There’s a HiPPO in my project!

In this article we will check: 1. what does HiPPO mean, 2. why is it bad and how to avoid it, 3. cases when relying on it can be good.

Hippos are cute animals from a distance. But similarly, as you would not like your boat to be sunken by a hippo, you should also avoid your project to be trampled over by a HiPPO — the Highest Paid Person’s Opinion.

Most of us already know this phenomenon, but to be sure that we are on the same page: HiPPO means that the decisions are not made primarily based on data, knowledge of field experts or any reasonable ways, but they are just based on the opinion of the highest paid person’s opinion. This person can be the leader of a unit, the CEO or anyone with high authority. In vast majority relying on the HiPPO is bad for the company’s performance and also for the lower ranked colleagues. (For the rest of the article, I will use HiPPO both for the phenomenon and the Highest Paid Person.)

Why is HiPPO bad?

So, why is HiPPO bad? We have an oracle, who can solve everything and we just need to execute. Life is simple as happy. Is it, though? It isn’t. Negative effects can be:

1. Single point-of-view: Everything is seen only from the HiPPO’s point-of-view. However, one person’s perception of truth can be biased. Thus, making a decision by an opinion can be quite risky.
2. Feelings over data: Data-driven decisions are essential for long-time success. Data shows objectively where you should put your resources to thrive.
3. Diminishing innovation: If the decisions are made always by the HiPPO, it will be harder and harder to oppose its opinion and suggest other solutions than the HiPPO’s wants. In some time, everything turns into the ‘what does the HiPPO want?’ guessing game and delivering anything new will cause fear instead of joy. Colleagues will try to play safe and as a result, innovation will suffer.
4. Higher turnover: Due to the environment described in the previous point, employees won’t feel well in the company. They will also feel stuck as executors and will eventually leave.

How to avoid the HiPPO?

When the company is already in the HiPPO trap, it is very hard to escape from it as reforming the situation is usually in the HiPPO’s hands. What can be potential solutions if there is a willingness to change?

1. Data-driven decisions: Data-driven decisions, based on facts, metrics, and insights with success measured by objective KPIs, ensure that HiPPOs are less offended and foster a collaborative and inclusive environment.
2. Clear-decision making process: Establish guidelines for decision making for all of your teams. Try to implement some decision making tools as well, if necessary. By sticking to the Playbook, the HiPPO might be prevented from trampling through the projects.
3. Use external expertise: Consultants or experts can bring fresh, unbiased perspectives, challenging the status quo and reducing reliance on internal hierarchies. Sometimes, it is essential to involve them — perhaps even for managing a transformation toward a HiPPO-less organizational culture.
4. Encourage constructive dissent: Create a culture where dissenting opinions are welcomed and encouraged. Employees should feel comfortable challenging ideas, including those coming from the HiPPO. Constructive criticism fosters innovation and prevents the organization from becoming too reliant on a single perspective.
5. Get allies: Sometimes the HiPPO perspective comes only from a part of the organisations and getting allies to change this behaviour might be enough. E.g. a senior manager might push PMs to deliver some features for the clients. In such cases the CPO might interfere and channel such requests into data-driven decision processes instead of ad-hoc pushes.

When can the HiPPO be good?

So far, we have talked only about the dark side of the HiPPOs. However, nn some cases, it might prove beneficial:

1. HiPPO expertise: In some cases the HiPPO might be the expert of the field and also embody the core values and culture of the company. In case of a junior team, he can be a good guide and help in making the initial decisions.
2. Quick decisions: There are times, like crisis management, when making a quick decision is essential. In such cases the HiPPO’s ability to make swift decisions without getting bogged down in lengthy deliberations can help the organization navigate through challenging times.

Still, these are exceptional situations and relying on the HiPPO should never be the standard decision making process.

Conclusion

In conclusion, while the HiPPO phenomenon poses significant risks to organizational performance and innovation, strategic measures can be taken to mitigate its negative effects. Embracing a data-driven approach, establishing clear decision-making processes, seeking external expertise, encouraging dissent, and building alliances within the organization can help break free from the HiPPO trap. It’s crucial to recognize that, in certain circumstances, the HiPPO’s expertise and quick decision-making abilities can be beneficial, particularly in crisis management or when guiding a junior team. However, these instances should remain exceptions, and organizations should strive for a balanced, collaborative decision-making process that incorporates diverse perspectives and objective data, ensuring sustained success and adaptability.