Great
leaders tell it like it is. In other words, they focus on reality, no matter
how painful or unpleasant it might be, and then figure out what to do about it.
In contrast, less effective leaders sometimes avoid hard truths, argue with the
data, and delay tough decisions.
While
it’s easy to be critical of leaders who can’t face the facts, the truth is that
most of us engage in denial at one time or another, usually without even
knowing it. As human beings, it’s one of the most common defense
mechanisms that we use to cope with difficult situations. It’s the first of
Swiss psychiatrist Elisabeth
Kübler-Ross’ now-famous five stages of grief,
in which she observed that many people react to news of their terminal illness
by denying anything is wrong with them. This is an extreme case, of course, but
lots of business situations trigger denial as well. Here are two quick
examples:
A large natural resources company acquired a smaller
competitor and announced that it would be closing a number of low-producing
mines within a year. Six months later the corporate HR manager visited these
mines to help with the transition and was surprised to learn that the planning
hadn’t even begun. When he questioned the mine leadership team he was told, “We’ve heard
this story before but we produce too much ore for the company to really shut us
down.”
The executive team of a pharmaceutical company knew
well in advance that it was facing the loss of patent exclusivity for a
particular drug, which would significantly reduce sales revenue in the coming
year. Despite not having sufficient new products to replace these losses, the
team delayed making commensurate cost reductions, with each manager saying that
their people were indispensable.
There
are many stories like these at all levels of organizations. Just the other day,
I was talking with a twenty-five year old financial analyst who told me that
she is looking for another job because the products in her division are
becoming commoditized and will probably be sold off or eliminated. When I asked
her how her colleagues were reacting to this she said, “They don’t believe it
can happen to them so most of them aren’t doing anything.”
This
brings up an important point about denial: It’s easier to see in others than in
yourself. This means that coping with it usually needs to be a team effort.
Even the most open and honest of managers sometimes engage in “wishful hearing”
and interpret things the way they want them to be, instead of how they really
are. That’s why really good managers value subordinates and colleagues who are
not afraid to bring them bad news, tell them the truth, and help them peel away
their own unconscious avoidance mechanisms.
Given
these subtle psychological dynamics, here are two principles to keep in mind
for dealing with denial in your own career and your work with colleagues:
Don’t assume that everyone sees the world through
the same lens as you. Facts and data are usually open to interpretation,
and people have different underlying criteria for how they analyze them. We all
emphasize some things and discount others, based on past experiences,
personality, and tolerance for discomfort. That’s why the financial analyst saw
what she thought was the “writing on the wall” about her division’s future,
while others in the group saw a different story.
Get tough subjects out in the open. Because of
these different interpretations, find ways to facilitate and encourage
dialogue, particularly when complex issues are on the table. While denial can
still occur, it is less likely when teams are able to look at the situation
from multiple angles, challenge underlying assumptions, and eventually get a
better picture of what’s really going on. So while it’s true that great leaders
usually don’t get trapped in the denial of hard realities, it’s often because
they get a lot of help from their teams.
So
yes, denial is alive and well in most organizations, which leads to delayed or
inappropriate decisions, inaccurate or misleading communications, and a host of
other dysfunctional outcomes. But remember that denial is a natural human
reaction to anxiety-provoking situations, which is why it’s important for team
members to help each other see the truth.
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Ron Ashkenas' blog post on Forbes. Join the discussion