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it won t be easy dealing with old customers, union complaints, and dealer problems.
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Well, Wagoner is gone, as are Pontiac, Saturn, Opal, Saab, and the Hummer. We now know just how bad all this was for business. But it took a financial crisis and bankruptcy to get management to deal with what has been obvious for years. One could ask the following question.
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The same thing is true with many big, obvious problems. Either hope springs eternal or people want to kick the problem down the road for someone else to handle. This is known as the psychology of avoidance. A psychology professor at the University of Oregon is the author of a book on this phenomenon and how our minds assess risks. Several of his observations are pertinent to the GM situation. Threats get our attention when they are imminent, while our brain circuitry is often cavalier about the future. This is why people are irrational about saving for retirement. It s why losing a share point or two year after year just didn t prompt sweeping concern at GM. We ll just make some adjustments, cut some costs,
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and get it back next year probably became management s view of things. The professor goes on to point out that we re far more sensitive to changes that are instantaneous than to those that are gradual. His point is that the human species is far more programmed to deal with predators and enemies in the Pleistocene Age than with twenty-first-century challenges. The financial crisis was indeed instantaneous. Piers Steel, an assistant professor in human resources and organizational dynamics at Canada s University of Calgary, also has some insights about procrastination. His feeling is that the reason we procrastinate may be more about confidence than about perfectionism. Essentially, procrastinators have less confidence in themselves, less expectancy that they can actually complete a task, Steel said in a University of Calgary news release. Perfectionism is not the culprit, he continued. In fact, perfectionists procrastinate less, but they worry about it more. Steel reviewed procrastination research from scholarly books, conferences, journals, and other sources. His analysis appeared in the January 2007 edition of the American Psychological Association s Psychological Bulletin. Procrastination has been around ever since civilization began and does not appear to be disappearing anytime soon, wrote Steel.
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The antidote for the way we are wired against risk is a heavy dose of reality from an outside observer and a willingness to have an open mind. The biggest problem you ll face is a decision in which people are already invested. This brings to mind a meeting we had with a large company that was about to embark on what we considered an ill-conceived multimillion-dollar assortment of new products. After a presentation on why this line of products was likely to fail, the vice chairman appeared to be convinced that we were right. He looked at us and said, Where were you a year ago, when we presented all this to the board While the problems were obvious, the launch of these products went forward. There was too much ego invested. By the way, as predicted, the products all failed. It cost the company a fortune, but it gave me a great story to tell. Let s move on to obvious solutions that also are often hard to sell.
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complexity. And business consultants only reinforce these perceptions. In the beginning there was Peter Drucker, quietly dishing out sound management advice. As Andy Grove, the former Intel CEO, put it, Drucker is a hero of mine. He writes and thinks with exquisite clarity a standout among a bunch of muddled fad mongers. * Then in the 1980s, Tom Peters exploded on the scene with his book about excellence. That was the dawning of an era of Tom Peters wannabes whom one could safely call modern-day Robin Hoods. They rob from the rich and keep it. But instead of bows and arrows, this crowd is armed with complex buzzwords and ideas that it uses to nail its prey. An article in Fortune magazine entitled In Search of Suckers put it quite accurately: Quietly, without fanfare, the advice business has been hijacked. New gurus armed with nothing more than pens, podiums and tremendous shamelessness have co-opted what used to be a nice, wholesome calling: dishing out good advice to business men and women. Rupert Murdoch was a little more blunt when he was asked whether there was any management guru that he
* Bob Lenzner, Still the Youngest Mind, Forbes, March 10, 1997.
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