Last updated on: August 28, 2007 at 6:58 pm
By
Desh Kapoor
This article is being published with consent of the publisher. Enjoy the Guest article. By Stephen H. Baum What allows a leader to take the steps needed to solve a problem or master a difficult situation? What keeps the desire to act from being impetuous and uninformed, as in "ready, fire, aim" behavior? The answer is that the capacity to act effectively and decisively is a complex mixture of brain and gut, a combination I call threads in thinking. It includes these qualities: An ability to distill a situation to its simplest dynamics; to understand the issues and the consequences of doing nothing; and to formulate a specific plan. Being extro-spective: seeing the business in the larger context of the industry and in the marketplace; seeing a situation from a high-altitude view and making sense of it on the ground. For opportunities, an ability to see the true benefits and risks, which are not always obvious. Possession of a mental library of truly relevant analogies and other mental models that can be applied to characterize the situation in a way helpful for making a choice. An ability to identify valuable sources of advice, experience, and wisdom (inside the company and out); to elicit information and know when to do so.An instinct for calibrating the value of and motive for facts and information people are giving you, the subtext of real agendas. An ability to discern both financial and nonfinancial impacts and include them in the calculus (company reputation, morale, future business options), then weigh the risks. An ability to anticipate issues and define a point of view so you don't have to do it for the first time under crisis. Being able to think a couple of moves ahead, as in chess, or as Steve Kaufman put it: "the ability to look around the corner and see what's coming." This ability and most of the others can be tested and developed. Read more