The other day, a colleague mentioned to me that she was hesitant to propose an idea within the company because it could go wrong, and this conversation made me reflect on how the concept of good and evil impacts our organizations.
In the fast-paced business world, executives face constant challenges that require agile and creative responses. However, many companies find themselves caught in a subtle yet devastating trap: organizational Manichaeism.
A business vision that only knows how to project itself between "good" and "evil." This phenomenon, characterized by an extremist view of decisions as absolutely right or absolutely wrong, generates a series of consequences that can sabotage the success and evolution of a company.
Organizational Manichaeism creates a rigid culture where dissent and new ideas are viewed with suspicion. This dichotomous mindset between the good (the light) and the bad (the darkness) fosters conformity and discourages innovation, leading employees to follow pre-established paths and fear making mistakes.
In such an environment, creative thinking stagnates, and the company's ability to respond to market changes drastically diminishes. Worse still, the seed of what Schumpeter left as a mandate for every entrepreneur dies: the desire to innovate, to challenge oneself, and to reinvent.
According to a McKinsey study, organizations that foster a culture of openness and adaptability are 1.5 times more likely to experience sustained revenue growth. It's not hard to see why. In a culture that values diversity of thought, employees feel empowered to propose new ideas and solutions, which can lead to disruptive innovations and agile adaptations.
A critical aspect of organizational Manichaeism is the inherent bias in those making decisions about what is right and what is wrong. Leaders' judgments are inevitably influenced by their own experiences, values, and prejudices. This bias can lead to the perpetuation of outdated practices and the exclusion of new ideas that do not align with the established vision.
This not only limits growth but can also lead to a lack of diversity in strategic thinking, affecting the organization's ability to innovate. A Harvard Business Review report highlights that companies with diverse leadership teams and multiple perspectives are 70% more likely to capture new markets.
Strategies to break the cycle of manichaeism:
To overcome organizational Manichaeism, it is essential for company leaders to promote a culture of continuous learning and openness to change. Some strategies that can help include:
Encouraging diversity of thought: Including different voices in the decision-making process can help mitigate biases. This includes not only demographic diversity but also diversity of opinions and professional experiences. Valuing mistakes as part of the learning process: Adopting a growth mindset that sees mistakes as an opportunity to learn and improve, rather than a failure, can radically transform the organizational culture. Promoting an open feedback environment: Creating channels where employees feel comfortable giving and receiving feedback can improve communication and collaboration within the organization. Supporting leaders: We must invite them to step out of their comfort zones, to leave behind the ease of labeling things as good or bad without much reflection. Organizational Manichaeism is a silent enemy of adaptability and innovation. To address and overcome it, managers must be willing to examine their own biases and promote a culture of openness and continuous learning. Only then can organizations develop the agility needed to thrive in an ever-changing business environment. Let us reflect on our biases and organizational practices, and take proactive steps to create a resilient and adaptable culture.
By Oscar Velasco, partner at Olivia Spain.