#30 Margaret Heffernan: Collaboration and Competition

Mar 13, 2018
Overview

The episode features Margaret Heffernan, a speaker, international executive, and five-time author, discussing how human thought patterns lead us astray, particularly through "willful blindness." She shares insights on fostering trust, collaboration, and leveraging small changes for significant organizational impact.

At a Glance
30 Insights
1h 17m Duration
20 Topics
5 Concepts

Deep Dive Analysis

Smallest Changes for Largest Organizational Impact

The Importance of Human Connection and Trust in Organizations

How Organizations Inadvertently Create Rivalry

Ineffectiveness of Seismic Shifts and Physical Restructuring

Key Behaviors for Positive Culture Change and Collaboration

Margaret Heffernan's Motivation for Writing Books

Recurring Patterns of Organizational Irrationality

The Dangers of Binary Thinking and Seeking Nuance

The Value of Argument and Disagreement in Collaboration

Creating Conducive Environments for Excellent Work

Decision-Making in Running Companies

Defining Willful Blindness and its Core Characteristics

Circumstances Leading to Willful Blindness in Organizations

What Motivates Individuals to Challenge Willful Blindness

The Enron Case: Causes and Unwillingness to See Reality

Avoiding Future Organizational Catastrophes

Willful Blindness and Sexual Harassment in the Workplace

Key Lessons Learned Over Margaret Heffernan's Career

Process for Reflecting on and Learning from Failures

Margaret Heffernan's Reading Habits and Advice for Young People

Social Capital

The collective value of human connections and trust within an organization. Building social capital helps people see each other as human beings, fostering trust, help, and faster information flow, which is crucial for organizational effectiveness.

Willful Blindness

A legal term describing a situation where if information was knowable and should have been known, but was somehow ignored, the ignorance is considered a choice. The individual or organization is then held responsible for that choice, especially when ample evidence was easily available.

Organizational Silence

A phenomenon where employees have issues or concerns at work but choose not to voice them. This can be due to fear of being labeled a troublemaker, or a belief that their concerns won't be heard, making it seem like more trouble than it's worth.

Power as Orchestration

A concept of power, often favored by successful women, that focuses on bringing people together to achieve collective goals. It contrasts with power as domination, which is about control over others.

Moral Focus Shift

A phenomenon where an individual's moral focus shifts upon entering an organization. The desire to be a 'good person' can transform into a desire to 'do a good job,' often implicitly assuming that doing a good job means following instructions and not rocking the boat.

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What is the smallest change that can make the largest difference in an organization?

Getting people to see each other as human beings rather than just functions or titles, which builds social capital and fosters trust and connection, can be transformative.

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Why is human connection important for workplace productivity and happiness?

The premise of organizational life is that people can do more together, but this only works if they are connected, trust each other, and help each other, allowing information to flow freely and find solutions.

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How do organizations inadvertently create rivalry among employees?

Some leaders believe competition makes an organization smarter (misreading Darwin), introducing systems like forced ranking and hierarchies that foment status contests and imply that helping others might disadvantage oneself.

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Why are grand restructurings and knocking down walls often ineffective for changing company culture?

Such changes often fail because they don't address the crucial social bonds between people, and sometimes they are driven by cost savings rather than genuine strategic collaboration goals.

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What behaviors are critical for changing an organization's culture towards collaboration?

Hiring people who appreciate generosity as a business characteristic, ensuring people feel they will be helped when needed, and giving credit for contributions so people don't feel invisible or taken advantage of.

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Why do people tend to think in black and white or binaries?

It's often easier and more dramatic, but this oversimplifies the complexity and richness of life, often overlooking wonderful opportunities and nuances.

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How can one break out of binary thinking in daily life?

By questioning one's own certainty ('If you think it's that simple, you've got to be wrong'), actively seeking counter-arguments, and being open to the idea that one might be missing something.

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Why is argument or disagreement valuable in a collaborative environment?

When argument is focused on making things better, it's a crucial dialogue; it sharpens understanding, helps explore territory from different perspectives, and signals that the other person cares.

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What circumstances lead to people being willfully blind in organizations?

Mental models that attract confirming data and repel disconfirming data, being surrounded by like-minded people, organizational silence due to fear or futility, obedience and conformity, and exacerbating factors like hierarchy and bureaucracy.

