Know What You Don't Know: How Great Leaders Prevent Problems Before They Happen

Know What You Don’t Know: How Great Leaders Prevent Problems Before They Happen
By Michael A. Roberto

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“Dr. Roberto has skillfully managed to blend in-depth research with his straightforward and enjoyable style and, in doing so, painted a masterpiece that should be considered by any institution or individual looking to detect or solve problems. Presenting cases and their lessons from multiple venues, he offers wisdom readily applicable to any arena.”

Duane Deal, Brigadier General, United States Air Force (Retired)

 

“Solving problems is one thing; finding them early enough to do something about it is quite another. In this entertaining book full of insight and examples, Michael Roberto provides managers with hands-on recommendations on how to avoid falling into decision-making traps by getting a step ahead.”

Sydney Finkelstein, Steven Roth Professor of Management, Tuck School of Business at Dartmouth, and author of Why Smart Executives Fail and Think Again

 

“In typical style, Mike Roberto gets right to the heart of major challenges facing businesses in today’s rapidly changing landscape. He provides not only a burning platform for thinking differently, but also practical tools for busy leaders to implement following an ‘action learning’ approach.”

Jon Shepherd, Chief Learning Officer, Mars Inc.

 

In Know What You Don’t Know, best-selling author Michael Roberto shows leaders how to go beyond mere “problem solving” to uncover and address emerging problems while they’re still manageable—before they mushroom into disaster! Roberto first identifies the diverse, sometimes surprising reasons why problems typically fester in the shadows, ignored and unaddressed. Next, he systematically introduces seven powerful solutions. You’ll discover how to become a business “anthropologist,” observing how your employees, customers, and suppliers actually behave, not just how they’re “supposed” to behave. Roberto shows how and when to circumvent your gatekeepers to see crucial raw data…how to “connect the dots” among issues that seem unrelated, but are really signs of a deeper pattern…how to promote candor among front-line employees…encourage “useful” mistakes, and more. Along the way, Roberto offers powerful insights for overcoming the “isolation trap” so many senior executives face: the trap that can keep you assuming everything is fine, while your company’s problems are spiraling out of control!

 

• Watch your company’s “game film”—and your competitors’
Systematically understand how your company is really behaving and performing—and how you really match up

 

• Recognize the value of “small failures”
Use small problems as a window on your system—and a signal of possible weaknesses elsewhere

 

• Get beyond the numbers, to the reality
Discover why too much formal analysis can actually hide your problems—and start leveraging the value of intuition

 

• Become a true business “ethnographer”
Observe your people in their natural setting—and recognize what they’re not telling you


Product Details

  • Amazon Sales Rank: #1840 in eBooks
  • Published on: 2009-01-29
  • Released on: 2009-01-29
  • Format: Kindle eBook
  • Number of items: 1

Editorial Reviews

About the Author

Michael A. Roberto is the Trustee Professor of Management at Bryant University in Smithfield, Rhode Island, after six years as a faculty member at Harvard Business School. His research, teaching, and consulting focus on strategic decision-making processes and senior management teams. He is the author of Why Great Leaders Don’t Take Yes for an Answer (Wharton School Publishing, 2005).

Excerpt. © Reprinted by permission. All rights reserved.

Preface

In the spring of 2005, former Secretary of Defense Robert McNamara came to speak to my students. At the time, I served on the faculty at Harvard Business School. My colleague Jan Rivkin and I invited McNamara to answer our MBA students’ questions about his years in the Defense Department as well as his time at Ford Motor Company and the World Bank. My students had studied the Bay of Pigs fiasco, the Cuban Missile Crisis, and the Vietnam War. We examined those case studies as part of a course focused on how to improve managerial decision-making. Most class sessions focused on typical business case studies, but students found these examples from the American presidency to be particularly fascinating. We had analyzed the decision-making processes employed by Presidents Kennedy and Johnson and their senior advisers. Now, we had an opportunity to hear directly from one of the key players during these momentous events of the 1960s. McNamara came and answered the students’ questions, which included some tough queries regarding the mistakes that were made during the Vietnam War as well as the Bay of Pigs debacle.

