Is Your Company Neurotic -- Or Is It Just You?It's not just people who can be neurotic -- companies can be, too. Find out if yours is and what you can do about it.

ByMark Chussil

Opinions expressed by Entrepreneur contributors are their own.

Paul Bradbury | Getty Images

The following excerpt is fromBenjamin GiladandMark Chussil's book新员工手册:无拘无束Corporate Life. Buy it now fromAmazon|Barnes & Noble|Apple Books|IndieBound

We all know neurotic people. We think companies can be neurotic, too -- especially when it comes to filtering inconvenient information, which directly relates to the skill of competing. To assess how your organization's neurotic behavior affects its skill at competing, use our new tool called the Neurotic Index, or NIX.

We were inspired to create the NIX by a personal experience with a Fortune 500 company. We've dealt with Fortune 500 companies our entire professional lives, so we're used to a certain level of neurosis. But this was different.

This company, an icon in the chemical industry that shall remain nameless to protect the innocent, asked Ben to participate in a half-day executive retreat. The role was to make a presentation to the CEO and her or his top echelon on the topic ofexternal focus. This is a core expertise for Ben, to which he has devoted a considerable part of his professional life. He even wrote a book or two about it.

What followed was a series of calls and emails in which at least two VPs told him what to tell the CEO and his or her lieutenants, how to tell it, and, most important, whatnotto dare tell her or him. He turned this "opportunity" down, naturally, but it got him thinking.

We all assume that top executives are enlightened masters of their own fates. They're knowledgeable, smart, and well-informed.

Related:The 2 Business Obsessions You Need to Ignore

Well, they may be knowledgeable and smart, but in some companies, they're definitely not well-informed. In such companies, the information reaching the top of the top is totally and absolutely controlled, filtered, massaged, and directed by the subordinates. The CEO and others at the top of the information chain live in the dark as to what's really happening there.

But executives can't exercise their skill at competing without strategic intelligence. If middle management isn't allowed to deliver intelligence to the top, executives will do the equivalent of running on mountain trails at night while wearing a blindfold. You can run, you can even win a race, but at great and unnecessary risk.

Which brings us back to the topic of competing as a skill. The ability of a company to compete depends on a relatively unfiltered flow of strategic intelligence reaching the decision-makers who can act on it. Decision-makers don't need to knoweverything,but they do need to knowsomething.They need at least a trickle of truth and insight. Some amount of filtering is to be expected. The internal competition among employees for the attention of the leader -- and by implication the power and resources that come with this attention -- is part of the skill of competing among individuals. But theratioof competing internally to competing externally should be kept within reasonable limits.

That ratio is what we call the Neurotic Index (NIX). While scientists and statisticians haven't yet found a rigorous way to measure this ratio, we can think of ways to assess it.

Most managers recognize the state of neurosis in their companies. Let's assume that the NIX measures the focus on competing externallyvis-à-viscompeting internally. We can operationalize the NIX as follows:

NIX = effort and energy devoted to acting on intelligence reaching the topdivided bythe effort and energy devoted to filtering informationfromreaching the top.

On a scale of 1 to 100, how would you rate your company? The true number may not matter – what does matter is that you acknowledge the problem and attempt to fix it.

Overcoming denial and neurosis

One effective method to help overcome a tendency to filter inconvenient information is to create a community of practice (COP). COPs are groups of like-minded managers and experts sharing perspectives on issues without filters.

These informal flows of information don't compete with or replace formal channels, so they don't threaten the existing power structure. Instead, they empower middle management and, if used well, provide top management (CEO, business unit presidents, general managers, etc.) with sensible, usefulcontextto competitive developments.

Related:Strategy Vs. Execution: Which Is More Important to Your Company's Success?

COPs thrive only if they're allowed to discuss issues freely without "supervision" and censorship. They need a positive, unorthodox-idea airing, left-field-watching attitude. Those who run COPs must gently, patiently, and invariably guide them away from griping and complaining. They can even grow into communities of collaboration, which take the discussions to the higher level of actual projects.

For executives, tapping into an informal group lower in your organization is sound advice. If you want to stop the problems that have been festering, the fat that has been accumulating, and the waste that has been piling up in your company, the COPs can help – but only if you listen to what they have to say.

Mark Chussilis the coauthor ofThe New Employee Manualand founder of Advanced Competitive Strategies, Inc. He’s a pioneer in business war gaming and an expert in competitive strategy, strategic thinking, and strategy simulation. His essays on competitive strategy have appeared on his ACS and Linkedin blogs, Entrepreneur.com and in Harvard Business Review. Mark has helped Fortune 500 companies across many industries add billions of dollars to their bottom line, and he is also an adjunct instructor at University of Portland's Pamplin School of Business.

Editor's Pick

Related Topics

Business Process

Avoid Costly Mistakes and Protect Your Business With These Tips for Combatting Misinformation

In a world where misinformation poses increasing risks for owners and businesses, it's important to be armed with the right strategies and tools in order to avoid perils and minimize damage.

Business News

Former PR Exec Accused of Involving Celebrities in 'Fictitious' Campaigns Pleads Guilty to Defrauding Victims Out of $3.8 Million

Andrew Garson pled guilty to one count of wire fraud and agreed to pay $3,754,068 in restitution to the victims of his crime. His sentencing is scheduled for February 28, 2024.

Devices

Pick up a Refurbished Apple iPad Air with 4GB RAM for only $279.97

Save 55% on this refurbished Apple iPad Air for a limited time.

Marketing

5 Communication Hacks to Capture Your Gen Z Audience

Engaging with Gen-Z requires a fresh and authentic approach. Let's navigate the digital world of Gen-Z and elevate your brand's communication strategy.

Business News

Colorado's Football Team Was Robbed at the Rose Bowl, and Coach Deion Sanders Wants Reimbursement

At a press conference, the former NFL and MLB superstar and now college coach asked the NCAA to 'do something.'