Courageous Decision Making – Quit Being a Wimp and Lead
Waaah. The economy. Waaaaah. Boo hoo. Woe is me.
Stop. Right now. Stop.
Tough times like these demand leadership. I’m sick of hearing how organizations are “hunkering down” until the storm passes. Guess what people? It won’t start to pass until leaders like you make decisions that take us toward a solution.
Of course there’s a balance between being conservative in case the environment worsens and making bold decisions and taking on their associated risks. My argument is simply that we’re doing all of the former and very little of the latter.
The fix to all of this begins with you. The leader. Everyone (your team, your peers, your boss, your business partners, your competitors) is looking at you to see what you’re doing and how you’re acting in this environment. It’s the business equivalent of monkey see, monkey do. If the monkey sees you hiding under the banana tree, they’re going to hide too.
Why is this so important? Because courageous organizations who are aggressive when others are scared are the ones that will kick everyone’s butt when things get better. We’ve told you before that as a leader you have to make decisions (the 4 D’s of decision making) and doing nothing is not an option.
So how do you snap out of the funk? Three steps.
The Only FUD You Should Tolerate is Elmer
FUD (Fear, Uncertainty, and Doubt) can wreak havoc on an organization. It’s paralyzing. Think about why you’re still afraid of the dark (c’mon, admit it). It’s because you don’t know what’s in that big scary walk-in closet at your McMansion. But when you flip on the lights, things are all better.
Your organization is looking at the market as a big dark scary room. Your job is to flip on the lights. How, you ask? Do a fact-based and practical risk assessment. Get everyone in a room and get all their fears and nightmare scenarios listed on the whiteboard. From there, systematically analyze each risk in terms of both impact and probability. This exercise will help turn on the lights and show the folks around you that there aren’t as many realistic bogeymen hiding in the closet. Once you reduce the real fear, it becomes easier to act (and focus on Elmer Fudd who is the coolest hunter EVER).
Get Amped Up and Make a Bet
Being pragmatically aggressive pays off. It’s a mindset. Figure out where to summon that energy and drive forward. For me, I constantly remind myself to be aggressive every day. I’m sitting here as I write this listening to some seriously headbanging heavy metal (Pantera, Megadeth, Prong, Metallica, Helmet, Rammstein – if anyone wants this playlist, just email me – it WILL fire you up). Why do I do this? Because it gets me excited and in the right mindset to take action (I used to listen to the same stuff before a wrestling match – talk about needing to be aggressive…). Regardless of whether it’s metal, working out, or jacking some Mountain Dew, whatever you do to get amped up, do it. Inspire yourself to act.
Look at all the initiatives and projects you’re waiting to do. Pick one. Do it. That’s right – I’m asking you as a leader to act. Don’t be a moron and pick the biggest, riskiest one on the list. But do be brave enough to pick one that’s not a total slam dunk.
We just did this at my firm. Sure it would be easy to hunker down and conserve cash. The problem is there’s no cash to conserve if we’re not selling. Given that, we spent a decent chunk of change putting on an event for all our clients, prospects, and friends of our firm. It was big enough that the check was painful to write but not so big that it would crater the company. Guess what? Good things are happening because we took that risk.
As you look objectively at your list of things you can do, which one do you know is a good bet? Make it. You’re a leader. A big part of a leader’s job is managing risk. It’s also generating upside. You can’t win if you don’t play. Get aggressive and take action.
Realize That Acting Now Means Winning Later
People constantly ask me “How’s business?” My response? “AWESOME!” They then say “But you’re a training company. Isn’t training the first thing that gets cut in a tough environment?”
My response? “Leading companies ALWAYS invest in their people regardless of the environment.” It’s easy to say people are your greatest resource. It’s an entirely different thing to act on that. Look at our client list: Abbott, Oracle, Nationwide, Cardinal Health, Heinz, Bain Capital, and others. What do they have in common? They’re all leaders in their industries. Why are they leaders? BECAUSE THEY MAKE SMART INVESTMENTS AND TAKE RISKS EVEN DURING TOUGH TIMES! Oh, that’s right. I just used an exclamation point. I went there and for those of you who know me well, I NEVER go there unless it’s warranted.
Yes, taking those risks requires intestinal fortitude. On the back end, however, those bets pay off for these leaders. While everyone else is emerging from hunkering down and beginning to figure out what initiatives to pursue, these leaders have been ACTING for months. They’re way ahead in the race. They make it hard to catch up to them.
Act. This applies whether you’re a Fortune 100 or an entrepreneur. Leaders in the race never slow down. Sure they can be cautious as they navigate tricky patches but they never stop running. They make it hard for the competition to catch them and they look to extend their lead when their competitors slow down.
In short – get off the dime and lead. Eliminate fear and uncertainty. Make a bet. Build and extend your lead by focusing on the long term. I know this post is a little in your face. You’re not here for me to be nice to you. You’re here because you know I’m going to shoot straight and push you to lead. Now go do it.
