How To Uncover Our Blind Spots: Unconscious Bias In Leadership
As humans, we have some blind spots in our behaviors that we sometimes are unaware of.
Such blind spots are some things that we do yet they are not obvious to us. Others may see them but we are blind to them.
At work, blind spots can be quite damaging. They may result in us doing some things that are unacceptable.
Coaching can help us uncover our blind spots and become better leaders, colleagues, employees, and simply better people.
One common blind spot in leadership is unconscious bias.
The modern workplace is full of people from multiple backgrounds.
While we might think we are open-minded people, we might find that we have unconscious bias.
We can be saying things or taking actions that are discriminative to others in terms of gender, race, or other differences and we are unaware of this kind of bias.
We can also find that we unconsciously favor some people because they are similar to us but we are not aware of this; it is one of our blind spots.
HOW COACHING CAN HELP US TO UNCOVER UNCONSCIOUS BIAS IN LEADERSHIP?
Helps Us Become Aware Of Unconscious Bias
Coaching can help us become aware of possible blind spots such as unconscious bias.
For example, as a leader, we can be hiring some kinds of people because they are similar to us. We can be doing this unconsciously.
Before we know it, we can have hired a homogenous workforce that does not benefit from diversity since everyone is so similar.
This can limit the creative potential of the organization and limit opportunities that the organization can explore.
When we become aware of unconscious bias, we can work towards coming up with a system that can help us avoid making such biased decisions in the future.
Make Decisions Based On Principles
When we become aware of possible unconscious bias at the workplace, we can be open to changing policies and make decisions based on better positions in the future.
For example, if we find that through our unawareness of blind spots we had been promoting people that are similar to us, we can focus on using a set of policies and principles to make such decisions in the future.
We can choose to have a team make promotional decisions in the future as opposed to one person.
Further, we can create policies and guidelines to be followed when making such decisions in the future.
Training And Development
One reason we are unaware of our possible blind spots is due to lack of knowledge.
Sometimes, we need someone to point out our possible blind spots so that we become aware of them.
Through regular coaching, training, and development, we can be open to exposing our blind spots and finding a way to work with them or around them.
Regular exposure to information can help us recognize and deal with unconscious bias and find ways to treat people equally without bias.
Put in Place Policies
A set of policies can help leaders not be driven by their blind sports when making decisions.
For example, policies regarding hiring people from different backgrounds will ensure that all kinds of people are represented in the hiring process and the decision is not left to the leader.
Policies pertaining to all aspects of management such as hiring, rewarding, terminating among others should be detailed enough and as clear as possible such that they can be referred to by anyone within the organization and not just the leaders.
Seek Feedback
Another way a leader can uncover blind spots is by seeking feedback.
When you are open to feedback, other people can easily spot your blind spots and let you know areas you can improve in.
It would be misleading for a leader to think that they are always right and do not possess any blind spots.
By opening up channels of communication and encouraging feedback, they open themselves up to opportunities for self-improvement.
Conclusively, since we all have different backgrounds, we can have unconscious biases that influence our decision-making. Our blind spots can be our downfalls if we are not careful. We therefore most importantly accept that it’s possible to have blind spots such as unconscious bias. We should then seek out ways to find out what these could be and try to work around them so we can be our most impartial versions at the workplace. Through training and development, coaching, seeking feedback, following written policies, and most importantly becoming aware of our possible shortcomings, we can bring our best self to work and serve our organizations in the best possible way.
The Destiny Team
Is Meritocracy Better Than a Blood Relationship for Family Succession Planning?
Transitioning of family businesses from one generation to another is a common challenge. However, as family businesses continue to blossom, many are recognizing the need for succession planning. Often, when the lone-founder of the business leaves, many family businesses tend to crumble.
Research has shown that many Chinese family businesses don’t last the past three generations. This is because first, most family businesses lack a sustainable business model. They depend on trial-and-error strategies for competitive advantage. Secondly, Chinese family traditions whereby male descendants get equal inheritance can dilute the ownership of the business. Thirdly, often, birth order or seniority is used to select successors other than meritocracy. These businesses depend on family factors rather than merit in choosing successors.
