I often use yard work as a time for self-reflection because what else is there to do while drawing shapes with a lawn mower? Sometimes I reflect on personal interactions and plans, but I also use the time to consider business activities. As I edged the lawn this week, I wondered how was it possible that some business leaders are able to leave behind a successful blueprint for the philosophy and culture that drive and define an organization. This isn’t a new question, but it’s a thought many business leaders go through on their professional journeys. Jim Collins spent an entire book on the subject in Built to Last. He discusses how companies find enduring success. More on that in a minute.
As if by fate, I read a story tonight on NPR.com about implicit egotism that links to a study published by the Harvard Business School (HBS) called the Ikea Effect. The Ikea Effect suggests we have a preference for and place greater value on things we personally create. The HBS paper adds, “labor leads to increased valuation only when labor results in successful completion of tasks.” Meaning, when we are successful in a task, we tend to place a greater value on our creation than something someone else created.
I quickly realized the Ikea Effect told me something I’ve already observed and participated in during my professional career. Typically, new leaders and managers bring their way of doing things to a company. They want to establish a change in the company by doing what worked for them in the past. Maybe they were hired for the purpose of bringing change to the organization. On the flip-side, I bet you could think of some successful companies that started failing after a change in executive management. Considering the Ikea Effect and the thought of enduring greatness and consistency, the antagonist may very well be me!
Grow leaders from within.
One of the principles of the Toyota Production System is to “Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.” We read this same finding in Jim Collins’ books Built to Last and Good to Great. A key observation from Collins, is companies that found success spanning multiple leaders most often promoted insiders to the CEO position. Constancy of purpose, culture, and philosophy is a key ingredient to enduring success.
My take-away from tonight’s mental exercise is to look and reflect on the Ikea Effect in my own decision making. Am I prone to shut-out other ideas because I didn’t create them? Am I over-valuing methods, procedures, and systems I created? Can I create sustainable systems that will be maintained by those who succeed my position in the company? The Toyota Production Systems uses the phrase “the right process produces the right results.” So success is not about what I create or what you create. But it’s more about results that are right for the company or organization.
Onward and upward!
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