Temptation 3

Even CEOs who resist the temptation to protect their status and to be popular with their direct reports sometimes fail. Why? Because even if they are willing to hold their direct reports accountable, they are often reluctant to do so because they don’t think it’s fair. That’s because they haven’t made it clear what those direct reports are accountable for doing. Why don’t they make these things clear? Because they give in to yet another temptation: the need to make “correct” decisions, to achieve certainty.
 
Many CEOs, especially highly analytical ones, want to ensure that their decisions are correct, which is impossible in a world of imperfect information and uncertainty. Still, executives with a need for precision and correctness often postpone decisions and fail to make their people’s deliverables clear. They provide vague and hesitant direction to their direct reports and hope that they figure out the right answers along the way. The chances that they will produce the results CEOs eventually decide they want are slim.
 
Simple advice for CEOs: make clarity more important than accuracy. Remember that your people will learn more if you take decisive action than if you always wait for more information. And if the decisions you make in the spirit of creating clarity turn out to be wrong when more information becomes available, change plans and explain why. It is your job to risk being wrong. The only real cost to you of being wrong is loss of pride. The cost to your company of not taking the risk of being wrong is paralysis.

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