Leadership Part 3/3 by William Haines

What I was going to talk about was decision making, which has quite a few little exercises we could have done. One of the most important things that leaders have to do is to make decisions. All human beings have to make decisions, but often you find that if you're a brain surgeon, you have to make decisions, and if you're a rubbish collector, you also have to make decisions. So, who gets paid the most, a brain surgeon or a rubbish collector? Why is that? It's partly unfair thinking in terms of decision making. If a brain surgeon or an airline pilot makes a bad decision, what happens? That's right, if a rubbish collector makes a bad decision, it's not such a big impact. But it can be significant; if the rubbish collector doesn't collect the rubbish, that can lead to problems, such as disease. So, the rubbish collector has an important role in society, and it definitely is important. What I'm saying is, why is it that we pay one person a lot more than another?

In these days, they qualify people in terms of what they studied throughout their lives. The doctor went to school and earned his degree, so he is paid accordingly. However, the rubbish collector may not have had as much formal education, but he has an education through life that doesn't have the same value in terms of what society thinks about rubbish collectors. Rubbish collectors are very valuable, but they don't get the same amount of pay. That's the first question: why is it not reconciled? If a person has a PhD, could they collect rubbish? Yes, but you can study and still collect rubbish, and you won't get paid any more. That's why I said it's unfair. You might think it's unfair, but I'm not going to make any judgments about it; I'm just trying to understand why it is the way it is.

The brain says that they should study for about ten years to do that. Unless there's a possible reward of big money, they're not going to go through that process. There needs to be an enticement because some people might be motivated by career prestige or job satisfaction, but some people think, 'If I study for ten years, I'm going to get paid £500 a week; I just won't do it.' We wouldn't have any brain surgeons if that were the case. Not everybody is capable of reaching that kind of level. There's also a lot of responsibility involved, and people often get paid according to the amount of responsibility they have. The decisions they make can affect many others. If you're at the top of a business, for example, not necessarily a brain surgeon, if you're the chairman of a business, making bad decisions won't just affect you; it will affect the whole business and everyone who works there.

There have been companies that went out of business due to poor decisions made by their leaders. For example, there was a very big company called GEC, which doesn't exist anymore. The founder, Lord Weinstock, was very successful, but after he retired, they employed someone else who completely changed the direction of the company and made catastrophic mistakes. The business went out of business, and thousands of people lost their jobs. Lord Weinstock himself was heartbroken because most of his wealth was tied up in shares in that company. That's why, at that level, you want to find the best people, and sometimes you need to pay a lot of money to attract those kinds of individuals to that level of responsibility. It's not something that just anyone can do.

Is it easy to make decisions? Who here likes making decisions? It depends on who you're concerned about. Suppose one day you suddenly became the head of a large organisation and had to decide how to deploy resources. Would you like to do that? No? Why not? Because people's lives are at stake. What kind of person do you want to be in that role? Someone who is knowledgeable. People go through all kinds of tests to see whether they're capable of leading at that level because people's lives are at risk. Generally speaking, there are tests to ensure that the best person is promoted. The experience gained often comes at the price of other people's lives, and that's not easy. If you're squeamish, you might think, 'I'm not going to make a decision because I don't want blood on my hands.'

Suppose you get an army commander who refuses to make a decision; is that good? No, it's a disaster. The reality is that in such situations, you have to make choices and decisions, knowing that it will cost lives. If you think, 'I don't want to make these decisions,' even more people might die. Finding someone to make those kinds of decisions is not easy. You need calmness, peace of mind, and clarity of thinking in incredibly stressful situations. There aren't many people like that around. For example, do head teachers get paid more than ordinary teachers? Yes, they can earn quite a lot more. Is it easy to find people who want to be head teachers? No, there's a shortage of head teachers. Even though they are paid £80,000 a year, it's hard to find people willing to take on that role.

Why is that? What causes the stress? The decisions they have to make are significant. They must manage staff and students, deal with crises, and maintain a strategic vision while handling a constant stream of information from the education department. If they don't make good decisions, the whole system can collapse, leading to upset parents and even inspections from authorities. Even though head teachers are paid more, many people don't want the job because they realise they may not have the capacity to keep their cool and make good decisions in such situations. Leadership and management are about decision making. When you're a captain on a ship and a storm comes, you have to make very good decisions quickly. You can't just look it up or consult a book; all that knowledge and experience must be readily accessible to make clear and effective decisions in a short time.

That's why people in those positions get paid more; the responsibility of making decisions is immense. If they make a bad decision, how do you think they feel? Often, they feel incredibly guilty. They have to live with the fact that they made a terrible decision, and it wasn't just them who suffered; the whole crew and possibly passengers suffer too. Some people can't live with themselves afterwards and may even take drastic actions because they can't cope with the consequences of their decisions. That's why decision making is one of the most important roles a leader must be able to fulfil. Sometimes people think, 'I wish someone else would make the decision for me.' Ever felt like that? Why do I have to choose? Why can't someone else tell me the best thing to do? That's the difference between a follower and a leader. A leader is someone who is willing to make those difficult choices, while many people feel it's too difficult and wish someone else would decide for them.

