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:
- Devious Political Tactics: Divide and Conquer, Part II
- While most leaders try to achieve organizational unity, some do use divisive tactics to maintain control,
or to elevate performance by fostering competition. Here's Part II of a series exploring the risks of
- Breaking the Rules
- Many outstanding advances are due to those who broke rules to get things done. And some of those who
break rules get fired or disciplined. When is rule breaking a useful tactic?
- Reactance and Micromanagement
- When we feel that our freedom at work is threatened, we sometimes experience urges to do what is forbidden,
or to not do what is required. This phenomenon — called reactance — might explain
some of the dynamics of micromanagement.
- Holding Back: I
- When members of teams or groups hold back their efforts toward achieving group goals, schedule and budget
problems can arise, along with frustration and destructive intra-group conflict. What causes this behavior?
- Congruent Decision-Making: I
- Decision-makers who rely on incomplete or biased information are more likely to make faulty decisions.
Congruent decision-making can limit the incidence of bad decisions.
Forthcoming issues of Point Lookout
- Coming January 22: Disjoint Awareness: Bias
- Some cognitive biases can cause people in collaborations to have inaccurate understandings of what each other is doing. Confirmation bias and self-serving bias are two examples of cognitive biases that can contribute to disjoint awareness in some situations. Available here and by RSS on January 22.
- And on January 29: Higher-Velocity Problem Definition
- Typical approaches to shortening time-to-market for new products usually involve accelerating problem solving. Accelerating problem definition can also help. Available here and by RSS on January 29.
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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.