So, this blog is ultimately about one of my favorite “anchors” I discuss in the book. But first…
I recently discovered the business management book, High Output Management, written 35 years ago by the late founder and former Chairman and CEO of Intel, Andy Grove. I now understand why the book is often referred to as one of the classic books about management.
In the book, Grove refers to the importance of “indicators” in managing an enterprise:
“Indicators tend to direct your attention toward what they are monitoring.”
There is nothing new about indicators (e.g. sales, output, quality, inventory, productivity, etc.) but Grove introduced a concept to me that I believe has important implications regarding ethics… called “paired indicators.”
The point of paired indicators is to guard against making decisions that may appear sound on the surface but turn out later to be inappropriate, counterproductive, and even unethical. Grove points out that we can all overreact particularly in a high-pressure, tense business environment. Yikes, just think about your Covid environment, or one of these from the past…
- Managers drive so hard for sales that they forget about the unethical means to meet or exceed sales and growth objectives. (Think Big Pharma and the opioid crisis).
- Managers drive so hard for output and productivity that they forget about safety. (Think BP and the Deepwater Horizon incident).
- Managers design incentive plans that are supposed to attract more business and they end up “attracting” deceptive sales practices. (Think Wells Fargo and the account fraud scandal).
- Managers want to protect their reputation in a crisis so badly that they fail to be transparent. (Think Boeing and the 737 Max crisis.)
So, what is an “anchor” against overreacting in a given situation and making an unethical decisions? As Grove would say, “pair” your decision with something else as a balance.
I suggest “pairing” all decisions with a “Yes, but” question. This excellent concept was introduced to me by American renowned philosopher, Sissela Bok.
- “Yes, but” what is the impact of an advertising campaign that is a bit deceptive?
- “Yes, but” what is the impact of misleading Wall Street analysts regarding the true financial condition of the company?
- “Yes, but” what is the impact of walking by unsafe conditions in a plant and taking no action?
- “Yes, but” what is the impact on your kids of obviously overlooking a mistake (in your favor) by a clerk at the store?
You get the point.
ANCHOR your actions with “Yes, but” questions. I think this is an important tip for good business management and equally important for living an ethical life.
“There is no witness so terrible or no accuser so powerful as the conscience.” – Sophocles
Need Ethics CPE? Book your virtual 1-hour, 2-hour, or 4-hour Ethics training with Jo today! Email Jo@AuditConsultingEducation.com.
Amanda “Jo” Erven, CPA, CIA, CFE, is the President and Founder of Audit. Consulting. Education. LLC. After a successful career in external/internal audit and accounting, Jo is now an active Internal Audit Strategist, Management Consultant, Higher Education Professor, Author, and Trainer/Speaker, providing Continuing Professional Education (CPE) hours, live and virtually, to organizations across the globe. Jo’s motto says the most about her personal and professional outlook: “Good things come to those who wait… but don’t. You deserve better than good.” Every one of her books and presentations focuses on that proactive stance, and how we can immediately connect our actions to our values.