What are you doing now to make your organization better tomorrow? What have you seen be successful during tough times? Please share!
Great motivating article Mike. The FUD analogy alone was worth the read! One thing that's always stuck with me from college business courses is how some moguls, like Andrew Carnegie, invested when the economy was down because then he was ramped up to produce when the economy made a turn for the better.
Brian
Awesome stuff as always Mike – it would be good to know if you have practical advice (maybe from your interfacing with Fortune-100's) as to how big companies 'sell' this to investors/boards.
While I'm totally on board with what you are saying, I think a lot of times this kind of strategy gets shot down in board rooms and the C-level suite as 'too risky'.
Thoughts?
Mike:
Concur with you completely except for the word "courage." This should be a no-brainer. This is a must-have tactic.
I cannot imagine what else the business leaders have been doing for past six months or plan to do the next six months. This is the time to invest and be ready for the market ahead of us.
May be I am blinded by the "immigrant" optimism I possess.
Think big — "People" — we have free time on our side to focus on growing our companies
@Guy – I agree that pursuing it as a huge strategy of a ton of big bets will get shot down (and it should). The better approach is a series of smaller initiatives that get tackled sequentially. Once you start demonstrating success, you can move on to bigger things because you have increased credibility and have also generated funding for additional ideas. But let's also acknowledge the culture issue. Some organizations just don't have it in their DNA to be aggressive (and I'd submit they're relegating themselves to mediocrity). For others, being aggressive is a way of life (pretty sure Oracle just bought Sun, right? ;)
Mike – good stuff. Exactly what we are sharing with our leaders…people are watching what you DO not listening to what you say. Being courageous is not easy!
I agree on many levels and appreciate your directness. Individuals look to their leaders to set the tone for the entire organization. Savvy leaders understand employees look at your actions to determine their own. I am working with a client right now who is acting with great courage and intelligence as his company makes bets that will change the face of the company and possibly the industry. He realizes that by the time others notice, he will have taken a significant lead in the field. He is acting with courage and also being very wise about where he invests his energy – both capital and human energy.
Great article post. This is motivating on so many levels. As Peter Drucker once said, "The best way to predict the future is to create it." We can not sit around looking at each other and waiting for it to happen.
Brian F Martin
http://www.brandfasttrackers.com
http://www.brandconnections.com
Thank you everyone—great exchange. I own a marketing consultancy that specializes in top-line revenue growth. We serve small to mid-sized B2B companies. Finding clients with sufficient convection (guts) is a real challenge. From a marketing perspective, those companies who step forward during economic down-turns find themselves stepping into leadership positions—this is a proven axiom that has been validated time and again.
We find that companies that generate revenue growth have good leadership, convection and a will to grow. They succeed because they’re in a competitive environment paralyzed by inaction and risk mitigation. It’s sad that so many companies are content with mediocrity and only play the game within the safe zone. That said their inability to act creates opportunities for those who are not paralyzed by FUD. That’s why the top players club is rather exclusive—it’s hard work to move out of the safe zone and create wealth. I’ve always believed it’s the best game in town and let’s face it—winning is fun.
Robert Middlestetter
Robert@conceptcopany.com
I like your fire and passion. Enthusiasm and creativity overcomes a lot of challenges and this one –economic uncertainty –is no different. I am seeing movement among my clients–back into the game and focused on being better and stronger. As a consultant that works with mid size businesses in growth planning, it is a tribute to them that they are in it for the long hall! There are customers up for grabs, market share to be taken and new ideas to leap frog the industry–if you are ready to leave behind the things that hold you back "I can't find the money" "I don't have the time" "What we are doing has gotten us here so why change?" "We can't reallocate resources to new areas from old areas" If leaders can't find the time to spend on the future–what future will there be for the rest of the organization? We address exactly these types of issues in our blog and I really like yours!
http://www.reynolds-consulting.com/blog
@Robert and @Margaret – thanks for sharing your perspectives and experiences. It's nice to know I'm not alone in carrying this torch of taking risks when the market is in turmoil. I've heard some guy named Buffett advocates the same thing but what the heck could he know – he's from Omaha or something… ;)
Someone called me 'gutsy' for starting a live radio show to talk about small business, economic growth, job creation and education, especially in this economy. I had to denounce my FEAR (False Evidence Appearing Real) and be my own cheerleader. Now my cheerleader voice speaks loudly to encourage entrepreneurs and business leaders to step up and help move the economy from neutral to drive. Stay 'On Track…' for success.
Love the idea of fears on a white board. The trick is getting everyone brave enough to be fearful in front of peers.
Mitigation strategy for that-allow the fears to accumulate on a white board over a few days before the discussion meeting. Let people float in alone to write them down. Take the pressure off and open up candid participation.