{"id":12102,"date":"2015-10-14T08:51:15","date_gmt":"2015-10-14T13:51:15","guid":{"rendered":"https:\/\/blog.planview.com\/?p=12102"},"modified":"2020-02-20T08:55:11","modified_gmt":"2020-02-20T14:55:11","slug":"the-hippo-effect-when-opinions-feel-like-orders","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/the-hippo-effect-when-opinions-feel-like-orders\/","title":{"rendered":"The HiPPO Effect: When Opinions Feel Like Orders"},"content":{"rendered":"

\"\"<\/p>\n

HiPPO is the Highest Paid Person\u2019s Opinion. If you\u2019ve spent any reasonable length of time in a large corporate environment, you will probably have seen something a bit like this firsthand.\u00a0It usually happens when a group of people are attempting to make a difficult decision, for which there are lots of opinions, but not a lot of data or analysis.\u00a0There\u2019s often a spirited discussion exploring the various options when the person in the room who is further up the hierarchy\u00a0(and therefore typically paid more) expresses what\u00a0they\u00a0<\/em>think.<\/p>\n

Recognizing the HiPPO<\/h3>\n

Once the HiPPO is out, it can be very difficult to put it away again. Like it or not, the group will probably weigh the HiPPO more than any other voice involved. It can be very difficult (and sometimes career limiting) to prevent\u00a0the group from gravitating towards that\u00a0opinion.<\/p>\n

Sometimes the HiPPO effect can be very subtle. Some senior executives I\u2019ve worked with genuinely don\u2019t realize the effect they are having. They can even feel quite frustrated by how sometimes an off-the-cuff comment is reinterpreted. What they may think of as engaging with the team and being present can often turn into something that places false constraints or simply just a focus on the wrong things.<\/p>\n

A classic version of this is when the Chief Marketing Officer of a company I\u2019ve worked with casually asks how long something will take. Eager to please them they invariably get a ballpark estimate. What the CMO doesn\u2019t realize is that this ballpark then becomes a date that is repeated throughout the organization and like a corporate form of Chinese Whispers becomes a commitment.<\/p>\n

Other times it is less opinion and more like an order. Having promoted Alpha males (typically) these guys are used to ordering people around and getting what they want. They may even consider it good \u201cleadership.\u201d When it seems like the team is floundering, considering options and not making a decision, they sail into the confusion and quiet the storm with their authoritative words. Less subtle.<\/p>\n

Either way, it can be a dangerous thing. What is happening here is the premature closing down of options, and the hardening of soft edges into false constraints. I\u2019ve lost count of the number of times I\u2019ve asked where a project\u2019s due date came from, only to hear that the source\u00a0of the date is the HiPPO. And then there is the closing down of options about the direction of focus. Again, I\u2019ve lost count of the number of times I\u2019ve\u00a0asked about what the business case is for a project, only to hear \u201cit\u2019s strategic\u201d \u2014 which is nearly always code for the HiPPO believes it will be valuable at some point in the future.<\/p>\n

The Dangers of HiPPO-Driven Decision Making<\/h3>\n

Sometimes, the HiPPO gets lucky. That only makes them worse. They lose any sense of humility about how fortunate they were and start believing their own hype. Ron Johnson, the ex-Head of Retail at Apple who was responsible for the creation of the fabulously profitable Apple Stores suffered from this. When he left Apple to take the CEO role\u00a0at J.C. Penney, one of the oldest and largest\u00a0chain of US department stores, he somehow didn\u2019t realize that\u00a0the context was different. From\u00a0this story<\/a>\u00a0by\u00a0Chris DeRoes and Noel Tichy<\/a>\u00a0in Forbes:<\/p>\n

[Johnson] not only ignored existing data,\u00a0but he was also convinced he didn\u2019t need new information to validate the righteousness of his strategy.\u00a0Although encouraged by the company\u2019s retail veterans to do so, Johnson decided not to test any of his changes because\u00a0Apple\u00a0had never tested when growing its store network.\u00a0Experimentation in a small number of stores is common practice in retail before nationwide roll-outs.\u00a0Had Johnson been interested, surely experiments would have provided an early warning that his strategy wasn\u2019t sitting well with customers.<\/p>\n

