Business today is undeniably complicated; therefore, software is complicated. In the past, it was much more straightforward. Consider the contrast: the instant communication of a Zoom call compared to the slow pace of a horseback messenger. A Zoom call not only delivers messages instantly in real-time but also transmits significantly more information. And this isn't just about communication; there are other less impressive but highly relevant examples, like the multifaceted dynamics of modern logistics and transportation. The business landscape has evolved into a system with variables and opportunities for unprecedented leverage.

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From merchants to explorers: The actual business paradigm

That makes the toolbox of modern businesspeople more similar to that of past explorers rather than their commercial predecessors.

Explorers navigated uncharted territories armed with science, rules, and keen observation, embracing the uncertainty inherent in their voyage. Likewise, today's business leaders must navigate an ever-changing landscape where adaptability and innovative thinking are key.

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Leadership in disruptive innovation

However, only some companies fit this mould. Routine-centric organisations might thrive under a "Teal Organisations" structure, emphasising self-management and wholeness. Yet, clarity in the hierarchy, responsibilities, and leadership are essential for those pursuing disruptive innovation.

Think of the crew on an explorer's ship, led by a decisive captain. This captain relies on the crew's diverse thoughts, borne from varied expertise and cognitive abilities. Those thoughts produce decisions, and they better be good because, otherwise, the whole team fails. So, processing this diversity into optimal decisions is a critical skill, not just for the captain but at every level of the organization.

The price of the bad news and why we pay it

And we're getting to the point: сreating an organization that harnesses this diverse thought flow is a crucial leadership task. While Organizational Theory offers science-backed process elements like Facilitation, I want to go deeper than that.

‍The real game-changer lies in understanding and managing the human brain's response to stress.

When someone experiences a stressful event, the amygdala, an area of the brain that contributes to emotional processing, sends a distress signal to the hypothalamus. This area functions like a command centre, communicating with the rest of the body through the nervous system so that the person has the energy to fight or flee.

This response illustrates a specific energy cost that our body incurs during certain reactions. Our body naturally seeks to avoid this cost, as it is both unpleasant and unnecessary. This concept is particularly relevant in scenarios we often encounter, such as at work or, though less frequently, during significant family events. It pertains to the 'cost' that the bearer of bad news must endure in order to deliver such news to us.

In a business context, this translates to how team members perceive and handle the communication of bad news. It's basically a sum of their past reactions to the bad news and a general attitude towards difficulties.

Who wants to be the captain whose team, aware of a critical issue like a ship's leak, remains silent due to fear? In such scenarios, team members might hesitate, waiting for someone else to bring it up and deal with the reaction. That bad reaction doesn't need to be targeted at the messenger, but if control is lost, the cost of the bad news quickly increases, significantly heightening the perceived risk for those bringing forward problems.

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Cultivating a culture of open communication

So what, apart from keeping it cool, can we do about that? Find (and instruct others to do that towards you) the most optimal point for reporting problems without fear.

Let’s start with that naive graph:

In general, if the problem looks like it's gonna be bigger in time - it's wise to discuss it sooner when the problem is smaller. That makes it easier to diminish the emotional load of such communication. However, as a leader, it's essential to have the capacity to handle key issues effectively. This requires setting a minimum threshold for what constitutes a significant problem to avoid being overwhelmed by minor issues, so you don't get too much noise and irrelevant information. And to ensure that avoidable problems don't cross the threshold - a leader needs to ensure that the culture of minimising the cognitive load of messengers of bad news is nurtured across the whole organisation, on all hierarchy levels.

How to do that?

Understanding and doing that is one of our superpowers that allows KOIA to attract the best talent pool. And I can happily share that because simply reading about it isn't enough to duplicate our achievements. It requires a fundamental shift in both mindset and behaviour, and it will take time. Yet, if these changes are embraced, I am confident they can make the world a better place.

You see, many seasoned leaders or leaders outside of the software industry often overlook the importance of psychological safety, which is essential for fostering the ideal environment for problem reporting.

Conclusion: The untold story of missed signals

For almost every major company catastrophe - there were people that knew what's gonna happen and weren't willing to escalate that.

Recall the tragedy of the Titanic: captain Edward J. Smith was well aware of the iceberg problem but chose to ignore it. Did the captain's earlier behaviour make wireless officer Jack Phillips, who received information about the iceberg straight on a Titanic's course from a British passenger and cargo ship SS Mesaba at 9.40 pm - two hours prior to impact - not report it to the captain? Many disasters might have been prevented if critical information had been promptly communicated to higher levels. To ensure that important issues are quickly escalated, it's essential to deal with less critical matters at appropriate, lower levels.

By fostering an environment where every team member feels safe to speak up about potential issues, catastrophes can be prevented. And more: the culture of open communication and psychological safety is not just about business efficiency, it's about creating resilient, innovative organisations that ultimately contribute to a better world.

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PS.:

• If you have any questions for the author, feel free to reach out to Karol Klepacki. Your queries are always welcome!
• Got a Project in Mind? We'd love to hear about your ideas or requests. Let's explore together how you can seize opportunities without missing out.
• Interested in being a part of something exciting? We're looking for passionate individuals. Contact Kamila Wyroślak or Diana Chernetska to find out how you can be a valuable addition to our team.