For your family business to survive from the founder to the second generation, there is a need to make a smooth transition and this is solved by successful planning. When well-governed, family firms can outperform non-family businesses. Some of the most popular global businesses started as family businesses such as Walmart and Volkswagen. If family businesses are well managed, they can last through generations.
Stakeholders involved in succession planning
All family businesses do involve outsiders as part of their management teams. In any family business, there are commonly three stakeholders involved in succession planning. These are owner/founder, professional managers, successors.
The founders find a challenge in succession planning since they view leaving their position as dying a little. Most vow they will never retire and when they leave the business they feel as if they experience a personal loss of identity. They also fear that they will lose all the years of significant work they have put into the business. They lack confidence in the abilities of the successor and are often conflicted about choosing a suitable successor. Sometimes their decision is interfered with by underlying family issues of jealousy and rivalry.
The successors on the other hand view that they can bring new insight into the business and often dislike the founder’s way of running businesses. They refuse to obey authority and yet they want to be given responsibility and authority. Successors may also have rivalry among themselves. For example, sons debate who the father will pick as a successor.
The professional managers may have the interests of the organization at heart but often refrain from challenging the members of the family. They commonly have more loyalty to some members than others; such as having loyalty and a personal relationship with the founder. On the other hand, they are often more qualified to run the business since they are hired on the basis of merit.
Knowing this, one cannot help but ask, is meritocracy better than blood relationships for family succession planning? Or differently phrased, is it easier to plan for succession of the family business when outsiders are involved as opposed to when blood relatives are involved?
Before we jump to conclusions, let’s first look at the benefits and pitfalls of meritocracy and blood relationships in running family businesses.
Benefits of meritocracy
- Hiring the best outsiders to manage the business put the interests of the organization first. These are professionals and are often better qualified than family members.
- There is no emotional attachment and non-performing managers can easily be let go as opposed to if they were family members.
- Salaries and benefits are allocated according to a person’s merit and contribution to the organization.
Downsides of meritocracy
- Outsiders often don’t have the core values rooted in the family that often contribute to developing a grounded organizational culture. Without family, these values can fade and hurt the organizational culture.
Benefits of blood relationships in family businesses
- Family members understand each other better and are often driven by similar values.
- Blood relations have a commitment to the business as they are committed to family.
- Years of growing up in the business give them valuable informal training.
Disadvantages of blood relationships
- Sometimes there is no accountability for poor performance. Individuals can let their values come ahead of that of their organization and not be held accountable for it since they are family.
- There is emotional involvement in management. Decisions made are seen as emotional or influenced by underlying rivalries other than being seen as rational and professional decisions.
- Lack of openness for fear of offending each other can lead to unaddressed issues.
- Lack of meritocracy happens whereby the next generation may lack the ability to cultivate the necessary skills needed in the business environment.
- Lack of clear planning of the future governance of the organization, often leading to clashes in terms of power, authority, and responsibility.
Looking at the above lists, it may seem as if the disadvantages of blood relationships outweigh those of meritocracy. However, we must not underestimate the family values and connections involved in the case of blood relationships. Meritocrats sometimes focus too much on profit-making and compromise the values of the organization. On the other hand, family members are likely to do what it takes to make the business survive tough times.
This is why family businesses may need a third party to help them make rational decisions. An executive coach brings a different perspective into the picture, balancing the needs of all stakeholders and most importantly, prioritizing the needs of the organization.
What a succession planning executive does?
- Addresses the underlying issues relating to family involvement in the business. A professional helps unearth the state of the family and that of the business that the family members had been refusing to address. For example, it may be automatically assumed that the firstborn son will be the obvious successor but no one is willing to address that he is not competent and provide solid evidence why without causing any conflict.
- Establishes a council to discuss these matters and lay down ground rules. This is a way to involve family members and professional managers to participate in policymaking.
- Develops a family constitution aligning family values and those of the business.
- Develops a succession plan by laying out the role changes, a time plan, retirement plans and communicate the laid down plans to all stakeholders.
