Pride can be a significant leadership obstacle in business.
Imagine if someone was rushed to the Emergency Room of a hospital with severe symptoms of something wrong, only to tell the doctor that it was no big deal and then selectively share information about their actual physical state. You would think this person was irresponsible with their health (and the hospital’s resources). This constantly happens in business. Leaders let their pride and ego get in the way. It prevents them from being forthright and honest when they most need to be. I have witnessed numerous businesses collapse unnecessarily due to a leader’s inaction, reluctance to seek assistance, and aversion to confronting reality. Avoidance never works as a business (or life) strategy.
I have learned to listen skeptically when I hear someone say, “It’s no big deal,” “We’ll be okay,” or “Failure isn’t an option.” Like a body with vital signs, a business has key performance indicators that show when things are okay and when something is wrong.
- If the numbers don’t add up, you are in trouble.
- Your pricing and business model must reflect market realities.
- You can only operate for so long with negative cash flow.
- Continued growth and investment without any real profit only deepens the hole.
- You can’t continue to spend more than you earn.
- At a certain point, some debt loads become unbearable.
As the owner of a company that has been around for more than a few years, if you must put your own money into a business to keep it solvent, your business model has a major problem. Of course, there may be extraordinary situations where this could happen, but it should be the exception, not the rule. If a bank refuses to lend you money or extend your line of credit when needed, you should pause and consider your actions. Sadly, I’ve seen individuals lose all the wealth they have saved over a lifetime trying to bail out a business that was in crisis mode, unsustainable, or that shouldn’t have been saved. Unfortunately, this scenario happens more often and quickly than you think.
Every business experiences a setback at some point, which is a natural occurrence. The sooner you see the change coming and own up to your circumstances, the better. The numbers don’t lie unless you manipulate them. The good news is that many resources are available once you decide to come clean about your circumstances. More people than you think have a stake in your success. It could be your professional advisors, bank, business colleagues, peers, strategic partners, friends, long-term clients, and even management team members. Most people will want to help you if you cut through the BS, tell them the truth, and ask for help.
Don’t let your pride become an obstacle to your survival or an impediment to your success. There is a difference between being self-reliant and being reckless. At times, it’s necessary to embrace vulnerability and lower your defensiveness. I’ve yet to see a business problem that can’t be solved if you have enough time to solve it and the right people working on it. The answer may not be what you want, but it’s better than no answer or letting someone else decide your fate. Your pride can, and will, get you in trouble if you are not careful.
Related articles
- Focus on the Good Of The Group and Keep Egos in Check (capacity-building.com)
- Key Performance Indicators (sophisticatedfinance.typepad.com)
- Leading By Example (ivythesis.typepad.com)
- SMEs: How to weather a recession (xlntelecom.co.uk)