If you're responsible for people or resources — most of us are responsible for at least ourselves — you probably make commitments at work. You commit to do something (or not to), at a certain pace, or by a certain date, or within some constraints. Sometimes the commitment is part of an exchange: I'll do this, and you'll do that; or I won't do this, and you won't do that; and so on.
When commitments are part of exchanges, we sometimes call them informal agreements. Rarely are they written down, though they might be; rarely are there handshakes, though there might be. Most agreements actually work. What makes agreements durable? Here are some of their attributes.
- They're bilateral
- Bilateral agreements are based on mutual consent. In a unilateral agreement one of the parties believes there is an agreement, but the other doesn't, or is unaware of any agreement. For durability, both parties must be aware that a deal has been struck.
- They're clear
- Even if both parties acknowledge existence of an agreement, they might not agree on the terms. It's essential that all concerned agree about what's being exchanged, and how it will be exchanged.
- They're voluntary
- Neither party is coerced — not by the other, nor by events, nor by another party. If coercion drives the bargain, the agreement is durable only while coercion persists.
- The parties are equally knowledgeable
- Each party has roughly Even if both parties acknowledge
existence of an agreement,
they might not agree
on the termsequal information about the value of the items exchanged and the framework of the exchange. That is, both parties estimate the agreement's fairness equally accurately. If one party has better information than the other, then when the second party "wakes up," the deal often implodes, or the relationship sours.
- Incentives have symmetric value
- When the agreement includes incentives, the value of the incentives to each party is roughly identical. Incentives that mean much more to one party than the other are likely to lead to non-performance by the party that has lesser regard for its incentives.
- There are no incentives for breach of confidentiality
- When the agreement is confidential and sub rosa a trap awaits, because there can be an incentive to breach confidentiality. The first party to admit to a sub rosa agreement can sometimes avoid the penalties of having made such an agreement, even after harvesting value from it.
Most important, there can be no incentive for one party to turn against the other. If one party can capture value by inflicting harm on the other, the agreement is inherently unstable. It becomes a form of "I'll scratch your back; you stab me in mine." Durable agreements are structured such that turning on one's partner is very, very expensive. Top Next Issue
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More articles on Workplace Politics:
- Patterns of Everyday Conversation
- Many conversations follow identifiable patterns. Recognizing those patterns, and preparing yourself
to deal with them, can keep you out of trouble and make you more effective and influential.
- Kinds of Organizational Authority: the Formal
- A clear understanding of Power, Authority, and Influence depends on familiarity with the kinds of authority
found in organizations. Here's Part I of a little catalog of authority classes.
- Big Egos and Other Misconceptions
- We often describe someone who arrogantly breezes through life with swagger and evident disregard for
others as having a "big ego." Maybe so. And maybe not. Let's have a closer look.
- Anticipate Counter-Communication
- Effective communication enables two parties to collaborate. Counter-communication is information provided
by a third party that contradicts the basis of agreements or undermines that collaboration.
- Narcissistic Behavior at Work: I
- Briefly, when people exhibit narcissistic behavior they're engaging in activity that systematically
places their own interests and welfare ahead of the interests and welfare of anyone or anything else.
It's behavior that threatens the welfare of the organization and everyone employed there.
Forthcoming issues of Point Lookout
- Coming December 11: The Rhyme-as-Reason Effect
- When we speak or write, the phrases we use have both form and meaning. Although we usually think of form and meaning as distinct, we tend to assess as more meaningful and valid those phrases that are more beautifully formed. The rhyme-as-reason effect causes us to confuse the validity of a phrase with its aesthetics. Available here and by RSS on December 11.
- And on December 18: The Trap of Beautiful Language
- As we assess the validity of others' statements, we risk making a characteristically human error — we confuse the beauty of their language with the reliability of its meaning. We're easily thrown off by alliteration, anaphora, epistrophe, and chiasmus. Available here and by RSS on December 18.
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- The Power Affect: How We Express Our Personal Power
Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.