Conclusively, it may be easier for succession planning where meritocracy is involved, but it doesn’t necessarily mean it creates better organizations. Blood relationships may lead to complicated dynamics in the business, but they often have a commitment to the business. The family values lead to a stronger organizational culture from which the organization thrives. With the right form of succession planning guided by executive coaches, family businesses can thrive despite the number or nature of blood relationships involved.
The Destiny Team
Implementing a Growth Mindset in Family-Owned Companies
Family businesses start with the owner’s dream to achieve certain goals and aspirations. Our economy thrives largely due to family businesses. However, with time, founders may be reluctant to change and grow and tend to stay within the limits of the business where they are comfortable. This can create some bit of owner’s syndrome and can slow down the business or worse, lead to the fall of the business.
How can a family business embrace change and open up to growth? How can business owners and family members be educated on growth mindset and implement these lessons to their companies?
What is a growth mindset?
According to psychology researcher and scholar Dr. Carol Dweck, the author of Mindset, a growth mindset creates in a person the openness and love for learning, as well as resilience through dedication and hard work to achieve something. A growth mindset when running a business shows that a person is open to ideas, learning from others, and putting in efforts to achieve the desired goal.
Growth mindset vs. fixed mindset
Dr. Dweck goes on to show that those without a growth mindset tend to have a fixed mindset. This is whereby an individual believes that their abilities and talent are inherent and fixed. Such individuals are not open to learning under the assumption that you either have talent or ability or you don’t. In business, a fixed mindset can be detrimental since it will hinder the business’ ability to learn and grow.
For a family-owned business, it is a common belief and misconception that the owner has all the answers. Since the business is based on the owner’s dream and most likely talent, the belief carries on that the owner has all the answers applying to the business. Such a belief can hinder the growth of the business. This is because the belief does not take into consideration the changes taking place in the business environment such as technological changes and the preferences of customers.
How can we educate and implement a growth mindset in traditional family businesses?
Create self-awareness in leaders
A growth mindset comes with self-awareness. When you are self-aware, you understand that you, like every other person, have limitations. It is therefore alright to allow others to complement and supplement your skills and experiences. A self-aware business owner is conscious of the fact that even when the business is founded solely on their idea and dream, they do not possess all the answers. This kind of awareness shifts the mindset of the owner to that which is open to learning from others.
Encourage openness and desire to learn
A growth mindset fosters the desire to learn. Business owners need to recognize that there are many others differently talented and that they can learn from each other. For example, a founder who created a business a few decades ago needs to learn from others about new technology developments and how they can benefit the business. By opening up and learning from others, a business can benefit from new skill sets, adapt to changing business environments and achieve new heights of growth.
View ownership in a different light
A business owner with a growth mindset will remember that the privileges that come with ownership also bring responsibilities. It is your responsibility as a business owner to ensure that the business remains a going concern that is growing and profitable. This kind of understanding helps the business owner put aside their ego and open up to ideas that are good for the business.
Look at challenges as opportunities to grow
A fixed mindset business owner will seek challenges that make them look good. They are more concerned about showcasing their talents and abilities. They have the belief that they are as good as their success. A growth mindset on the other hand will seek challenges that are good for the business. They are little concerned about looking good but more concerned about putting in hard work in new endeavors and harvesting good results. Through constant hard work and putting in efforts on new challenges, they develop persistence, resilience, and motivation which are essential elements for welcoming change and business growth.
Foster a growth mindset within the organization
To encourage growth and success within the organizations, leaders need to foster a growth mindset in others. This means that praising people for their efforts, and not for their talent and skill encourages people to work harder. This creates a growth culture in which people will be open to change and lead to company growth.
Embrace making mistakes
When business owner is too concerned about looking back when they make mistakes, they are likely to shy away from new experiences and opportunities. A growth mindset helps one be open to making mistakes and learning from them. This encourages the spirit of learning something new and it is with this spirit that changes are brought into the business. New opportunities are not viewed as risks but opportunities to grow.
Conclusively, a growth mindset will open up the organization to new ideas, changes, and opportunities for growth. Even family businesses can achieve great heights once they embrace opportunities to learn and grow.
The Destiny Team