Marc Benioff, CEO of Salesforce says frequently, “Speed is the new currency of business.”
I say yes, of course. But at what cost?
Yes, we must all be agile, nimble and able to pivot quickly but how has this intense focus on responding to emails 24/7 and making quick decisions, cost us in terms of the quality of our decisions?
I’m pleased to see Dominic Barton, Global Managing Partner of McKinsey, and his colleagues have analyzed the benefits companies realize when they take a long-term perspective.
Today, our world is moving faster than ever. This pace and intensity requires leaders to be more grounded in the long-term view, what is important to them as individual leaders and what is most important to their organization, shareholders, their customers, their suppliers, and their employees. This grounding allows them to be agile while still making decisions in a consistent, disciplined manner.
McKinsey’s research indicates the increased value delivered by organizations with a long-term focus in terms of revenue, earnings, and economic profit translated into higher market capitalization: organizations with a long-term focus added $7 billion more in market capitalization on average than other firms between 2001 and 2014.
See their full report here by clicking here:
We have all been subjected to poor quality decisions made in haste. The world is moving faster than anyone could have imagined, even a decade ago. Strategic Planning is done in 18-month increments because none of us can predict beyond that short amount of time. Because of this intense pace, leaders need the structure, discipline and accountability that occurs when they hold a long-term perspective.
I have seen the high cost that these short-term decisions made on the potential long-term success, as well as the current environment related to people, productivity and focus. Front-line leaders lose too much sleep when they experience unnecessary volatility in their focus. The world around us presents volatility everyday. However, if leaders can maintain a long-term perspective, we can minimize this disruption to our people and our progress.
When a team takes on an 18-month project to build a better mousetrap and those team members sacrifice the quality of their lives and their time with their loved ones to purse their passions inside of this project, they do not take drastic change well.
When C-level leaders have a narrow perspective focused on this Quarter or next Quarter they tend to make volatile decisions that impact the viability and success of these longer-term initiatives.
A short-term focus invariably diminishes morale and employee engagement. Productivity, profitability and long-term success all take a hit as a result.
If I could dictate one thing to ever leader on the planet it would be to prescribe one hour of uninterrupted think time for every person currently in or aspiring to be in any kind of leadership role.
With this one-hour of strategic think time each day, consistently taken, leaders would start to have greater awareness about the red flags and key indicators that are always present but often overlooked.
This one practice would move leaders out of a frenzied and reactive mode into a strategic mode with a long-term focus, a broader perspective and a more consistent leadership style.
We must consider the unintended consequences of our actions and reactions. We cannot achieve a broad perspective without regular intervals of high quality solitude to think and then act strategically with a broad perspective about our long-term vision and goals.
Our economy depends on leaders who make decisions based on a longer-term perspective. McKinsey’s analysis indicates the organizations that held a longer-term perspective added nearly 12,000 more jobs on average than other organizations between 2001 and 2015.
Had all organizations created as many jobs as these longer-term focused organizations, the US economy would have added more than five million additional jobs over this period.
This suggests a potential value to our economy of more than a $3 trillion through 2025. This significant potential can be realized if we can support leaders in giving themselves the gift of regular intervals of strategic think time.
Katharine Halpin has been facilitating transitions in organizations of all sizes since 1995. She founded The Halpin Companies to fill a void she saw everyday in her CPA career. “Transactions and transitions fail to accomplish the forecasted shareholder goals simply because no one is focused on harnessing the power of the original enterprise. Legal and Financial goals become the focus. By focusing on leveraging the original enterprise by getting the right people in the right roles focused on the right priorities, organizations can grow by a factor of 200% to 300%”.
Katharine and her team have amassed a suite of tools and proprietary methods to exponentially increase shareholder value during a transaction or transition.
For a complimentary consultation, Katharine can be reached at 602-266-1961 or via email [email protected] To buy Katharine’s e-book about building in these reserves of time to think strategically, click here.