
In business, decisions are often made by the person who takes home the biggest paycheck. This is known as the HiPPO problem (Highest Paid Person’s Opinion). As this article states:
“HIPPO is the high level manager who comes to your project at the last moment and offers an opinion on what to include to make the project a success. And you must consider it, even if the idea is out of scope, past deadline or [...] crazy”
People who throw their weight around without regard for the considered opinions of those below them on the org chart, create toxic workplaces. Eventually, people will start deferring more and more decisions to the HiPPO, rather than seeking creative solutions for themselves that may get overruled on a whim. And of course, it continues to feed to ego of HiPPOs to think they are geniuses (otherwise why else would they be paid so much?) who can turn their instinctive insight onto whatever they rest their eyeballs on.
All of this leads to a culture of complacency for most and the feeding of rampant egos for few. This state of affairs may be hidden or ignored when times are good – as Pixar founder Ed Catmull says, “success hides problems” – but does not bode well for long term success. Motivation systems that continually reward the same behaviours, or only reward the superstars, fuel complacency and egotism, reinforcing the toxic workpace.
At the Harvard Business Review, Peter Sims thinks that Google, who he thinks are at a ‘pivotal moment in its history’ could learn from Pixar, where processes are in place to ensure that success doesn’t breed complacency.
“what Pixar has that Google does not is a culture where the fear of complacency is a strong motivator, where new problems are identified, discussed, and addressed openly and honestly, all of which requires humility”
Humility of top executives, and active steps to prevent complacency, resting on laurels, are key tenets of the Pixar approach, and ones that all companies should embrace. Motivation programs can be used to help stir up new ways of working, and help ensure that the best ideas win, regardless of where they came from.
Or as that old warhorse Winston Churchill once said: “Success is not final, failure is not fatal: it is the courage to continue that counts”