Terrific book by Jim Collins worth reading by every business leader – How The Mighty Fall I just wish he published more often… Five Stages of Decline: Hubris Born of Success Undisciplined Pursuit of More Denial of Risk and Peril Grasping for Salvation Capitulation to Irreverence or Death “The concept of hubris is defined as […]
Without a plan your business is a like a tumbleweed blowing in the wind. You don’t know where it will end up and the course it takes to get there is subject to the whims of other forces. Unfocused effort only ever leads to frustration, miscommunication, wasted effort, poor financial decision making, unnecessary stress and less than optimal results.
One of the most frustrating and disheartening things that someone in my position has to deal with are leaders who have a tendency to ignore reality and follow a flawed strategy or other key decision off a cliff. Pride almost always gets in the way as he/she thinks that changing course would represent failure or unnecessary pain. Usually there is a difficult decision that has to be made about people, finances or the current business model (sometimes all three). The inability to make these types of decisions tends to lead to one outcome – failure. A reasonably competent leader may delay the timing but the end result is inevitable.
It is surprising and frustrating how many business leaders simply make it up as they go along. Entrepreneurs typically start with a core idea and then if they are lucky have some initial success which requires them to actually build a business delivery model. Most of them then get bogged down in the day to day operation and fulfilling their product/service promise to their customers. Since most companies typically start out undercapitalized and growth eats cash, they also get caught up in basic financial issues which can be a major leadership distraction. Next thing they know they have a company on their hands and employees who expect to have a boss with a clue about the future and a strategic plan of action. It can all be very challenging and easy to fall into a survival rather than success mode.
What strikes me the most is how many organizations view planning as an event to get through rather than the impetus for an ongoing strategic dialogue that is critical to long term success. When it comes to planning, you are never done, just sharpening your focus and increasing your performance capability as you go along.
One of a leader’s primary jobs is to constantly pay attention to the marketplace and make changes as needed. Markets are dynamic not static and as a result are constantly reinventing themselves. What worked yesterday won’t necessarily work tomorrow. Especially in the current economic environment you need to keep your options open and be flexible and opportunistic as needed. Sometimes you need to be willing to fish in another pond, try another rod and/or use different bait.