Managing in the Gray

Below is an outline for Managing in the Gray by J. Badaracco. He defines ‘Gray’ areas as those missing facts, lacking clear solutions/consequences or lacking consensus. While this is not a novel definition – what is interesting is that he proposes 5 questions to help assess the situation when we find ourselves there. I hope you find the outline valuable.  

I.                    Tools for Judgment (d)

a.      Gray areas are missing facts, lack clear solutions, lack of consensus on actions and significant consequences. Complex with uncertain paths. The core of management.

b.      Work through as manager, resolve as human – analyze data and make d. Proposes 5 questions refined from ages of philosophers.

            i. The right answer is what you decide is right after doing the analysis.

II.                 Question 1: “What are the net, net consequences?”

a.      Identify the long term consequences – think both broadly and deeply (stakeholders and impacts – consider wants/fears/cares, common good, equity).

b.      Challenges: lack of predictability and subjectivity. 

           i.     Merton’s Law: unintended consequences outweigh intended consequences.

c.      Practical Guidance: slow down; avoid drawing conclusions; focus on process; get help; use decision trees.

            i.     We typically overestimate our abilities.

          ii.     May ? know that we made the right decision, only that we made it the right way.

       iii.     Decision trees identify options, consequences and probabilities. 

III.              Question 2: “What are my core obligations?”

a.      We have basic human duties to each other. Rights for one create duties for another. The multiplicity of duties creates conflicts and the need to prioritize.

b.      Practical Guidance: look past economics – beyond maximizing returns; look past stakeholders; ask what is hateful.

        i.     Basic duties is to ? impair the lives of others.

       ii.     Moral imagination: consider thinking and feeling.

     iii.     Take the role of the victim to Identify what might be ‘hateful’.

IV.              Question 3: “What will work in the world as we know it?”

a.      Consider world as it is, ? as it should be. The world is unpredictable, uncontrollable and contains by self-interest. Recognize human behavior (Ψ) – some is self-interested, some is inept and some is good.

b.      Practical Guidance: map power-understand interests & influence; remain adaptable in the face of chance; recognize that unknowns exist; be willing to apply hard power.

         i.     Assert that hard power exists, but chose ? to apply it. Best to be virtuous but prepared to do what is necessary.

V.                Question 4: “Who are we?”

a.      Identity => framework. “I am because we are.” African adage. Organizations define identity and Ψ, we select actions consistent with our community – decisions need to consider relationships.

b.      Need to define which relationships matter most, how to deal with conflicting values.

c.      Objective is to move from complexity to clarity in order to act.

d.      Practical Guidance: start with consequences/duties/reality to => foundation; reflect on context; consider the interests of the community; identify the narrative/story of the situation/actions; understand the norms/values.

VI.              Question 5: “What can I live with?”

a.      Can’t always find answers \ create answers you can live with, making the least bad choice. Character & values influence decisions. Look closely, then rely on d. Character shapes d and d solves problems. 

b.      Practical Guidance: problem solving requires tempered intuition; process of consideration/reflection/deliberation – pause; recognize trade-offs are needed; process focus; make a decision and move forward.

         i.     ‘If sailing is smooth – either the situation is not well understood or you are not paying attention.”

        ii.     To paraphrase Cato: “Cant command success, but can work to deserve it.” Work hard to get the process right.

c.      The five questions provide a solid basis for communicating process and result.