86. Dan Gardner (part two) - how boards get big things done
Sep 11, 2024
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Dan Gardner, an international best-selling author known for his works on risk and organizational effectiveness, shares insights on making boards more effective. He discusses how modular thinking, akin to LEGO construction, can enhance project success. Gardner emphasizes the need to prioritize climate risk in board agendas and contrasts the roles of intuition and analytical thinking in decision-making. He also explores the psychological effects of heuristics on risk perception and highlights the importance of maintaining intellectual humility in governance.
Hiring a master builder with a proven track record greatly enhances project outcomes by ensuring timely and budget-conscious delivery.
Adopting modular thinking allows boards to tackle complex projects more effectively by breaking them down into manageable components for efficiency.
Deep dives
The Role of Master Builders in Project Management
Hiring a master builder is essential for ensuring successful project completion. A prime example of this is the construction of the Hoover Dam, where the involvement of Frank Crow ensured the project was delivered ahead of schedule and under budget. Crow's expertise in hydroelectric dam construction allowed him to gather a skilled team who were accustomed to working together across various projects. Investing in a highly experienced leader who possesses a proven track record is worth the costs, as they can significantly elevate project outcomes.
Modular Thinking in Project Design
Adopting modular thinking can greatly improve project efficiency and effectiveness. This approach allows complex projects to be broken down into manageable components, similar to assembling with LEGO blocks. For instance, the Madrid subway expansion benefited from this methodology by designing one subway station that was replicated 70 times, leading to significant improvements in cost and execution. By focusing on repetitive patterns and scaling up through experience, teams can enhance their efficiencies and maximize project success.
Incorporating Climate Risk into Projects
Addressing climate change within project planning is increasingly important for board members. The unpredictable nature of climate impacts can fundamentally alter project conditions, making it essential to consider historical data in light of potential future changes. For example, fluctuating Great Lakes water levels can pose challenges for construction projects in the region, thus requiring forward-thinking strategies. Acknowledging these risks can enhance project resilience and ultimately lead to better long-term outcomes.
Understanding Emotional Responses to Risk
Emotions play a significant role in how board members perceive and respond to risks. Distinguishing between intuitive judgments, which can often mislead, and analytical reasoning is vital for effective decision-making. An example highlighted is that experienced professionals can trust their intuition in familiar environments, such as a fire captain responding to a kitchen fire. However, in less regular situations, relying on gut feelings can lead to poor outcomes, emphasizing the importance of balanced judgment in the boardroom.
Dan Gardner is the international best-selling author of Superforecasting, How Big Things Get Done, Risk and Future Babble. Tune in to hear his thoughts on: What are the key things boards need to get things done on time, within budget? (1:06) Can you explain how board members can “build with lego”? (4:25) What would you say to boards that don’t have climate risk at the top of their agenda? (7:16) How does our emotional response impact our assessment of risk? (10:44) When should board members use their gut, and when, their intuition? (18:01) Does gender impact risk perception, and what are the boardroom implications? (20:39) How do the availability, anchoring and representative heuristics impact our decision making? (25:17) ⚡The Lightning Round ⚡(35:26)
Host: Oliver Cummings Producer: Will Felton Music: Kate Mac Audio: Nick Kold Email: podcast@nurole.com Web: https://www.nurole.com/nurole-podcast-enter-the-boardroom
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