The HiPPO Effect: When Opinions Feel Like Orders

Innovation managers have seen the impact of the "HiPPO" effect in corporate environments where decision-making is often driven by the opinion of the highest paid person. This can be problematic when decisions are made without sufficient data analysis or consideration for different perspectives. The HiPPO effect can lead to premature closure of options and the hardening of false constraints. The article suggests that one way to address this is through quantifying the Cost of Delay, which can help companies to assess the value and urgency of initiatives, identify uncertain parameters, and validate or invalidate assumptions about value.