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Data-Driven Management Can Also Be Compassionate

2015-08-25 09:05:31

Michael Schrage

August 24, 2015

Should he desire, Jeff Bezos has a simple, powerful and culturally-compatible

way to combat accusations that Amazon is a soulless, dystopian workplace:

double down on being data-driven. Preempt bad employee vignettes with better

empathic analytics.

Amazon should explicitly measure for the care, compassion, and kindness that

Bezos justly celebrated in his 2010 Princeton commencement address. Monitor

workplace affect as thoughtfully and rigorously as business effect. No,

Bezos shouldn t embed a C@D Crying@Desk metric on his KPI dashboard. But Amazon

s CEO might understandably want greater (statistical) confidence that his

high-performance culture quantitatively reflects and respects the quality of

mercy.

If Amazon s culture of metrics truly cares about caring, in other words, it

will measure it. Data will eradicate ignorance and ambiguity. Bezos best

brains and hearts need to analytically define what they want empathy and

compassion to look and feel like at their company. That may sound bloodless.

But when your founder has declared data the lifeblood of his firm, it s truly

not.

There s nothing glib or tongue-in-cheeky in this. To the contrary,

data-driven compassion is completely consistent with the culture of metrics

Bezos has sought to create since he launched Amazon.

As the New York Times article observed, Amazon uses a self-reinforcing set of

management, data and psychological tools to spur its tens of thousands of

white-collar employees to do more and more. The company is running a continual

performance improvement algorithm on its staff, said Amy Michaels, a former

Kindle marketer.

Why shouldn t or wouldn t core values such as empathy and compassion be

actively monitored, measured, and analyzed? Explicitly excluding kindness from

managerial dashboards may send the wrong kind of message about the right kind

of behaviors. Continual performance improvement algorithms that minimize or

ignore behaviors the founder publicly cherishes are recipes for pathology and

dysfunction.

If Bezos who literally enjoys access to every bit of data that matters at

Amazon truly suspects or fears his metrics-obsessions have subverted the human

values he highlighted at Princeton, you can bet that empathy and compassion

metrics will soon be baked into Amazon s next set of people analytics. A

Culture of Metrics 2.0 becomes essential.

The most important insight here affirms that the roads to organizational hell

are paved not just digitally driven with good intentions. That s ultimately

self-destructive. Innovators defined and led by data-driven decision-makers

inspire schizoid enterprise cultures that bring out the best in people who want

to build on data, and the worst in those looking simply to follow it I was

just following the data/orders/metrics/KPIs, etc.

Why? Because more often than not data inspire affective, not just effective,

response. The key cultural quote from the Times story makes the point. Data

creates a lot of clarity around decision-making, said Sean Boyle, who runs the

finance division of Amazon Web Services and was permitted by the company to

speak. Data is incredibly liberating.

That raises an obvious question: Liberating for whom?

When cultures authentically commit to being data-driven, data can literally

dictate what you and your colleagues should do next. For many people, that s

not liberation; it s servitude. Data end up removing choices instead of

creating them. The clarity data supposedly bring eliminate excuses and

rationalizations for avoidance and delay.

As the Times fairly noted, Explanations like we re not totally sure or I ll

get back to you are not acceptable, many employees said. Some managers

sometimes dismissed such responses as stupid or told workers to just stop

it.

When a founder/CEO cherishes data, analytics, and metrics as corporate cultural

totems, then that becomes part of the enterprise DNA. You don t address it by

memos and charismatically appealing to people s good intentions and better

selves, you deal with it by yes! asking for and insisting upon better data and

metrics.

At Amazon s cultural core, however, data and meaningful analytics are fuel and

enzyme for innovation and inspiration. Outliers aren t artifacts or

aberrations; they re gateways to new markets, novel technologies, or

transformative insights that will knock Bezos s socks off. Yes, you must

respect and hit your core metrics but data truly liberates the enterprising

intrapreneur. You betray Amazon s principles and your commitment to the company

if you don t embrace data as your path and partner to the truth.

That s not a challenge to the mediocre to up their game; it s a declaration

that great talent and great effort and great vision with great data isn t good

enough for Amazon. If you ve got a problem with that, Bezos has a problem with

you.

But if great data and great analytics make it too easy for Amazon leaders and

managers to swap apathy for empathy, then maybe they re not so great. That s

exactly the kind of challenge a Jeff Bezos cares about.

Michael Schrage, a research fellow at MIT Sloan School s Center for Digital

Business, is the author of the books Serious Play (HBR Press), Who Do You Want

Your Customers to Become? (HBR Press) and The Innovator s Hypothesis (MIT

Press).