LIMA — Companies that reinvest its organization from a position of strength as opposed to a position of weakness are businesses that will ultimately become successful, according to author and Danish soccer team FC Midtjylland Chairman Rasmus Ankersen.
“As leaders, we have to think more than ever about how we keep our organizations relevant and fresh,” Ankersen said during the 2018 Global Leadership Summit Friday satellite broadcast at Lima Community Church. “You may be think that there is nothing to worry about because you have a successful business, but when an organization becomes successful, it doesn’t just fight its competitors — it fights itself. We fight human nature and we fight our own psychology.”
Outcome bias is one of the biggest problems of successful organizations, according to Ankersen. Outcome bias is an assumption that good results are always the consequence of good decisions and good performance. This is a belief that Ankersen believes is not true.
During his speech, Ankersen explained how Newcastle United FC, a soccer team in Tyne, England, was a prime example of a group of individuals who had an outcome bias. For many many years the team experienced a losing streak, but in 2012 they managed to reach the top by ranking number five in the English Premier League. Because of the new win, Newcastle United’s management was convinced that this was the start of the new era in the football club history and rewarded the head coach and his staff with a long term contract. Unfortunately, the following year, the team did not perform as well and was ranked 16th. This was a surprise to the team because they assumed that they would continue to do well because they had the year prior.
Their failure was due to a lack of evaluating their performance data and relying on outcome bias, according to Ankersen.
“Newcastle’s fifth place is the equivalent of a popular trading company that would have a very high share price and very low customer satisfaction at the same time,” said Ankersen. “You can have that for one year, but you cannot maintain that over time.”
Ankersen challenged the crowd of over 240 attendees Friday at Lima Community Church to always evaluate factors that contribute to their success.
“When an organization fails, it comes very natural for us to ask tough questions as leaders like, ‘Why did we fail?’ ‘How can we do things better?’” sad Ankersen. “But when we are successful, we don’t ask those questions naturally. We do not dig into the success and ask why we’re successful.”
Reach Camri Nelson 567-242-0456 or on Twitter @CamriNews.