Leaders in Denial - November 10th, 2008

Richard S. Tedlow, Professor of Business Administration at Harvard Business School has a forthcoming book entitled Denial: Why Business Leaders Fail to Look Facts in the Face.  Harvard Business Review (July-August 2008) included a few thoughts on denial that were applicable to churches and church leaders. 

“Sigmund Freud described denial as a state of ‘knowing-but-not-knowing.’  The distance between the world as it is and the world as you want it to be is simply too great, and you freeze in your tracks.” 

“It is no accident that only one firm from the original (1896) Dow Jones Industrial Average is still on that list.  According to the economist Paul Ormerod, on average, more than 10 percent of all companies in America disappear each year.”  (The percentage of churches that close their doors annually is even higher!) 

“Denial is a major reason—perhaps the major reason—for this constant failure.” 

Tedlow used the example of Henry Ford and his inability to realize or admit that the American consumer wanted something more or different than the original Model T that he introduced in 1908 and that sold more than 15 million cars in two decades.  The situation was so bad that Ford even fired one of his top executives for pointing out the Model T’s declining sales. 

“Ford’s blindness resulted from a conviction that he knew what customers wanted: basic transportation.  He was equally convinced that this desire would never change.” 

“What Ford didn’t grasp is that every product or service has two components: the core (the product’s primary purpose) and the augmented (additional functions and features).  In every industry the border between the two inevitably shifts over time.” 

In the beginning the automobile industry was mostly focused on its core or primary purpose to provide basic transportation, but after a few decades, the world had changed and the Model T hadn’t.  The automobile became more than a machine; it was a status symbol as well.  GM recognized this and responded with the augmented-product strategy.  They offered cars in a variety of colors and changed models every year.

In the 1970s, U.S. consumers returned to their original desire for basic transportation.  The Big Three automakers couldn’t believe that the line between the core and augmented components was moving again, but the Japanese could.  This time the entire industry was wallowing in denial unable to imagine that the line had shifted again.

“Freud himself was a victim of the very knowing-but-not-knowing that he described in others.  He kept smoking cigars even after his oral cancer was diagnosed.  Both Ford and Freud were smart, successful men who paid a terrible price for denial.” 

Church leaders unfortunately aren’t immune to denial.  Just like Ford, many church leaders are convinced that they know exactly what Christians and non-Christians want from a church or from a leader.  This denial drives church leaders to seek out people who will reinforce their preconceived notions and then by default they avoid people who might disturb their state of denial with the facts. 

The end of a year provides churches and leaders an opportunity to dismiss denial and to honestly embrace the reality and state of their churches, thereby creating an environment to address the needs and to make changes accordingly.  

Churches and the ministries within a church also have core and augmented components and it’s critical for leaders to assess where the line is currently in each area to make effective decisions for the future.  Don’t destroy yourself or your church by your unwillingness to face the facts and to deal honestly with the present needs of your church.   

Remember “you can’t read the label from inside the bottle.”  When you’re caught up in the midst of your ministry as leaders, denial combined with familiarity makes it difficult, if not impossible, to accurately and completely assess your situation and needs which is why 3:STRANDS can partner with you to enhance your strengths and generate a better future.