August 13, 2008	Volume 8, Issue 33
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Conflicts of Interest in Reporting

by Rick Brenner

Reporting is the process that informs us about how things are going in the organization and its efforts. Unfortunately, the people who do the reporting often have a conflict of interest that leads to misleading and unreliable reports.

e usually rely on those responsible for organizational efforts to report the status of those efforts. Whether the reports are special or routine, the potential for conflict of interest is clear: the reporter-manager has incentives to report or emphasize good news, and incentives to withhold or soften bad news.

The difficulties directly created by this conflict of interest are compounded by time skews between the choices and consequences for the reporter-managers. The incentives and disincentives relative to reporting tend to arrive very soon, even when the successes and failures arrive much later. This increases the temptation to shade reports, because the reporter-managers can convince themselves that the problems will be solved over time. Sadly, things often get worse, because the forces that created the problems usually remain in place.

Inaccurate reporting isn't always the result of malice. Here are some of the sources of conflict of interest in reporting.

Distributed control

Most of those we hold responsible for organizational efforts aren't actually in control of those efforts. Typically, they're managers, and the people who do the actual work also affect the outcome. Those who do the actual work might or might not be subordinate to the reporter-manager. When they aren't, the reporter-manager's influence on them might be diminished.

Covering conflict

It's common to interpret conflict between team members, or between the reporter-manager and team members, as a leadership failure by the reporter-manager. When the reporter-manager cannot convince a team to take a position favored by higher authority, there is a temptation to make a so-called executive decision, overruling the team, and report upward that all is well.

External commitments Most of those we hold
responsible for organizational
efforts aren't actually in
control of those efforts

The people who do the actual work might have external obligations of unscheduled nature. Family situations arise, or mandated training occurs, or other competitive activities appear. When the cause of a delay is beyond the control of the reporter-manager, acknowledging the situation entails acknowledging limits to one's power. Reporter-managers therefore have an incentive to conceal or under-report such delays.

The unknown

When the unknown nature of the task suddenly creates problems, the reporter-manager has an incentive not to report them, because to do so is to acknowledge an imperfect ability to predict the unknown.

The role of champion

Special problems arise when the reporter-manager or the report recipient is the champion of the effort. Bad news can reflect not only on the management and leadership skills of the reporter-manager, but also on the validity of the idea itself. Bad news can threaten the champion's career; good news can create career opportunities. If the recipient of the report is also the supervisor of the reporter-manager, this effect is intensified by the career ambitions of the reporter-manager.

A "dual-key" approach — multiple parallel reporting roles — can help. When reporters know that Truth is readily available through other parallel channels, they're more likely to deliver Truth themselves.  Top    Next Issue

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More articles on Workplace Politics:

Illegal Dumping

To solve problems, we change existing policies or processes, or we create new ones. We try to make things better and sometimes we actually succeed. More often, we create new problems — typically, for someone else.

When All Your Options Are Bad

When you have several options, and all seem politically risky, what can you do? Here are two guidelines to finding your way to a good outcome.

There Are No Micromanagers

If you're a manager who micromanages, you're probably trying as best you can to help your organization meet its responsibilities. Still, you might feel that people are unhappy — that whatever you're doing isn't working. There is another way.

When Leaders Fight

Organizations often pretend that feuds between leaders do not exist. But when the two most powerful people in your organization go head-to-head, everyone in the organization suffers. How can you survive a feud between people above you in the org chart?

Top Ten Signs of a Blaming Culture

The quality of an organization's culture is the key to high performance. An organization with a blaming culture can't perform at a high level, because its people can't take reasonable risks. How can you tell whether you work in a blaming culture?

See also Workplace Politics and Managing Your Boss for more related articles.

