When good businesspeople lose their bearings in politics
Recent, surprising anti-business votes from new SJ CMs Casey and Mulcahy may provide some insight into the hazards of successful businesspeople making the jump to politics. Steve Keating provides advice in LeadToday on how businesspeople can keep their bearings under pressure.
History is rife with examples of good companies, even great ones, that were excellent right up until they were bad. At least it seems that way. The truth is, they were good right up until the point they slowly began turning away from the principles and practices that made them good. Companies rarely turn from good to bad overnight. It’s a decision here and a tough break there that add up over time. It seems common that when the slide begins it picks up speed until the momentum towards bad becomes hard to stop.
But great companies with great leadership can and do stop that negative momentum. They turn it around and use it to become what they once were or even better.
Leadership is crucial for the success of any company. Ineffective or unethical leadership can lead to poor decision-making, mismanagement, and a toxic work culture that erodes a company’s foundation. Make no mistake about this fact…company culture begins and ends at the top of an organization. It cannot be delegated to teams or committees. Everything, absolutely everything a top leader says and does has an effect on the culture of an organization. People are always watching and listening. When the words and the actions of leadership are not in sync the people notice. And culture suffers mightily.
Poor financial decisions, including excessive debt, overexpansion, or misallocation of resources, can drain a company’s financial health and lead to insolvency. Once again assumptions play a critical role in financial decisions.
Companies that prioritize short-term profits at the expense of long-term sustainability may make decisions that harm their future prospects. This can include cost-cutting measures that compromise an organization’s talent pool, product quality or investments in research and development. But…profits matter and balancing the need for profits today versus long-term profit down the road is one of top leadership’s biggest challenges. I do not envy them that responsibility.
Economic recessions and downturns can impact a company’s revenue, access to credit, and consumer spending. Companies without a strong financial cushion or contingency plans may struggle to survive during such times. Economic downturns can be torturous for senior leaders because it may mean letting some of their people go. If you ever find yourself in the role of someone who has been “rightsized” or “downsized” then know that as brutal as it is for you it’s likely been a brutal experience for your senior leaders as well. Put simply, it just sucks, for everybody.
Read the whole thing here.
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