Mike Lehr's Blog

How we position things greatly influences the outcome. In the April 7, 2012 edition of The Economist the article, “Dressing Up,” uncovers that women’s sizes have inflated by four sizes since the 1970’s. Unlike men’s sizing which is based on inches, women’s sizing is purely arbitrary and often varies by brand. Thus, depending on the size, a pair of women’s pants might have increased as much as four inches at the waist and three inches at the hips since then.

The generally accepted assumption for allowing this size inflation is that if consumers feel good about themselves they are likely to buy, thus why the fashion industry calls it “vanity sizing.” However, even though it seems like a topic to take lightly or with which to have fun, vanity sizing plays in all aspects of statistics. That is why it’s important to challenge definitions and assumptions in order to understand and solve problems.

For instance, the article “Botox and Beancounting” of the The Economist’s April 27, 2011 edition, discusses how official U.S. economic statistics might be overinflating its performance relative to Western European economies. Ironically, the article’s title makes an appropriate analogy to vanity sizing.

U.S. unemployment figures present another excellent example. They not only conflict with one another on occasions but they are difficult to figure. Additionally, their accounting changed in the 1980′s, making them appear lower than before.

Thus, while it’s commonly said that “numbers don’t lie,” that’s true; however, an ignoramus isn’t lying either if he believes his own ignorance. If we’re ignorant to numbers’ origination, we are more likely to accept them if they tell us our glass is half full rather than half empty, thus reinforcing our own perceptions . . . also known as “vanity believing.”

Imagine soil so toxic that nothing will grow. No matter how good our seeds, our farming techniques and the weather are; nothing will grow. The same thing happens when we try to promote great ideas in a bad relational environment: they fail.

That’s why relationships are more important than vision, culture more important than strategy. Vision and strategy can’t grow in toxic relational and cultural soil. This analogy also frames leadership as an affect influencing the hearts and minds of members, requiring the ability to tap both aspects of an interpersonal relationship: emotional and rational.

While this analogy’s point seems obvious, we are biased toward reason; thus, when problems arise, we tend to believe presenting new ideas, educating on the facts or reasoning better will solve them. It’s not unusual for me to have to restate this analogy several times in order to get people to focus on plans containing tactics to improve relationships or to manage conflict. In other words, our tendency is to just find better seeds, use better farming techniques or hope for better weather rather than address the soil.

This happens because no matter how good our ideas are, people will tend to decide that they’re bad if they don’t like or trust us. Our facts won’t change things either because people tend to believe perceptions over facts. People will naturally find reasons to discount our logic and facts.

When we combine all of this with the fact that a diverse workforce improves business, there is great stress on traditional management styles typically unsuited to nurturing the right positive feelings that can dramatically improve performance. By framing problems with this analogy, I increase my success in introducing relational solutions, which are often seen as too “fuzzy” or “soft.” Perhaps it will help you too.

In this post I want to show how informal organizational power and its role in leadership can produce different kinds of leadership. My inspiration is from a Chinese concept of rulers that is over two thousand years old, and I first read in connection to the I Ching. From it, I produced two forms of leadership: Organizational Leadership (OGL) and De Facto Leadership (DFL). When any group identifies its leader, the critical question is:

Are the members’ hearts into following the leader?

The answer is the same difference between a loveless marriage and a loving one. That’s why I express OGL as a hollowed circle to be filled and DFL as a solid circle to be embraced (figure). A loving marriage is love (blue) embraced by the formal structure of marriage (red). Leadership is best when the formal organizational structure is given to leaders that people want to follow, thus producing Aligned Leadership (ALL).

OGL is the hierarchy using titles such as manager and executive to convey positions of authority and rules of responsibility. OGL is more akin to management. DFL is dependent upon the person’s qualities; people follow them regardless of what the rules say. This is how some can be leaders without being managers.

A scene from Braveheart expresses very well the difference between DFL and OGL. In it, the lead Scottish noble, Robert the Bruce, is trying to convince the commoner warrior, William Wallace, that he needs the noble’s support. The latter responds with, “Men follow courage not titles.”

OGL, DFL and ALL reinforce the idea that leadership is an affect that requires tapping into emotions and integrating both aspects of an interpersonal relationship. This helps people to see what they want to see in their leaders, thus encouraging them to follow.

Other posts in this series:

• Leadership vs. Management: The Difference
• Leadership vs. Management: The Difference (Part II)
• Leadership vs. Management: The Difference (Part III)
• Leadership vs. Management: The Difference (Part IV)
• Leadership vs. Management: The Difference (Part V)

The research behind behavioral economics is full of emotional solutions to everyday problems. By tapping into the emotional biases behind our decisions, we can expand the range of limited solutions offered by rational thought models. The exploring of emotional solutions has gone big time as the article, “Nudge Nudge, Think Think” explains in the March 24, 2012 edition of The Economist by focusing on the amount of investments governments are making in this area.

