Here is an excerpt from a “classic” article from the McKinsey Quarterly, written by Zafer Achi and Jennifer Garvey Berger and published by McKinsey & Company. To read the complete article, check out others, learn more about the firm, and sign up for email alerts, please click here.
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In an unpredictable world, executives should stretch beyond managing the probable.
This way of approaching situations involves a whole suite of routines grounded in a mindset of clarity if not outright certainty. To that end, they are characterized by sharp-edged questions intended to narrow our focus: What is the expected return on this investment? What is the three-year plan for this venture? At what cost are they willing to settle? But asking these kinds of questions, very often legitimate in business-as-usual settings, may constrain management teams in atypical, complex situations, such as responding to a quickly changing market or revitalizing a privatized utility’s culture.
Our tendency to place one perspective above all others—the proverbial “fact-based view” or “maximizing key stakeholders’ alignment”—can be dangerous. All too often, we operate with an excessively simple model in enormously messy circumstances. We fail to perceive how different pieces of reality interact and how to foster better outcomes.
Moving from “managing the probable” to “leading the possible” requires us to address challenges in a fundamentally different way. Rather than simply disaggregating complexities into pieces we find more tractable, we should also broaden our range of interventions by breaking out of familiar patterns and using a whole new approach that allows us to expand our options, experiment in low-risk ways, and realize potentially outsized payoffs. But be warned: leading the possible involves coping with our own anxieties about an unknowable and uncontrollable world.
A few simple habits of mind presented here can prod us toward thinking and acting differently. These should not be considered a checklist of to-dos; indeed, the very point is to move beyond a check-the-box mentality.
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Here is a direct link to the complete article.
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