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Organizational Politics for People Who Hate Politics

Have you ever felt powerless to implement an important new idea? Have you ever been "blind-sided" at a meeting? Have you ever lost two good employees because you could find no way to keep them from attacking each other? These are some of the issues of organizational politics. Many of us have become enmeshed in them from time to time, but we've also known some people who seem to be able to engage and prosper. How is that done? We'll inventory the challenges of organizational politics, and provide tools for anticipating and addressing them. The focus of this program is practical — attendees learn concrete techniques for dealing with the problems that arise in workplace politics, while keeping their integrity intact. Read more about this program. Here are some upcoming dates for this program:

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Managing Virtual Teams for Real Results

Managing global or dispersed teams is challenging — miscommunications, misunderstandings, and interpersonal conflict all thrive in the typical environment of the distributed team. And they're even more common in global teams, because of time-zone offsets and language and cultural differences. We'll inventory the challenges distributed and global teams face, and provide tools for anticipating and addressing them. The focus of this program is practical — attendees will learn concrete techniques for preventing and dealing with the problems that accompany global and distributed teams. Read more about this program. Here's an upcoming date for this program:

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  your calendarKitchener, Ontario: May 19, Dinner Meeting, PMI Canada's Technology Triangle Chapter.
   

Person-to-Person Communication for Project Managers

When we talk, listen, send or read emails, read or write memos, or when we leave or listen to voice mail messages, we're communicating person-to-person. And whenever we communicate person-to-person, we risk being misunderstood, offending others, feeling hurt, and being confused. There are so many ways for things to go wrong that we could never learn how to fix all the problems. A more effective approach avoids problems altogether, or at least minimizes their occurrence. In this very interactive program you'll learn a model of inter-personal communications that can help you stay out of the ditch. In those moments of intense involvement, when we're most likely to slip, you'll have a new tool to use to keep things constructive. Read more about this program. Here's an upcoming date for this program:

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Human-Centered Risk Management

Most of us can assess technological risks, but risks related to human behavior tend to resist our best efforts. This session provides a framework for evaluating risks related to the behavior of individuals, teams, organizations and people generally. Human-centered risk differs from technological or market risk, because objective evaluation requires acknowledging personal and organizational limitations and failures. Since some of those limitations and failures might apply to the people assessing the risks, or to their superiors, there's a tendency to deny them or to explain them away. Our approach examines capability, organization, context, risk mitigation, and workplace politics. It has tools for guiding the assessment and management of human-centered risk, and we show how to extend these tools to suit your situation. You'll learn how to identify sources of risk in human behavior; recognize systemic and individual barriers to acknowledging risk; assess the effects of organizational turbulence; determine the risk associated with inappropriate internal risk transfer; estimate the effects of team dysfunction, toxic conflict and turnover; and measure the impact of workplace politics. Read more about this program. Here's an upcoming date for this program:

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The Politics of Meetings for People Who Hate Politics

There's a lot more to running an effective meeting than having the right room, the right equipment, and the right people. With meetings, the whole really is more than the sum of its parts. How the parts interact with each other and with external elements is as important as the parts themselves. And those interactions are the essence of politics for meetings. This program explores techniques for leading meetings that are based on understanding political interactions, and using that knowledge effectively to meet organizational goals. Read more about this program. Here are some upcoming dates for this program:

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  your calendarWherever you are: it's a webinar: August 3, Monthly Meeting Webinar, Memphis Chapter of the Project Management Institute.
   

The Race to the South Pole: Ten Lessons for Project Managers

On 14 December 1911, four men led by Roald Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical drama, why this happened is interesting enough, but to project managers, the story is fascinating. Lessons abound. Read more about this program. Here are some upcoming dates for this program:

• Download to
  your calendarMelbourne, FL: April 12, Monthly Meeting, Space Coast Florida Chapter of the Project Management Institute. Register now.
   
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• Download to
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• Fort Wayne, IN: September 22, Monthly Meeting, Northeast Indiana Chapter of the Project Management Institute.
   
• Overland Park Convention Center, Overland Park, KS: October 4, Professional Development Day, Kansas City Chapter of the Project Management Institute.
   
• Download to
  your calendarMITRE, in Bedford, MA: February 15, 2011, Monthly Meeting, Boston SPIN.