THE FOG OF FEEDBACK

OPPOSING CAMPS

In addition, ambiguity may amplify perceived differences

These gray areas have the potential to spell disaster, he says, critical situations. “Often, when managers at the most favorable signals out there and begin to interpret data through a lens of success.”

Joseph calls this positive spin attempt “ambiguity reduction.” He notes that it can prevent managers from recognizing deeper trouble.

STUCK IN THE PAST

may fuel debate concerning the best course of action, which slows decision-making and allocation of “Often, when resources. With Blackberry, the ambiguity managers don’t get and caused delays in efforts to launch new clear signals, they products.” typically look at the most favorable UNREALISTIC INTERPRETATIONS signals out there and begin to interpret Joseph observes that many managers data through a lens of engage in self-enhancing behavior and success.” interpret ambiguous feedback in a favorable light to avoid the perception of failure. “Managers may also view performance problems as temporary, since at least some

“In ambiguous situations, managers are more likely to rely dimension of performance could be interpreted as positive,” he on existing beliefs about the environment, instead of updating what they know,” Joseph says. “Their understanding of their or they believe that change is unnecessary.” environment based on feedback is unlikely to change since they lack an understanding of what the indicators are telling them. For example, the post-iPhone period was an era of maladaptive situations, he recently outlined three general ways strategic ambiguity for [Blackberry developer] RIM. In response, power devices and enterprise customers. Yet the market was being driven by consumers and software applications. Battery can occur in the face of ambiguous feedback. Here are his suggestions:

the consequences of their inaction.”

UNREALISTIC INTERPRETATIONS

AWARENESS

“Top managers should be willing to accept an unvarnished view of their performance and fully acknowledge the possibility of failure,” he says.

VIGILANCE

“Managers need to rigorously search for potential problems in any ambiguous environment. Extra vigilance is required when it seems like no problems exist, or that existing problems are only temporary.”

TRIANGULATION

managers together. “Teams comprising different functional areas and from various levels in the organization should bring the different interpretations of feedback together so they can come to a more accurate understanding of the environment.”

“Managers may also view performance problems as temporary, since at least some dimension of performance could be interpreted as positive”

John Joseph is an assistant professor of Strategy at the UC Irvine Paul Merage School of Business. His research lies at the intersection of strategy and organization theory. He examines organizational designs for better technology development, strategic planning, forthcoming in the Strategic Management Journal, Organization Science, Academy of Management Journal, Long Range Planning, Academy of Management Proceedings and other peer-reviewed publications. He has also developed a number of case studies on structure and strategic decision-making. Joseph is a member of the Academy of Management and a member of the Research Committee of the BPS Division. He is an associated editor for the Journal of Organizational Design, and top two journals: Administrative Science Quarterly and Strategic Management Journal.