
Portrait of Sir Thomas Gresham (1519-1579), pendant to portrait of his wife Anne Fernely. Oil on panel, by Anthonis Mor (1519-ca. 1576/78). Thomas Gresham was an English merchant and financier who enunciated what is now called Gresham's Law of Money. That law is usually expressed as, "bad money drives out good." The concept is that among all money in circulation, the money most trusted is the least often circulated. What circulates more often is what the population generally regards as money of lesser value. Hence, bad money drives out good.
In organizations, the resources most highly valued are the most difficult to secure, even in the context of exchanges. In organizations, resources of greater value drive out of circulation resources of lesser value.
Image (cc) Creative Commons CC0 1.0 Universal Public Domain Dedication. Image source: Rijksmuseum, Amsterdam, courtesy Wikimedia.
This post is a collection of concise insights about organizational life. They're all original to me; they result from incidents in organizational life that I experienced myself, or which involved my clients. They aren't quotations, though it's certainly possible that others have made similar observations. Here they are, in no particular order.
- Including "Please" or "Thank you" is often helpful in everyday conversation. But in text or email, forgetting them can lead to utter disaster.
- Pronouns make everyday conversation easier. But in text or email they can create confusions that lead to delays, waste, and hurt feelings.
- We're always juggling big, important things along with trivial, nearly insignificant things. If you have to drop something, be certain you know which is which.
- Lack of sunlight can affect your mood and the moods of other living things.
- If you know that lack of sunlight affects your mood, take special care of yourself on cloudy days.
- When others strongly advocate for an action despite its obvious and severely negative consequences, consider the possibility that the obvious and severely negative consequences are the point.
- To the person questioned, a pointed question can feel like the beginning of an attack. Asking gentle, open-ended questions can often uncover the information you want with much less risk.
- Even though If you know that lack of sunlight
affects your mood, take special
care of yourself on cloudy daysorganizations aren't people, organizations can become addicted to harmful behaviors just like people can. - Hoping for a miracle might get you the result you want, but miracles are rare. Instead of hoping for a miracle, search for a realistic plan you can believe in. Then, if the miracle happens, great.
- To successfully resolve the matter at hand, assume that you'll need to know something you don't know yet.
- Procrastination is the best way to eliminate options you could have used if you hadn't procrastinated.
- First reports of bad news are often wrong in their details, but we can handle that. What's more dangerous is what first reports leave out. Ask about what the first reports left out.
- We can compensate for one team member making a mistake. And we can compensate for most team members making that same mistake. But we can't compensate for mistakes nobody recognizes as mistakes. Value dissent and show that you value it.
- Sticking with what you know clutters the mind much like hoarding junk clutters the home. Make room for new ideas by decluttering your mind.
- When you hear an especially juicy bit of workplace gossip, know that: 1) It's probably wrong in important ways, 2) You're among the last to hear it, and 3) You were OK not knowing it. Move on.
- Thinking about the here and now in terms of what the future holds is not thinking about the here and now. It's thinking about the future.
- When a kind of organizational resource becomes scarce enough, it gets even scarcer because people begin to hoard it to use as barter for future deals.
- In a meeting, when everyone "goes quiet," they might not be just afraid to speak the truth. Some might also be afraid to hear the truth.
- Experience teaches us how to anticipate obstacles in the path to our goal. Inexperience lets us set out for that goal before we see the obstacles. Sometimes inexperience is an asset.
- When we divide responsibility for a task across several people, we increase the total effort required, because we've increased the need for those people to communicate with each other. Communication is part of the job.
- We're more likely to do something right if we do it together.
- People in constructive conflict focus on addressing the issues. People in destructive conflict focus on attacking each other.
- Humans live long beyond childbearing years, in part, because we need our elders to live long enough to teach us what we are slow to learn.
- Some difficult decisions are difficult because all our choices require us to let go of something we don't want to let go of.
Last words
You probably have a collection like this, but maybe it isn't written down. Something magical happens for me when I write them down. I tend to remember them when I need them. If you haven't written down your collection, try it. First in this series Top
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Related articles
More articles on Cognitive Biases at Work:
The Planning Fallacy and Self-Interest
- A well-known cognitive bias, the planning fallacy, accounts for many unrealistic estimates of project
cost and schedule. Overruns are common. But another cognitive bias, and organizational politics, combine
with the planning fallacy to make a bad situation even worse.
Seven Planning Pitfalls: III
- We usually attribute departures from plan to poor execution, or to "poor planning." But one
cause of plan ineffectiveness is the way we think when we set about devising plans. Three cognitive
biases that can play roles are the so-called Magical Number 7, the Ambiguity Effect, and the Planning Fallacy.
Some Perils of Reverse Scheduling
- Especially when time is tight, project sponsors sometimes ask their project managers to produce "reverse
schedules." They want to know what would have to be done by when to complete their projects "on
time." It's a risky process that produces aggressive schedules.
Be Choosier About Job Offers: I
- A serious error some job seekers make is accepting an offer that isn't actually a good fit. We make
this mistake for a variety of reasons, including hating the job-search process, desperation, and wishful
thinking. How can we avoid the error?
Additive Bias…or Not: I
- When we alter existing systems to enhance them, we tend to favor adding components even when subtracting
might be better. This effect has been attributed to a cognitive bias known as additive bias. But other
forces more important might be afoot.
See also Cognitive Biases at Work and Cognitive Biases at Work for more related articles.
Forthcoming issues of Point Lookout
Coming February 26: Devious Political Tactics: Bad Decisions
- When workplace politics influences the exchanges that lead to important organizational decisions, we sometimes make decisions for reasons other than the best interests of the organization. Recognizing these tactics can limit the risk of bad decisions. Available here and by RSS on February 26.
And on March 5: On Begging the Question
- Some of our most expensive wrong decisions have come about because we've tricked ourselves as we debated our options. The tricks sometimes arise from rhetorical fallacies that tangle our thinking. One of the trickiest is called Begging the Question. Available here and by RSS on March 5.
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