The Leadership Caffeine Blog

The Dollar Auction and a Failure of Rational Judgment

The common outcome of The Dollar Auction offers an interesting perspective on human behavior. We are seeing similar manifestations of this behavior at work in what we are slowly learning about the events leading up to this historic (not in a good sense) financial crisis. For some reason, common sense, prudence and good, old-fashioned principles of risk management fly out the window when it appears that the magical money-making machine has been turned on. Whatever happened to making money by developing goods and delivering services that meet and exceed customer needs?

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The Leadership Art (and Importance) of Encouraging Constructive Dissent

This topic goes to the heart of creating an effective feedback culture—one where everyone is comfortable tackling the tough topics and highlighting when the Emperor has no clothes. The discomfort of a team in expressing alternative viewpoints with a leader is one sign that all is not right with the feedback culture. In many cases, some simple behavioral adjustments and appropriate reinforcement on the part of the leader can open the spigot to some great ideas from some smart people. Remember, the contest is in the market for the hearts, minds and dollars of your customers, it’s not in your team meetings to show that you’re the smartest.

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Decision-Making and The Three Rules of Risk Management

Your decision-making style says a lot about you as a leader. Some people make a lot of decisions with little more than a gut hunch to guide them and others spend a lot of time gathering insights and information to support their decision. Others struggle to make decisions on anything and might still be considering what to order for breakfast when it’s time for dinner. And still others avoid making decisions because taking a stand increases the odds that they will be held accountable for results.

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