engineering team to assess product designs and material quality in hopes of identifying a root cause to the defective product issue. A junior member of the assessment team, a young, recently hired assembly line supervisor, identifies the lack of routine calibration of critical cutting tools as a contributor to the poor fit of key product components. The tenured company engineers on the team discount the supervisor’s observation because he’s too young and too new to know what’s really important. These senior engineers have just made an ad hominem argument to advance their position.
Ad hominem arguments are bias-based logic fallacies made to support business decisions every day. As with all logic errors, decision-makers fall prey to the appearance of reasonableness, especially when the assertion supports their desired course of action. Although difficult, recognizing and eliminating the use of ad hominem arguments in decision-making is absolutely necessary.
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Insights on organizational diversity and inclusion can be found in the StrategyDriven topical area: Diversity and Inclusion.
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Transparency motivates. Transparency shapes. Transparency drives. Decisions made in full view of those who would provide critical judgment – shareholders, regulators, employees, and the public – provides a powerfully strong guiding force that demands decision-makers fully vet the business and ethical implications of each option and soundly support their ultimate selection. Not every decision can or should be made in the public view. However, every decision-maker can challenge their team and themselves with the question, How would this decision read as a New York Times front page headline?
Managerial decisions often deal with fluid conditions and high risk situations. What might be prudent at the time a decision is made may not be appropriate soon after and could even adversely impact the organization. Therefore, execution of these decisions and the circumstances they seek to address should be actively monitored.
History is replete with crisis so much so that their occurrence can be counted upon with some certainty. Crisis themselves create uncertainty but it is the response or lack of response to a crisis that creates the unnecessary uncertainty that often ripples through the marketplace, government agencies, and society.
Every problem possesses unique nuanced qualities and it is often these minor details that renders a decision a striking success, a monumental failure, or, most frequently, simply average. Those who recognize these details can exploit them to their organization’s advantage.
“An ad hominem argument, also known as argumentum ad hominem (Latin: “argument to the man”, “argument against the man”) consists of replying to an argument or factual claim by attacking or appealing to a characteristic or belief of the person making the argument or claim, rather than by addressing the substance of the argument or producing evidence against the claim. The process of proving or disproving the claim is thereby subverted, and the argumentum ad hominem works to change the subject.
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