In the world of risk management, the concept of the “black swan” became popular thanks to Taleb’s book.
Black swans are rare, unpredictable events with massive impact that, once they occur, tend to be explained as if they were predictable.
However this does not always hold up within organizations: most black swans are actually obvious but ignored problems (ouch, that hurts!).
What you should really worry about is a problem that someone knows, and you definitely don’t: we can call them “pink hippos”.
Pink hippos are not the same as the elephant in the room: in the latter, everyone knows the problem and everyone deliberately ignores it, while pink hippos represent problems obvious to some within the organization and not known by others (normally, you, the manager, and above).
This is often the result of the misuse of communication filters, that prevent critical information from effectively reaching the upper levels.
In organizations, communication filters are well known and documented.
Structures inherently create communication channels that may distort information as it moves upwards, especially where a rigid top-down scheme is in force.
These distortions can be further motivated by personal interests, such as achieving only objectives that grant visibility or secure bonuses, avoiding conflicts for the sake relationships, which conflict with the broader goal of safeguarding the organization.
Additionally, psychological and sociological theories, such as the “diffusion of responsibility,” explain how individuals tend not to report critical problems if they believe someone else will do it instead.
This leads to the creation of true “pink hippos” that no one has the courage to address, yet they comfortably sit at your table in all your meetings.
Healthier communication implies that those communicating from below do so clearly, transparently, and fearlessly, while those receiving at higher levels need patience, time, and attention to digest information, fighting together with the team even at the cost of not pleasing their superiors.
Effectively managing pink hippos requires organizations to adopt a conscious and proactive approach.
Leaders must invest time and resources to truly understand problems, avoiding both excessive delegation and micromanaging.
Upwards communication must be nurtured, by actively listening to and accepting suggestions and requests from lower levels to promptly identify and address issues.
It is essential to maintain an independent and curious viewpoint, avoiding being influenced by biases or excessive deference, and promoting an environment where constructive dissent is welcomed, valued, and rewarded.
Lastly, KPI’s and Goal Setting should not be purely financial oriented: Corporate Security must be seen as a long term strategy rather than an immediate source of profit (through an easy saving on the related budget items).