The role of good judgment: You be the judge

Check out job descriptions for management-level positions at most any company and they’re likely to have some common denominators. At the top will be requirements for specific experience and qualifications in the job’s given role — whether corporate communications, marketing, computer science, finance, business administration or other areas. Next, the description usually will state the desired experience or knowledge in a company’s particular industry.

Beyond the specific technical expertise required for a position, organizations will also stipulate that candidates for management-level roles possess certain more subjective qualities.  These are likely to include leadership, management, team building and, in most cases, “judgment.”

But what, exactly, is judgment? Webster’s defines it as the “power of comparing and deciding; understanding; good sense.”

Management gurus Noel M. Tichy and Warren G. Bennis explored it in depth in their 2007 book, Judgment: How Winning Leaders Make Great Calls. They analyzed cases involving several prominent CEOs – including Jeff Immelt of General Electric, Jim McNerney of Boeing and A.G. Laffley of Procter and Gamble – and called judgment the “essence of leadership.” They evaluated several cases to show that, although good judgment isn’t something we’re born with, it can be learned.

Their oft-quoted bottom line: “With good judgment, little else matters. Without it, nothing else matters.”

Judgment calls that earned the headlines

Which, perhaps, is why it’s not judgment, but the lack of it, that tends to attract the most attention. Consider, for example, three recent examples:

  • In December, Jennifer Sacco, Corporate Communications Director for New York-based IAC, which operates the Daily Beast, Match.com and other web sites, tweeted the following just before taking off on an overseas trip: “Going to Africa. Hope I don’t get AIDS. Just kidding. I’m white!” By the time she arrived in Africa, the tweet had “gone viral” and she had lost her job.
  • Also in December, April Todd-Malmlov, the director of MNsure – Minnesota’s state health insurance exchange – resigned after it was disclosed that, during November, when enrollment was at its height and, at the same time, enrollees were having problems with the exchange’s web site, she had been on a two-week vacation in Central America. The ill-timed vacation created an uproar among political allies and opponents alike.
  • Earlier, in August of last year, Tim Armstrong, the handsome, charismatic, young CEO of AOL, alarmed both employees and investors during an all-employee conference call. In the middle of the call, to discuss pending job cuts at the company, listeners were started to hear Armstrong suddenly tell a staff member, “You’re fired!” It was later disclosed that the employee, contrary to Armstrong’s earlier instructions, had persisted in photographing Armstrong, prompting his termination. Still, employees who had dialed in for the call recorded it, and one shared it with media affairs journalist Jim Romanesko, who picked up on the story and caused it, also, to “go viral.” The ensuing uproar only added to the woes at AOL and the pressures on Armstrong.

Tim Armstrong, AOL CEO [Photo: Business Insider]

For the time being, Armstrong has weathered the storm. A concerted effort to restore his reputation has included a lengthy article in Business Insider that chronicled his struggles to restore AOL to profitability and provided context for the employee meeting outburst. In addition, the company’s results have improved.

You’re always “on”

But the Armstrong example illustrates what’s different today in terms of the ramifications of poor judgment. In the past, there may have been times when leaders failed to exercise good judgment, but it wasn’t immediately evident, giving them time to correct the situation. Today, in addition to the traditional media reporting on poor judgment by leaders, those leaders now have to factor in social media. At the AOL meeting, employees had their smart phones on, recording the meeting. As little as five years ago, that never would have happened. Now, employees are emboldened to turn on their smart phones, and the technology makes it so easy to record an event and share it.

Likewise, In Sacco’s case, social media not only made it easy for her to tweet before thinking: it also

Jennifer Sacco [Photo: Huffington Post]

provided an additional trail of evidence reflecting poor judgment. According to Buzzfeed (Dec. 20, 2013), this was not the first time she had posted questionable statements on social media. As early as January 2013, she had tweeted: “I can’t be fired for things I say while intoxicated right?”

Was this crisis necessary?

Perhaps it’s primarily in such “moments of truth” that leaders can demonstrate sound judgment. As Tuchy and Bennis note, many of history’s most famous – and successful – judgment calls occurred during times of crisis.

But I’m confident most hiring managers would prefer not to take that risk. Instead, they would want to do all they can to help ensure that the manager they’re hiring has the maturity, perspective and common sense to exercise good judgment. Perhaps more importantly, although such spectacular failures in judgment are the cases we remember, there are many more routine, everyday decisions by company and organizational leaders when sound judgment leads to the right decision. These cases go unnoticed, yet are also “moments of truth” when organizations benefit from the judgment of effective leaders and managers.

To help ensure that such judgment calls are sound, routine and correct, hiring managers can benefit from taking more time to evaluate a candidate for a management job, beyond technical knowledge and capabilities – talking with the candidate’s former colleagues, scanning the candidate’s track record, and asking the candidate how he or she would handle certain types of situations.

April Todd-Malmlov [Photo: Politics in Minnesota]

For example, a Minnesota Public Radio report the morning following Todd-Malmlov’s resignation noted that she “possessed an almost savant-like ability to recall facts and figures about some of the most obscure insurance regulations.”

A “savant-like ability to recall facts and figures,” just like a natural charisma or a versatility in social media, might be attractive qualifications for a given job. But hiring managers, while recognizing such talents or qualities, might be well advised to take the added step of giving the candidate the time and opportunity to become more seasoned, learning from more experienced, proven managers. That can help develop a leader who not only has mastered a job’s technical qualifications, but also has earned the confidence of top management to exercise sound judgment.

When the results of a manager’s judgment – or lack of it – can be magnified immediately by new forms of media, that’s more important than ever.

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