Einstein once commented that; “Logic will get you from A to B. Imagination will take you everywhere.”
To win in times of accelerating economic reformation, requires leaders to think differently, be open to new ideas and build teams that are embrace the future without unnecessary ties to the videotapes of yesterday.
Ask any CEO if they knew then what they know now, what would they have done differently? Universally, the answer is, move faster and demand it of their organization.
“Think Different” was Apple’s slogan that signaled its turning point… new partnerships, products and followers forging a culture of speed and game changing products and unmatched innovation. While Apple has morphed, as all companies do, it still prizes continual renewal. In fact, its board, like that of Netflix and Green Mountain Coffee, believes that accelerating change will reward their shareholder.
GEARING TO SCALE THE FUTURE
Why do major global players with the advantage of resources fall behind competitors with less scale?
It boils down to leaders who either believe the future can be “engineered” and those who place an emphasis on a culture driven to invest in defensible advantage.
In too many cases, leaders, have accepted the “me too” proposition of “big is better,” believing it provides insolation or perhaps, a false sense of insurance, from event and creates share price appreciation. If that is the case, then why do #1 players like a Wal-Mart among many others, fail to deliver dollar on dollar value?
Here’s a more concrete example.
A leading global consumer service’s strategy is geared toward capturing category market share. Today, the company is executing at a high level improving its cash flow and earnings. Investors, though, were not impressed and believe that the CEO is not moving fast enough. Two activist groups are pushing the board for more than, “small ball.”
The point is that “big and entrenched” at the margins may inhibit rather than accelerate wins.
If your organization isn’t embracing and shaping differential change, be sure that your competitors are. In the new economy, market leadership is achievable without the invested scale of a laggard infrastructure geared to the ways of the past.
**COMMIT TO A QUESTION & EXPERIMENT CULTURE
Voltaire commented that; “one should judge a man by his questions rather than his answers.”
For CEOs, this translates to continual curiosity i.e., figuring out how to balance managing today while creating first advantage value via building or adjusting the priorities and culture around these propositions. Admittedly, this is not easy especially having to address the business model entrenchment of the “not invented here” syndrome.
Yet, with quality leadership driving change and with a supportive board (yes, they must be in sync), CEOs can deliver upward shareholder value …monitored and critically evaluated.
Coca Cola took a bold step with New Coke and it failed. It didn’t stop taking bold future steps. Warren Buffet, who sits on its board, speaks often about how impressed he is with Muhtar Kent and his strategy streamlined leadership.
THE BOTTOM LINE…SEEK LEADERS WHO LEARN AND EMBRACE ACTION
Change leadership isn’t easy.
The short term demands progress and performance which too often offset the necessary investment of treasure and talent gearing to the future. Yet, closing the gap on future value is a critical part of any CEO’s responsibility.
What are the leadership characteristics of those who embrace the future and successfully press their cultures to “bend to value” while meeting the expectations of today?
The best change leaders are inquisitive and seek a wide spectrum of opinions and assume few givens. These CEOs recognize their leadership pivots by walking around inside their company and outside… listening to their stakeholders without being defensive. They imagine. These CEOs demand the same vigilance by their executives on immediate and longer term challenges, regardless of their operational or functional responsibilities.
In assisting our clients who are seeking change leaders, we encourage them to think seriously about “ungluing.” Investing in leaders to shape the future is never a safe bet. It’s tricky. This is why companies led by CEOs with responsible but visionary attributes fully supportive by their boards, win out.
About us…The Koblentz Group is a global executive and board of director search firm specializing in recruiting senior leaders and corporate directors. Over the past 30 years, its Partners have successfully conducted several hundred “sensitive matter” board recruitments for public companies, investor owned and private concerns. The Firm serves its clients worldwide.