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What causes some individuals to challenge the status quo and avoid willful blindness?

These individuals tend to be detail-oriented and good at pattern recognition, constantly questioning and exploring implications; they are also often deeply dedicated to the organization and instinctively hold it to a high standard, wanting to protect it.

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What was at the core of Ken Lay's unwillingness to see reality at Enron?

Lay's sense of himself as a morally good person was so profoundly defended that he couldn't conceive his company could do bad things, a belief reinforced by constant praise and wealth from those around him.

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How can organizations avoid similar catastrophes like Enron?

By being humble about the fragility of our sense of good and bad, recognizing how our moral focus shifts in an organization from being a good person to doing a good job (often equated with obedience), and being alert to how environments change us.

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Is the recent surge of sexual harassment reports an example of willful blindness?

Absolutely, it's an epic example where companies often kept dossiers, knowing about the issues but allowing them to continue as long as high-profile individuals delivered business value.

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What advice does Margaret Heffernan give to young people?

Try different things, work with people who operate at a very high level to experience excellence, be generous, curious, reliable (do what you say you will), and be interested in other people.

1. Cultivate Trust & Safety

Actively cultivate an environment of safety, trust, and mutual help within an organization. This is fundamental for achieving collective potential and maximizing organizational value.

2. Challenge Own Certainty

Cultivate a fundamental mindset of intellectual humility, always questioning your own certainty. Ask, ‘If I were wrong, what would I see?’ to remain open to new information and perspectives.

3. Embrace Argument as Gift

Reframe arguments or disagreements as a ‘gift’ in collaborative environments. Welcome thoughtful challenges from others as an opportunity to test your ideas, sharpen your understanding, and improve outcomes.

4. Prioritize Getting It Right

When facing decisions or disagreements, consciously prioritize the goal of ‘getting it right’ over simply ‘winning’ the argument. This fosters a mindset that seeks optimal solutions rather than personal victory.

5. Identify Willful Blindness

Actively seek out and acknowledge easily available information, especially disconfirming data, to avoid willful blindness. Recognize that ignoring knowable facts is a choice for which you are responsible.

6. Counter Confirmation Bias

Deliberately seek out diverse perspectives and disconfirming data to challenge your mental models. Actively avoid surrounding yourself only with like-minded individuals to prevent amplified blindness.

7. Encourage Voice & Safety

Create an environment where people feel safe to voice concerns and issues without fear of reprisal or being labeled a ’troublemaker’. This ensures that valuable insights and early warnings are not suppressed.

8. Recognize Early Warning Systems

View individuals who challenge the status quo or raise concerns as potential ’early warning systems’ rather than troublemakers. Cultivate the courage and poise to listen to them, as their insights can protect the organization.

9. Humility About Moral Fragility

Maintain humility about the fragility of your moral compass, especially in organizational settings where the desire to ‘do a good job’ can inadvertently override ethical considerations. Remain vigilant about how environments can subtly alter your identity and actions.

10. Reflect on Environmental Change

Practice self-awareness by regularly reflecting on how your behavior, values, and identity shift in different environments (e.g., work vs. home). Pay attention to what aspects are amplified or suppressed.

11. Evaluate Organizational Competition

Critically evaluate organizational systems and culture for sources of internal competition (e.g., forced ranking, excessive hierarchy). Redesign them to incentivize mutual help and collaboration over rivalry.

12. Hire for Generosity & Collaboration

Prioritize hiring individuals who value generosity and collaboration, and consistently send clear signals about desired behaviors. Ensure an environment where people feel safe to help and be helped, and contributions are recognized.

13. Acknowledge Contributions Actively

Actively acknowledge and appreciate the contributions of others, remembering who helped you. This fosters a culture of reciprocal support and ensures people feel valued.

14. Decision for Business Good

When making critical decisions, especially in leadership roles, frame the debate around ‘what is right for the business’ rather than personal preferences, comfort, or ease. This ensures objective and beneficial outcomes.

15. Be Wary of Power

Maintain extreme vigilance regarding the disruptive nature of power and strive to minimize its overt use. Foster an environment where influence and collaboration are preferred over hierarchical command.

16. Learn from Mistakes, Differently

Embrace mistakes as learning opportunities, but commit to making different mistakes each time. Actively analyze past errors to understand their root causes and prevent repeating the same ones.

