We know that fear is a poor motivator over the long-term. So why keep relying on it? 

 

Burning Platforms

Bear with me for a minute: we’re going to talk about platforms.

If you’re standing on a burning platform, it becomes a lot harder to plan your next move in a proactive and logical way. When shoes start to melt and time is running out, all that is left is to be reactive. One misstep or miscalculation can be the difference between success and failure.

 Unless one operates inside actual, suddenly-active volcanoes, chances are their burning platform wasn’t a surprise.

 To step outside the metaphor, consider this based-on-a-true-story scenario:

 ABC Corp runs a 30-year-old ERP software suite which is slated for a sunset from the vendor next year. Running an ERP without support is a massive lawsuit waiting to happen, so ABC Corp decides to migrate to a newer, better solution.

 The slow wheels of RFPs, proposals, decision-making, and other fun bureaucratic activities start turning, and pretty soon, it becomes obvious that there’s barely enough time to get this thing stood up, much less worry about whether it’s as effective as the solution it replaced.

Being in a reactive state doesn’t allow project leadership to make time for process improvements. Where was the 30-year-old ERP software holding back the business or adding unnecessary steps? How can those be avoided? These opportunities go by the wayside when we don’t have enough time. And if we know that starting projects can take months, why didn’t we start much earlier?

The cost of high stakes

A reactivity mindset often creates high-stakes situations. This type of environment forces our hand – it changes the goal from creating improvements to mitigating losses. In other words, it is an unforced error with far-reaching consequences. No longer is the focus on deriving the benefits of our solution (the new process, new system, etc.) but rather it is on the rapidly approaching cliff.

It’s important to note that an artificially shortened schedule isn’t the only factor that can create high-stakes situations. A lack of appropriate staffing can have the same effect – and we’ll talk about that in a future post. Other factors exist as well, such as budget and perceived business value.

When it comes to making a case for starting earlier and with fewer high-stakes factors, it’s not as difficult to quantify with financial metrics as it may seem. If a project exists, it stands to reason that a business case does as well.

If we compare expected project cost X to the expected value in dollars over a reasonable management horizon Y, we get a rough benefit Z. Great! But if our timeline is artificially short and it causes us to experience delays and overruns, that means we haven’t correctly considered the cost. On the flipside, if we end up fighting to keep the status quo as a result of our self-imposed constraints, rather than focus on improvement, we’ve misrepresented the value and expected benefits of the project.

The bad news doesn’t stop there. Operating in unnecessarily high-stakes situations can easily lead to burn-out, alienation, and loss of organizational knowledge. That might sound overly theoretical, but it is an observable phenomenon – especially with long-standing, committed employees who suddenly decide to take an early retirement or a position at a different company. Those costs are significantly more difficult to recoup down the line.

Improving outcomes

Understanding and addressing the root causes of high-stakes situations is a no-lose scenario. There are no universal solutions to be had here – it takes a lot of organizational introspection, which can be difficult to prioritize. It may even require an outsider’s perspective to make an objective assessment and remedial plan.

But in the end, organizational leaders who advocate for such efforts can see some serious dividends, both from executive sponsors and their team members. Productive team members produce on-target projects – which will be noticed by executive sponsors.

Reducing the stakes increases the probability of successful outcomes. And really, that’s what we’re all here for, isn’t it?