McNamara had not visited the Harvard Business School in many years. However, he recalled his days at the school quite fondly. McNamara graduated from the MBA program in 1939 and returned a year later to join the faculty at just twenty-four years of age. The students expressed amazement that he had been on the faculty sixty-five years prior to his visit that day in the spring of 2005.

Before the class session began, McNamara asked me about my research. I told him about a new book I had written, set to come out two months later, regarding the way leaders make decisions. Then McNamara asked about teaching at the school, inquiring as to whether we still employed the case method of instruction. When I indicated that the case method still reigned supreme in our classrooms, he expressed his approval. He recalled how much he enjoyed learning and teaching by the case method. McNamara then affirmed a long-standing belief about this experiential learning technique. He explained that the case method provided students good training in the subject matter I researched and taught—namely, problem-­solving and decision-making. After all, most cases put students in the shoes of a business executive and make them grapple with a difficult decision facing the firm.

McNamara then surprised me when he mentioned that this approach to teaching and learning did have a major deficiency. He argued that the case method typically presents the problem to the student. It describes the situation facing a firm and then frames the decision that must be made. In real life, according to McNamara, the leader first must discover the problem. He or she must figure out what problem needs to be solved before beginning to make decisions. McNamara explained that identifying the true problem facing an organization often proved to be the most difficult challenge that ­leaders face. In many instances leaders do not spot a threat until far too late. At times, leaders set out to solve the wrong problem.

Now here I stood, quite pleased that I had just completed my first book on the subject of decision-making. I anticipated its release in just a matter of weeks. I had built a solid course on the subject as well. McNamara seemed to be telling me that I had missed the boat! I needed to be helping managers and students learn how to find problems, rather than focusing so much attention on problem-solving. I wrestled with this thought over the next six months, and then in the winter of 2006, I set out to write a new book. This time, I would write about the process of problem-finding, rather than problem-solving and decision-making. Two and a half years later, I have completed that book.

The Central Message

In this book, I argue that leaders at all levels must hone their skills as problem-finders. In so doing, they can preempt the threats that could lead to disaster for their organizations. Keep in mind that organizational breakdowns and collapses do not occur in a flash; they evolve over time. They begin with a series of small problems, a chain of errors that often stretches back many months or even years. As time passes, the small problems balloon into larger ones. Mistakes tend to compound over time; one small error triggers another. Once set in motion, the chain of events can be stopped. However, the more time that passes, and the more momentum that builds, once-­seemingly minor issues can spiral out of control.

Many leaders at all levels tell their people that they hate surprises. They encourage their people to tell them the bad news, rather than providing only a rosy picture of the business. They hold town-hall meetings with their employees, tour various company locations, and remind everyone that their door is always open. Still, problems often remain concealed in organizations for many reasons. Unlike cream, bad news does not tend to rise to the top.

In this book, I argue that leaders need to become hunters who venture out in search of the problems that might lead to disaster for their firms. They cannot wait for the problems to come to them. Time becomes the critical factor. The sooner leaders can identify and surface problems, the more likely they can prevent a major catastrophe. If leaders spot the threats early, they have more time to take corrective action. They can interrupt a chain of events before it spirals out of control.

Through my research, I have identified seven sets of skills and capabilities that leaders must master if they want to become effective problem-finders. First, you must recognize that people around you filter information, often with good intentions. They hope to conserve your precious time. Sometimes, though, they filter out the bad news. Problem-finders learn how to circumvent these filters. Second, you must learn to behave like an anthropologist who observes groups of people in natural settings. You cannot simply ask people questions; you must watch how they behave. After all, people often say one thing and do another. Third, the most effective problem-finders become adept at searching for and identifying patterns. They learn how to mine past experience, both personal and organizational, so that they can recognize problems more quickly. Fourth, you must refine your ability to “connect the dots” among seemingly disparate pieces of information. Threats do not come to us in neat little packages. They often remain maddeningly diffuse. Only by putting together many small bits of information can we spot the problem facing the organization. Fifth, effective problem-finders learn how to encourage people to take risks and learn from their mistakes. They recognize that some failures can be quite useful, because they provide opportunities for learning and improvement. You must distinguish between excusable and inexcusable mistakes, though, lest you erode accountability in the organization. Sixth, you must refine your own and your organization’s communication skills. You have to train people how to speak up more effectively and teach leaders at all levels how to respond appropriately to someone who surfaces a concern, points out a problem, or challenges the conventional wisdom. Finally, the best problem-­finders become like great coaches who watch film of past performances and glean important lessons about their team’s problems as well as those of their principal rivals. You must become adept at review and reflection, as well as how to practice new behaviors effectively.

