Foreign policy and management may look poles
apart. Not always. managers and industry may or may not subscribe to Obama's policy
formulations. Even foreign policy experts have their quarrels about his foreign
policy. Yet, a new book on Obama's foreign policy strategy has a lot for
managers looking for new ideas on business strategy and decision making. An
unusually long titled new book by Derek Chollet, The Long Game: How Obama Defied Washington and Redefined America's Role
in the World, throws light on how Obama formulated sustainable strategy by
articulating a number of principles which should be applied while making
strategic choices and managing US foreign policy.How effective these
principles have been in managing US foreign policy is a matter of debate for
foreign policy experts. But, there is no doubt that a look at these principles
will convince any manager how useful they are in business strategy and decision
making.
Chollet enumerates these principles and explains
them in terms of foreign policy. While discussing and relating them to
business, we take the liberty of explaining them in the context of business as
against foreign policy. Obama's focus was long term; hence the title of the
book, Long Game. The urge to leave a
legacy beyond one's term is natural for any president of the most powerful
nation. What makes Obama's principles unique is that in spite of the temptation
to leave a legacy, he is able to look beyond his presidential term, into the
long term interests of the country. The obvious question is: will it be
difficult for our business managers to look beyond the quarterly results and
immediate benefits? Are business managers prepared to overlook demands for
immediate grand results, which may have little chance of being sustained in the
long term?
According to Chollet, the following principles
guided Obama's decision making, keeping the long term sustainability of the
outcome:
1. Balance: Long term policy needs to ensure balance
between interests and values of the organization, and between the conflicting
stake-holder interests. Managers also have to look at balance between the
sustainability of the policies in the long term and the need to ensure healthy
financial results in the short and medium term.
2.Sustainability: Managers need to ask the question:
Can the commitments I am making now be sustained by the organization in the
long term. Managers need to note that commitments which will cost heavily are,
indeed, difficult to sustain. How do we make
the commitment which will not impose unbearable cost, yet will yield the desired
long term outcome?
3. Restraint: Too often managers are tempted by
capabilities and possibilities. This leads them to ask the question: What can I
do now? What can be done, of course, is less important than what needs to be
done. Therefore, the more important question managers need to ask is: What
should I do now?
4. Precision: Power tempts one to wield the
heaviest weapon, no matter what the situation demands. Often that results in
not only wasting valuable resources but also creating more unmanageable collaterals.
That means: Wield a scalpel if you can avoid wielding a hammer. Act with
minimum pressure and noise, but with intense focus.
5. Patience: Policies need time to yield result.
They follow the law of the farm: what you sow takes time to yield.
Allow your action the time for fructifying.
6. Fallibility: You are not God. Managers are as
prone to fallibility as politicians, doctors, economists etc. Therefore, realism
and readiness to face the eventuality of failure of policy and appreciation of
the limitations of achieving the outcome are hallmarks of long-term success.
7. Skepticism: Discount those peddling easy
solutions and allow the floor to the devil's advocates who may pose difficult and
inconvenient questions. Skepticism provides multiple perspectives.
8. Exceptionalism: Beware that as a leader on whom
the organization's future depends, you carry unique responsibilities. As one
who is invested with the authority to show direction to the organization, you
cannot shirk your responsibility..
No doubt, these principles can become tools for procrastination
and dithering in the hands of doubting Toms. On the other hand it can become
the framework for realistic decision making and prudent action in the hands of
thoughtful managers. Like all tools, these principles by themselves cannot yield
results; in the end it is the one who wields the tools who gets the outcomes.
By V.K.Talithaya
vktalithaya@managementmasala.com
0 comments:
Post a Comment