If someone were taking inappropriate or illegal actions in your organization, you, as a business leader, would hope that another employee who was aware of these actions would report the matter. You strive to set up an organization in which reporting a concern could be done without fear of retaliation.

But what if an employee believed that any action taken by someone higher on the corporate ladder was, by default, appropriate; or blindly assumed that senior management was aware of these questionable activities?

Individuals occupying a lower-ranking position tend to form highly positive perceptions of their superiors’ competence, leading them to believe that those individuals should make more of the contributions. Chris Argyris, a Harvard professor and business theorist, argued that employees in lower-ranking positions become more dependent on their superiors and defer to them more, similar to the way children become dependent on and defer to their parents.

Research has shown that individuals with higher rank are viewed as more intelligent and task-skilled, independent of their actual competence levels (Darley & Gross,1983; Sande, Ellard, & Ross, 1986). (read more…)

The Young Entrepreneur Council is an invite-only organization comprised of the world’s most promising young entrepreneurs. YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses. Read previous SmartBlogs posts by YEC.

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 If you could change one thing that happened with your company in 2014, what would it be and why?

yec_Brian Honigman1. Being afraid to say “no”

I’ll never forget the first client I ever got as my own boss. Hearing that yes and having that validation was exhilarating. But if there’s one thing I’ve learned over the past year, it’s that just because it feels good for someone to be interested in what you’re offering, not every match is a perfect one. When every client counts, make sure you have the prudence to pick the best ones possible. (read more…)

If you’re starting your business, you’ll know that writing a comprehensive business plan can be time-consuming.

While you may eventually need a business plan in order to apply for a loan or obtain funding, do you really need to get all your ideas in perfect order before you start up? What if you’re still testing different ideas and what if you’re bootstrapping your business?

Enter “lean planning.”

Lean planning is a set of tools for discovering a business model that works, building an action plan to test your assumptions, creating financial models and a plan for a viable business, and tracking your performance so you can adjust your plan on the fly, quickly and easily.

The lean planning methodology doesn’t replace the business plan, it simply includes the steps that happen before – and in some places instead of – the formal business plan document.

Of course, you may need to deliver a formal business plan to someone at some point, especially if you are raising money for your business. (read more…)

For many organizations, as the new year begins, performance-management processes kick in.

When people think about performance management, they’re rarely enthused! The response to performance planning is typically neutral, at best.

My experience with clients is that their current performance-management systems are not as relevant to real work and real opportunities as they could be. Performance management today is typically not about developing new skills and greater contribution. Performance management is a “have to do,” so it’s done without enthusiasm.

In one job I had years ago, performance planning consisted of the boss giving each one of his six team members a photocopied list of the goals we were to put into our performance plan for the year. Our roles and responsibilities widely varied, but our boss wanted us to put in the exact same five goals. We put in what he told us to put in, and his bosses blessed our “thorough” performance plans. (read more…)

SmartPulse — our weekly nonscientific reader poll in SmartBrief on Leadership — tracks feedback from more than 190,000 business leaders. We run the poll question each week in our e-newsletter.

Last week, we asked: How involved are you with “more senior” conversations?

  • Very — I always have a seat at the table: 25.73%
  • Somewhat — they include me when I’m the expert: 51.19%
  • Rarely — I have to fight to be included in those discussions: 14.06%
  • Never — I’m always kept at the “kids table:” 9.02%

Earn your seat at the table. To be invited to the table and involved in senior level conversations, let people know what you’re bringing. If you expect to sit in on those discussions based on your title or role alone, prepare to be left out of the important discussions. If, however, you bring a perspective that drives someone else’s agenda or objective function, you’re much more likely to be invited. (read more…)