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> Common Sense
Ben Franklin’s practical approach to life was admired by many and certainly has much to teach us about executive leadership and the value of common sense. In business, complexity is the enemy of common sense. When business ideas are allowed to flourish in the form of highly complicated and confusing concepts, common sense is often a casualty. Complexity hides basic truths - we don’t have to look very far to find examples.
Consider the current sub-prime debt crisis. Underneath the incredibly complex financial transactions and instruments, common sense was conspicuously absent. The actions of a large number of people failed to pass the “reasonableness” test. If you ask someone to explain with clarity how this problem occurred, what financial instruments were involved, how they work, what assumptions were made and how decisions were justified; get ready for a long and painful conversation. Quantum physics comes to mind. But what it really boils down to is something much simpler; if you lend money to people with poor credit, you are unlikely to be repaid. On the other side of the transaction, borrowing money that you can’t afford to repay is a prescription for disaster. Consider Franklin’s simple wisdom: “Creditors have better memories than debtors.”
Senior executives must constantly be on guard for complex ideas that are expressed with emotion rather than logic and are pitched with certainty, often by individuals convinced of their superior intellect. To ensure common sense prevails:
- Ask pointed questions and listen carefully.
- Encourage aggressive debate and give your team permission to engage in conflict when considering important decisions.
- Seek input from diverse sources both internal and external to your organization.
- Recognize the natural role your emotions play in decision making; emotions can override judgment, so learn to question your emotions.
In business as in life, common sense is an important litmus test for good decision making. We would all do well to heed Franklin’s sage words of wisdom, which resonate as clearly today as they did in 1728: “They that won't be counselled can't be helped.”
Best regards,
Tim Stratman
Tim Stratman is President of Timbre Executive Coaching, Inc. headquartered in Chicago, Illinois.
To read more about Tim Stratman click here
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