Page 27 - MS Year in Review 2020

The underlying behavioral pattern of Alphas is what can be termed a “bias for

action.” Alphas think of themselves as leaders, and leaders (by definition) lead!
Accordingly, leadership implies action. The failure to act, and act decisively, is by
implication a weakness or character flaw. Hence the bias to action is a self-

reinforcing notion among Alphas.

Support by Management Theory. The notion that “a bias for action” is a positive
managerial strategy is also sometimes cited in management theory. For example, it

was cited by Peters and Waterman as one of the “eight characteristics of excellent
companies” in their 1980s best seller, In Search of Excellence to explain the
purported success of some then leading companies. The book was

based purportedly based upon their “research.” Unfortunately, the research and
conclusions by Peters and Waterman was clearly flawed. Several companies that

they cited as “excellent companies,” including Hewlett-Packard, IBM, Digital
Equipment (“DEC”) and Dana Corporation), later experienced great difficulties and a
few even failed.

Popular Culture. The third factor was a popular cultural notion created and

reinforced by Nike. People were bombarded by an advertising blitz of Nike’s slogan
“Just Do it!” This, in turn, almost subliminally, helped create and reinforced the
notion of what a “good leader” is supposed to do: Just do it! Act! Do something!

THE COMBINATION OF ALL THREE FACTORS

Taken together, all three factors ultimately caused or at least contributed to the
notion of a bias for action to be morphed into a simplistic managerial “philosophy”

of: “Do it! Try it! Fix it!” In summary, the notion of a bias to action is reinforced
by a propensity to act among Alphas, by support from managerial theory, and by

popular notion of what constitutes a “good leader.”

The Dysfunctional Results of the Inability to Act.

Although a bias for action can be dysfunctional, at the other extreme the inability to
act in crisis can also be damaging to an enterprise. Like the proverbial “deer in the

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