Once execution of the company\u2019s new direction was underway, Johnson did reportedly ask frequently, \u201cIs\u00a0it\u00a0working?\u201d\u00a0It\u2019s not surprising that few had the courage to speak up and give Johnson an unvarnished dose of reality.\u00a0The former CEO liked to tell employees that there were two kinds of people \u2014 skeptics and believers.\u00a0At Apple, Johnson said, there were only believers and\u00a0he expected the same at JCP<\/a>.\u00a0It\u2019s not hard to imagine employees hearing that message loud and clear \u2014 speak up and you\u2019ll be labeled as a resister.<\/p><\/blockquote>\n

There are plenty more where this story comes from \u2014 this is just one of the more high-profile ones. Ironically, the very company that the Forbes article suggests does this right, Amazon, has recently had its own episode of\u00a0the HiPPO driving decision-making<\/a>\u00a0in a way that has led to a high-profile failure \u2014 the Amazon Fire Phone.<\/p>\n

After talking to more than a dozen Amazon employees, Carr puts the failure squarely at the feet of Amazon CEO Jeff Bezos, suggesting Amazon\u2019s hardware development issues may run deeper than previously thought.\u00a0As Carr tells it, the Fire Phone succumbed to misplaced ambitions and micromanagement from Bezos [who]\u00a0obsessively monitored the project. \u201cEven the very smallest decisions needed to go through him,\u201d one Amazon employee told Carr. By the end, the team had given up building a phone for consumers and shifted building one that would satisfy Bezos\u2019s ambitions.<\/p><\/blockquote>\n

Uh-oh, doesn\u2019t sound good.<\/p>\n

In the end, the [dynamic perspective feature]\u00a0drove up costs without providing any real utility to the end customer, entirely driven by Bezos. \u201cHe had this childlike excitement about the feature and no one could understand why,\u201d another insider told FastCo, describing dynamic perspective. \u201cWhenever anyone asked why we were doing this, the answer was, \u2018Because Jeff wants it.\u2019 No one thought the feature justified the cost to the project. No one. Absolutely no one.\u201d<\/p><\/blockquote>\n

The sad thing is that there are thousands of these stories playing out in companies across the globe every day. From a product development perspective, I\u2019d go so far to say that it\u2019s one of the most damaging and wasteful aspects of business.\u00a0The more we share the stories of failure, perhaps the more we will learn to be on the lookout for the HiPPO. We badly need to share the stories of failure since we are so prone to attributing success to the HiPPO. We suffer from retrospective coherence and tend to ascribe success to an individual rather than a team, and it is these stories that dominate. You only have to look at how the media portrays Steve Jobs to see this effect.<\/p>\n

How\u00a0Cost of Delay Can Help<\/h3>\n

In the meantime, one way to\u00a0handle the HiPPO effect is to try and put some numbers on the\u00a0value\u00a0and\u00a0urgency\u00a0of the things we are working on.\u00a0Quantifying the Cost of Delay\u00a0forces us to surface our assumptions about value and in the process can even help us to understand which parameters are the most uncertain and sensitive. We can then turn these assumptions into hypothesis, running\u00a0experiments\u00a0to validate or invalidate the assumed value.<\/p>\n

\n

Looking for more on Cost of Delay?<\/h2>\n

Watch Joshua\u2019s webinar,\u00a0How to Quantify the\u00a0Cost of Delay<\/a>\u00a0in practice using Planview AgilePlace. In it, Joshua\u00a0explains how visualizing the impact of delay helps us understand value and urgency.<\/p>\n","protected":false},"excerpt":{"rendered":"

HiPPO is the Highest Paid Person\u2019s Opinion. If you\u2019ve spent any reasonable length of time in a large corporate environment, you will probably have seen something a bit like this firsthand.\u00a0It usually happens when a group of people are attempting to make a difficult decision, for which there are lots of opinions, but not a…<\/p>\n","protected":false},"author":154,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[38],"tags":[511],"class_list":["post-12102","post","type-post","status-publish","format-standard","hentry","category-work-collaboration","tag-leankit"],"acf":[],"yoast_head":"\nThe HiPPO Effect: When Opinions Feel Like Orders - Blog | Planview<\/title>\n<meta name=\"description\" content=\"HiPPO is the Highest Paid Person\u2019s Opinion. 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