Said simply, “How we phrase things matter.” I’ve written how this can change the taste of food and even change the reactions to a bonus plan. As the article explains, nudging “shows it is possible to steer people towards better decisions by presenting choices in different ways.”

For example:

• People were three times more likely to pay an outstanding vehicular tax when the letter was simplified and included a picture of the automobile.
• Boys did better than girls did when a technical drawing class was called “geometry,” and girls did equally well or better when it was called “drawing.”
• People were more inclined to use less energy when their consumption was compared to their neighbors.

Not only does this help us solve problems, it also helps us avoid them by being aware of what we say so we don’t sabotage our well-intentioned plans. Choosing the right words for a personality can go a long way in helping us to effect the change we desire by tapping the right emotions.

For example, my wife won a bet at a party by talking a friend’s six-year-old daughter into selecting a vegetable over chocolate to eat. Understanding and appreciating the power behind words’ connotations helps us immensely here, and Roget’s Thesaurus is invaluable in our efforts.

Remember, people eat escargot not snails.

In response to my post, “Relationship Building Technique #4: Acknowledgement,” a reader emailed the following observation:

I often find this is a simple [technique], which has a very sensitive component to it and is frequently very “fake” . . . . I know of several peers whom I converse with who “appear” to be practicing acknowledging and listening to others. . . . I have noticed over time, for example, although they may seem engaged and interested at the very moment, they are either preoccupied (and do a good job of hiding it) or are insincere . . . . This is often evident in subsequent conversations with them as you realize they have very little memory of prior conversations. . . .

First, these techniques won’t have the same effect on everyone. Obviously, they didn’t work on this person. However, why this occurred isn’t simply a case of the speakers being insincere; it could just be that they were very different from the listener. The latter could have been born with  much greater sensitivity than the others were and thus greater sincerity.

As a result, despite the listener’s view, it’s very possible that the speakers felt that they were sincere. Furthermore, they might not even be self-aware enough to know they were coming across as insincere. It’s also quite possible that they didn’t care.

We need to remember that any human attribute will vary widely across individual humans. That’s why not remembering might be a sign of poorer memories than the listener’s and not just lesser abilities to express sincerity. Thus, the problem isn’t so much one of sincerity or listening but rather one of differences in personalities. It’s going to be very difficult for less sensitive people to convince those with higher sensitivities that they are being sincere.

The article, “The Modern Matchmakers,” from the February 11, 2012 edition of The Economist contained two major business lessons that I’ve discussed earlier regarding the solving of people-related problems:

1. What people think they want isn’t necessarily what they will choose
2. When faced with too much choice, people have less energy to think about them

For example, the article cites the work of Eli Finkel of Northwestern University on speed-dating in which he found that “people’s stated preference at the beginning of the process do not match the characters of the individuals they actually like.” Furthermore, “that when faced with abundant choice, people pay less attention to characteristics that require thinking and conversation to evaluate . . . and more to matters physical.” In short, just as Sheena Iyengar of Columbia University and Mark Lepper of Stanford concluded that too much choice is demotivating,” Finkel found it can dull thinking processes.

As I had also done in an earlier post on online dating, we can translate these themes to our business efforts by asking three questions:

1. How much freedom does someone want?
2. What does someone really want; what will he really do or decide?
3. How much (and what kind of) thinking will someone require from a leader?

These further translate into more tactical questions for managers and executives such as:

1. How much flexibility or process must I give someone?
2. What differences do I see between what he wants and what he actually does?
3. What kind of decisions do I give her to make and what (or when) do I decide for her?

Complicating this further is the fact that the answers will vary for each employee, requiring deeper and more interpersonal skills from managers and leaders. Are your managers up for the challenge?

Previous post on online dating:  What the Failures of Online Dating Can Teach Us

The Freedom-Order duality expresses a dimension of our personality involved in interpreting how we balance freedom and order. It can help us – in real time – understand, appreciate and predict better the reactions of others to such things as processes, decision-making, management, customer service, change and organization.

However, all of this is arbitrary, subjective, meaning different people are comfortable with different levels of freedom and order. To some freedom is chaos because it seems anyone can do whatever he wants. To others order is slavery because there is someone or a rule telling her what to do. Therefore, since there are no absolute states for either, you can be the benchmark as the figure shows. This allows you to assess whether people are more freedom-oriented or order-oriented than you are by the feelings and thoughts they trigger in you.

For instance, more freedom-oriented people might make you feel they are:

You might also notice they tend to use words such as these:

By contrast, more order-oriented people might make you feel they are:

Similarly, you might find them using words such as:

In our daily business lives, this means adding process and procedures to those who are more freedom-oriented than we are might stir anxious feelings about becoming nothing more than an automaton. Conversely, more flexibility and options to more order-oriented people might trigger anxious feelings about what is the right thing to do.