This attitude can lead to certain kinds of social systems. What kind of social system emerges when people want decisions made for them? When I lived in Russia for seven years, I remember going to the university and seeing a list of graduates and their degrees. I asked about another list, and I was told it was a list of where they would work. After graduation, bureaucrats decided where each person would be allocated. If you were an engineer, they would assign you to a job in a specific town. You couldn't search for a job yourself or choose what you wanted to do. In communism, everyone's graduation guaranteed a job, but they had to surrender the freedom to choose their work. Everything was allocated, so they didn't have to make choices or worry about anything; it was all decided for them. It's tempting to want that kind of society, but a free market is one where you have to make choices and face the consequences of those decisions, whether good or bad.

So, decision making is very important. What qualities do you need to make good decisions? What goes into making a good decision? Experience is one aspect, but you also need a complete overview. When making a decision, you must see the pros and cons of each option. This process is called analysing. You need to accumulate as much information as possible and determine what is most significant. Then you decide on the possible options and weigh the pros and cons before eventually making a decision. There are five basic steps in decision making, and it's crucial to analyse things calmly and coolly, collecting relevant information. You must also think about the consequences of your decisions. If I decide this, what are the possible consequences? If I decide that, what will happen? You need the faculty of imagination to envision the outcomes of your decisions.

Imagination is vital. If I'm running a company and I appoint someone to a job, I need to consider the consequences. Is that the right person for that situation? You must imagine the potential outcomes of your decisions. Another quality needed for good decision making is intuition. Intuition seems as important as analysis. Analysis is based on intellectual faculties, but intuition relies on feelings and emotions. It's more about tuning in rather than pulling out information. You somehow have a sense about the situation.

To anticipate something is going to happen is crucial. It's important for a leader to be aware of things that are often not on a conscious level. For example, captains of firefighting teams sometimes enter burning buildings without fully analysing the situation. I read about a leader who felt they had to evacuate their team because the building was going to collapse. They left just in time, and the building fell shortly after. This decision was made intuitively, not through a detailed analysis. As a leader, it's essential to be open to this intuitive side while also being able to think critically and intellectually.

Have you read the book 'Blink' by Malcolm Gladwell? He discusses those snap decisions that people make. The conscious mind can only hold about seven pieces of information at a time, which limits our ability to process complex situations. In contrast, the unconscious mind is filled with experiences and knowledge, which can inform our intuition. This means that intuition is not just a random feeling; it is educated by past experiences, reading, and studying. The more we draw on this unconscious reservoir, the better our decisions can be, often leading to better results.

The greater the risk taken, the better the outcomes tend to be. This idea aligns with the concept of having the courage of one's convictions. Leaders often face criticism for their decisions, especially when they take risks. People may question their choices, but these intuitive decisions often stem from a deeper understanding rather than a mere intellectual assessment of pros and cons. The personality and character of a leader play a significant role in decision-making. Each leader has a unique personality that influences how they approach decisions and deal with the consequences.

A good leader is not someone who strictly adheres to one decision-making style. On one end of the spectrum, a manager makes decisions and announces them, while on the other end, a manager involves their team in the decision-making process. A flexible leader can adapt their approach based on the situation. For instance, in an emergency, such as leading a firefighting team, snap decisions are often necessary. A leader must assess the situation quickly and act decisively, rather than seeking consensus.

There are advantages to a leader making all the decisions, especially in emergencies where time is of the essence. However, in situations where there is time for discussion, involving the team can lead to better outcomes. When a leader knows best and the team lacks experience, it may be more effective to take charge and guide them. Conversely, when working with a capable team, allowing them the freedom to contribute can lead to innovative solutions and a sense of ownership among team members.

Empowering team members leads to greater satisfaction and commitment. When individuals feel they have a say in the process, they are more likely to be invested in the outcome. This collaborative approach can yield better plans than those developed by a single leader. In situations where team members are inexperienced, a more directive approach may be necessary. However, fostering an environment where feedback is welcomed and valued is crucial for a healthy organisational culture.

Reflecting on personal experiences, I recall a time as a trainee when there was insufficient interaction with management. The lack of feedback opportunities led to frustration among the team. A dynamic and respectful culture is essential for effective leadership. When team members feel ignored, it can be demoralising. Conversely, positive interactions, such as a simple greeting, can significantly impact morale and engagement.

In my current role, I often find myself managing a group where I must make decisions while also encouraging team involvement. This balance allows for shared responsibility and learning. It's important to recognise that everyone has something to teach and learn, regardless of their position. Flexibility in leadership styles is vital, as different situations require different approaches. This adaptability is key to effective management. Lastly, I introduced a problem-solving exercise to illustrate the complexities managers face. It challenges individuals to analyse information and make decisions quickly, reflecting the skills required in high-pressure environments.