The outline of this book is straightforward. The book begins with a chapter describing the overall concept of problem-finding. Why is it important, and what does it mean? Then, each of the following seven chapters describes one of the critical problem-finding skills and capabilities I have identified in my research. Throughout the text, I refer to the endnotes, which provide information if you’re interested in learning more about the academic research upon which I have drawn. Finally, the book closes with a chapter that examines the mindset of the problem-finder. I argue that becoming an effective problem-finder requires more than mastering a set of skills. You have to embrace a different attitude and mindset about work and the world around you. The best problem-finders demonstrate intellectual curiosity, embrace systemic thinking, and exhibit a healthy dose of paranoia.

The Research

The research for this book consisted of nearly one hundred fifty interviews with managers of enterprises large and small. I asked them to speak with me about their successes and failures and to describe how they tried to prevent failures from taking place. The interviews took place in a wide range of industries. I spoke with many CEOs as well as business unit leaders and staff executives. The field notes from these interviews, as well as other artifacts collected during my visits to these firms, filled several large drawers of the file cabinet in my university office.

Throughout the research, I sought breadth as well as depth. I conducted single interviews at a wide range of firms in many industries. I have not limited my research to private-sector enterprises; I have drawn upon many nonbusiness case studies in my work. In a few instances, I examined a particular organization in great detail. For instance, at the FBI, Jan Rivkin and I conducted many interviews with people at all levels of the bureau. For the rapid-response team study, Jason Park and I interviewed roughly twelve people at each hospital. We also observed ma…


Customer Reviews

Most helpful customer reviews

23 of 26 people found the following review helpful.
5“It isn’t that they can’t see the solution. It’s that they can’t see the problem.”
By Robert Morris

Michael Roberto cites this especially relevant observation by G.K. Chesterton as a head note to the first chapter of this immensely informative book in which he stresses the importance of mastering seven sets of skills and capabilities that are essential to effective problem-finding. Roberto makes the same key point (among several) in his previously published book, asserting that the most effective leaders are those who “cultivate constructive conflict so as to enhance the level of critical and divergent thinking, while simultaneously building consensus so as to facilitate the timely and efficient implementation of the choices that they make.” He goes on to assert that “effective leaders can and should spend time `deciding how to decide.’ In short, creating high-quality decision-making processes necessitates a good deal of forethought.” Throughout Roberto’s lively narrative, there is a strong recurring theme: “leaders must strive for a delicate balance of assertiveness and restraint.” In this book, he explains, “I argue that leaders must become hunters who venture out in search of the problems that might lead to disaster” for their organizations. Consider what Peter Drucker observed in an article that appeared in the Harvard Business Review in 1963: “There is surely nothing quite so useless as doing with great efficiency what should not be done at all.”

The title “Know What You Don’t Know” has all manner of critically important implications. Here are three. First, it correctly suggests that identifying and then filling knowledge needs requires the same “level of critical and divergent thinking, while simultaneously building consensus” that the problem-solving process requires. And that consensus should be the result of rigorous scrutiny applied to a number of options even if (especially if) some seem counterintuitive and perhaps even contradictory. Only then will it be possible “to facilitate the timely and efficient implementation” of the choice(s) made. The title also correctly suggests that this process requires high-impact leadership, one that insists on both good will and principled disagreement throughout group discussion and consideration while maintaining “a delicate balance of assertiveness and restraint.” High-impact leadership also serves as an example of seven critical skills and capabilities that are needed to ensure that problems do not remain hidden (more about them later), to discover “the bad news that typically does not surface until far too late.” However, Roberto adds, becoming an effective problem-finder (a “detective”) also requires a “different mindset,” one that “begins with a certain level of intellectual curiosity, is based on systematic thinking, and meanwhile realize that “every organization, no matter how successful, has plenty of problems [and they] often lie beneath the surface, hidden from view.” This is what Andrew Grove, former Intel chairman and CEO, had in mind when asserting that “only the paranoid survive.”