17. Process for Failure Reflection

When mistakes occur, openly acknowledge them (setting an example for others), then quickly and dispassionately analyze ‘how did this happen?’. Identify contributing factors and assess what could be changed, rather than attributing it to fluke or personal judgment.

18. Avoid Binary Thinking

Be wary of binary thinking (’either/or’); instead, embrace complexity and nuance to better understand situations and uncover richer opportunities. Recognize that simple solutions often miss critical details.

19. Don’t Take Opposition Personally

Develop the ability to separate constructive argument and opposition from personal attacks. Recognize that disagreement can be a valuable tool for improvement rather than a sign of dislike.

20. Distinguish Stretch from Madness

Develop a clear understanding of your own limits and capabilities, learning to distinguish between challenging ‘stretch goals’ and ‘madness’ (impossible tasks). Have the courage to say ’no’ when at your limit.

21. Cultivate Social Capital

Implement regular, informal sessions where team members share personal stories to foster human connection and build social capital. This moves interactions beyond functional roles.

22. Remove Information Flow Barriers

Identify and actively remove barriers like distrust, rivalry, and ignorance about colleagues’ needs. This ensures efficient information flow and problem-solving within an organization.

23. Question ‘Forever’ Commitments

Regularly question whether being good at something means you must do it indefinitely. Allow yourself to explore new paths and purposes, even if it means stepping away from established successes.

24. Diversify Your Reading

Diversify your reading habits beyond your immediate professional field. Include fiction, history, poetry, and art history to broaden your perspective, stimulate your brain, and enhance your understanding of the world.

25. Adapt Reading Strategy

Adjust your reading strategy based on your purpose: for work, read quickly, annotate carefully, and use digital tools. For leisure, read at a leisurely pace and don’t hesitate to quit books you don’t enjoy.

26. Study Business History

Actively study business history, including past failures and successes, to gain a ’longer story’ perspective. This helps avoid repeating mistakes and provides critical context often overlooked in contemporary business education.

27. Try Stuff, Work with Best

Actively experiment with various endeavors, and for each, strive to work alongside individuals who operate at the highest level of excellence. This exposure to quality thinking and execution provides invaluable learning, regardless of whether you continue in that field.

28. Be Generous, Curious, Reliable

Cultivate generosity, curiosity, and especially reliability in your professional and personal life. Consistently follow through on commitments (‘if you say you’re going to do something, do it no matter what’) as reliability is a highly undervalued and crucial trait.

29. Be Interested in Others

Approach every interaction with genuine curiosity about others, acting as a ‘detective’ to uncover what makes them interesting and what you can learn from them. Everyone holds unique insights.

30. Prioritize Quality Over Quantity

Consciously choose to prioritize the quality and depth of your work over the sheer quantity of output. Focus on doing a few things exceptionally well rather than many things superficially.

My job is to prove that she's wrong because if I can't, then she knows she should persevere.

George Neal

If there are things that you could have known and should have known and somehow managed not to know, the law deems that your ignorance has been a choice and you're responsible for the choice that you made.

Judge Simeon Lake

We now see that these people are helpful because they may see things before we do. And we need that.

Head of the British Army

Margaret, I don't mind you making mistakes. I'm just going to be seriously pissed off if you make the same mistake twice, because that's going to show you weren't paying attention.

Margaret Heffernan's chief investor

Just cause you're good at something doesn't mean you have to do it forever.

Unnamed person at a Fast Company retreat

The person you are at work is not identical to the person that you are at home.

Margaret Heffernan

It takes a lot more to come up with a good question than to come up with a good answer.

Margaret Heffernan

Building Social Capital (Friday Sessions)

Margaret Heffernan
  1. At 4:30 PM on Friday, tell everyone to 'down tools'.
  2. Every week, three different people tell the group who they are and why they are there.

Learning from Mistakes

Margaret Heffernan
  1. Acknowledge the mistake and be comfortable saying 'you screwed up'.
  2. Sit down and try to think about how it happened, assuming it wasn't a fluke.
  3. Identify the factors leading up to the mistake.
  4. Determine if some of those factors can be changed for future situations.
under 5%
Probability of changing a culture According to an MBA study mentioned by Shane Parrish
five
Number of businesses Margaret Heffernan has run Prior to becoming an author
five
Number of books Margaret Heffernan has written As of the time of the interview