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What is HiPPO effect

Measuring the Effectiveness of Organizational Development Strategies During Unprecedented Times
The HiPPO (Highest Paid Person's Opinion) effect is a phenomenon where the opinion or decision of the highest-paid person in an organization carries significant weight, regardless of its validity or feasibility. This can lead to a lack of innovation and stifled creativity within the company.
Published in Chapter:
Taming the HiPPO (Highest Paid Person's Opinion) With Agile Metrics and Value Management
Chabi Gupta (School of Commerce, CHRIST University, India)
DOI: 10.4018/978-1-6684-8392-3.ch013
Abstract
If the organisation's ecosystem has an excess of HiPPOs, data, measured analytics, and other real-time information that minimises uncertainty can help them mitigate the consequences. They disregard the wisdom of the crowd, overlook the front-line staff's abilities, and risk disengaging the workforce. This research advocates agile metrics and value management to tame the HiPPO. The authors posit to reign in opinions with metrics. The corporate enlightenment brought about a revolutionary idea over three centuries ago: to elevate science and knowledge above magical thought and mysticism. When the authors convert this into modern terms, they are referring to data-driven management, analytics, and hypothesis validation. In fact, the idea of applying science in the form of true evidence, confirmed data, etc. to production processes underlies much of the industrial revolution.
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