“And” or “Or”?

STEVE YOUNG

Global Executive Director

Caux Round Table

steve@cauxroundtable.net

cauxroundtable.org

Topic: Open Column

One of the great insights into business success is the concept promoted by Jim Collins in “Built to Last” of the tyranny of the “or” and the genius of the “and”.

His point is, and 3M here was a source of his advice, that when we make choices we have a mental default position that the choice is an “or” – either this or that. Our options seem to be win/lose or zero/sum.

This seems especially true is tough times: either we cut costs or we lose money; either we take care of shareholders and owners or we take care of employees; either we do what the bank says or we lose our access to credit.

Thinking in “or” terms is a kind of psychological tyranny. We seem to be prisoners of fate. We become passive and defensive. We miss out on opportunities and we regress on the cycle of quality improvement.

That is why it is better to think in terms of “and” – we can do this and that.

This leads to planning, to innovation, to balancing interests and opportunities and to a better sequencing of actions. Not everything needs to be done at once, and with a sequence in place, we can often have our cake and eat it too.

I was talking with the owner of a small Saint Paul company. He is actually hiring more workers as his business is up. He credits this to the loyalty of his employees who interface with customers. They do such a good job when they are out installing plumbing and heating that customers welcome them and are not shy in calling up for repeat business or with questions.

When the recession began to hit last year, his conscious policy was not to press his workers for wage reductions but to carry them as best he could. They responded with higher productivity and good customer relations. Thus he avoided and “or” decision and tried to find an “and” solution.

Thinking in terms of “and” is not only more ethical and responsible, it leads to growth. It points us away from short-termism in decision-making and from commodity pricing of our products and services.

But going for the “and” approach requires more thought. We need first of all to buy some time for options to become realistic. Thinking of a range of options and asking for suggestions and possibilities opens the door to “and” thinking.

The leadership style needed for “and” thinking is less power-centered and more open to consultation and a search for good ideas. Leading by setting goals and by reaching out for the best in people helps defeat the pessimism of the “or’ approach.