Making the most of advice

We can conclude from the study by Michael McDonald and James Westphal -

Trusted advisors have almost no value when it comes to making strategic decisions about how best to turn around a struggling business

There is a genetic tendency in human beings to seek advice from trusted friends rather than knowledgeable outsiders

We should always seek the advice of total strangers when it comes to making important decisions in our lives

None of the other statements is true

Chief executives in charge of complex, ailing businesses should -

Seek advice both from trusted insiders as well as relative outsiders who may have fresh perspectives to offer

Hire external consultants with whom they have no prior association

Disregard advice from close confidants as those confidants are unlikely to have much to offer by way of strategic insight

Remove existing executives on a regular basis in order to bring in fresh, outside talent

One lesson from the study by McDonald and Westphal is that -

The decisions of CEOs are sometimes influenced by emotional factors as well as rational reasons

Friendships, nepotism and corruption are endemic amongst most large businesses

Advisors who are on very friendly terms with CEOs are categorically unable to offer unbiased advice to those CEOs

External consultants are likely to offer better quality advice than internal experts who have long-standing experience of the issues facing CEOs

The article argues that -

People with good financial skills are unlikely to be swayed in their judgements and decision-making by friendships

Many people in business are swayed by friendships and liking more than they realise

CEOs always prioritise personal relationships over skill and knowledge

CEOs who prioritise personal relationships over the skill and knowledge of advisors may be behaving immaturely or immorally

In terms of relational energy, it is likely that we can best transmit energy to others by -

Cognitive stimulation - for example by teaching others interesting things or by discussing issues that are lively and mentally challenging

Behavioural modelling - for example by showing others through our actions that we are enjoying what we are doing

All of the other explanations are possible

Being in a positive mood - for example by being upbeat and enthusiastic

The article makes the case that -

It is unethical for leaders to work with people they like rather than those who are the most proficient at a given task

It is immoral for managers to work with people they like rather than those who are the most proficient at a given task

It should be made illegal for people in business to choose to work with friends over people who could potentially be more proficient at a given task

It is human nature for people to collaborate with people they like

The questionnaire measuring relational energy is most likely to include which of the following statements?

'I interact with this person because we share mutual respect'

'After an exchange with this person I feel more stamina to do my work'

'I feel that this person would defend me and speak up on my behalf'

'This person really cares about my goals and values'

The studies cited within the article together suggest that -

It is more important for us to be likeable than competent at our work

We should aim always to avoid situations of conflict and stress that may de-energize us

People in business are often influenced both by competence and personal relationships

Effective relationships in the workplace are primarily governed by the extent to which collaborators either create or destroy energy

Which of the following statements is most likely to be true?

Accountants are likely to be more about to convey relational energy to their colleagues than people in most other professions

Accountants are more likely to be de-energizing than people in most other professions

Accountants should ignore issues such as relational energy and stick to making decisions that are strictly governed by data

Many people are likely to be poor judges of the extent to which they are considered energizing or de-energizing by the people around them

One conclusion we can reach from the article is that -

De-energizing people are likely to respond in a belligerent fashion when challenged about their behaviour

De-energizing individuals are often more competent but just less likeable than less de-energizing people

De-energizing people rarely realise that they have de-energizing effects on others

We should aim to correct the behaviour of de-energizing people by challenging them and reminding them of the consequences of their behaviour

Making the most of advice

We can conclude from the study by Michael McDonald and James Westphal -

Chief executives in charge of complex, ailing businesses should -

One lesson from the study by McDonald and Westphal is that -

The article argues that -

In terms of relational energy, it is likely that we can best transmit energy to others by -

The article makes the case that -

The questionnaire measuring relational energy is most likely to include which of the following statements?

The studies cited within the article together suggest that -

Which of the following statements is most likely to be true?

One conclusion we can reach from the article is that -

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