Don't hide under the bed: how leaders must face red flags head-on

A well-known British broadcaster (and advocate for the outdoors) recently publicly expressed frustration with the temptation to which many organisations succumb when faced with research findings that do not match their expectations – quietly ignoring the results. To use their eloquent phrase, “Hide under the bed while the house burns down? No thanks. I’d rather get burned looking for the fire extinguisher.”

There are very human drivers at work when an organisation misinterprets or even ignores red flags. Many of them are clear demonstrations of heuristics, those short cuts our brains use to make life more liveable. We are probably all aware of confirmation bias, the tendency to look for and pay greater attention to things that reinforce what we already believe, ignoring or even denigrating information contrary to our worldview.

Most of us also know that most of the time, most people don’t like change. Our brains must work harder to interpret novelty, to navigate through unfamiliar territory and thought patterns – this is the basis of the culture shock you can feel when travelling somewhere new. Because change takes more energy, it is hard work, so our brain likes to default to the known world where it can. Engaging with data or information that implies you need a significant change to that known world can cause the brain to throw its proverbial hands up in horror and retreat back to its comfort zone.

While ignoring unfavourable outcomes from a piece of commissioned research is therefore somewhat understandable, when the results in question describe a real and existential threat to an organisation, ignoring them is not a great strategy. Diverse thinking and perspectives are a powerful ally in recognising different interpretations, as they can help protect against ‘groupthink’, but they must be given equal power and volume. To borrow from Greek archetypes, the dissenting voices come from the Jesters and the Outlaws, figures who are dangerously easy to dismiss and even ostracise.

Organisations will keep doing what they are honed and trained to do until somebody intervenes – in this sense they will conform to Newton’s First Law of Motion. To change direction, to consciously engage with new information that challenges the norms, and to use it to alter an organisation’s course takes more than knowledge or understanding. It takes leadership, and not just your common, garden-variety leadership. We have characterised six leadership competencies needed to drive change – and the greater the change required, the stronger these competencies will need to be;

1.        External Awareness

Understanding trends and dynamics within and beyond a sector is arguably more important than ever. The speed and amplifying effects of change means leaders need a heightened ability to interpret the bigger picture in terms of ‘what this means for us’. Operational demands are important, and focusing on the things we can control is comforting, but too much introspection is distracting and dangerous.

2.        Strategic Thinking

Leaders clearly need the ability to frame their organisation’s activity in the context of its vision, goals, purpose and values, as well as be able to set priorities and align activities. When priorities are challenged however, a leader must be able to go ‘back up’ the strategy ladder, assessing what is still true, and what needs to change.

3.        Openness to Change

Much of that which gets a leader in a position of authority has traditionally been their expertise. This success can breed an ingrained confidence that they are right, which can also mean a lack of willingness to be challenged. Change means adopting a ‘growth’ mindset, tolerating ‘good enough’ over perfection and saying ‘I don’t know’ – dangerous words for those whose careers are based on knowing.

4.        Creativity

Creativity is a wonderfully human trait we all have, and is arguably the only source of anything new, but it needs encouragement to flourish in the hard-nosed and judgmental rooms of modern corporate environments. For change to occur, ‘new-ness’ is a prerequisite - a leader must foster the conditions for creativity, welcome stretching ideas and encourage others to imagine “what if?”

5.        Innovation Management

Having great ideas that shift an organisation’s ability to respond to a changing world is pointless if a leader cannot execute them. The design and management of the process of bringing new things to life must be flexible enough to work across different time horizons, and be smart enough to differentiate and manage

the inherent tension between ideas that ‘improve’ and those that ‘disrupt’.

6.        Stress Tolerance

Getting out from under the bed and looking for the fire extinguisher will be stressful. It will be full of risk, unknowns and exposure. To drive change, leaders must be able to accept and manage higher levels of uncertainty and ambiguity, make rapid decisions when required and show resilience and resolve under pressure. We spend most of our lives trying to avoid stress – this is a time to embrace it.

When the alarm bells of inconvenient truth sound in organisations, many reach for comfort instead of courage – hiding under metaphorical beds while the house burns down. Leaders must resist that reflex, risking getting singed in the search for the fire extinguisher rather than succumb to inaction. In a world where the sparks of change never stop, it’s not enough to see the fire – you need to lead the charge to put it out, even if it means getting your hands a little burned along the way.