You have most likely heard the humorous expression that the word assumption means “make an ‘ass’ out of ‘u’ and ‘me.’ And, even though amusing, it harbors a deep truth: that we go about our lives following habits and assumptions that we never question. Most of them are useful because they make life simpler, easier and more efficient. If we questioned everything, not much would get done. Some are easily tested and proven correct, but others may be more difficult to sustain.
The corporate world is built on a mountain of assumptions: assumptions about people, about money, about society, and about customers. This economic recession, the changing nature of work, the impact of the Internet and technology, the growth of global workforces, and the disappearance of manufacturing as the main driver of GDP and individual income are challenging many of these assumptions.
I have picked out three assumptions that I have not heard challenged. I believe most executives would say these are all vital to the success of their businesses and not many would even give a moment’s thought to challenging them.
So let’s have a look.
Detailed project plans are critical.
In a predictable world, planning can make sense. Breaking down the steps required to achieve a goal seems very logical and allows management to control and guide the progress toward an outcome. The problem with plans are their very rigidity. When things don’t go according to plan, those involved are often at a loss on how to move forward. They wait for guidance from experts or from the leaders who are also stressed. Most often things slow way down or come to a halt until some solution is worked out.
Plans often get in the way of creative solutions and remove empowerment or influence from those who are asked to execute the plan. There is always a further assumption that the person who is charge of the plan has more knowledge, expertise, wisdom or insight into the outcome than anyone else.
As we have seen throughout history, the best laid plans are usually ineffective. There is a saying in the military that a carefully worked out strategy is good for only the first hour of battle. After that events take on a life of their own and success relies on flexible, creative field leaders.
The Alternative
Perhaps if we stopped planning in detail and laid out, instead, a broad general goal to aim for we would find people more excited, engaged and empowered. Let the people who are implementing the plan adapt, create and move toward that goal in the ways they feel will best achieve the objectives.
The U.S. Military has adopted some of this thinking in Afghanistan where troops are given broad goals such as reduce insurgency in this province or area and then are allowed to move forward as they see fit to achieve that goal. Planning is minimal and support is provided though access to a broad array of services from military to psychological to sociological.
Crowd sourcing is a term used to mean tapping into a large group of people to get their diverse ideas, recognizing that more heads are always better than one. Expertise is embedded in many and the most successful organizations are learning how to tap into people within and outside for creative ideas.
In general, planning impedes the creativity that CEOs are seeking to remain competitive .
This means that loose plans – really just frameworks – are much better than detailed plans and the rigid oversight that often accompanies them.
Budgets are critical, otherwise costs would soar and profits could not be predicted.
Budgets, along with planning, are tools of control and power. They allow a small number of people to push forward their own objectives rather than allow the flow of resources to where the greater good might be achieved.
In a manufacturing world costs can be carefully monitored and through negotiations, volume purchasing and the elimination of waste reduced to a minimum. Things can be controlled and predicted to an incredible level of detail.
As we move into a complex, creative and highly interconnected world; control becomes a losing proposition. The more we try to control, they more we actually lose control.
The Alternative
Make people accountable for what resources they use, but impose no limits. When people are accountable for their spending and need to show how it contributed to the success of the plan, they are more likely to be responsible. When they have a fixed budget, they feel almost compelled to spend it.
Letting team members decide what they need to accomplish their goals, providing a loose resource structure and being flexible with spending results in lower costs and less being spent.
Without deadlines nothing would ever get done.
Over the years it has become a mantra – set milestones and strive to achieve them. No one really questions this – it seems so logical. Yet, by setting up arbitrary milestones the process flow may end up being compromised.
People will either take shortcuts to achieve the goals, thereby sacrificing quality, or they will meet the deadline through any means and not have the energy or motivation to work to the next step with the best quality.
Deadlines also remove any motivation to finish early as that could be interpreted as an insult to whoever set the deadline. If a deadline is based on historical performance or some other measured criteria, anyone finishing early will be looked at with suspicion.
The Alternative
Let the team work as quickly as they can without sacrificing quality. Keep them accountable for producing a topnotch result, without imposing an arbitrary deadline that is really another form of control.
The lessons from each of these assumptions is that freedom of choice, personal control over outcomes and accountability are far better drivers of success and quality.
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