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Leading in Turbulent Environments: Lessons from Mount Everest

Leading in Turbulent Environments: Lessons from Mount Everest. Prof. Morten Hansen MIIC November 19 2010. Levers: David Breashears leading the IMAX team. Planning • Scenarios • Slack: oxygen & 2 attempts. Composition • Experts • No primadonnas. Goals • Make the film

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Leading in Turbulent Environments: Lessons from Mount Everest

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  1. Leading in Turbulent Environments: Lessons from Mount Everest Prof. Morten Hansen MIIC November 19 2010

  2. Levers: David Breashears leading the IMAX team Planning • Scenarios • Slack: oxygen & 2 attempts Composition • Experts • No primadonnas Goals • Make the film • Each one on top Critical decisions • Turned around • Went back up • Sumiyo off the summit bid Outcomes Process • Time to bond • Each w/ responsibilities • Made the movie • Everyone but one on top • All safe Leadership style • Consultative • Demanding Turbulent Event Weather changes

  3. Levers: Rob Hall leading his team Planning • One path • “Just enough”: 1 attempt, oxygen Composition • Novice clients • Guide experiences mixed Goals • Each client: summit • Hall: Develop company Critical decisions • Hansen kept going • Climbed up past 2pm • Hall stayed on top Outcomes Process • No team bonding • No questioning • Escalation of commitment • 4 out of 10 clients summited • Hall died • 3 clients died Leadership style • Very authoritative • Over-confidence Turbulent Event The storm

  4. Levers for Leading Teams amidst Turbulence : Key lessons from Mount Everest Planning • Build in ‘cheap’ slack: What are your oxygen bottles? Composition • No primadonnas • Level 5 individuals Goal •Set a strong Group goal • Subordinate individual goals Critical decisions • What you do ahead of difficult times counts the most (before storms hit) • Decision making biases happen in best of teams Outcomes Process • Avoid escalation of Commitment • Avoid loss of agency • Psychological Safety Leadership style • Watch over-confidence • Be less authoritative & more consultative Turbulent Events Big, unpredictable, Fast, Hurt you

  5. Action Points 1. Set a very clear and strong group goal that is more important than individual goals • “Make the IMAX movie” 2. Assemble Level 5 teams (i.e., with individuals who emphasize the team mission more than their own interests) • Demonstrate with own level 5 behaviors 3. Build in slack (i.e., wiggle room) in your execution plans • Breashears planned for two summit attempts, Hall for one. • Idea is not to be cornered, but leave you with options • For example: 1 extra person on a team, always strong balance sheet, always insist on profitability (vs. extra sales to build share), 2 product launch attempts. 4. Always watch our for creeping biases in the team • Escalation of commitment. The team pursues a course of action in face of negative feedback, simply because they have already spent resources on that (sunk costs). That’s Doug Hansen on Mount Everest, and it cost him his life. • Loss of agency. You as a leader directs everything, so team members stop thinking for themselves. When crisis hits or unpredictable things happen, they do not act or speak up. Inform them of overall plan, ask them to think about the whole plan, invite feedback. • Hubris. As things go well, you as a leader become over-confident, taking risks and being less watchful than you ought to be. It happens to everyone! • Develop “Psychological Safety” in the team to combat this. I.e., make it safe for people to speak up and criticize you as the team leader.

  6. 5-Point Tool: Create clarity before having to make critical decisions midst turbulence 2. Planning What should team do? 3. Composition Who should be on team? 1. Common Goal What accomplish? Critical decisions & actions Outcomes 4. Process How form team? How interact? 5. Leadership style How decide? How much authority? Turbulent Events Big, unpredictable, Fast, Hurt you

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