Life doesn’t always present the facts with stark clarity; the situation can be confusing, noisy, unclear, open to interpretation. And the greatest danger comes not in ignoring cldear and unassailable facts, but in misinterpreting ambiguous data when you face severe or catastrophic consequences if the ambiguity resolves itself not in your favor.
As a coda to this stage, Collins presents a visual map of “leadership team dynamics,” contrasting the behavior and assumptions of those on the way up vs. those on the way down. Condensing and paraphrasing it:
| Moving Up | Moving Down |
|---|---|
| People bring up unpleasant facts for discussion; leaders welcome frank talk about harsh realities | People shield leaders from grim news fearful of penalties and criticism |
| Data, evidence, logic, and solid arguments dominate discussion | Strong opinions are asserted without data or evidence |
| The leader employs a Socratic style: high questions-to-statements; challenging people | The leader avoids critical input, allows sloppy reasoning and unsupported opinions |
| The team unifies behind a decision once made and works to make it succeed, even if they vigorously disagreed beforehand | Team members acquiesce on the surface to are passive or undermine the chosen course |
| Team members share credit generously | Team members hog credit and distrust others |
| Argument and debate are aimed at finding the best answers and the optimal overall course | Arguments are aimed at making the proponent look smarter or to advance their self-interest |
| “Autopsies without blame” are welcomed for what can be learned from painful setbacks | Autopsies seek culprits on whom to pin responsibility for failure |
| Team members accept full responsibility for setbacks and learn from mistakes | Others or outside factors are blamed for setbacks, mistakes, and failures |
To sum up, indicia that your firm might be in Stage 3 include:
- Broadcasting the positive, silencing the negative
- Big bets and bold goals without empirical support
- Eroding healthy team dynamics
- Externalizing blame
- Obsessively reorganizing; focusing on internal rivalries and politics rather than external opportunities and threats
- Indulging leaders in “imperious detachment”—symbols and perks of executive-class status.
