Why do many modern teams & companies fail to achieve the clarity, progress, and results they so badly seek?
5 cognitive biases of modern organizations, a thread:
1/ Band-aids for Bullet Holes
Organizations tend to prefer sticking band-aids on serious bullet holes.
They do this due to 3 reasons:
- irrational optimism that the band-aid will work
- inability to diagnose the actual problem
- avoidance of the pain from fixing said problem
e.g.
Most Execution problems are really 1) Strategy problems, or 2) Interpersonal problems, or 3) Culture problems
Good leaders execute well because they understand this. They fix the root problem.
Bad leaders & their teams struggle because they are always applying band-aids.
h/t @taylorswift13 for saying “band-aids don’t fix bullet holes” (song: Bad Blood)
2/ The Proxy Illusion
As they grow in size & complexity, organizations tend to confuse the proxy for a thing for the thing itself.
Example:
The tragedy of most product organizations is that a 3 week delay for a product launch will cause much greater stress & scrutiny than an ill-conceived feature in the very same product.
On-time launch is often seen by sr mgmt as a proxy for the team’s product competence.
See this tweet for more examples of The Proxy Illusion within organizations:
When organizations are making decisions, they rarely consider what cognitive biases might be affecting their decision quality.
After organizations have made a bad decision, they rarely consider their own cognitive biases as being a potential root cause.
4/ Certainty Theatrics
A surprisingly high fraction of every corporation’s time & resources are spent on pretending to itself that it is a highly rational entity that is capable of creating absolute certainty even in inherently uncertain situations.
The reality:
Some degree of uncertainty is a part and parcel of any complex business. The pressure for Certainty Theatrics at high-stakes meetings is at the root of many bad decisions.
Cortisol for Creativity (a corollary):
The trouble with most companies is that they give their employees a big dopamine hit for exhibiting their Analytical Intelligence in meetings but a cortisol rush for exhibiting their Creative Intelligence.
5/ Preventable Problem Paradox
Any complex organization will over time tend to incentivize problem creation more than problem prevention.
This bias leads to a “hero culture”, avoidable blunders & general execution slowness
Includes:
- A template for pre-mortems
- How product creativity dies
- False Positive Products
- Being more strategic
- B2B strategy primer
- Personal growth inhibitors
- Work stress
- Curated lists
- Internal roles
- Using logic
& much more....
👇🏾
A template that you can copy to run an effective (and fun) pre-mortem with your team for your upcoming launch (created via a collab with @coda_hq)
The hardest part of product creativity is not the ideation. It is the negotiation necessary to get the folks who are fixated on logic & math to appreciate the value of product creativity.
Short thread on the strategy questions you need to answer for B2B products:
(a strategy primer in 10 tweets)
Your B2B product strategy must rigorously answer these 3 questions:
1) What customer segments are we targeting?
2) What differentiation will we create for them?
3) How will we reach these customers?
It really is that simple.
No fancy frameworks or data deluge necessary.
But the answers to these questions do require deep insight into the market, org dynamics, buyer psychology, customer goals, tech evolution, and lots of creativity.
Reason #17 why PM is different at Megacorps vs. Startups:
At a Megacorp, you want to avoid False Negative Products i.e. products you *should* have built, but did not.
At a Startup, you want to avoid False Positive Products i.e. products you should *not* have built, but you did.
Am I implying that PM at Megacorps is "worse" than PM at Startups?
Or that the Megacorps that try to avoid False Negative Products (FNPs) are wrong?
Or that Startups must move slower to avoid False Positive Products (FPPs)?
Not at all
There is no One Right Answer for everyone
When you are a Megacorp, it is smart & rational to avoid False Negative Products (FNP), particularly in an area which could be a meaningful threat to your core business further down the road.
Why?
The Upside-Downside framework answers that for us: