I don’t know whether the perspective is 80 points of the IQ but in this VUCA age, I would like to explore it.
The Roman numeral system is adequate to express numbers such as 1776 (MDCCLXXVI), but the moment you wish to apply even simple arithmetic calculations such as division, it breaks down. A new perspective was needed and Arabic numerals with a decimal system evolved.
Alan Kay, the researcher who pioneered personal computing and object-oriented programming at Xerox Research Centre (PARC) has been credited with the phrase “Perspective is worth 80 I.Q. points”. Whenever you wish to inspire new thinking and provoke deep learning, you start with bringing “unsettling questions” into a debate. If you go to a meeting and don’t speak up, people will leave the meeting assuming you have nothing to say. It is a quality of the leader to ensure that all points of view are brought to bear on a problem or an issue under discussion, especially asking the introverts to speak as often they are deep thinkers.
IQ measures logical reasoning and pattern recognition. But a different way of looking at an issue can cut through and bypass step-by-step reasoning. A “change of perspective” is what can come from creative and lateral thinking. And that form of thinking can generate a radically different way of seeing a problem. And therefore lead to a radically more effective solution.
Many times, we are blinded by being so close to the problem that we can’t see a different (and potentially far simpler) way of approaching the problem. At other times, the leader is convinced about the infallibility of his solution that he is unwilling to seek a wider debate. This can, at times be disastrous to the company. If we can look at things in new and different ways (multiple representations), then we will understand them much better and quality of solution can improve.
One of the reasons why Kingfisher Airlines failed was the personality and decision-making style of the Chairman Dr. Mallya. Once he was firm on a course of action, he would brush aside all cautionary advice such as buying Air Deccan to starting foreign flights before consolidating domestic business. Disaster after disaster followed as chronicled in our book The VUCA Company. He did not appoint a CEO for a long period and carried on that job which required specialist aviation business and technical knowledge. He was not the type to listen to advice because he was the smartest person in town.
No one sets out to fail by design but apparently intelligent people like Dr. Mallya and later Anil Ambani begin to make catastrophically bad decisions and ignore information and insight that is plainly in their sight. The reason is the concentration of decision-making in self or a coterie of yes men who all thought alike. An inability of seek different perspectives and especially contrary opinions leads to Groupthink, a phenomenon that occurs when the desire for group consensus overrides people's common sense desire to present alternatives, critique a position, or express an unpopular opinion.
This is especially true when the organisation faces issues it had not dealt before and there is no roadmap available to move forward. For example, a new issue of ESG compliance is facing companies today and Indian companies will not be immune to it for long. This is Environmental, Social, and Governance (ESG) criteria which are a set of standards for a company's actions used by socially conscious investors to screen potential investments. With the growing landscape of the European Union’s ESG regulations, companies doing business in the EU will have to ensure that they and their business partners institute human rights, environmental and good governance policies in line with compliance of due diligence. Since this area is new to Indian CEOs, they must seek wider consultation and look at different perspectives beyond their Board of Directors and Executive Committees.
In the VUCA age, with a fast-changing business environment, a leader may not be more informed than his colleagues but he can gain more knowledge & insight by casting the net wide to capture thoughts, and opinions and seek creative solutions from a wide range of people, both inside and outside the company. Is this being religiously followed by entrepreneurial leaders? The critical insights on the industry, the business and the competitive landscape form the central point and thus, summated opinions from meaningful cohorts can be of strategic advantage. Don’t ignore it! Perspective matters.