Once we are sensitive to this, we can better position the change by adapting immediately to what we observe in others. To the freedom-oriented people, we will need to reassure the flexibility of adding their own dimension, and to order-oriented people reassuring clear definitions of their duties will exist. In essence, we personalize our approach and words to by appreciating people and their needs better.

One can read endlessly about leadership. However, if plays play on a stage, if baseball plays on a diamond, movies on a screen and chess on a board, where does leadership play? It plays in the mind of every member of the group.

Yes, we often see leaderships as having a good vision, strategy, idea or something tangibly similar. In reality though, these aren’t any good if leaders can’t inspire members around these things. By putting leadership on this emotional plane, it becomes subjective; a leader to one could be the Pied Piper to another.

Additionally, leadership comes from the word lead. Lead implies movement from one place to another. This is a change, so leadership is about change. Thus, by combining emotions and change, we arrive at a the conclusion that:

Leadership is an affect – felt by members and personified by one individual – which induces change.

We can see this more clearly in business if we ask: Are employees’ hearts into following their leader? After all, inspiration is a far better motivator for change than compliance. For example, if a leader can personify some of these feelings into an affect, that leader could be a powerful change agent:
 

Since groups are an abstraction, leaders become the “faces” groups, the vehicle through which members can give their feelings a human form. Leaders become the manifestation of their members’ feelings.

The practical outcome of this is that leadership changes from a project- or action-oriented endeavor to a relational one. This means people are more important than vision and relationships are more important than processes. Thus, leadership transform from something mechanical to something human . . . and possibly divine.

Previously I had indicated that placebo management could impact performance. I recently read

Michael Specter’s article, “The Power of Nothing,” in the December 12, 2011 issue of The New Yorker. He shared Ted Kaptchuk’s work on the Placebo Effect at the Harvard Medical School. I found this passage extremely apropos for placebo management:

. . . although placebos had no impact on the chemical markers that indicate whether a patient is responding to therapy, patients nonetheless reported feeling better. Kaptchuk concluded that objective data should not be the only criterion for doctors to consider.

Translated to the business world, we cannot just evaluate our effectiveness with people only on objective considerations. For instance, when a manager explains a business plan to an employee, the value isn’t just in the manager’s explanation and the employee’s understanding. There is additional intangible value in the time the manager spent with the employee. The manager could have enhanced this value by taking the employee to breakfast or lunch for the discussion.

As we saw there are two aspects to an interaction: thinking and feelings (see diagram to right). In this example, the manager’s explanation represents the thinking; the time and place represent the feeling. A different outcome would occur if the manager simply gave the plan for the employee’s reading.

In using this managerial approach, keep five things in mind:

1. Objective information and criteria don’t tell the whole story
2. People react differently
3. Expectations of you and the other person matter
4. Feelings matter more than #1
5. Different users have different results

Relationship building strategies and techniques maximize the placebo effect. It helps to have a strategy for improving your relationship with each of your employees. Implementing initiatives and effecting change will be easier and more effective.

Other links in this series: Placebo Management: Impacting Employees’ Beliefs

Even though rankings are extremely subjective, they seduce us as strongly as the sirens did sailors in Greek mythology. Consequently, we often wreck ourselves on the rocky shores of fantasy island.

In order to understand the lure of rankings, we need to understand the lure of numbers. When we quantify something, it becomes easier to grasp. However, easier doesn’t mean that what we are grasping is real. It’s often easier to understand what we want to believe than it is to understand reality. For example, in reality a woman’s measurements don’t tell us much about her, but that doesn’t prevent them from triggering our fantasies.

Applying this illusionary power to rankings, they tap into our insecure desires for:

1. Simplifying a complex world
2. Defining limits to large or limitless knowledge pools
3. Quantifying the unquantifiable
4. Delivering certainty in an uncertain world

Rankings perform complex thought for us by determining which is better by deciphering many, many variables. They imply we can get by on much less knowledge by giving importance to the top ten rather than the top million or billion. Their parameters and measurements are subjectively determined, trying to measure something that normally is immeasurable. Finally, as implied above, the quantification inherent in rankings provides certainty; “these are the important ones and that’s it.”

For instance, consider these Google searches:

“Top 10” = 743 million results
“Top 100” = 1,083 million
“Top 1,000” = 46 million
“Top 10,000” = 17 million
“Top 100,000” = 2 million
“Top 1,000,000” = .6 million
“Top 1,000,000,000” = 5,250

Clearly, our focus is on the simple with limits; so, the problem is this: How are we going to ever appreciate the billions of unique people, places, creatures and things in this universe if we’re so focused on the top ten?