Leaders must wield the Sword of Certainty wisely.
Being informed and granยญted a bigยญger picยญture is a typยญicยญal leadยญerยญship privยญilege. It grants the leadยญer an extra bufยญfer of power over the uninformed.
However, as the sayยญing goes, โWith great power comes great responsibility.โ
Here we go:
The Psychological Weight of Uncertainty
At a milยญitยญary trainยญing ground, an instructยญor faced 20 fresh recruits. It was time for an early mornยญing round of pushups. With a stern voice, the instructยญor comยญmanded the recruits to the ground. โDown! Up! Down! Up!โ
The instructยญor refused to reveal the numยญber of pushups required, and the recruits felt their strength wane quickly under the psyยญchoยญloยญgicยญal weight of uncerยญtainty. โI wonยญder how many pushups he will have us do,โ they all thought.
By the 18th pushup, half of the group had sucยญcumbed to the strain. The instructยญor, observing the ten weary solยญdiers, finally called a halt. The instructยญor left the lesยญson of the day unspoken.
The folยญlowยญing dawn brought clarยญity. โTwenty pushups,โ the instructยญor declared. This time, armed with knowยญledge and a goal, the recruits comยญpleted the task without falยญterยญing. The power of cerยญtainty had fueled their resolve.
On the third day, the instructยญor gathered the recruits. He unravยญelled the mysยญtery of the first dayโs triยญal, explainยญing his strategy to accliยญmate them to psyยญchoยญloยญgicยญal disยญcomยญfort and the ever-loomยญing cloud of uncerยญtainty. His lesยญson was clear: expect the unexยญpecยญted and find strength in not knowing.
Once more, he ordered pushups without revealยญing the count. But this time, someยญthing had changed. The recruits, seasoned by their preยญviยญous experยญiยญences, pushed through their limยญits. At the 30th pushup, the instructยญor decided to end the exerยญcise. At that point, only four recruits had folยญded. 1Silfwer, J. (2013, May 3). 11 Evil Leadership Techniques. Doctor Spin | The PR Blog. https://โdocโtorโspinโ.net/โlโeโaโdโeโrโsโhโiโpโ-โtโeโcโhโnโiโqโuโes/
Information is Power
As a leadยญer, disยญsemยญinยญatยญing informยญaยญtion on a โneed to knowโ basis isnโt necesยญsarยญily a good comยญmuยญnicยญaยญtion strategy. โDo as many pushups as you canโ isnโt enough conยญtext for maxยญimยญising a teamโs total numยญber of reps. Weโre all more or less uncomยญfortยญable with uncertainty.
Insecure leadยญers tend to keep informยญaยญtion close to their chests to mainยญtain an upper hand in relaยญtionยญships. However, even averยญage leadยญers underยญesยญtimยญate the informยญaยญtion people need to manยญage a stressยญful situation.
In the example above, the recruits proยญduced their best resยญults on day threeโโโwithout knowยญing the rules of the pushup exerยญcise. Still, they could withยญstand the presยญsure of uncerยญtainty because they had learned to trust that their leadยญer was operยญatยญing from a frameยญwork of cerยญtainty by then.
Itโs a perยญsistยญentโโโand unforยญtuยญnate!โโโcorยญporยญate myth that only a few people in any organยญisaยญtion deserve (or are capยญable of knowยญing and underยญstandยญing) the โbig picture.โ
Lack of Information is Information, Too
Sometimes, a leadยญer canยญnot access more informยญaยญtion than anyยญone else. But at any givยญen moment, this is only parยญtially true.
When thereโs an informยญaยญtion defiยญcit, the leadยญer knows there is no more informยญaยญtion. However, the people in the organยญisaยญtion donโt know whethยญer theyโve been givยญen all the informยญaยญtion. This gap is often detยญriยญmentยญal to internยญal communication.
Whether thereโs an informยญaยญtion defiยญcit or not, the leadยญer typยญicยญally has a say in what hapยญpens next. For instance, a leadยญer might know that if thereโs no new informยญaยญtion in the next hour, no speยญcifยญic actions will be taken. Insecure and averยญage leadยญers think of such situยญations as โemptyโ of information.
Great leadยญers, howยญever, will do everything they can to disยญsemยญinยญate conยญtexยญtuยญal informยญaยญtion to as many co-workยญers as posยญsible at any givยญen time:
โIn the next hour, there wonโt be any new informยญaยญtion, so there wonโt be any new decisions, which means that in the next hour, we will be doing exactly what weโve been doing now for the past hour.โ
Having advised and coached execยญutยญives on straยญtegic comยญmuยญnicยญaยญtion for nearly two decยญades, I still havenโt seen a single leadยญer ever havยญing passed on too much relยญevยญant information.