With regard to the aforementioned seven critical skills and capabilities, Roberto devotes a separate chapter to each. Actually, I think that (only with minor revision) they could be viewed as strategies as well as skills and capabilities. The most effective problem finders must also be effective navigators and politicians, as the following correctly suggest:

1. Circumvent the “gatekeepers” (i.e. those who control filters and other barriers)
2. Become an ethnographer (observe carefully, ask questions, listen intently, etc.)
3. Hunt for patterns (e.g. identify verifiable causal relationships)
4. Connect the dots (
5. Encourage useful failures (i.e. those that are small, brief, inexpensive, and informative)
6. Teach how to talk and to listen (also when and why)
7. Watch the “game film” of past performance (make adjustments, practice deliberately)

Throughout his narrative, Roberto makes brilliant use of a reader-friendly device that consists of a check-list and brief discussion of key points. For example, reasons why problems remain hidden (Page 9), small problems and failures that can threaten an organization (Pages 19-20), why information filtering takes place (pages 31-34), how to circumvent the filters (Page 36), principles of effective observation (Page 64), seven key questions to use when testing assumptions (Page 85), types of leadership behavior that can encourage more effective treatment of information (Page 108), four ways suggested by Roger Martin (author of The Opposable Mind) to nurture and develop integrative thinking skills (Pages 113-114), how to assess a failure before, during, and after it occurs (Page 125-126), how to speak up more effectively (Page 154), and “Three Dimensions of a New Mindset” (Pages 189-193).

I wholeheartedly agree with Michael Roberto that organizations should commit at least as resources to encouraging, training, supporting, recognizing, and (yes) rewarding their Problem-Finders (“Detectives”) as they do their Problem-Solvers (“Firefighters”). Of course both are needed. And both require leaders who demonstrate intellectual curiosity, adopt systematic thinking, and exhibit a healthy dose of paranoia. He goes on to point out, “They do not wait for problems to come to them. They behave much more proactively. They seek out problems. They embrace them…The very best leaders know that speed is critical. The earlier you discover a problem, the more likely you can contain the damage, and the more likely you can solve it readily. Most important of all, successful leaders do not see problems as threats. They see every problem as an opportunity to learn and improve.”

Why must the “great leaders” to which this brilliant book’s title refers be developed at all levels and in all areas of every organization, whatever its size and nature may be? Problems are equal-opportunity troublemakers. Just as minor scratches can become major infections if ignored or neglected, minor problems can become major disasters unless they are discovered and solved as quickly as possible.

9 of 10 people found the following review helpful.
5Practical and provocative
By B. Bader
Drawing on examples as varied as the 9-11 tragedy and Anne Mulcahy’s leadership at Xerox, Roberto explains why leaders need to be not only great problem-solvers but also problem finders. He describes the common reasons why leaders often miss seeing problems until a crisis occurs. He then offers seven practical methods of problem finding that any leader, manager or business owner can apply. An easy, fast and interesting read that will pay real dividends.

4 of 4 people found the following review helpful.
4Constructive look at problem finding
By Rolf Dobelli
Sir Winston Churchill, Great Britain’s intrepid prime minister during World War II, was an amazingly perceptive leader. He was one of the first to warn of the military threat Germany posed prior to both world wars. How did he know? He routinely sought out rank-and-file members of the British military and low-level English government bureaucrats to find the truth. In the same way, you should dig deeply into your organization for unbiased, accurate information so you can detect problems before they turn into disasters. In his case-filled, albeit pretty much one-note, book, management professor Michael A. Roberto explains why finding problems is harder than solving them. He shows how danger hidden beneath the surface can present the greatest peril to your company. getAbstract recommends Roberto’s engaging book to managers at all levels. Spot those icebergs before they sink your business.

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