| Instead
of focusing on the actions of successful leaders, an
article in the June issue of the Harvard Business Review
by Roger Martin looks at how successful leaders think.
Martin has spent the past 15 years studying winning
leaders and concludes that they all share the predisposition
and ability to simultaneously hold two opposing ideas
in their heads.
Martin calls this mental multi-tasking
integrative thinking, and describes it as an “opposable
mind.” He argues that integrative thinking is
far more fruitful than conventional thinking, which
tends to result in the choice of the lesser of two evils.
The central example in the article is Bob Young, CEO
of Red Hat, which was selling low-cost versions of the
open-source software Linux in the mid-90s. Young was
able to see beyond the two paths in the software business
at the time—continue to sell CDs of the open source
software or follow the path of Microsoft and sell higher
cost versions of proprietary software—to come
to a winning solution that made him a billionaire: give
away the open-source software and sell service.
The article outlines the four stages
of decision-making and compares the conventional approach
to integrative approach:
- Determining salience. Martin notes
that the first step is to figure out which factors
to take into account, and the conventional approach
eliminates as many as possible in an effort to keep
things simple. The integrative thinker, on the other
hand, seeks out as many factors as possible, including
more obscure but potentially relevant factors. Young,
for instance, recognized the corporate CEO’s
real dilemma in needing to invest in a product with
a future, helping him to arrive at his service model.
- Analyzing causality. The next
step is to establish relationships between the salient
factors, and conventional thinkers tend to look for
straight-line causal relationships. “It’s
no accident that linear regression is the business
world’s preferred tool for establishing relationships
between variables,” Martin wrote. Integrative
thinkers question apparently obvious links and look
for multidirectional or nonlinear links, he explains.
- Envisioning the decision
architecture. Martin explains that when getting
down to the decision itself, the impulse is to establish
a strict sequence in which issues will be considered,
and also to hand off pieces of a decision to different
corporate functions—pricing, marketing, distribution—resulting
in a mediocre outcome. Martin maintains that integrative
thinkers do not break down a problem to work on in
pieces or in a strict sequence. According to Martin,
Young held many issues in his head for a long time,
including the feelings and challenges of the CIO,
what was happening in the individual and corporate
markets for operating software, the business factors
affecting the free-software business, and what drove
the proprietary software makers, before he created
his new business model.
- Achieving resolution. Martin maintains
that decision makers too frequently accept an unsatisfactory
trade-off, whereas integrative thinkers are in a much
better position to come to a creative resolution.
Creating delays, sending teams back to reexamine the
options, and generating 11th-hour options are all
tools that can come into play because of an integrative
thinker’s refusal to accept a less-than-ideal
solution.
The good news is this: if you aren’t an integrative
thinker, you can train yourself to be one through conscious
attention to your decision-making processes. And if
Martin has his way, integrative thinking will be taught
in business schools.
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“How Leaders Think” Reprint R0706C www.hbrreprints.org |