If the informยญaยญtion is relยญevยญant and presenยญted conยญfidยญently, โover-comยญmuยญnicยญaยญtionโ is virยญtuยญally impossible.
The Sword of Certainty
People underยญstand that no one can know everything about everything. Few people expect leadยญers to be all-knowยญing. What they expect from leadยญers is cerยญtainty.
โLeadersโ influยญence increases with their sense of dirยญecยญtion and clarยญity of comยญmuยญnicยญaยญtion, but power-hungry leadยญers may obfusยญcate mesยญsages for attenยญtion.โ
Source: American Political Science Review 2Dewan, T., & Myatt, D. (2007). The Qualities of Leadership: Direction, Communication, and Obfuscation. American Political Science Review, 102, 351โโโโฆ Continue readยญing
Certainty is a sword of power to yield. Share your cerยญtainty, and youโll creยญate a stable organยญisaยญtion. Keep the informยญaยญtion to yourยญself; the psyยญchoยญloยญgicยญal weight of uncerยญtainty will push your organisationโs resยญults down.
Information Asymmetry
The concept of โinformยญaยญtion asymยญmetryโ is a psyยญchoยญloยญgicยญal effect in which one party in a transยญacยญtion or situยญation has more or betยญter informยญaยญtion than the othยญer. It is a cruยญcial concept in ecoยญnomยญics and game theory.
In ecoยญnomยญic terms, informยญaยญtion asymยญmetry was extensยญively explored by George Akerlof, Michael Spence, and Joseph E. Stiglitz, who won the Nobel Prize in Economics in 2001 for anaยญlysยญing marยญkets with asymยญmetยญric informยญaยญtion. While their work is primarยญily in ecoยญnomยญics, the prinยญciples broadly apply to situยญations where unequal informยญaยญtion disยญtriยญbuยญtion affects decision-makยญing. 3Information asymยญmetry. (2023, December 11). In Wikipedia. https://โenโ.wikiโpeโdiaโ.org/โwโiโkโiโ/โIโnโfโoโrโmโaโtโiโoโnโ_โaโsโyโmโmโeโtry
Information asymยญmetry is dynamยญic, where the informed advantยญage is someยญtimes good, someยญtimes bad.
โInformation asymยญmetry negยญatยญively impacts perยญformยญance in goods setยญtings and posยญitยญively in serยญvices setยญtings, while informยญaยญtion sharยญing has stronger favourยญable effects in conยญsumer marยญkets and is weakยญer in relaยญtionยญships over 6 years old.โ
Source: Industrial Marketing Management 4Tong, P., & Crosno, J. (2016). Are informยญaยญtion asymยญmetry and sharยญing good, bad, or conยญtext dependยญent? A meta-anaยญlytยญic review. Industrial Marketing Management, 56, 167โโโ180. โฆ Continue readยญing
Learn more: Information Asymmetry: The Informed Minority Advantage
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Annotations
1 | Silfwer, J. (2013, May 3). 11 Evil Leadership Techniques. Doctor Spin | The PR Blog. https://โdocโtorโspinโ.net/โlโeโaโdโeโrโsโhโiโpโ-โtโeโcโhโnโiโqโuโes/ |
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2 | Dewan, T., & Myatt, D. (2007). The Qualities of Leadership: Direction, Communication, and Obfuscation. American Political Science Review, 102, 351โโโ368. https://โdoiโ.org/โ1โ0โ.โ1โ0โ1โ7โ/โSโ0โ0โ0โ3โ0โ5โ5โ4โ0โ8โ0โ8โ0โ234 |
3 | Information asymยญmetry. (2023, December 11). In Wikipedia. https://โenโ.wikiโpeโdiaโ.org/โwโiโkโiโ/โIโnโfโoโrโmโaโtโiโoโnโ_โaโsโyโmโmโeโtry |
4 | Tong, P., & Crosno, J. (2016). Are informยญaยญtion asymยญmetry and sharยญing good, bad, or conยญtext dependยญent? A meta-anaยญlytยญic review. Industrial Marketing Management, 56, 167โโโ180. https://โdoiโ.org/โ1โ0โ.โ1โ0โ1โ6โ/โJโ.โIโNโDโMโAโRโMโAโNโ.โ2โ0โ1โ5โ.โ1โ1โ.โ004 |