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 I
- While most leaders try to achieve organizational unity, some do use divisive tactics to maintain control,
or to elevate performance by fostering competition. Understanding the risks of these tactics can motivate
you to find another way.
- How to Avoid Responsibility
- Taking responsibility and a willingness to be held accountable are the hallmarks of either a rising
star in a high-performance organization, or a naïve fool in a low-performance organization. Either
way, you must know the more popular techniques for avoiding responsibility.
- Communication Traps for Virtual Teams: II
- Communication can be problematic for any team, especially under pressure. But virtual teams face challenges
that are less common in face-to-face teams. Here's Part II of a little catalog with some recommendations.
- When Your Boss Conveys Misinformation
- When your boss misspeaks — innocently, as opposed to deviously — what should you do? Corrections
are not always welcome, but failing to offer corrections can be equally dangerous. How can you tell
what to do?
- Grace Under Fire: II
- When we debate at work, things sometimes turn unpleasant. Out of control, one party might maneuver the
other into losing control. If we have better tools for recognizing these tactics, we're better able
to maintain self-control. Here's Part II of such a toolkit.
Forthcoming issues of Point Lookout
- Coming February 27: Brainstorming and Speedstorming: II
- Recent research into the effectiveness of brainstorming has raised some questions. Motivated to examine alternatives, I ran into speedstorming. Here's Part II of an exploration of the properties of speedstorming. Available here and by RSS on February 27.
- And on March 6: A Pain Scale for Meetings
- Most meetings could be shorter, less frequent, and more productive than they are. Part of the problem is that we don't realize how much we do to get in our own way. If we track the incidents of dysfunctional activity, we can use the data to spot trends and take corrective action. Available here and by RSS on March 6.
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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.